Trade policy initiatives of developed country governments are in flux. Governments’ need for new trade policy measures has arisen partly because of constraints imposed on the use of export subsidies by the Agreement on Agriculture reached as part of the Uruguay Round of General Agreement on Tariffs and Trade in 1994. Further disciplines on export subsidies and other policy measures may be agreed on in the Doha Round of World Trade Organization (WTO) negotiations, accentuating the need for new policy measures. While the Doha Round may not successfully reach an agreement, the current modalities show provisional agreement on the elimination of multiple forms of export subsidies. There is provisional agreement on more stringent restrictions on the use of export credit programs. Controls on exporting state trading agencies’ ability to subsidize exports are tentatively agreed (Furtan, 2005). Food aid, which can also be used to circumvent disciplines on export subsidies, is also likely to be subject to WTO disciplines.


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