This essay discusses the interests of developing countries in World Trade Organization (WTO) agricultural policies. Kym Anderson (1999) recently noted that “The potential gains from further liberalizing agricultural markets are huge, both absolutely and relative to gains from liberalizing textiles or other manufacturing, according to recent GTAP modeling results.” That should not surprise us, since, as will be noted below, much of the world's agricultural output is produced in the wrong places. Anderson goes on to note that “The prospective new millennium round offers the best opportunity yet for developing countries to be pro-active in seeking faster reform of farm (and textile) trade by OECD countries. In return, the developing countries will need to offer to open their own economies more. Fortuitously, that too is in the economic interests of rural people in poor countries.”

My essay is divided into four parts. First, I will provide the background on events that have led to our present situation. I will of necessity paint with a broad brush in doing this, but the background is important to indicate why we are where we are, and to understand some of the issues that will have to be overcome to move forward. Second, I will discuss a couple of conundrums in international trade negotiations that continue to be a puzzle. Third, I will discuss some of the specific issues on the current international trade agenda that need to be addressed if we are to make more efficient use of the world's agricultural resources and to address the serious problems of poverty in the developing countries.