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Info Service on WTO and Trade Issues (Jun22/10) Geneva, 9 Jun (D. Ravi Kanth) — India has apparently called for concluding the mandated permanent solution for public stockholding (PSH) programs for food security purposes in developing countries at the WTO’s 12th ministerial conference (MC12), said people familiar with the development. In the face of allegedly “unprecedented pressure” and “bullying” tactics exerted by the World Trade Organization’s Director-General Ms Ngozi Okonjo-Iweala on many members, India stood its ground on the mandated issue of the permanent solution for PSH programs, which is required to be concluded at MC12, which begins on 12 June, said people, who asked not to be quoted. At a closed-door “green room” meeting of select trade envoys on 8 June, India seems to have told the DG in no uncertain terms that it could neither accept a new mandate for PSH programs as proposed by the DG, nor delay the mandated permanent solution until the 13th ministerial conference (MC13), scheduled to be held in 2024, said people, who asked not to be quoted. Amidst allegedly “threatening” statements made by the DG at the meeting, India appears to have put its foot down on the PSH issue, said people, who asked not to be quoted. Even though several members of the Cairns Group of farm-exporting countries and the European Union apparently supported the DG on her draft decisions on agriculture and World Food Programme (WFP) food purchases as well as a draft declaration on trade and food security, India appears to have stood its ground on two demands concerning the PSH programs and government-to-government purchases, said people familiar with developments concerning the closed-door meeting of select trade envoys. Apparently, the DG and her close supporters/allies appeared to be upset at the meeting when India spelled out its strong position, said people familiar with the development. At the meeting, the United States appears to have sought parity between the domestic support and market access modalities that are expected to be finalized at MC13, said people, who asked not to be quoted. The DG and the chair of the Doha agriculture negotiations, Ambassador Gloria Abraham Peralta of Costa Rica, had issued three draft “Plan B” outcomes on agriculture which aim to push all the major decisions to MC13. Barring a “weak” declaration on trade and food security and a decision on food purchases made by the WFP, there seems to be little value in the overall outcomes on agriculture, as they are being kicked down the road to MC13, as reported in the SUNS last week. At the rate at which countries are apparently being “pressured” to fall in line with what appears to be the DG’s “commandments”, the prospects of concluding an agreement on fisheries subsidies and on the TRIPS COVID-19 draft outcome document issued by the DG, remain unclear at MC12, said trade envoys, who asked not to be quoted. The DG also held a “green room” meeting on her TRIPS COVID-19 draft outcome document, but there was no agreement on several issues that remain in square brackets. Due to continued differences, the DG is expected to hold another meeting Thursday apparently to push through consensus, said people, who asked not to be quoted. As regards the WTO response to the pandemic, the facilitator, Ambassador Dacio Castillo of Honduras, presented his revised draft compromise text, suggesting at the special General Council meeting on 7 June that delegations are working with “clean” texts including on general provisions, trade facilitation, regulatory cooperation, intellectual property, services, food security and some aspects of future work. Ambassador Castillo said that the entire document remains in square brackets and that “nothing is agreed until everything is agreed”. The issue of automaticity/TRIPS trigger is being demanded by the ACP (African, Caribbean, and Pacific) group and several developing countries including Sri Lanka, Pakistan, Indonesia, Egypt, South Africa, and Uganda among others. New text proposed by Ambassador Castillo at the “green room” discussions, seen by the SUNS, states: “We reaffirm the need to review and build on all the lessons learned and the challenges experienced during the COVID-19 pandemic, to build effective solutions in case of future pandemics including on intellectual property, technology transfer, export restrictions, trade facilitation, services, food security and regulatory cooperation in an expeditious manner.” It appears that the US has not yet come back to the negotiating table on the facilitator’s draft compromise text, said people familiar with the discussions. The full texts of the draft decision on agriculture, the draft declaration on trade and food security, and the draft decision on food purchases by the WFP (JOB/AG/232, JOB/AG/233, and JOB/AG/234) are highlighted below: DRAFT DECISION ON AGRICULTURE “Draft ministerial DECISION on agriculture The Ministerial Conference, Having regard to paragraph 1 of Article IX of the Marrakesh Agreement Establishing the World Trade Organization; Recalling the long-term objective to establish a fair and market-oriented agricultural trading system and to provide for substantial progressive reductions in agricultural support and protection sustained over an agreed period of time, resulting in correcting and preventing restrictions and distortions in world agricultural markets as stated in the Preamble of the Agreement on Agriculture (AoA); Having regard that special and differential treatment is an integral part of the agriculture negotiations as