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WTO Negotiations in Agriculture A PRESENTATION BY Smt. Anjali Prasad Joint Secretary (Trade) DEPARTMENT OF AGRICULTURE & COOPERATION, MINISTRY OF AGRICULTURE Agriculture in the WTO Multilateral trading rules in agriculture: for the first time in Uruguay Round (1995) to establish a fair and market-oriented agricultural trading system. Re-negotiation mandated one year before the end of implementation period, i.e., year 2000. Current negotiations – a part of the Doha Development Agenda. The Doha Declaration 2001 • The Doha Ministerial declaration comprehensive negotiations aimed at : Substantial committed to improvement in Market Access ; Reduction with a view to phasing out all forms of Export Subsidies; Substantial reduction in trade distorting Domestic Support ; and Special and Differential Treatment for developing countries to be an integral part of all elements of the negotiations…….so as to be operationally effective and to enable developing countries to effectively take account of their development needs, including food security and rural development. The Framework Agreement, July 2004 Result of three years of protracted negotiations – No indication of final dates and numbers Agreement to eliminate export subsidies, reduce & harmonize domestic support, reduce tariffs through a tiered formula. S&D to developing countries to include Special Products, Special Safeguard Mechanism and longer implementation periods with proportionally lower commitments. The Hong Kong Declaration, December, 2005. Incremental Provisions Developing countries with no AMS exempt from reductions in deminimis and overall trade distorting support. Review of Green Box criteria to ensure effective coverage of developing country programmes. Elimination of export subsidies and parallel measures by end 2013 with substantial part by the end of the first half of the implementation period. The Hong Kong Declaration Incremental Provisions contd.. A safe box for bonafide food aid and elimination of commercial displacement, Continuation of Article 9.4, subsidies for developing countries for 5 years after the end date of export subsidy elimination, 4 bands for tariff cuts with different thresholds for developing countries. Self-designation by developing countries of appropriate number of tariff lines as Special Products guided by indicators, Developing countries to have recourse to an SSM based on import quantity and price triggers – precise arrangements to be further defined, A comparably high level of ambition in market access for agriculture and NAMA to be achieved in balanced and proportionate manner consistent with S&DT Modalities negotiations to be completed by 30 April, 2006 Current State of Play Process 30th April deadline for completion of modalities negotiations – missed, Realization among members of the consequences of failure – attempts at serious engagement, Preparation of reference papers by Chairman, Reference paper based discussions in multilateral full membership format, Intensification of Geneva based process with almost continuous negotiations for the next few weeks. No new deadline. Current State of Play Export competition Reference paper based discussions on exporting STEs, Food Aid and Export Credits and Guarantees, Exporting STEs – fair amount of divergence on the definition, treatment of monopoly status and treatment of practices. willingness to consider developing country situations, Food Aid – general agreement on adequate levels of food aid in genuine emergency situations – safe box for emergencies only. strict disciplines on non-emergency food aid. divergence on definition of emergency, declaration mechanism; duration of emergency; extent of reexport and monetization permissible in emergencies. Current State of Play Export competition Export credits and guarantees Convergence comparatively more in this area, Differences on disciplining entities; starting points of a credit; particular circumstances of developing country financial markets etc. Current State of Play Domestic Support Reduction in AMS and OTDS – Blue Box: no convergence on additional disciplines for creation of new Blue Box –– No agreement on rates of reduction and phasing of commitments. No convergence on base periods for product specific caps, proposal for lowering cap to 2.5% of value of agricultural production with less “prescriptive” disciplines – no convergence on new users and new products, Green Box: general agreement on inclusion of developing country programmes which are green wide divergence on any modification in developed country criteria. Current State of Play Market Access Tariff Reduction Formula: thresholds, rates of cut, overall proportionality – no agreement, Developed country sensitive products: convergence on evolving a hybrid approach to the base for TRQ expansion, Tariff cap - wide divergence, Conversion of non-advalorem into advalorem tariffswide divergence, Developing country special products – wide divergence – attempts to discipline indicators as well as numbers. Developing country SSM – wide divergence – coverage, triggers, remedies and duration, SSG – wide divergence Tariff escalation- no convergence Current State of Play Other issues No convergence on modalities for Reduction/elimination of in quota tariffs, Tariff quota administration, Tropical products, Erosion of long standing preferences, Recently acceded members Implications of the trends in the Negotiations Developments so far indicate: reduction in trade distorting domestic support will occur – quantum and time frame to be negotiated. all kinds of export subsidies to be eliminated – time period for elimination will depend on completion of modalities. all countries except LDCs - all commodities to undertake tariff reduction – quantum, time frame and exceptions - under negotiation. Implications of the trends in the Negotiations Reduction in trade distorting domestic support no impact on SAARC countries. Reduction in domestic support by the developed countries may have positive implicationscompetitiveness may improve - international prices may firm up. Elimination of export subsidies - positive implications on our export potential, especially in heavily subsidized commodities such as sugar, meat and dairy products. Transport and other assistance to exports from developing countries – to continue Implications of the trends in the Negotiations Reduction in tariffs will have mixed implications. In some commodities, especially where difference between applied and bound tariff rates is small, the level of protection available will be reduced – increased exposure to imports. Reduction in tariffs of other countriesgreater market access. THANK YOU