World Trade Organization members meeting in Bali recently agreed to adopt multilateral agreements in efforts to reduce trade barriers. The deal should reduce transaction costs and red tape. U.S. Grains Council Chairman and Iowa grower Julius Schaaf says by coming to agreement WTO members remained a viable body.
Schaaf doesn’t see the entire Bali deal has having much of a positive effect for U.S. trade.
He says the India provision is a temporary deal to allow them to develop their agricultural industry and get up to speed. He says however if the subsidies they are allowed become trade distorting, it’s just a step backward for overall trade.
There are remaining domestic subsidy and market access issues that will need to be resolved in future talks.