|
||
|
TWN
Info Service on WTO and Trade Issues (Apr24/12) Geneva, 12 Apr (D. Ravi Kanth) — Brazil on 8 April tabled a draft decision aimed at galvanizing the stalled agriculture negotiations at the World Trade Organization, proposing that members adopt a decision at the WTO’s General Council in July before the summer break on “moving the agriculture negotiations forward”. Coming close on the heels of a failure to arrive at any outcome on agriculture at the WTO’s 13th ministerial conference (MC13) in Abu Dhabi in March, the Brazilian proposal (WT/GC/W/931) suggests some significant changes in arriving at modalities in all areas, particularly on domestic support, before the WTO’s 14th ministerial conference (MC14). However, Brazil suggested one major change by deleting the first option on the permanent solution for public stockholding (PSH) programs for food security, as contained in the revised MC13 draft agriculture text that was prepared by the European Union, where two options were proposed. The two options were: “21. [Pursuant to the Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/939), and Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members adopt a permanent solution as set out in Annex […] to this Decision.] OR 21. [Pursuant to Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/939), and the Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members commit to pursue and intensify negotiations on PSH in Dedicated Sessions of the CoA-SS. A permanent solution on the issue of public stockholding for food security purposes shall be available to all developing country Members. Public stockholding programmes shall not distort trade or adversely affect the food security of other Members. Members will agree on the elements and the methodology of implementation of the reform according to the Timeline of Implementation section below.]” Brazil removed the first option and instead proposed new language on the permanent solution on PSH in paragraph 19. Paragraph 19 states: “Pursuant to Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/939), and the Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members commit to pursue and intensify negotiations on PSH in Dedicated Sessions of the CoA-SS. The negotiations on PSH should pay particular attention to the needs of LDCs and NFIDCs. A permanent solution on the issue of public stockholding for food security purposes shall be available to all developing country Members. Public stockholding programmes shall not distort trade or adversely affect the food security of other Members. Members will agree on the elements and the methodology of implementation of the reform according to the Timeline of Implementation section below.” This change in the permanent solution on PSH could render the Brazilian proposal “dead on arrival”, as many developing countries, including India, and Indonesia on behalf of the G33 coalition, will fiercely oppose the change, said people familiar with the proposal. Brazil, which had led the Group of 20 (G20) developing countries against the trade-distorting policies of the developed countries in agriculture during 2003 to 2008, seemingly changed its negotiating strategies by aligning more with the developed countries in deferring the much-delayed decision on the permanent solution on PSH. As reported in SUNS #9957 dated 1 March 2024, in a “green room” meeting at MC13 attended by the WTO’s Director-General, Ms Ngozi Okonjo-Iweala, India had said that if there is no permanent solution on PSH at MC13 as per the first option in the draft agriculture text (WT/MIN (24)/W/13), there wouldn’t be any outcome in agriculture. The Brazilian proposal is unlikely to be accepted by the G33 members as a way forward for further progress in the agriculture negotiations, said a person familiar with the negotiations. OTHER FEATURES The other features of the Brazilian proposal on the rest of the issues in the agriculture dossier are as follows: DOMESTIC SUPPORT 7. Members commit to pursue and intensify negotiations on domestic support, with a view to reducing substantially and progressively trade-distorting support in a fair and equitable manner, to encourage a shift towards less trade-distorting support, and improving disciplines in accordance with the reform objective in the AoA within a reasonable implementation period to be agreed by Members. These negotiations shall preserve developing country Members’ ability to assist agricultural and rural development, as well as to encourage diversification from growing illicit crops. Members will agree on the elements and the methodology of implementation of the reform according to the Timeline for Implementation section below. MARKET ACCESS 8. Members commit to pursue and intensify negotiations on agricultural market access with a view to reducing substantially and progressively protection in a fair and equitable manner, to improve market access opportunities for all Members, and improving disciplines in accordance with the reform objective in the AoA and within a reasonable timeframe to be agreed by Members. These negotiations shall take into account exporting Members’ interests and importing Members’ sensitivities, including non-trade concerns. Members will agree on the elements and the methodology of implementation of the reform according to the Timeline for Implementation section below. SSM 9. Pursuant to the Nairobi Ministerial Decision (WT/MIN(15)/43-WT/L/978), Members commit to pursue and intensify negotiations in Dedicated Sessions of the CoA-SS on a special safeguard mechanism for developing country Members, as envisaged under paragraph 7 of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC), and to which the developing country Members will have the right to have recourse under paragraph 1 of the Nairobi Ministerial Decision. Members will agree on the elements and the methodology of implementation of the reform