Indicators for the Selection of Agricultural Special Products: Some Empirical Evidence
ICTSD FAO Information Note Series • Information Note 1
At the 2005 WTO Ministerial Conference in Hong Kong, Members agreed that “Developing country Members will have the flexibility to self-designate an appropriate number of tariff lines as Special Products guided by indicators based on the criteria of food security, livelihood security and rural development.”
Most of the discussion so far on the selection of special products (SPs) has focused on the need to limit self-designation to a specific number or proportion of tariff lines. Existing proposals range from five individual tariff lines (US) to 20 percent of all agricultural tariff lines (G33). In his communication dated 30 April 2007, the Chair of the Agriculture Special Sessions, Ambassador Crawford Falconer (New Zealand), suggested that an appropriate number of SP tariff lines would be between 5 percent and 8 percent of agricultural tariff lines. More recently, however, several WTO Members have expressed willingness to explore how indicators of food security, livelihood security and rural development could be used as a basis for SP self-designation by developing countries.
The FAO and ICTSD have conducted empirical research to try to shed more light on the practical workings of the proposed special products mechanism. In particular, both organisations have undertaken country studies using a wide range of indicators, in an effort to assist developing country governments to identify the products which might most appropriately be designated as ‘special’. The results of this practical experience are presented below, in the hope that they may be of assistance to Members grappling with this complex yet important set of issues.