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State trading and the WTO: Reforming the rules for agriculture

This paper reviews the use of state trading enterprises (STEs) in agricultural trade. The issue is particularly relevant in light of the upcoming multilateral negotiations on agricultural trade reform. Miner suggests that the agricultural trade reform process offers the prospect of a substantial advance in opening markets for farm products and eliminating the use of trade‐distorting support. However, he warns that the potential impact of agricultural STEs on imports, exports and market competitions must be considered. Miner concludes that the prospect for a substantial improvement in market access for agricultural products and the elimination of trade distorting subsidies would be enhanced by the negotiation of additional disciplines relating to the export and import activities of STEs, and their competitive behaviour.