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IPC Seminar Multilateral Trade Negotiations: Update on The Doha Development Round MARCELO REGUNAGA Hanoi – October 2005. THE G-20: A NEW MAIN PARTNER FOR AGRICULTURE NEGOTIATIONS. Two years of activities (inauguration in September 2003)

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IPC Seminar

Multilateral Trade Negotiations:

Update on The Doha Development Round

MARCELO REGUNAGA

Hanoi – October 2005

the g 20 a new main partner for agriculture negotiations
THE G-20: A NEW MAIN PARTNER FOR AGRICULTURE NEGOTIATIONS
  • Two years of activities (inauguration in September 2003)
  • Main partner for Agriculture negotiations: 63% of world farmers from Asia, Africa and Latin America; 51% world population; 20% ag. production; 26 % ag. exports; 17% ag. imports
  • Bases:
    • Linkage between Agricultural Trade and Development
    • Agricultural Reform can unlock potencial of Agriculture in the developing world: poverty erradication
  • Views:
    • Differentiated responsibility of developed countries to address distortions and adopt reforms in Agriculture
    • Fair and balanced process that ensures inclusiveness and participation (G20 : cross section of developing members)
    • Doha Round must result in a fairer trading system
the doha mandate and the framework agreement
THE DOHA MANDATE AND THE FRAMEWORK AGREEMENT
  • Developing Round: should provide concrete results on agricultural reforms to level the playing field with other sectors
  • Framework incorporates more that reasonable flexibilities in domestic support and market access
  • Domestic support:
    • Increased permitted support: blue box; de minimis
    • Reductions in OTDS must be very large too be effective
  • Market access flexibilities:
    • Water in tariffs
    • Sensitive products, special products
    • Special safeguard
recents developments
RECENTS DEVELOPMENTS
  • The G-20 has tabled proposals during 2005 on the three pillars which tend to drive the negotiations forward
  • Concerns after the Dalian Meeting (lack of progress in relevant issues)
  • New impetus after the USA October proposal
  • However, the US and the EU October proposals are not enough to induce substantive reforms
  • The G-20 also tabled new proposals for the three pillars
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G – 20 PROPOSALS : DOMESTIC SUPPORTTo deliver the Doha mandate of substantial reductions in trade distorting domestic support it is neccesary to count with a combination of significant cuts, disciplines and monitoring

  • Structure for reductions in AMS, de minimis and OTDS
  • Base for the overall reduction on domestic support
  • Disciplines (review and clarification of green box criteria; elements for discussion: blue box; product-specific capping)
  • Improving Monitoring and Surveillance Mechanisms, to ensure transparency and compliance with the commitments
g 20 proposals domestic support
G – 20 PROPOSALS : DOMESTIC SUPPORT
  • OTDS and AMS bands and cuts
    • OTDS Thresholds Cuts AMS Thresholds Cuts

Over 60 US$ billion 80 % Over 25 US$ billion 80 %

10 to 60 75 % 15 to 25 70 %

0 to 10 70 % 0 to 15 60 %

  • S&D: given the 10 % entitlement in de minimis, special band for developing countries cuts in OTDS
  • Developing countries without AMS entitlements: exempt of an overall reduction (exemption in de minimis cuts)
  • De minimis:
    • Both product and non-product specific reductions to adjust to OTDS cuts
    • Developing countries with AMS entitlements adjust to OTDS cuts
    • Exeptions for subsistence poor farmers and countries with no AMS
  • Cotton: early agreement on effective measures
g 20 proposals export competition
G – 20 PROPOSALS: EXPORT COMPETITION
  • Credible date for elimination of export subsidies: no longer than 5 years and with a front-loading of commitments
  • Proposal on export prohibitions and restrictions
  • Maintaining the special status of STEs in developing countries
  • New disciplines on export credits, export credit guarantees and insurance programs and food aid (proposals to be tabled in the next days)
g 20 proposals market access
G - 20 PROPOSALS: MARKET ACCESS
  • Market access:

Developed Bands Cuts Developing Bands Cuts

0 to 20% 45% 0 to 30% 25%

20 to 50% 55% 30 to 80% 30%

50 to 75% 65% 80 to 130% 35%

+ 75% 75% + 130% 40%

  • Lineal reductions
  • No flexibilities in the reduction formulas
  • Sensitive products:
    • 1% of the products which have tariffs
    • Base: 6% of consumption
    • Maximum deviation : 30%; the largest deviation in the formulas more increase in TRQs and reduction in intra-quota tariffs
g 20 new proposals to be tabled soon
G - 20 NEW PROPOSALS TO BE TABLED SOON
  • Tariff escalation
  • Expansion of TRQs
  • Special products
  • Special safeguard
  • Preferences
  • Special compensatory measures
  • Food aid
  • Export credits
  • Recently acceded members
martket access simulations

MARTKET ACCESS SIMULATIONS

(Applied tariffs and % reductions of alternative proposals)