Bridges Weekly Trade News DigestVolume 9Number 4 • 9th February 2005

WTO In Brief



AGRICULTURE WEEK KICKS OFF WITH HEATED DISCUSSIONS ON PREFERENCES

The first ‘agriculture week’ of 2005, consisting of both informal and formal meetings of the Committee on Agriculture (CoA) special (negotiating) session, began on 7 February. During the first two days of the informal meetings, Members clashed over the issue of preference erosion. Countries that benefit from preferential access to developed country markets, including African, Caribbean and Pacific countries and least-developed countries (LDCs), defended these preferences. They called for the preservation of some level of preferential market access, as well as reasonable adjustment periods and assistance as preferences are eroded. Other Members, however, strongly disagreed. These included several Latin American countries, which cited the need to uphold the WTO’s core principle of non-discrimination. The G-20 group of major developing countries, including Brazil and India, sought to forge a middle way, suggesting that transition periods could help bridge the problems some countries would encounter as a result of agriculture liberalisation.

Members also discussed tariff cuts, subsidy cuts, and export restrictions. Starting on 9 February, Members continued discussions on other items on the agenda. The agriculture negotiations are held in three different settings: in an informal negotiating session open to the full Membership allowing for a first reading of issues; in more focused open-ended technical consultations that delve deeper into the issues; and in small group consultations involving technical experts (see BRIDGES Weekly, 22 December 2004).

ICTSD will provide coverage of the full agriculture week in the next issue of BRIDGES Weekly.

ICTSD reporting; "Developing States Clash At WTO Farm Talks," REUTERS, 8 February 2005.

WTO SUBCOMMITTEE ON COTTON TO HOLD ITS FIRST FORMAL MEETING

The first formal meeting of the WTO’s special committee on cotton will be held on 16 February, Members decided on 3 February.

In November 2004, Members agreed to establish a subcommittee in the negotiating session of the Committee on Agriculture (CoA) dealing specifically with the issue of cotton. The establishment of the subcommittee was mandated in the July Package on the Doha Round (WT/L/579), which states that Members "shall ensure appropriate prioritisation of the cotton issue independently from other sectoral initiatives. The work of the subcommittee, which is chaired by Agriculture Chair Tim Groser (New Zealand), will encompass all trade-distorting policies affecting the sector in market access, domestic support, and export competition (see Bridges Weekly, 24 November 2004).

ICTSD reporting; "Bush plan to cap farm subsidies gets green backing" MSNBC, 8 February 2005. "WTO Sets Date for First Meeting of Special Panel on Cotton Trade" WTO reporter, 3 February 2005.