WTO: 2014 NEWS ITEMS

COUNCIL FOR TRADE IN GOODS

The Council for Trade in Goods, on 19 June 2014, approved the Philippine waiver request for the extension of its special treatment for rice and forwarded the draft decision to the General Council for adoption.


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The Philippines said that rice is of critical importance to the country, and is the main source of food security for the population. It said that it first filed its waiver request in 2011, and now have finally had concluded bilateral agreements with interested members.

Australia, Indonesia, US, China, Vietnam and India supported the Philippine request. Thailand said that it had concluded negotiations with the Philippines on 10 June, and although it still has to conclude internal procedures, it could go along with forwarding the draft decision to the General Council.

Under the draft waiver decision, the Philippines will provide minimum market access for rice imports, and establish country-specific quotas. The General Council will review annually the waiver. At the expiration of the waiver on 30 June 2017, the importation of rice into the Philippines will be subject to ordinary customs duties.

 

Trade concerns

The Russian Federation expressed concern about charges imposed by Norway on catches of raw fish landed by Russian fishing vessels. It said these charges, which do not apply to EU vessels, have to be paid to one of Norway's fishermen sales organizations. Norway said the charges are applied to all landings of domestic or foreign fish, and that they are for statistical purposes and do not constitute a duty or a charge.

Russia also expressed concern that Brazil applies different import duties on diammonium phosphate (DAP): 6% on DAP with arsenic content of less than 6mg/kg, and 0% for DAP with arsenic content of more than 6 mg/kg. It said that the use of different duties discriminate against Russian goods. Brazil said there was no discrimination as the two DAPs are not like products.

Russia reiterated two complaints it had raised at the previous meeting: EU's duty-free treatment of imports from Ukraine despite the absence of a formal free trade agreement (FTA), and the listing by the US and Canada of Russian persons subject to financial restrictions. The EU said that its FTA with Ukraine would be formally signed later this month. The United States and Canada expressed confidence that their measures are in conformity with their WTO obligations.

The EU, Japan and the US reiterated their concerns about Russia's trade-restricting measures. The EU complained that Russia applies tariff rates higher than its bound rates on 150 products. The US expressed concern that Russia had not notified to the WTO six safeguard measures it had imposed before becoming a WTO member. Japan expressed concerns about measures involving refrigerators and automobiles. Canada, Ukraine, Korea, Chinese Taipei, Australia and New Zealand also expressed concerns about Russian measures. Russia said it had been engaged in bilateral discussions with delegations on these concerns, and that it welcomes constructive dialogue to solve problems.

Uruguay, Norway and Iceland expressed concerns about reports that Nigeria is set to implement new regulations that would restrict imports of sea products through quotas and import licensing. The US, Chile and the EU shared this concern. Nigeria said that its authorities are discussing with stakeholders, including importers, a new fish policy aimed at preventing health hazards, reducing high dependence on imports of food products including fish, and encouraging the local fisheries industry. It stressed that the matter is still at discussion stage, and that no ban has been imposed. It added that the plan does not envisage import licensing or raising the current duties on fish. On another matter, the EU reiterated concerns about Nigeria's local content measures in oil and gas. The US, Australia and Japan shared the EU concerns. Nigeria said its measures in the oil sector are transparent and non-discriminatory for all investors.

Indonesia expressed concerns about what it said was the EU's unfair treatment of Indonesian palm oil in form of what it said was excessive anti-dumping duty, and a campaign in the EU against the food containing palm oil. It said the EU duty has resulted in a substantial reduction of Indonesian palm oil exports to the EU. The EU said its imports of Indonesia palm oil has increased by 70% over the past six years. It said it is the third largest importer of palm oil in the world, and that most of its imports of palm oil enter duty-free.

The EU, Japan and the US reiterated their concerns about Indonesia's trade-restricting measures. The EU said Indonesia's new trade laws continue a pattern of import restrictions through import licensing and pre-shipment controls. The US said that as an emerging country leader, Indonesia must be a positive model on trade. Japan expressed concern about the export ban on nickel ore. Korea, Australia, Canada, New Zealand, Thailand and Chinese Taipei also expressed concerns. Indonesia said that the concerns expressed do not reflect the trade reality, which is Indonesia's imports growing considerably year after year. It import policies were adopted for safety, security, health, environmental, social and moral hazard reasons. It said it is committed to work with members to address the concerns.

Canada, the EU and Norway reiterated their concerns about Japan's wood use points programme, which they said posed difficult qualification criteria for foreign wood producers. The US, Indonesia and New Zealand shared this concern. Japan said that the programme is due to end in a few months.

Japan again expressed concerns about Brazil's assistance programme for the automotive sector (INOVARAUTO). The US and Canada shared Japan's concerns. The EU noted that it had requested dispute settlement consultations on this matter. Brazil reiterated that the measure in question is non-discriminatory and part of its efforts to simplify and modernize its tax system.

Under “Other Business”, Switzerland reiterated its concern that Bahrain is applying duties on cigarettes that are significantly higher than its 35% bound duty.

 

Other matters

The Council also:

  • Authorized Gabon to further extend the renegotiating period for its schedule of concessions, for another 90 days or until 15 September 2014;
  • Agreed to forward to the General Council for approval the draft Decision Derestricting the Historical Bilateral Negotiating Material of the Kennedy Round.

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