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“Information-sharing” meetings on agri proposal till early March at WTO

In light of a proposed early agreement in the Doha Round on food security issues, a series of meetings will be convened at the WTO to raise member states’ understanding of already existing food security schemes.

by Kanaga Raja

GENEVA: A series of “information-sharing” meetings at the technical level concerning a G33 proposal on public stockholding for food security are to take place from the week of 18 February through to early March, an informal meeting of the Special Session of the WTO Agriculture Committee has heard.

According to trade officials, the Chair of the Special Session, Ambassador John Adank of New Zealand, said that the purpose of the meetings (the actual dates of which are yet to be announced) will not be to negotiate at this stage, but to improve members’ understanding of practices and policies currently in place.

This series of meetings will be purely to share information, without affecting members’ negotiating positions or their rights and obligations in the WTO, the Chair added.

Way forward

In his opening statement at the informal meeting on 15 February, the Chair said that the meeting was an organizational one to discuss the way forward with the “information-deepening exercise” on the G33 proposal on some elements of the December 2008 draft agriculture modalities text for early agreement to address food security issues (see box next page for details of the G33 proposal).

He added that following the introduction of this proposal last November, there had been various informal discussions amongst members which highlighted that, given some of the complexities of the subject matter involved in the proposal and to understand its implications, more factual information was required on the relevant programmes and policies in place amongst members.

The Chair said that on that basis, in order to facilitate a more substantive discussion, he had sent out a questionnaire last December asking members implementing the programmes of public stockholding for food security purposes and domestic food aid to provide background information. He noted that as of now, there are around 22 responses to the questionnaire.

“... I think we are therefore now in a position to deepen this work at a technical level,” Ambassador Adank said.

He added that the way he sees the work forward here is that “we need to initiate a process of technical discussions beginning next week and these technical discussions will consist of a series of meetings that will allow members that have provided background information on their public stockholding and food aid programmes to present any additional information that they may want to by way of background to their submissions, or provide additional comments, should they wish to do so.”

He stressed that this is meant very much “to be a technical process, not a political process, whose aim is to enhance common understanding of the information provided and of the context for the G33 proposal.”

The Chair further said that all of the discussions will be without prejudice to members’ negotiating positions in the Doha Round or to their rights and obligations under the WTO.

He underlined that what he would very much like to see is for this information-exchange and question-and-answer process to be concluded by the beginning of March, “so that we can then engage in a more substantive discussion of how members view this proposal and assess its implications and their reactions to it”, taking into account all the information that has been provided by members since the proposal was first introduced last year through the questionnaire and the subsequent discussion.

“So, the real goal of this process is, I think, to improve our understanding of the existing domestic programmes that members have in this area addressed by the proposal,” he said. This is very much an “information-sharing exercise so that we understand these programmes”, he added.

The G33 proposal

The G33 proposal of last November is on some elements of the draft agriculture modalities text of December 2008 for early agreement to address food security issues.

The proposal, whose text is drawn from Annex B of the draft modalities, notes that at the eighth WTO Ministerial Conference (held in Geneva in December 2011), ministers expressed their readiness “to advance negotiations, where progress can be achieved, including focusing on the elements of the Doha Declaration that allow Members to reach provisional or definitive agreements based on consensus earlier than the full conclusion of the single undertaking”.

The G33 said that with a view to advancing negotiations so as to achieve at least some outcomes in agriculture, which lies at the heart of the Doha Development Agenda, it is proposed to focus on one of the elements of the Doha Ministerial Declaration (DMD) which is of importance to developing countries, viz., food security.

The proposal noted that significant progress has already been achieved in the Doha Round negotiations which recognize the serious concerns of food security in developing countries.

“This has assumed the character of a global concern in the past few years with a need for urgent action. Accordingly, it is proposed that some of the elements in the Revised Draft Modalities for Agriculture Text (TN/AG/W/4/Rev.4) relating to food security are taken up for a decision in accordance with paragraph 47 of the DMD.”

