Bridges Trade BioRes • Volume 4 • Number 11 • 11th June 2004

AGRICULTURE: MEMBERS STILL DIVIDED OVER MARKET ACCESS

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AGRICULTURE: MEMBERS STILL DIVIDED OVER MARKET ACCESS

The special (negotiating) session of the WTO Committee on Agriculture (CoA) convened from 2-4 June for another ‘agriculture week’ in an effort to establish a negotiating framework agreement for the Doha agriculture talks, before delegates adjourn at the end of July for the annual WTO break. In his summary, CoA special session Chair Tim Groser said that market access remained "by far the most difficult" negotiating pillar, while — in contrast — he was already able to draft language on domestic subsidies which would be "80 percent" right. The discussions mainly focused on new proposals tabled by the G-20, G-33 and G-10 negotiating groups. The G-90 of least-developed and other vulnerable countries has not yet presented a revised position, but aims at adopting a joint agriculture proposal at a forthcoming G-90 ministerial meeting in Mauritius to be held in mid-July. Meanwhile trade ministers will convene at UNCTAD XI for a ‘mini-ministerial’, to be held from 13-18 June in Sao Paolo, Brazil. Key actors such as the EU, US, G-20 and the Cairns Group hope to reach internal agreement of the main elements of the framework for the agriculture talks at the Sao Paolo meeting.

G-20, G-33 and G-10 table new proposals

The recent market access proposal by the G-20 group of developing countries, including Brazil and South Africa, which presented general principles of a future tariff reduction formula rather than proposing an alternative tariff cut methodology (see BRIDGES Weekly, 2 June 2004), was generally welcomed by key Members. Also the EC welcomed the proposal although iterating concerns with the lack of detail in particular with regards to how developed countries were to achieve tariff cuts.

For its part, the G-10 — Bulgaria, Chinese Taipei, Korea, Iceland, Israel, Japan, Liechtenstein, Mauritius, Norway and Switzerland — tabled a new informal submission addressing all three pillars in the agriculture negotiations: market access, domestic support and export competition. In its preliminary reaction to the G-20 proposal, the G-10 expressed its concerns including the requirement for developed countries to provide effective new market access also for "sensitive" products without any flexibility to take into account non-trade concerns. However, the group highlighted its preparedness "to discuss various types of tariff reduction formulas". G-10 members such as Japan had previously stated that they would not be ready to accept any methodology for tariff cuts other than the EC and US approach, which could shield some sensitive products from radical cuts.

Indonesia — the leader of the G-33 group of developing countries advocating the concepts of special products (SPs) and a special safeguard mechanism (SSM) — presented a new non-paper on behalf of the group (JOB(04)/65, not yet derestricted) on market access. The G-33 group reiterated in its submission that it was not willing to accept new import quota commitments for developing countries. The group also pointed out that developing countries should be able to self-designate ’special products’ (SPs) which should be exempted from any reduction commitment. The special safeguard mechanism (SSM) to be established for developing countries should automatically apply to SPs. The recent G-20 proposal left most of these issue open.

The next set of agriculture talks at the WTO are to take place from 23-25 June.

ICTSD reporting; "G-90 mini-ministerial adopts comprehensive proposals on Doha programme," TWN INFO SERVICE, 9 June 2004; "US applauds efforts on farm trade talks," AP, 4 June 2004.