All forms of export subsidies on agricultural products will be eliminated by 2013, agreed all WTO members at the sixth ministerial conference which closed in Hong Kong Sunday.

The final result came through vehement argument and compromises. At first, developing countries called on developed countries to completely eliminate export support measures by 2010, but the EU insisted to set the end date at 2013.

Agriculture is the key of the Doha Round talks which started in 2001 and the most difficult part.

Though accounting for less than 10 percent of world trade, agriculture remains the sector containing most trade distortions, and the Uruguay Round's promise of liberalization in the rich countries has yet to be fulfilled.

As the major source of export income of most developing countries, especially those least developed countries (LDC), rely heavily on agricultural products, the WTO has listed the agricultural trade issue as one of the core issues for the current round of negotiations.

A new World Bank research study indicates that abolition of tariffs, subsidies and domestic support programs would boost global welfare by nearly 300 billion US dollars per year by 2015. Nearly two-thirds of these gains would come from agricultural trade reform, because agriculture is much more distorted than other sectors.

The agricultural negotiations include three major issues -- cutting of export subsidies for agricultural products, reducing domestic support programs for distorted trade and expansion of market access.

Source: Xinhua