stated in the Preamble of the AoA; Considering the importance of further levelling the playing field for global agricultural trade in order to realize the full potential of the agricultural reform process; Recognizing the role that a fair and market-oriented agricultural trading system plays in supporting progress towards the targets set out under the United Nations Sustainable Development Goals, including to end poverty and hunger, achieve food security and improved nutrition, promote sustainable agriculture and food systems, implement resilient agricultural practices, enhance production, and strengthen the policy response to climate change and natural disasters through both mitigation and adaptation actions; Taking note of the achievements in the negotiations to date, as well as the need to make further progress in order to fulfil existing mandates relevant to the agriculture negotiations, as set out in Article 20 of the AoA, and the Bali and Nairobi Ministerial Decisions. Decides as follows: 1. We commit to continue our negotiations with a view to reducing support and protection progressively and substantially in achieving meaningful reform. We reaffirm that special and differential treatment for developing countries is an integral part of all the negotiating topics listed below. Particular consideration shall be given to the needs of least-developed and net food-importing developing countries. Non-trade concerns, including food security and the protection of the environment shall also be taken into account in all areas of these negotiations. 2. We resolve to intensify our negotiations on the topics listed below, with a view to achieving modalities and other outcomes by the Thirteenth Session of the Ministerial Conference (MC13). These negotiations shall build on progress made thus far in the negotiations under the auspices of the Special Session of the Committee on Agriculture (CoA-SS), including in dedicated sessions, and Members’ existing and future submissions. Technical discussions shall support the negotiations to facilitate informed participation by all Members. Domestic Support 3. We shall continue comprehensive negotiations on domestic support after MC12, in particular, to substantially reduce trade-distorting domestic support and to improving all disciplines, within a reasonable timeframe to be agreed by Members, in accordance with the reform programme provided for in Article 20 of the AoA and the modalities that will be agreed and adopted by MC13. 4. Unless otherwise provided, Members’ contributions to the outcomes of these negotiations will be determined according to modalities to be agreed by Members post-MC12. In this respect, the needs of low-income or resource-poor farmers in developing countries shall be taken into account in these negotiations. Public Stockholding for Food Security Purposes [1] 5. Recalling the Ministerial Decision of 7 December 2013 (WT/MIN(13)/38 – WT/L/913), the General Council Decision of 27 November 2014 (WT/L/939) and the Ministerial Decision of 21 December 2015 (WT/MIN(15)/44 – WT/L/979), and recognizing the importance attached to public stockholding programmes for food security purposes by many developing country Members, including least developed and net food importing developing countries and the food security of other Members, we undertake to continue our negotiations and work towards agreeing and adopting a permanent solution to the PSH issue by MC13. 6. These comprehensive negotiations shall consider, inter alia, an assessment of the external reference price [2], programme and product coverage, limits on public stockholding programmes, transparency and safeguards/anti- circumvention, and legal certainty. 7. The negotiations shall continue to be held in dedicated sessions of the CoA-SS. The General Council shall regularly review progress on the basis of reports provided by the CoA-SS. Market Access 8. We shall continue negotiations on market access after MC12 with a view to improving substantially and progressively agricultural market access opportunities for all Members within a timeframe to be agreed by Members, in accordance with the reform programme provided for in Article 20 of the AoA. 9. We agree to work towards achieving tangible progress in the negotiations by MC13. The General Council shall regularly review progress in these negotiations with the aim of making recommendations for Ministers at MC13. Special Safeguard Mechanism (SSM) 10. Pursuant to the Nairobi Ministerial Decision (WT/MIN(15)/43 – WT/L/978, we shall continue negotiations on a special safeguard mechanism for developing country Members in dedicated sessions of the CoA-SS as envisaged under paragraph 7 of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC). 11. The General Council shall regularly review progress in these negotiations with the aim of making recommendations for Ministers at MC13. Export Restrictions 12. Bearing in mind Article 12 of the AoA, we shall continue negotiations with the aim of enhancing transparency and predictability of export prohibitions and restrictions and improving relevant disciplines. To this end, and bearing in mind Article 12.2, we agree to work towards assessing and clarifying Article 12 of the AoA with a view to making tangible progress by MC13. Export Competition 13. Taking note of the Nairobi Ministerial Decision on Export Competition (WT/MIN(15)/45- WT/L/980), we shall continue negotiations to enhance disciplines on export credits, export credit guarantees or insurance programmes, agricultural exporting state trading enterprises and international food aid, with a view to making tangible progress in these negotiations by MC13. These disciplines shall aim at ensuring that there is no circumvention of export subsidy elimination commitments and to prevent non-commercial transactions from being used to circumvent such commitments. Special consideration shall be given to the needs and circumstances of least-developed and net food-importing developing countries. Cotton 14. We undertake to continue negotiations after MC12 with a view to reducing trade-distorting domestic support for cotton in accordance with modalities to be agreed by MC13 and in line with the mandate to address it ambitiously, expeditiously, and specifically within the agriculture negotiations taking into account progress made in the overall domestic support negotiations. 