Transcript Slide 1

Negotiations on Agriculture
State of Play
by
Surabhi Mittal
WTO &The Doha Round : The Way Forward
6-7 April, 2006
Hong Kong Declaration: Key Decisions
• Export subsidies will be eliminated by 2013, but this
date is confirmed only upon completion of modalities.
• Export subsidies on cotton to be eliminated by the end
of 2006.
• Developing countries can self-designate products as
special products (SP) guided by indicators based on the
criteria of food security, livelihood security and rural
development.
• Developing countries can recourse to Special Safeguard
Mechanism (SSM) based on import quantity and price
triggers.
25 years of ICRIER - Linking India to the World Economy
Domestic Support
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Status
Three bands of reduction in
final bound total aggregate
measure of support (AMS) and
in overall cut in trade
distorting domestic support
(TDS).
Higher linear cuts in higher
bands.
Some convergence for overall
cut and in product specific
and non-product specific de
minimis limits.
Criterion laid to agree on
blue box support to lie
between 2-5% of aggregate
total value of agricultural
production .
Green Box criteria to be
reviewed
Issues
• Overall cut in TDS (amber box +
de minimis + blue box) with
20% in first year and more later
by Tiered Formula
• Additional effort in AMS
reduction by developed country
members in the bottom band.
• Reduction in de minimis for
developed countries.
• Time frame and cap to be
discussed on Blue Box.
• Need to strengthen criteria on
blue and green box to prevent
box shifting.
25 years of ICRIER - Linking India to the World Economy
Export Competition
Status
• Elimination of all forms of
export subsidies and
disciplines on all export
measures with equivalent
effect to be completed by the
end of 2013.
• The disciplines on export
credits, insurance
programmes, exporting STEs
and food aid to be completed.
• To ensure that trade-distorting
monopolistic practices of STEs
are eliminated.
• A “safe box” for bona fide
food aid to be provided to
ensure that there is no
unintended impediment in
dealing with emergency
situations.
Issues
• Some convergence on
disciplines on export credits
but number of critical issues
remained, including: possible
exemptions to the 180 day
rule.
• Differences regarding the
scope of practices to be
covered by the new disciplines
on STEs.
• What type of food aid is to be
permitted in non emergency
situations is also still unclear.
• African and LDC’s want that
safe box is used as for
emergency food aid and should
not be under any disciplines.
25 years of ICRIER - Linking India to the World Economy
Market Access
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Status
Four bands for structuring
tariff cuts recognized.
Convergence on a linearbased approach for cuts
within bands
Tariff escalation to be
addressed through a formula.
Focus is on sensitive
products- partially shielded
from any tariff cutting
formula.
SP and the SSM shall be an
integral part of the
modalities and the outcome
of negotiations in agriculture.
Issues
• To agree on thresholds, tariff
cap and its size.
• Deeper cuts in higher tariffs
should be progressively.
• Formula to address tariff
escalation.
• Will SP also have automatic
access to the SSM?
• Basis for the quantity based
and price based SSM be
calculated.
25 years of ICRIER - Linking India to the World Economy
Country Positions
EU
USA
•Pressing for more concessions •US is not willing to reduce
from developing countries like domestic support to protect
Brazil and India on Industrial
its farmers.
tariff and services.
JAPAN
•Japan has taken a
protectionist position in
agriculture.
•Japan is against tariff cap.
Developing Countries
•India supports taking DDA
forward but is not ready to
go an extra mile on NAMA
and agriculture.
•G33 proposal contain some
specific values on SSM, but
nothing agreed on.
25 years of ICRIER - Linking India to the World Economy
Road Block
• EU, US and Japan: Demanding deeper cuts in industrial
tariffs and then willing to offer reduction in support on farm
products.
• Developing countries waiting to see the magnitude of the
reduction that EU, USA and other DC’s are ready to offer in
agricultural subsidies.
• The key question is to how to reach a right level of
convergence on three issues -Agricultural Domestic Support,
Agricultural Market Access and NAMA to move forward.
• To unblock agriculture:
• US need to move forward on domestic support
• EU on market access
• India and Brazil and other big developing countries need to
show greater flexibility on industrial goods.
25 years of ICRIER - Linking India to the World Economy
Timelines
• Next session for Agriculture
Negotiations begin on April 18, 2006.
• April 30th, 2006 is the deadline to
finalize modalities both for
Agriculture and NAMA.
25 years of ICRIER - Linking India to the World Economy
Thank you