Doha
Round Negotiations – Framework for establishing modalities in Agriculture |
| On the 31st
of July 2004, the WTO members agreed and the General Council of WTO adopted
a Decision to take action towards successfully concluding the Doha Round
negotiations. The Decision included a framework agreement for establishing
modalities in Agriculture. |
| After the failure
of the Cancun Ministerial Conference (September 2003), the effort to achieve
this agreement was concentrated on a “small package” of the most difficult
issues only, in the core of which was certainly the agricultural sector.
The rest were the “Non-agricultural Market Access” (NAMA), the “Services
Sector” and the so-called “Singapore issues”, of which only the “Trade
Facilitation” was touched upon. |
| From the very beginning
of the Doha Round negotiations till the present stage, Agriculture was
certainly the most controversial file, due also to its importance for
the developing countries. It could be argued, therefore, that the achieved
consensus on agriculture made the whole agreement possible. |
| Even though this
framework cannot be considered as a final agreement, but only an intermediate
stage, it does include significant commitments and it puts the negotiations
back on track. |
| The next WTO Ministerial
Conference is scheduled for the December of 2005. Taking into account
that in the course of the current year the Presidential Elections in the
USA will be held along with the renewal of the members of the European
Commission, no intensive negotiations are to be envisaged before the beginning of
2005, when this framework agreement is expected to be translated into
specific figures and commitments. |
| The main points of
the agricultural agreement are the following: |
| General Overview |
| The framework agreement
captures the notion of “harmonisation”, according to which, the highest
levels of trade distorting support and the highest tariffs, should be
reduced most. It calls for all countries, with the exception of the LDCs,
to improve their market access and it provides for the elimination of
export refunds whilst parallel disciplines for all forms of export subsidies
will be imposed. |
| Domestic Support |
| The framework agreement
stipulates reductions in the overall level of trade distorting support
as well as in each type of trade distorting support (amber box, de minimis
and blue box). There will be capping of support provided to individual
products. Flexibility is given to the members to choose a set of revised
Blue Box criteria. The framework agreement also includes a provision for
review and clarification of Green Box criteria. There will be a 20% first
year reduction in the level of permitted overall trade distorting support. |
| Export Competition |
| The agreement stipulates
the elimination of export subsidies by a final date to be agreed, potentially
different from the one to be agreed for the other issues. Tighter disciplines
on export credits, export state trading enterprises and use of food aid
for commercial purposes are also included. |
| Market Access |
| The tariff reduction
formula agreed is a harmonisation one. Both developed and developing countries
have the right to self declare a number of “sensitive” products that will
be eligible for lower tariff cuts; however they would still have to expand
market access on those products through a combination of tariff reduction
and quota expansion. |
| Cotton |
| The African initiative
on cotton will be addressed within the agricultural negotiations.
In addition the wording regarding the issues of domestic support pillar,
limits the pressure for the cotton subsidies to be addressed separately
from the other agricultural subsidies. |
| Geographical Indications |
| This issue remains
pending. It is expected that it will be addressed in the future, in parallel
with the issues of sectoral initiatives and export taxes. |
| It should be noted
that the EU approved the draft decision of the WTO, in a special meeting
of the Council of Ministers for General Affairs, held in Geneva, on 30.07.2004.
A separate declaration, as regards cotton, was included in the conclusions
of the Council. |
Text: George Mermingas, Agro-economist of the Division for EU Affairs,
International Relations & Commercial Policy.
Editing: Pavlos D. Pezaros, Director for Agricultural
Policy & Documentation |
| |
| Declaration of the EU Council of General Affairs on cotton, of 30 July
2004 |
“The Council and
the Commission reaffirm that the CAP reform is Europe’s important contribution
to the Doha Development Agenda (DDA) and constitutes the limits beyond
which commitments cannot be undertaken.
In addition to that
the Council and the Commission underline the importance of the cotton
sector for a number of rural areas in the Community. In this regard
they note with satisfaction that, in the framework agreement, cotton
is treated within the agriculture negotiations”. |
| Decision adopted by the WTO General Council on 1 August 2004 |
http://www.wto.org/english/tratop_e/dda_e/draft_text_gc_dg_31july04_e.htm
http://www.wto.org/english/tratop_e/dda_e/ddadraft_31jul04_e.pdf
|
| |
| |
| BACK |