15. We undertake to continue holding Dedicated Discussions on cotton on a bi-annual basis, as mandated by paragraphs 5, 6 and 7 of the Bali Ministerial Decision on Cotton (WT/MIN(13)/41 – WT/L/916) and confirmed in paragraph 14 of the Nairobi Ministerial Decision on Cotton (WT/MIN(15)/46 – WT/L/981). 16. We note that the development-related aspects of cotton are addressed under the Director-General’s Consultative Framework Mechanism on Cotton and welcome the work undertaken in this context, which will continue to be handled as provided for in paragraph 12 of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) and in paragraphs 10, 11, 12 and 13 of the Nairobi Ministerial Decision on Cotton. Transparency 17. Pursuant to Article 18 of the AoA, we agree to make the necessary efforts to provide outstanding notifications prioritizing from the year 2010. We agree to work in the Committee on Agriculture (CoA) to review, update and streamline as necessary the transparency provisions contained in document G/AG/2 and consider possibly including necessary elements, such as value of production data, as well as other agriculture-related transparency requirements. Due consideration shall be given to the capacity constraints faced by some developing countries, especially the least developed among them. 18. We invite the WTO Secretariat to pursue efforts to assist developing country Members, upon their request, to comply with the relevant notification and other relevant transparency and monitoring requirements, including through ad hoc advice, technical assistance and capacity-building support. We request the Secretariat to provide information on a regular basis to the CoA on these activities. 19. We request the WTO Secretariat, in consultations with Members, to develop, maintain and update on a regular basis a domestic support analytical tool. The analysis will be based on Members’ notifications, official data and information sources, and recognized international sources. 20. We agree to the continuation of discussions, on a without prejudice basis, on transparency of changes to MFN applied ordinary tariff rates, including for shipments en route. [1] In case a permanent solution to the issue of public stockholding for food security purposes is not adopted at MC12. [Comment: This footnote will be reviewed in the final version of the text to be forwarded to Ministers.] [2] This issue would be considered more broadly in the context of current AoA disciplines.” DRAFT DECLARATION ON TRADE & FOOD SECURITY “Draft Ministerial Declaration on Trade and Food Security Concerned that trade disruptions, record prices and excessive volatility for food and agricultural products could undermine food security in all Members, including in developing countries, and particularly in least-developed and net food-importing developing countries, who by virtue of their fiscal and other capacity-related challenges, as well as deteriorating terms of trade, are disproportionately affected by the crisis; Concerned also that rising prices of food, agricultural products, and production inputs, including fertilizers, and associated trade restrictions, as well as increasing energy and transportation costs, could have lasting consequences for global food security in the coming years; Determined to make progress towards the achievement of a fair and market-oriented agricultural trading system, ending hunger, achieving food security and improved nutrition, promoting sustainable agriculture and food systems, and implement resilient agricultural practices that enhance productivity in fulfilment of Sustainable Development Goal 2 of the United Nations, taking into account the interests of small-scale food producers in developing countries; Acknowledging that progress towards this Goal has been undermined, with the Food and Agriculture Organization of the United Nations and the World Food Programme (WFP) in particular estimating a significant increase in the number and share of undernourished and food insecure people;
DRAFT DECISION ON WFP FOOD PURCHASES “Draft ministerial decision on World Food Programme Food Purchases Exemption from Export Prohibitions or Restrictions The Ministerial Conference, Having regard to Paragraph 1 of Article IX of the Marrakesh Agreement Establishing the World Trade Organization; Pursuant to Article 12 of the Agreement on Agriculture and Article XI of the GATT 1994; In view of the critical humanitarian support provided by the World Food Programme, made more urgent as global hunger levels have increased sharply; With the understanding that the World Food Programme always takes procurement decisions on the basis of its principles to “do no harm” to the supplying Member and promote local and regional food procurement; Decides as follows:
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