Accordingly, without prejudice to the overall conclusion of the Doha Round negotiations based on the single undertaking and noting that there are other elements in the Revised Draft Modalities for Agriculture Text which can also partially address food security, the G33 said it has proposed that a decision be taken to include the following elements of TN/AG/W/4/Rev.4 as part of the Ministerial Declaration at the Bali Ministerial Conference.

Proposed amendments

It has proposed amending Annex 2 of the WTO Agreement on Agriculture (which deals with domestic support and exemption from reduction commitments).

Firstly, the G33 has proposed adding a new sub-paragraph (h) to the existing paragraph 2 of Annex 2 (on general services under government service programmes):

“(h) policies and services related to farmer settlement, land reform programmes, rural development and rural livelihood security in developing country Members, such as provision of infrastructural services, land rehabilitation, soil conservation and resource management, drought management and flood control, rural employment programmes, nutritional food security, issuance of property titles and settlement programmes, to promote rural development and poverty alleviation.”

Secondly, the G33 has proposed modifying the existing footnote 5 of Annex 2 as follows:

“For the purposes of paragraph 3 of this Annex [on public stockholding for food security purposes], governmental stockholding programmes for food security purposes in developing countries whose operation is transparent and conducted in accordance with officially published objective criteria or guidelines shall be considered to be in conformity with the provisions of this paragraph, including programmes under which stocks of foodstuffs for food security purposes are acquired and released at administered prices, provided that the difference between the acquisition price and the external reference price is accounted for in the AMS [Aggregate Measurement of Support]. However, acquisition of stocks of foodstuffs by developing country Members with the objective of supporting low-income or resource-poor producers shall not be required to be accounted for in the AMS.”

Thirdly, the G33 has proposed modifying the existing footnote 5&6 of Annex 2 as follows:

“For the purposes of paragraphs 3 and 4 of this Annex [paragraph 4 is on domestic food aid], the acquisition of foodstuffs at subsidized prices when procured generally from low-income or resource-poor producers in developing countries with the objective of fighting hunger and rural poverty, as well as the provision of foodstuffs at subsidized prices with the objective of meeting food requirements of urban and rural poor in developing countries on a regular basis at reasonable prices shall be considered to be in conformity with the provisions of this paragraph. This is understood to mean, inter alia, that where such programmes referred to in this footnote and paragraph 4 above, including those in relation to lowering prices to more reasonable levels, involve also the arrangements referred to in footnote 5 to paragraph 3, there is no requirement for the difference between the acquisition price and the external reference price to be accounted for in the AMS.” (SUNS7525)           

He reiterated the sense of urgency that everyone feels about this process – about the need to get a process underway at the technical level which will allow for all the information that will enable a substantive discussion to be transacted and digested amongst the technical-level experts that make up the Agriculture Committee.

According to trade officials, Ambassador Adank urged members to move swiftly and avoid procedural “wrangling”, because time is running short for deciding on this and other issues that could be earmarked for agreement at the WTO’s ninth Ministerial Conference (which will be held in Bali on 3-6 December). “I think everyone recognizes that we’re in an extremely time-bound process of preparations for the Bali Ministerial Conference...”

According to trade officials, members that spoke supported the process and recognized that time was running short.

Some members were of the view that the issue needs to be considered with real-life information about how countries implement stockholding for food security, what the constraints are, and what their intentions are.

According to trade officials, some said that  members  should avoid abstract discussions about wording, while some others said that countries with questions should submit them in advance so that officials in capitals can prepare answers.

Several members called for a clearer timetable of meetings and topics to be discussed over the coming months so that delegates based in Geneva and in the capitals can prepare better and decide when to travel.

According to trade officials, the Chair responded that a clearer picture of what will be needed will emerge once the technical meetings start.

Some members said that they would like to know by the summer break (August and early September) all the proposals that will be on the table for the Bali conference.

On the concerns expressed by some over the agriculture negotiating sessions clashing with meetings on other subjects, Ambassador Adank said he is aware of the concerns and will try to avoid clashes. (SUNS7528)  

Third World Economics, Issue No. 539, 16-28 Feb 2013, pp 11-12                                

                         


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