Developments in the Doha Round and WTO dispute settlement: some implications for EU agricultural policy

Progress in the Doha Round is assessed against the changes tothe common agricultural policy (CAP) brought about by the Fischlerreforms of 2003–2004, and that proposed for sugar. Anelimination of export subsidies could place EU exports of processedfoods at a competitive disadvantage because of high sugar andmilk prices. Provided the single payment scheme falls withinthe green box, the likely new limits on domestic support shouldnot be problematic for the post-Fischler CAP. However, an ambitiousmarket access package could open up EU markets and bring pressurefor further reform. If there is no Doha agreement, existingprovisions will continue to apply, but without the protectionof the Peace Clause; and increased litigation is likely. FurtherCAP reform is to be expected.