The Role of State Trading Enterprises and Their Impact on Agricultural Development and Economic Growth in Developing Countries

Abstract

The role of state trading enterprises (STEs) is significant for international trade, especially since the Uruguay Round. They account for large shares of world trade in certain products: about 40 percent for wheat and 30 percent for dairy products (WTO, 2000). This article examines the influence of STEs on the development of the agricultural sector in developing countries. During both the Uruguay Round and Doha Round negotiations, there have been serious complaints from developing countries that the operation of STEs is trade distorting and creates serious obstacles to agricultural development.International Relations/Trade,