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NOTE:
THIS NEWS ITEM IS DESIGNED TO HELP THE PUBLIC UNDERSTAND DEVELOPMENTS IN THE WTO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE THE CONTENTS ARE ACCURATE, IT DOES NOT PREJUDICE MEMBER GOVERNMENTS’ POSITIONS. THE OFFICIAL RECORD IS IN THE MEETING’S MINUTES
> Explanation in “Understanding the WTO”
SEE ALSO:
> Press releases
> News archives
> Pascal
Lamy’s speeches
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This
meeting was the shortest on record for this committee. At one hour and a
quarter, it was around 40 minutes shorter than the previous record set in
September 2007. One reason for the efficiency is the use of written
questions and answers posted on a website that members can access.
Notifications and review, and related questions
The review of notifications is part of the committee’s responsibility to
oversee how countries are complying with their commitments. This time,
almost the entire meeting was taken up with this topic. The relevant
notifications can be found from links to
searches for documents.
Chinese Taipei’s special safeguards
Here, the questions and answers had broader implications for the system as a
whole, they were not just about how a particular government is using
the measure.
In written questions, Australia said Chinese Taipei’s notifications on the
safeguard (listed below) show how “dysfunctional” it can be. For example,
the formulas for triggering the safeguard’s tariff increase (spelt out in
Art.5 of the Agriculture Agreement) combined with a recent history of zero
imports for one type of fruit allow the “volume trigger” to be zero. The
fruit are shaddocks, a member of the same citrus family as grapefruits.
Since the trigger level is zero, “any imports … no matter how minor,
activate the trigger”, Australia said. Other examples show the safeguard
being triggered when the cause has been declining domestic demand and not
surges in imports, it went on.
Australia — supported by Thailand, Argentina, New Zealand, Paraguay and
Costa Rica — questioned whether raising protection through additional import
duties in these cases is “plausible” in these cases. It argued that the
examples show that the proposed new Special Safeguard Mechanism (SSM) for
developing countries should be designed carefully in the current
negotiations in order to avoid “perverse outcomes”.
Chinese Taipei said its approach fully conforms with the Agriculture
Agreement. There were no imports of shaddocks for three years because of
food safety and plant health reasons, Chinese Taipei said, not because of
trade measures. Chinese Taipei argued that the new Special Safeguard
Mechanism (SSM) for developing countries is a separate issue. Cuba agreed
and said it should not be discussed in these regular committee meetings.
In agriculture, the Special Safeguard — SSG — allows countries to raise
tariffs temporarily to protect their producers against import surges or
price falls. Unlike the regular GATT safeguard, this one can be triggered
automatically because it does not require proof of injury. Only products
whose non-tariff barriers were converted to tariffs are eligible.
Chinese Taipei’s notifications, mentioned by Australia:
Canadian cheese standards
New Zealand — supported by the US and EU — continued to question Canada’s
proposed new “compositional standards” for cheese including whether limits
on dairy proteins would restrict demand for dairy products and why they were
needed since Codex, an international standards-setting body for food, says
the are not. Canada said the standards will help consumers by making each
type of cheese more uniform and denied that the new standards will restrict
trade.
India’s sugar export subsidies
India answered that Australia and Thailand had asked previously. It said the
subsidies would cover transportation and designed to provide relief to
exporters affected by the appreciation of the rupee, but none have been paid
and the government has not asked for the one-year programme to be extended
beyond April 2008.
Other questions
Among these (details will be available when
the minutes — officially,
Summary Reports — are issued):
TURKEY’S WHEAT EXPORT SUBSIDIES. Turkey replied to Australia that it has
not subsidized wheat exports and provided the data that Australia sought
NIGERIA’S IMPORT PROHIBITIONS ON SOME PRODUCTS, USE OF REFERENCE PRICES
FOR CUSTOMS VALUATION. The questions were from the US; Nigeria said it is
still waiting for replies from the ministries concerned.
EU POULTRY TARIFF-QUOTAS. China’s concerns were related to the EU’s
renegotiated quotas following its enlargement. The EU agreed to discuss this
bilaterally.
SWITZERLAND’S TARIFF QUOTAS ON BOVINE SEMEN. The US questioned whether new
regulations amount to a domestic production requirement. Switzerland said
the regulation is needed to safeguard the livestock that are its natural
heritage, in the face of large amounts of imports. The US and Argentina
remained sceptical.
CANADA’S DOMESTIC SUPPORT. Canada explained details of its programmes in
reply to questions from Australia and the US.
NORWAY’S DOMESTIC SUPPORT. Canada asked why Norway notified a negative
non-product-specific Amber Box (AMS) support. Norway explained — a tax on
pesticides that cannot be separated by product — and said the calculation
method conforms with the Agriculture Agreement.
PAKISTAN’S DOMESTIC SUPPORT. Pakistan explained details of its programmes
in reply to questions form Canada and the US.
US EXPORT SUBSIDIES. The US clarified points raised by Australia and
Canada.
Notifications overall
The chairperson reported that members had submitted 39 notifications since
the last meeting in November. Only 10 members have complied fully with the
notifications requirements for 1995–2006 — Armenia, Chile, Cuba, Georgia,
Hong Kong China, Macao China, Nigeria, Singapore, Trinidad and Tobago, and
Uruguay.
Chairperson: Ms Valéria Csukasi (Uruguay)
Next
Wednesday 17, Thursday 18 September
Wednesday 26, Thursday 27 November
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• Amber
Box: domestic support for agriculture that is considered
to distort trade and therefore subject to reduction
commitments. Technically calculated as “Aggregate Measurement
of Support” (AMS)
• decoupled income support: support for farmers that is
not linked to (is decoupled from) prices or production
• Green Box: domestic support for agriculture that is
allowed without limits because it does not distort trade, or
at most causes minimal distortion.
• notification: a transparency obligation requiring
member governments to report trade measures to the relevant
WTO body if the measures might have an effect on other members
• Special Safeguard (SSG):
in agriculture, a means for countries to raise tariffs
temporarily to protect their producers against import surges
or price falls. Unlike the regular GATT Safeguard, the SSG can
be triggered automatically because it does not require proof
of injury. Only products whose non-tariff barriers were
converted to tariffs are eligible.
• Special Safeguard Mechanism (SSM): new, in
agriculture, for developing countries, similar to the SSG
Special Safeguard. The number of eligible products and how the
mechanism would work are negotiated in the Doha Round
agriculture talks
• tariff quota: when quantities inside a quota are
charged lower import duty rates, than those outside (which can
be high)
> More jargon:
glossary
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