Download Doha Work Programme

ECOWAS Regional Workshop
on Agriculture Negotiations and food security
Conakry, 8-10 April 2002
UNCTAD
THE DOHA WORK PROGRAMME:
THE UNCTAD PERSPECTIVE
Manuela Tortora
Trade Negotiations and
Commercial Diplomacy Branch
UNCTAD
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The context: from Seattle to Doha
What changed:
• the increasing role of the
developing countries and
the LDCs in shaping the
trade agenda
• the relevance of the
implementation issues
• the negotiations on the
“built-in agenda” since
2000
• the international context
What has not changed:
• the role of the
agriculture in the
negotiations
• the role of the
developing countries
and the LDCs in the
world trade
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The main features of the
Doha Work Programme:
• A “revival” of the S&D issues
• Very broad agenda, more ambitious than the
Uruguay Round
• A “single undertaking” at the end of the process
• Decisions on the four “Singapore issues”
(investment, competition, government
procurement, and trade facilitation) to be taken
at the 5th Ministerial Conference (Mid-2003)
• Tight negotiating deadlines
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Is it a “development agenda”?
It could become one, IF:
the implementation issues raised by the
developing countries are addressed;
the S&D provisions are clarified and the
development concerns taken into account;
in agriculture trade, the imbalances are
corrected;
effective assistance is provided to enhance
the negotiating capacity of the developing
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countries.
The negotiating mandates in the overall
Doha Work Programme:
The Doha Ministerial Declaration sets the
objectives of the negotiators
but look also at :
Para.6 of the Preamble of the Declaration
(“precautionary principle” with other
words)
the Decision on the Implementation Issues
the Outstanding Implementation Issues
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The place of agriculture in the overall Doha
Work Programme:
The mandates on agriculture should be seen
in parallel with:
implementation issues (in particular SPS)
geographical indications (TRIPS)
rules of origin
WTO rules on regional agreements (ACP)
review of the S&D provisions and the work
on the “small economies”
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The current and medium term international
context of the negotiations:
Signs of economic recovery in the United
States (not yet in the EU, not in Japan)
“Steel war” between the United States and the
EU
New trade instruments in the United States
implying tough positions on agriculture trade
No visible changes in the EU position (the
Common Agriculture Policy has its own pace)
Divisions among the developing countries
regarding the agriculture negotiations
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The position of the United States in the
negotiations on agriculture:
2 new instruments are being discussed
at the US Congress these days:
the new Farm Bill ,
that
sets
the
US
the “Trade
agriculture policy,
Promotion
through 2 drafts:
Authority” (fast
• the “Farm Security
Act” of the House,
track autorisation)
and
sets the
• the “Agriculture,
objectives of the US
Conservation and
Rural Enhancement
trade negotiators
Act” of the Senate.
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The current situation of these 2 bills:
The “Trade Promotion
Authority” is still
being discussed
The Congress is now
finalising the merger
of the 2 draft bills
into one, that should
be approved by midApril 2002, with a
maximum budget of
US$ 73.5 billion in
the next 10 years
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6 main objectives set for the US trade
negotiators in the
Trade Promotion Authority in agriculture:
1.-Obtain reduction of subsidies and tariffs in
particular for the items where the US tariffs
are low;
2.-Seek “reasonable” transition periods for the
imports that are “sensitive” for the US
producers;
3.-Achieve the reduction or elimination of
subsidies that affect market access
opportunities for the US products.
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6 main objectives set for the US trade
negotiators in the
Trade Promotion Authority in agriculture:
4.-Seek the elimination of the state-trading
enterprises;
5.-Seek an end to unnecessarily restrictive
rules for the administration of quotas;
6.-Preserve non-trade distorting programmes
that support American farms and rural
communities.
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Great similarities in the 2 draft farmbills:
• Both texts increase the direct payments to the
US farmers
• Both texts provide for renewing or increasing
the amounts allocated to trade promotion,
international food aid and subsidies to US
farmers
• Both texts provide for compensatory payments
in case of market prices falling below certain
levels
• Both texts authorise the Secretary of
Agriculture to adjust payments to ensure
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compliance with the WTO obligations
Key differences between the 2 draft bills:
• They provide for different loan rates;
• They set different target prices to
determine the compensatory payments;
• They set different amounts for the fixed
payments to the farmers.
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An example of the subsidies provided by
these draft bills:
• The maximum fixed payment that a farmer
can receive is raised from US$ 40.000 to 50.000
per year;
• If market prices fall below the “target prices”,
the payment can be raised up to US$ 150.000.
Today, 36% of the US farms receive fixed
payments, but in some States the share is up to
70% of the farms;
The average farmer receives US$ 5.830 per year,
while the large corporations accumulate
payments up to US$ 500.000.
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The position of the US Executive:
• Expressed its reservations on both drafts
because they are not in compliance with
the US obligations in the WTO.
• Considers that it will be difficult to
monitor the level of domestic support,
and very difficult to reduce it if so
decided in the negotiations.
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The negotiating objectives of
the US Executive:
• Focus on the markets of the middle-income
developing countries, where there is more
spending on the import of agriculture items;
• In the LDCs, the food shortages provide
opportunities for US food aid in case of
surplus in the US market;
• Lower tariffs and elimination of export
subsidies, particularly in the EU;
• Eliminate regulations on biotechnology.
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Some conclusions:what can be expected?
• The negotiations on agriculture will be
difficult, with probably last-minute
arrangements between the US and the EU,
and possible trade-offs in other areas (as
usual…);
• Negative political climate because of the
steel war and the domestic agriculture
policies of the US and the EU;
• Very limited time available in the timetable
as approved last week.
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