wto-state of play dec-03

7/30/2019 Wto-State of Play Dec-03

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WTO-AoA NEGOTIATIONS

STATE OF PLAY


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GENESIS

WTO Came into existence on 1-1-1995 with the conclusion of UruguayRound Multilateral Trade Negotiations at Marrakesh on 15thApril 1994, to :

Provide common institutional framework for conduct of trade relationsamong members

Facilitate the implementation, administration and operation ofMultilateral Trade Agreements

Lay down Rules and Procedures Governing Dispute Settlement

Provide Trade Policy Review Mechanism


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Agreement on Agriculture (AoA)

To establish a fair and market orientedagricultural trading system through substantial

progressive reduction in agricultural supportand protection resulting in correcting andpreventing restrictions and distortions in world

agricultural markets.


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AREAS OF COMMITMENTS

Domestic Supporti.e. subsidies byGovernments to domestic producers;

Market Accessi.e. the disciplines on importrestraints and tariffs; and

Export Competition i.e. export subsidiesand other forms of export subsidisation.


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Domestic Support

Green Box - Research, Extension, PDS, Decoupled

Payments etc;

Blue Box - Production Limiting Subsidies ; Amber Box - AMS-subject to reduction commitments viz

- Product specific (MSP)

- Non product specific (input subsidies-fert. Power,

irrigation) ;

Total Agricultural support reduction (Base period : 1986-88)

Developed countries 20 % (1995 - 2000)

Developing countries 14% (1995 - 2004)

De-minimis level

Developed countries 5% ;

Developing countries 10% .


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Market Access

All non-tariff barriers including, Quantitative Restrictions to be

abolished

Tariff cut Commitments :

Developed countries - Average 36%

- Minimum 15% (1995 - 2000)

Developing countries - Average 24 %

- Minimum 10% (1995 - 2004)


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IMPACT ON INDIA (Market Access)

Bound tariff * levels for India:

Primary products 100%

Processed products 150%

Edible oils 300%

* (Some exceptions (119 items) are governed by other

provisions of GATT Art.II 1(b).


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Export Subsidies

Cut in value of subsidies

Developed countries - 36 % (1995 - 2000) Developing countries - 24 % (1995 - 2004)

Cut in subsidised quantities

Developed countries - 21 % (1995 - 2000) Developing countries - 14 % (1995 - 2004)

(Base Period : (1986 - 1990)

To develop internationally agreed disciplines to govern

export credits, guarantees or insurance programmes.


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Doha Ministerial Conference

Fourth Ministerial Conference on WTO was held at Doha, Qatar

from 9-13th November 2001

This conference, inter alia, reviewed the progress of AoA negotiations

and provide guidelines for future.

The Ministers at Doha committed themselves to negotiation aimed atsubstantial improvement in market access, substantial reduction in

trade distorting domestic support and gradual phasing out of export

subsidies.

The special and differential treatment - an integral part of the

mandated agricultural negotiations.


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India Seeks

Protecting our food and livelihood security by having sufficientflexibility for domestic policy measures.

Protecting domestic producers from the surge in imports or

significant decline in import prices.

Substantial reduction in export subsidies and domestic support to

agriculture in the developed countries for greater market access to

products of developing countries.

Finally, a more equitable & fair trading framework for

agricultural commodities

MARKET ACCESS ISSUES CAN NOT BE SEEN IN ISOLATIONTO SUBSIDY REGIME


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Present Stage of NegotiationsThe third phase of negotiations ended in March-

2003.As per original schedule, the modality of the

Agreement were to be established by 31.03.2003.

The deadline for establishment of Modality has

been missed

In the last one year a number of drafts for

establishment of Modality have been proposedThe major drafts include, Harbinsons original

and revised draft, US-EU combined draft, Original

Cancun Draft and the Derbez Text (Cancun revised

draft )


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Present Stage of Negotiations

The Cancun Ministerial failed to arrive at any

agreement on modality for agriculture.

There was no willingness on part of developed

countries to recognize the genuine concerns of the

developing countries, especially in agricultureThe US & EU attempted to drive their own agenda,

at the expense of Doha Declaration

The concerns of the developing countries wereexpressed by a group viz. G-20 at Cancun.

India, China, Brazil, Argentina and South Africa

were the moving spirits behind the formation of this

Grou .


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Some of important features of the two Harbinson

Drafts are as follows:

Includes the crucial numbers. Framework

proposes modalities.

Tariff reduction higher than Uruguay Round,using the concept of average and minimal

reductions based on tariff bands.

Introduction of a new concept of Special Productsfor developing countries, average tariff reduction

on SP to be at 10%, and minimum reduction, 5%.

Introduction of Safeguard Mechanism for

develo in countries.


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Reduction mainly in the amber box support bydeveloped countries.

Reduction in the De-minimis support for

developed countriesProposals only to discipline the Blue Box

payments, no reduction.

Proposals to tighten the criteria for Green Boxpayments for developed countries, expansion of

Green Box for developing countries

Elimination of direct export subsidies over a

longer period. Indirect subsidies; no final proposal


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The S&D for the developing countries remains on

the lines as Uruguay Round.

The S&D for developing countries include, amarginally lower rate of tariff reduction, a longerimplementation period, provision of SpecialProducts with lower tariff reduction, provision ofSafe guard mechanism, retention of provisions atpara 6.2 of the present AoA, with possible wideningand retention of de-minimus in Amber Box Support


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The US-EU draft, and the two Cancun drafts aresimilar in nature and their main features are:

The drafts propose only a framework. They dont

indicate the key numbersAggressive reductions in tariff by using a hybrid

formula. Swiss formula to be a component of the

hybrid formulaReduction for developing countries also to be by

same formula, with lower final commitment.

SPs to be limited in numbers.


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Present Stage of NegotiationsReduction mainly in the amber box support by developed

countries.

Reduction in the De-minimis support for developedcountries.

Capping of product specific support in Amber Box

Expansion of Blue box by inclusion of direct payments.

Capping of the expenditure under new Blue Box, with a

possible phased reduction over the implementation period.

No reduction in Green Box payments. The criteria for

Green Box payments may possibly be reviewed.

Reduction commitments for developing countries lower

with longer implementation period.


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The provisions of Article 6.2 to be continued.The de-minimus for the developing countries to be

retained at 10%.

Elimination of export subsidies over an extendedperiod during the implementation period.

The trade distorting elements of export credit to be

similarly treated.

No specific timeframe for elimination suggested.


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Indias stand on various drafts

The drafts fail to recognize the inter-linkages inthe three pillars of AoA.

The reductions suggested in domestic support are

minimal, as compared to the steep reduction intariff included in the Draft.

The drafts fail to recognize the food security and

livelihood concerns of the developing countries.The drafts are not meeting the spirit of Doha

Development Agenda.

e e opmen s os anc n n s er a


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eve opmen s os - ancun n s er a

The G-20 has survived the pressures of the

developed countries and almost remained united on

agriculture issues.

The Cancun process led to loss of confidence of

developing countries in the developed countries.

The negotiations have formally not yet started atGeneva.

The stress, at present is more on arriving at

bilateral understandings.G-20 had bi-laterals with EU, one in Brazil and

other in Geneva.

India has had separate bilateral discussions with

USA as well as EU.


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Thank You

wto-state of play dec-03

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