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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
  • 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
  • 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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