A last-minute deal in global trade talks at the weekend is intended to lead to the end of agricultural subsidies to farmers in rich countries and bring about more open market access for developing countries.
Following a hectic 48 hours of almost non-stop negotiation, World Trade Organisation members meeting in Geneva signed off in the early hours of yesterday morning on a framework agreement which provides a road map towards the conclusion of the Doha round of trade talks.
Ireland and other EU nations, the US, Japan, Australia, Canada and New Zealand all bit the bullet on agriculture and accepted that $300 billion in subsidies to farmers in rich countries will have to go if the World Trade Organisation's multi-lateral trading system is to survive.
According to the World Bank, this now paves the way towards an injection of $3 trillion into the world economy once the Doha round is completed in the next two years and implementation gets under way. The expectation is that this will lift millions of people in developing countries out of poverty with the opening of market access for farmers.
The Minister for Agriculture, Mr Walsh, pronounced himself satisfied with the outcome, particularly the protection the agreement will continue to afford to sensitive products such as Irish beef and dairy exports and domestic support payments to farmers decoupled from production quotas.
Before leaving Geneva he gave his seal of approval to the deal at an EU heads of delegation meeting. Mr Walsh said he was satisfied that it did not threaten the benefits to Irish farmers of the recently negotiated reform of CAP, and protects Irish interests in the EU while providing "a satisfactory framework for the future WTO negotiations that will take place over the next year or so".
The Doha round, which is supposed to give special consideration to the needs of developing nations, has been in difficulty since acrimonious failure of ministerial level talks in Cancún, Mexico last September. It originally got under way in Doha, Qatar, in 2001.
The weekend's framework agreement was hailed as "a rare combination of social justice and trade coming together" by Brazilian foreign minister, Mr Celso Amorim. He was a key figure in the final tense negotiations on the draft text along with counterparts from the rest of the so-called Five Interested Parties, the EU, the United States, Australia and India who came up with a critical last-minute deal on agriculture which proved acceptable to all 147 WTO members when they met late on Saturday night.
Overseas development aid of $50 billion annually pales by comparison with the economic boost developing countries could receive from a successful conclusion to the round.
However, negotiation on many remaining difficult elements of the Doha round are set to resume in September, and these will cover issues such as services, reform of dispute procedures and intellectual property protection.
"Today's news is that the Doha round is back on track. In Cancún I said the round was in intensive care. Today, it's not only out of the hospital but well and running," said a tired but satisfied EU Trade Commissioner Mr Pascal Lamy, who steps down later this year.
The agreement was hailed by the WTO director general, Dr Supachai Panitchpakdi, as a "historic breakthrough".
He went on: "For the first time, member governments have agreed to abolish all forms of agricultural subsidies. They have agreed to substantial reductions in trade distorting domestic support in agriculture. As part of this agreement we have achieved a significant breakthrough in cotton trade which offers great opportunity for cotton farmers in West Africa and throughout the developing world."
The Irish Farmers' Association warned last night that the Government would have to be vigilant in working out the detail of the WTO framework agreement or it could have serious implications for agriculture.