Transcript Slide 1

WTO Negotiations in
Agriculture
A PRESENTATION BY
Smt. Anjali Prasad
Joint Secretary (Trade)
DEPARTMENT OF AGRICULTURE &
COOPERATION,
MINISTRY OF AGRICULTURE
Agriculture in the WTO
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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
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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
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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..
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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
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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
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Reference paper based discussions on exporting
STEs, Food Aid and Export Credits and
Guarantees,
Exporting STEs –
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fair amount of divergence on the definition,
treatment of monopoly status and treatment of
practices.
willingness to consider developing country situations,
Food Aid –
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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
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Export credits and guarantees
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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
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Reduction in AMS and OTDS –
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Blue Box: no convergence on additional disciplines
for creation of new Blue Box ––
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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:
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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
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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 
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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
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Developments so far indicate:
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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
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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
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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