European Economic and Social Committee REQUEST TO DRAW UP AN OWN-INITIATIVE OPINION OR INFORMATION REPORT Requesting body: Budget Group meeting: Bureau meeting: Subject: 1. NAT Role of Agriculture in Bilateral and Regional Trade negotiations in the event of continuing DDA impasse Background and objectives of the own-initiative opinion (Rule 29(2)) Depending on the outcome of the 10th WTO Ministerial meeting in Nairobi this December, and assuming that there will be no major break-through, it is recommended that the NAT Section (together with REX) re-examine the role of agriculture in trade negotiations and agreements. As part of the 1994 GATT (now WTO) Uruguay Round Agreement on Agriculture (URAA), it was agreed to start a fresh agriculture Round in 1999, which was widened into the full DDA (Doha Development Agreement) in Doha two years later. However any further multilateral level agreement on agriculture has proved to be elusive. Further failure in Nairobi will place the Doha Round in crisis, with many calls for a fresh start. The level of ambition is very limited in Nairobi, whereby the only expected deliverable is related to rules on export competition, upon a joint proposal by the EU and Brazil, the US remaining opposed to it. The underlying point is nevertheless that the DDA is in real trouble if no way out is found of the current impasse. Any effective agreement on the overall level of global agricultural subsidies can only be reached at a multilateral level, so failure here opens the way for regional agreements, which may ultimately be distorting, or lead to further distorting measures, such as in a future US Farm Bill. Sugar and dairy quotas were agreed in the recently agreed TPP (Trans Pacific Partnership) involving 12 major countries and some 40% of world GDP. Currently other major ("mega-") regional trade agreements are being negotiated - TTIP, EU-Japan, and RCEP (in Asia) among them. Agreements here with any major agriculture content could have a profound effect globally on trade in agriculture, agricultural and processed food products, and potentially kill off any further multilateral progress. Following the latest CAP reform the EU is more open to negotiate on domestic support for agriculture whereas the EU's trading partners still consider this issue as defensive. An own-initiative opinion here would look deeper into the possible consequences of a continuing impasse at WTO level, in particular at the effects on EU agricultural policy and trade, and related Sustainable Development issues, and make relevant recommendations. EESC-2015-06478-01-00-TCD-TRA (EN) 1/4 EN 2. Previous EESC work on the subject, if any The most recent Committee opinion on Agriculture and Trade was adopted in September 2015; NAT/672 "The importance of agricultural trade for the future development of agriculture and farming in the EU in the context of global food security", rapporteur Mr Petersen. The other relevant NAT opinion in this context, "The EU and the global food challenge", dates back to year 2008 (rapp. Mr Kallio). Before that, the subject of trade in agricultural goods was dealt with in the opinion NAT/497 on the Eastern Partnership and the eastern dimension of EU policies, with emphasis on agriculture (rapp. Mr Kallio). Agriculture and trade related opinions have been prepared also within the REX Section: REX/273 Trade and food security, REX/378 EU-Morocco trade relations, REX/272 Agriculture in Euromed. The challenges related to the agricultural sector were touched upon in the EESC opinions on the trade negotiations with the US (REX/390) and with Japan (REX/395) but the complexity of the issues has not allowed an in-depth analysis. The pursuit of Sustainable Development issues in connection with trade agreements has been a regular issue of concern in REX Opinions (including that on the importance of a SD chapter in standalone investment agreements (REX/410). These previous opinions have approached agricultural trade issues mainly either from food security or geographical perspective, but none of them has dealt with the specific role of agriculture in trade negotiations and agreements. 3. Compliance of request with the Committee's political priorities and/or links with current European political developments of particular importance The role of agriculture is core to the work of the NAT Section; that of trade and trade negotiations is core to REX, as well as monitoring of Trade and Sustainable Development chapters in current agreements. 4. Arrangements for involving civil society organisations in the preparation of the opinion A hearing is recommended, with particular emphasis on involving the input from agricultural organisations, relevant business organisations, environmental and consumer bodies. 5. Planned or envisaged institutional follow-up DG Trade, DG Agri and the EP will be core; others will follow. EESC-2015-06478-01-00-TCD-TRA (EN) 2/4 6. Expected impact and potential added value of the opinion in the context of EU decisionand policy-making The future of the Doha Round forms a key part of Commissioner Malmstrom's recent Communication on future EU Trade Strategy "Trade for all"; WTO considerations have been core to the work of DG Agri on CAP reform for many years, notably the 2003 Luxembourg Agreement. 7. Clear interest for civil society The role of agriculture as part of Sustainable Development and trade are of core interest to civil society. 8. Planned or envisaged communication activities to promote the own-initiative opinion or information report To be determined in depth. 9. Financial estimates Financial estimates: – Cost centre: – Participants: ... members (Item 1004) 1st study group meeting (1/2 day) 2nd study group meeting (1/2 day) hearing (1/2 day) 2 individual meetings ... delegates (Item 1008) ... experts (Item 1422) Decision to be taken by the Groups ... other guest participants (Item 2542) – Interpreting (Item 2548): total cost Cost per slot x number of slots x number of interpreters 1st study group meeting (1/2 day): Type of interpreting + Interpretation DG or local 2nd study group meeting (1/2 day): Type of interpreting + Interpretation DG or local hearing (1/2 day): Type of interpreting + Interpretation DG or local – Room hire (Item 2000) – Technical infrastructure (Article 214) – Vehicle hire (Article 216) – Mission expenses (Article 162) (... AD+ ... AST) – Representation expenses (Item 2546) – Expenses for water, coffee, etc. (Item 2540) EESC-2015-06478-01-00-TCD-TRA (EN) 3/4 € … Other (€… x … slots x … int.) = (€… x … slots x … int.) = (€… x … slots x … int.) = – Miscellaneous meeting expenditure (Item 2542) – Communication (Item 2600) – Other (please specify) TOTAL _____________ EESC-2015-06478-01-00-TCD-TRA (EN) 4/4