WORKSHOP ON MARKET ACCESS IN THE DOHA WORK PROGRAMME Ministry of Foreign Trade & International Cooperation and UNCTAD Guyana, September 2002 WTO NEGOTIATIONS ON AGRICULTURE -Time Frame of Negotiations -Negotiating Positions -Contentious Issues TIME FRAME OF NEGOTIATION 2 2000 - 2001 2000 March 2001 March st (Doha: Nov/2001) nd 1 Phase 2 Phase Submission of negotiating proposal Issue-specific discussions - 45 proposals submitted by 126 countries (85 % of all WTO members) 2002 March - 24 issues discussed - discussions before Doha lacked substance 3 2002-2003 Negotiations on “Modalities” April May June 17-19: July Aug September 2-3: Export competition policies Market Access Oct November 18-20: Follow-up matters 23-25: Domestic Support January 2003 December By 18: 22-24: February MARCH 2003 Early Feb: By mid March: (Circulation of an overview paper prepared by the Chairman) (Circulation of the first draft) Review of options for modalities, based 24-28: on the overview Consideration of the first paper draft (Circulation of the draft modalities) 25-31: Conclusion Establishment of modalities 4 MARKET ACCESS MODALITIES • • • • • TARIFFS TARIFF QUOTAS TARIFF QUOTA ADMINISTRATION SPECIAL SAFEGUARD MEASURES OTHER ISSUES 5 MARKET ACCESS MODALITIES • Item / Parameter Modalities S&D • Product coverage e.g. All agricultural products as per Annex 1 of the Agreement on Agriculture • Base rates e.g. Final bound Uruguay Round rates and other bound rates as per Members' Schedules 6 MODALITIES: Tariffs and TRQs • Reduction method / target for further commitments • Reduction method e.g. Formula for further tariff cuts • Reduction target • Other commitments e.g. With respect to simplification of tariff systems • Implementation period and staging of further commitments 7 MODALITIES: Importing State Enterprises • Scope of entities to which additional/improved disciplines would be applicable e.g. As per paragraph 1 of the Understanding on the Interpretation of Article XVII of GATT and the related illustrative list (document G/STR/4) • Specific disciplines e.g. Relating to the special rights and privileges granted to importing STEs 8 MODALITIES: SSG and Other • SPECIAL SAFEGUARD MEASURES (e.g. Maintenance / modification / elimination of price-based and/or quantitybased Article 5 special safeguard measures • OTHER ISSUES: Trade Preferences Food Security Food Safety 9 NEGOTIATING POSITIONS 10 “Major” Players Export subsidies? Substantial tariff cuts? CAIRNS GROUP Eliminate export subsidies Massive cut in domestic support USA Central/Easter n European countries Domestic support? EU “Multifunctionality” Switzerland Domestic support? Norway, Japan, Korea 11 Substantial and progressive liberalization Flexible and gradual liberalization, taking into account non-trade concerns (Cairns Group) (Multifunctionality group) “Developing Countries” Export Markets better market access less trade distortion Domestic Markets food security, rural development 12 “CONTENTIOUS” ISSUES 13 IMBALANCE between developed countries and DCs “The existing AoA rules seem to bestow S&D treatment on developed rather than developing countries.” (from the Development Box proposal) OECD Market access Tariff peaks and tariff escalation Export subsidies (ES) Domestic support (DS) US$ 13 billion in 2000: - 3 countries accounted for 92 % of total in 1995-1998 (EU-85%, CH-5%, US-1.5 %) - Increased since 1997, due to plunge in world prices US$ 158 billion in 2000: - Accounts for 97 % of total - Increasing use of Green Box measures (e.g. environment and decoupled payment) DCs Unilateral liberalization (i.e. low applied rates) US$ 0.6 billion in 2005: - Total 7 DCs (rest with zero ES) - Few has utilized ES between 1995-2001. US$ 4 billion in 2005: - Total 10 DCs (rest with zero DS) 14 SPECIAL & DIFFERENTIAL TREATMENT How to redress the imbalance? Widen the scope of S&D Developed DCs - more flexibility in WTO rules to meet development need - specific S&D to meet different needs among DCs - review the Enabling Clause ? … or not? - liberalization by all is the best S&D - enough flexibility to meet adjustment needs - S&D should not harm other DCs - no discrimination among DCs UR A o A Liberalizatio n by all? 15 NON-TRADE CONCERNS Should they determine the scope of liberalization? - Multifunctionality of agriculture - Characteristics or objective? - Specific to agriculture? - Are trade-related measure necessary to foster multifunctional nature of agriculture? - Food security and rural development in DCs - Immediate or long-term food security? - How is it linked to trade policies? - Can WTO rules do anything for food security? 16 … Thank you for your attention www.unctad.org/Commdip 17