An important goal of the Doha Round negotiations is to liberalize trade in goods and services, including agricultural products. With respect to agriculture, new disciplines are being negotiated in three broad areas—domestic agricultural support programs, export competition, and market access—known as the three pillars of the WTO Agreement on Agriculture, negotiated in 1994. The Doha Round negotiations have attempted to maintain a balance across the three pillars by simultaneously achieving concessions from exporters and importers alike in the form of tighter spending limits on trade-distorting domestic support; elimination of export subsidies and new disciplines on forms of export competition; and expansion of market access by lowering tariffs, increasing quota commitments, and limiting the use of import safeguards and other trade barriers. The concessions already tabled as part of ongoing Doha Round negotiations are substantial and would likely have important implications for U.S. farm policy—they would significantly lower allowable spending limits for certain types of U.S. domestic support and eliminate export subsidies, while allowing U.S. agricultural products wider access to foreign markets. This report focuses on the current set of Doha Round proposals—referred to as the draft "modalities" (i.e., specific formulas and timetables for reducing trade-distorting farm support, tariffs, and export subsidies, and for opening import markets)—that relate to agriculture. 113-79 ). Many of the new programs authorized by the 2014 farm bill have yet to be fully implemented, and participation levels are uncertain. In addition, the potential degree of changes to U.S. farm policy needed to comply with a Doha Round agreement under the terms described in Table 1 would likely hinge on market conditions. Under a relatively high price environment as existed during the 2010-2013 period, U.S. program outlays could easily fall within the proposed limits with no or only modest changes. However, if market prices were to decline substantially below support levels for an extended period, then program outlays could escalate rapidly and threaten to exceed spending limits for the OTDS, amber box, and de minimis exclusions. Recent new members of the WTO also would be exempt from new market access commitments. Developing countries can designate up to 5.3% of products as sensitive. Elimination of agricultural export subsidies has been a long-standing objective of U.S. trade policy. Status of the Doha Round Negotiations

By early 2008, substantial progress had been made in the Doha Round negotiations in narrowing or resolving differences in negotiating positions. A "modalities framework" was released in December 2008, in an attempt to lock in the status of current negotiated concessions, while adding detail to outstanding issues as a basis for further, more specific talks. U.S. trade negotiators, Members of Congress, and commodity groups have expressed concern over whether an adequate balance can be achieved between U.S. domestic policy concessions and potential U.S. export gains.
The Doha Round of multilateral trade negotiations, launched in November 2001, has been at an impasse since 2009 and presently shows no signs of restarting, despite an interim agreement reached at the December 2013 Bali Ministerial.
The goal of the Doha Round's agriculture negotiations is to make progress simultaneously across the three pillars of the World Trade Organization's (WTO's) 1994 Agricultural Agreement—domestic support, market access, and export competition—by building on the specific terms and conditions established during the previous Uruguay Round of negotiations. Negotiators have attempted to maintain a balance across the three pillars by simultaneously achieving concessions from exporters and importers alike in the form of tighter spending limits on trade-distorting domestic support; elimination of export subsidies and new disciplines on other forms of export competition; and expansion of market access by lowering tariffs, increasing quota commitments, and limiting the use of import safeguards and other trade barriers. However, as a concession to poorer WTO member countries, the degree of new conditions is to be less stringent for developing than for developed nations.
Substantial progress had been made by 2008 in narrowing differences in Doha Round negotiating positions. As a result, a "modalities framework" (i.e., specific formulas and timetables for reducing trade-distorting farm support, tariffs, and export subsidies, and for opening import markets) was released in December 2008, in an attempt to lock in the status of negotiated concessions, while adding detail to outstanding issues as a basis for further, more specific talks. By 2009, outstanding differences had been reduced to a short list of contentious issues, including designating additional products as sensitive coupled with establishing new tariff quotas, designating developing country products as special and thus exempt from tariff reductions, and allowing developing countries to raise tariffs temporarily to deal with import surges or price declines. However, these differences proved sufficient to deadlock the negotiations.
From the U.S. perspective, a successful Doha agreement (under the current negotiating text) would significantly lower allowable spending limits for certain types of U.S. domestic support and eliminate export subsidies, while allowing U.S. agricultural products wider access to foreign markets. Any assessment of the potential effect of the new domestic support programs authorized by the 2014 farm bill (P.L. 113-79) is very preliminary at this time. Many of the new programs have yet to be fully implemented; thus producer participation is uncertain and program outlays hinge on future market conditions. For example, under a relatively high price environment, as existed during the 2010-2013 period, U.S. program outlays could easily fall within proposed Doha Round limits with no or only modest changes. However, if market prices were to decline substantially below support levels for an extended period, then outlays could escalate rapidly and threaten to exceed the proposed spending limits.
A concern of U.S. trade negotiators, Congress, and commodity groups is whether the draft modalities include too many exceptions for foreign importers (in terms of their ability to restrict imports) to ensure that an adequate balance will be achieved between U.S. domestic policy concessions and potential U.S. export gains. This report reviews the current status of agricultural negotiations and the modalities framework for domestic support, market access, and export subsidies, as well as the potential implications of a Doha Round agreement for U.S. agriculture.