WTO: 2015 NEWS ITEMS

AGRICULTURE NEGOTIATIONS: INFORMAL MEETING


NOTE:
THIS NEWS STORY 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.

“INFORMAL MEETING” means there are no minutes.

MORE:
> News: agriculture talks

> Agriculture negotiations
> Modalities phase

> The Doha Round

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The story so far 

2000: Agriculture negotiations launched(March). See backgrounder

2001: Doha Development Agenda launched. Agriculture included (November)

2004: “Framework” agreed (August)

2005: Further agreements in Hong Kong Ministerial Conference (December)

2006: Draft modalities (June)

2007: Revised draft modalities (July)

2007-2008: Intensive negotiations with working documents (September-January)

2008: Revised draft modalities (February, May and July)

2008: The July 2008 package full coverage and the chair’s report

2008: Revised draft modalities (February, May, July and December)

2013: The Bali Package. Agriculture decisions and explanations

The convergence is still the real challenge that we face here

But they also showed that differences remain as the clock runs down on members’ aim to agree by 31 July 2015 on a work programme to conclude the Doha round negotiations.

“The issues are certainly becoming much more familiar with delegations but the convergence is still the real challenge that we face here,” concluded chairperson John Adank, who is New Zealand’s ambassador, wrapping up the 20 March negotiations meeting. (See the texts of his statements, or listen to audio.)

Market access

The two new unofficial papers are from Paraguay and Argentina, both suggesting that tariff reductions in agriculture should at least partly be achieved by members exchanging requests and offers with each other. These are alternatives to the stricter formula in the draft outline of how a possible deal might be structured, which has been on the table since 2008 — the “draft modalities”, sometimes called “Rev.4” reflecting the number of times it had been revised.

Paraguay proposes that countries’ offers would be based on an average tariff reduction figure that would also be subject to a minimum cut (details below), whereas Argentina proposes offers and requests that are not based on any targets or formulas (details below).

Some members rejected Argentina’s proposal outright arguing that the outcome would be too unpredictable, the negotiations would take too long, and smaller countries with less bargaining power would be at a disadvantage. Several of them were more willing to consider Paraguay’s proposal although some concerns about smaller countries’ bargaining power remained.

Members also remain divided on the amount of flexibility to be allowed for all countries on tariff reductions for products that are politically sensitive, and for developing countries for “special products” (for which developing countries would make smaller tariff reductions than the norm, or none at all) and a “special safeguard mechanism” (allowing them to raise tariffs temporarily to deal with price falls or import surges).

 

Domestic support

On domestic support, the focus has been on the concept of “overall trade-distorting domestic support”, made up from three categories: Amber Box (the most trade-distorting support, known technically as AMS), Blue Box (similar but with constraints to reduce the distortion) and de minimis (a conceptually small amount of Amber Box support currently limited to 5% of production for developed countries, 10% for developing countries and 8.5% for China, and 5% for Chinese Taipei and South Africa). (Details below.)

Ambassador Adank reported that this was “seen by many to be a valuable concept in terms of its design to reduce trade distorting support, limit box-shifting, and/or level the playing field. However, the discussions also helped to uncover some important issues which attract sharply differing views.”

 

Public stockholding in developing countries

Meanwhile In a second agriculture negotiations meetings in the afternoon of the same day — a separate track on public stockholding for food security in developing countries (details below) — chairperson Adank admitted that “wide gaps” remain within the membership on the Group of 33 proposal for a permanent solution, although proponents indicated they were willing to consider possible safeguards to prevent public stockholding programmes from having any negative spill-over effects on international trade.

He observed that each side was waiting for the other to submit new proposals dealing with the concerns that have been raised.

The United States also proposed “elements for discussion” on this, featuring a broader examination of issues surrounding food security and stockholding as a first step towards a permanent solution, which received a mixed initial reaction.

The public stockholding talks have a year-end target date deadline for producing a permanent deal to replace the interim agreement struck at the December 2013 Bali Ministerial Conference. This was set by the General Council’s 27 November 2014 decisions.

 


Some details

Market access
Domestic support
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Chairperson’s statements  

 

Audio
Negotiations meeting: opening statement 
Negotiations meeting: domestic support 
Negotiations meeting: market access 
Negotiations meeting: closing 
Public stockholding meeting: opening 
Public stockholding meeting: closing 
Domestic support

 

Next

To be announced

Jargon buster 

Place the cursor over a term to see its definition:

 
About negotiating texts:

• bracketed

• “Job document”

• modality, modalities

• schedules

• templates

 
Issues:

• Amber box

• Blue box

• box

• de minimis

• distortion

• export competition

• Green box

• pro-rating

• sensitive products

• special products (SP)

• special safeguard mechanism (SSM)

• tariff line

• tariff quota

• the three pillars

> More jargon: glossary
> More explanations

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