Bridges Weekly Trade News Digest • Volume 8 • Number 36 • 27th October 2004
Informal Agriculture Talks Reveal Members’ Differing Priorities
WTO delegates met in an informal meeting on 25 October to exchange of views on the way forward in agriculture negotiations, focusing on technical issues to be addressed in the next special (negotiating) sessions of the Committee on Agriculture (CoA). Chaired by CoA regular session Chair Roald Lapperre (Venezuela), the meeting was open-ended and attended by delegates from all groups in the agriculture debate, including the EC, the G-20 developing countries, the G-33 group (favouring special products for developing countries), the G-10 group (comprising agriculture importers), and the Africa Group. Reportedly, the very informal meeting initiated by New Zealand revealed divergences among Members in terms of which technical issues first to address. CoA special session Chair Tim Groser has suggested that Members focus on a range of technical issues in the forthcoming negotiating sessions (see BRIDGES Weekly, 13 October 2004).
Export competition, domestic support developing country priorities
Many developing countries indicated that they wanted to see what developed countries were willing to concede on export competition and domestic support before proceeding to address issues such as the special safeguard mechanism (SSM, protecting developing countries from import surges), which are contentious among developing country delegations. The Philippines stressed the SSM as a priority, while Costa Rica underscored the need to address tropical products. Overall, the meeting reportedly saw broad agreement on the need to equally address all three pillars (market access, domestic support and export competition) in forthcoming special session meetings.
The Cairns Group countries said their priorities were to address: tariff escalation; tariff rate quota (TRQs) administration and expansion; the conversion of non ad valorem tariffs to ad valorem tariffs (tariffs based on the value of the import); export credits; base periods for the Blue Box ("production-limiting" subsidies); and review of Green Box (non trade-distorting support) criteria.
With regard to the conversion of non ad-valorem tariffs to ad-valorem tariffs, one trade source mentioned that delegations were considering the methodology used in the Negotiating Group on Market Access (NAMA). Non-ad valorem duties are prevalent in developed country lists of ’sensitive products,’ and a conversion would, according to one delegate, expose the true nature of protection prevailing in these products. Information on non ad valorem duties is presently often difficult to obtain.
EC suggests discussion of differential export taxes, GIs
The EC proposed issues to be taken up in two parts during the special session meeting in November. In the first part, Members could consider issues related to Green Box review, export credits, food aid and state trading enterprises (STEs), as well as the conversion of non ad valorem tariffs and the SSM. The second part would then focus on ‘new issues’: TRQ administration under the market access pillar; and base periods and de-minimis for developing countries under the domestic support pillar. Under export competition, the EC proposed a discussion of differential export taxes (which encourages the export of value-added agricultural products, while discouraging the export of unprocessed raw commodities). The EC also proposed a discussion on special and differential treatment (S&D) for developing countries.
The EC suggested that the first part of the December special session meetings focus on technical discussion on the ‘new’ issues, and the second part issues not yet fixed, which possibly include, for example, geographical indications (GI).
According to a trade source, the EC suggestion to examine differential export taxes, GIs and de-minimis caught several delegations by surprise. Some responded by strongly stating that these issues had not agreed upon and were outside the negotiating framework. According to the EC representative these issues were clearly included under the rubric of ‘new issues’ under Paras 49 and 50 of the 1 August Decision (WT/L/579). According to one trade delegate reluctant to engage in talks on differential export taxes, these constituted an ‘important policy tool’ for , inter alia, development, food-security and fiscal purposes, and clearly not construed as an export subsidy under WTO rules.
G-20 members meet to coordinate positions
The informal meeting took place on the heels of a G-20 meeting at the Brazilian mission in Geneva on 21 October. According to a trade source, the alliance planned to put forward several negotiating papers before the end of the year, possibly as early as the next special session on agriculture. The submissions will address two key issues from the 1 August Decision, namely, the review of disciplines related to the Green Box and the treatment of designated ’sensitive products’ in relation to tariff reduction commitments. The G-20 will also focus on ensuring substantial reductions in Blue Box domestic support programmes.
The next CoA special sessions are scheduled for 15-19 November and 13-17 December. Canada is expected to convene another informal meeting prior to the next official negotiating session.
ICTSD reporting; "G-20 Group Meets to Plan Submissions for WTO Ag Talks," WTO REPORTER, 22 October 2004.