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The on-going negotiations

The on-going negotiations. Renegotiating the AoA: context. Started in January 2000, according to article XX of the Marrakech agreement Reinforce the liberalisation process taking into account the experience of implementation effects on world trade

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The on-going negotiations

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  1. The on-going negotiations Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  2. Renegotiating the AoA: context • Started in January 2000, according to article XX of the Marrakech agreement • Reinforce the liberalisation process taking into account • the experience of implementation • effects on world trade • non trade concerns, and Special and differential treatment Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  3. Points of negotiation • Market access • New decrease in tariffs • Transparency in the management of quotas, licenses and NTBs • Safeguard provision: maintain or not, for which countries ? • Export competition • One of the most controversial issue • Extension to exports credits and food aide abuse ? • End of exports subsidies ? Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  4. Points of negotiation (cont’d) • Domestic support • Further reduction in Amber box • Preservation or not of the blue box • Redefinition of Green box criteria • Other issues • Assessment of implementation of AoA • Improvement of SDT • Non trade concerns Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  5. Negotiations group • US and EU : aim at defend their policy : protection, support to farmers, export support. Common paper before the Cancun Conference • Cairns group : full liberalisation • developing countries : not grouped • assessment of implementation • development box : right to protect strategic crops • better access to Developed countries market Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  6. Ministerial Conferences From Seattle to Cancun Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  7. Seattle, December 1999 • Failure of the Conference : impossibility to adopt a final declaration • High pressure from Civil society • Electoral process in the US • Developing countries claim for an assessment Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  8. The Doha Conference • 142 countries - 9 - 14 November in Doha • Needs for a result : after the failure of Seattle, after the September 11 attacks • Seattle lessons non learned: • civil society still excluded from the debate • DCs put at the side of the debate (except India, Brazil on medicines) Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  9. The new round • Decision to launch a new round: The Doha Development Agenda (DDA) • To be end on 1 January 2005 • Inclusion of new topics : the so-called Singapore issues • Investment, competition policy, transparency in government procurement, trade facilitation • China accession Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  10. Agriculture : mixed results • Commitment without prejudging the outcome of the negotiations on 3 points : • Substantial improvements of market access; • Reduction in all-forms of export subsidies, with a view to phasing out; • Substantial reductions in trade distorting domestic support • Special and differential treatment to DCs • be an integral part of all elements of negotiations • Take note of Non trade concerns • Modalities for further commitments no later the 31 march 2003 Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  11. TRIPS: success for Developing countries • Access to medicines • For public health matters, possible not to respect patents on medicines • For countries which do not product medicines : decision on rules for imports at the end of 2002 the later • Re-examination of the art 27.3b • According to the Convention on biodiversity and the protection of traditionnal knowledge Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  12. Between Doha and Cancun • Brazil complained against EU sugar policy, and US cotton policy, in September 2002 • Crucial step : 31 march 2003 : was not respected • still strong oppositions between countries Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  13. Agriculture from Doha to Cancun • Harbinson’s draft • Market access: reduction of tariffs proportional to their initial level • Domestic support: maintain of green box with reinforcement of criteria, strong reduction in blue box, strong reduction of Amber box, reduction of De minimis levels • Exportation: end of export subsidies, disciplines on export credits, food aid, state trading enterprise. • SDT : creation of “Strategic products”(no definition) for which the tariffs reduction is smaller. Less reduction, and more time to implement. No reduction commitment for LDCs. • All countries refused this draft • In May : Cotton initiative • In August : Common EU-US text on agriculture Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  14. The failure of Cancun • Newgrouping : • G20, led by China, Brazil, India, South Africa. Ask for the end of developed countries support to agriculture • LDCs + African countries + ACP : fully support to the Cotton Initiative - right to protect their agriculture (Strategic products) • Draft declaration: moreor less, US/EU Proposal. On Cotton : diversify your economies • End of the Conference Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  15. From Cancun to Geneva • Takes several months to relaunch the discussions • But agriculture remains the hard point of debate • July 2004 : adoption of the July Package • Essential for the credibility of the WTO • Pre-negotiation between EU, US; Australia, India, Brazil Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  16. The July Package - cotton • Creation of a sub Committee on Cotton • In the framework of the AoA • Ambitiously, expeditiously and specifically Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  17. The July package – Market Access • Two principles for a reduction formula • Progressivity • Flexibility: • Sensitive products : for all countries, with lesser market access commitments • Special products: for Developing countries, based on food security, livelihoods and rural development. More flexible treatment • All members will improve market access, except LDCs • Developing countries: Special Safeguard Mechanism Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  18. The July Package – Export subsidies • “Establish detailed modalities ensuring the parallel elimination of all form of export subsidies and disciplines on all exports measures, with equivalent effect by a credible end date” • Discipline on export credits : • Reimbursement, payment of interests, premiums • Avoid the use of food aid for commercial purposes • Interest of LDCs and NFIDC taken into account Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  19. The July Package – Domestic support • Amber box • Tiered formula: the higher the trade-distorting support are, the higher the cuts will be • Ceiling products by products • Reduction of the De Minimis provision, for all • Blue box • New measures may be included, such as countercyclical payments. • Ceiling at 5% of the total value of the agricultural production • Green box : • Redefinition and clarification of criteria later Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  20. The way to Hong Kong 6th Ministerial Conference13-18 December 2005 Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  21. Principles included in the Marrakech Agreement (build-in agenda) Definition of the mandate during the Doha Conference Establishment of the negotiation modalities Definition of the modalities The negotiation stages We are here Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  22. Alliances • EU • USA • G20: South Africa, Argentina, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Cuba, Egypt, El Salvador, Ecuador, Guatemala, India, Mexico, Pakistan, Paraguay, Peru, Philippines, Thailand, Venezuela • G33: Indonesia, Cuba, Kenya, Nigeria, Turkey, Pakistan, Philippines, and others: defence of special product • G10: Switzerland, Bulgaria, Taiwan, Iceland, South Korea, Japan, Israel, Liechtenstein, Mauritius, Norway. Net importers. Multifunctionnality, protection • G90: ACP + LDCs – Cotton, commercial preferences. Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

  23. The EU and the US under pressure • Brazil wins two complaints • US – cotton • EU – Sugar • Obligation to modify: • Their agricultural policies • Or the WTO rules Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005

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