according to the Timeline for Implementation section below. EXPORT PROHIBITIONS AND RESTRICTIONS 10. Members agree to continue discussions on export prohibitions or restrictions with a view to enhancing transparency and predictability and to improving disciplines in Article 12 of the AoA and Article XI:2(a) of the GATT 1994. The discussions shall take into account the interests of all Members, with particular attention paid to the needs of LDCs and NFIDCs. Members will agree on the elements and the methodology of implementation of the decision according to the Timeline for Implementation section below. EXPORT COMPETITION 11. Members agree to continue negotiations to enhance disciplines on export credits, export credit guarantees or insurance programmes, agricultural exporting state trading enterprises and international food aid and other measures with equivalent effect to prevent circumvention of export subsidy elimination commitments including through non-commercial transactions. Special consideration shall be given to the needs and circumstances of least-developed and net food-importing developing countries. Members will agree on the elements and the methodology of implementation of the decision according to the Timeline of Implementation section. COTTON TRADE-RELATED COMPONENT 12. Members commit to pursue and intensify negotiations on cotton trade-related measures based on Members’ submissions, and pursuant to the cotton-related elements of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC), as complemented by the Bali Cotton Ministerial Decision (WT/MIN(13)/41-WT/L/916), and the Nairobi Cotton Ministerial Decision (WT/MIN(15)/46-WT/L/981) to address it ambitiously, expeditiously and specifically within the agriculture negotiations. These negotiations shall seek to reduce substantially and progressively the trade-distorting domestic support for cotton. Members will agree on the elements and the methodology of implementation of the decision according to the Timeline for Implementation section. 13. The negotiations shall also seek to significantly reduce market access barriers, pursuant to the Ministerial outcomes listed in paragraph 12, for cotton-producing and exporting LDCs. Members are encouraged to open their markets allowing greater purchases of cotton products and byproducts from cotton-producing LDCs, including through the offer of duty-free quota free market access. 14. Members undertake to continue efforts aimed at enhancing transparency and monitoring of cotton-related trade measures affecting the global cotton market through the Dedicated Discussions on Cotton held 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). Members reaffirm the need to respect their notification obligations in the context of the required transparency. COTTON DEVELOPMENT ASSISTANCE COMPONENT 15. Members reaffirm that development-related aspects of cotton shall be addressed as provided for in paragraph 12 of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) and paragraphs 10, 11, 12 and 13 of the Nairobi Ministerial Decision (WT/MIN(15)/46-WT/ L/981). 16. Members reiterate their commitment to the rules-based multilateral trading system, which strengthens the possible synergies between trade in cotton, productive investment and development assistance for LDCs. They recognize the need for an inclusive partnership that makes cooperation and negotiations the preferred instruments for finding the most appropriate solutions to the considerable systemic and cyclical challenges faced by cotton producing and exporting LDCs, in particular the C-4 countries. 17. Members underscore the central role of the WTO Director-General’s Consultative Mechanism on Cotton as an international forum of reference bringing together the various stakeholders of the global cotton community (public and private sectors, and multilateral agencies) and as an effective multilateral consultation platform for the development of cotton-producing and exporting LDCs. As such, they agree to coordinate cotton development assistance interventions, follow up on completed and ongoing projects, and use this platform to attract and mobilize further investment with a view to promoting and supporting the production, processing and marketing of cotton and its by-products in LDCs. 18. Members welcome the initiatives undertaken with development partners over recent years such as partner conferences, World Cotton Day, or WTO-FIFA Memorandum, aimed at better integrating the cotton sector of LDCs, in particular the C-4 countries, in global value chains for value-added products deriving from cotton and its byproducts, and encourage all development partners to intensify their efforts in this perspective. (Paragraph 19 on PSH highlighted above) TIMELINE FOR IMPLEMENTATION 20. In order to achieve tangible progress and concrete outcomes, Members instruct the CoA-SS Chair to provide, based on Members’ contributions, annual negotiating schedules to discuss all aspects, including the elements and the methodology, of each of the negotiating topics in this Decision. 21. The General Council shall regularly review progress in these negotiations. 22. Senior Officials will review the progress achieved in the negotiations one year after MC13, particularly in relation to the definition of the elements and the methodology of implementation of the reform, and make recommendations for the way forward. 23. Members shall adopt an intermediate framework of the agreement 4 months before MC14. This framework shall provide a comprehensive view of the basic structures of the agreement or other outcomes to be delivered by MC14 and may include texts with different levels of maturity. 24. Members shall adopt a decision on modalities by MC14. 25. Modalities shall be implemented as a package taking into consideration the overall balance of outcomes in Agriculture in a timeframe to be decided by Members. +
|
||
