Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
Talks for Global Trade Deal Collapse
Summary: The round of World Trade Organizatin talks aimed at reforming agricultural trade and helping developing countries collapsed. The talks were launched after September 11th, 2001 and named after their initial venue in Doha, Qatar. Observers ascribed the failure to US and European inablity to make workable the promises made at the launch of the talks, in particular the ending of agricultural export subsidies by 2013 and the ending of import duties on agriculatural products from developing countries. The US accused India and Brazil of wanting to keep almost all agricultural trade shielded from competition, while the EU blamed the US. The EU has said that it plans to end agricultural import duties from emerging countries in any case, while the US hasn't decided.
Comment on related stocks/ETFs: Negative for developing countries. But not really positive for anyone. Do we really want a situation where the wealth of industrialized countries is used to subsidise agriculture, leading to aggressive competition with far poorer countries in areas where they may have comparative advantage?