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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

The on-going negotiations

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005


Renegotiating the aoa context
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


Points of negotiation
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


Points of negotiation cont d
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


Negotiations group
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


Ministerial conferences

Ministerial Conferences

From Seattle to Cancun

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005


Seattle december 1999
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


The doha conference
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


The new round
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


Agriculture mixed results
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


Trips success for developing countries
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


Between doha and cancun
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


Agriculture from doha to cancun
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


The failure of cancun
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


From cancun to geneva
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


The july package cotton
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


The july package market access
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


The july package export subsidies
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


The july package domestic support
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


The way to hong kong

The way to Hong Kong

6th Ministerial Conference13-18 December 2005

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005


The negotiation stages

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


Alliances
Alliances agenda)

  • 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


The eu and the us under pressure
The EU and the US under pressure agenda)

  • 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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