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
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These
and other topics were the subject of around 30 questions or sets of
questions on how WTO members are implementing the Agriculture Agreement — a
core function of the committee. The questions were based partly on
information in 48 notifications received from members since the committee
last met in March this year.
WTO members also heard China’s detailed explanation of its domestic support
for pork, value added tax on agricultural products and tariff quotas in
reply to US questions in the seventh near-annual review of China’s first
decade as a WTO member.
Notifications and review, and related questions
The questions members ask each other under
the review of notifications is part of the committee’s
responsibility to oversee how countries are complying with their
commitments. They can also ask about agricultural measures that have
not yet been notified or have not been notified at all.
The committee continued its year-old tradition of going through the
reviews efficiently because written questions and answers are posted
on a website that members can access. This meeting lasted about two
and a quarter hours. The relevant
notifications can be found from links to
searches for documents.
The EU, enlargement and other issues
Questions from Argentina and Australia
directly or indirectly brought to light the fact that the EU’s
revised commitments on market access and subsidies have not been
certified by the WTO’s members. The revisions are designed to
account for the EU’s expansion from 12 members at the end of the
Uruguay Round, to 15, 25 and now 27. The EU said it is working to
ensure the commitments are certified and explained that the changes
are based on a method agreed for the expansion from 12 to 15.
The specific topics raised included questions from Australia and
Brazil about whether the EU will stay within its subsidy commitments
on sugar, including the ruling in a recent dispute (DS266).
The questions were partly based on European documents suggesting the
EU might exceed its commitment. The EU said it would comply with its
commitments, including the dispute ruling, and advised members to
focus on its formal notifications to the WTO because the data used
in those other documents have different criteria and cover different
time periods.
Triangular food aid
Thailand asked Switzerland to explain “triangular transactions from developing country to developing country”, a description included with information in Swiss food aid. Switzerland said this is when the aid provided by (1) a donor country is bought from (2) a country or area neighbouring (3) the area where the food is needed and described this as the best method. Thailand agreed.
Other questions
These mainly sought more information about
members’ policies and how they implement them, including: Brazil’s
new support measures, India’s sugar export subsidies (follow up
questions), US domestic food aid, US sugar programmes, China’s
tariffs and other duties and charges, the meaning of “considered
planted” in a US programme, Japan’s bidding system for rice import
tariff-quotas, Canada’s corrections to its method for calculating
the value of production for some crops and in some notifications,
how Chile calculates the value of production, details of Japan’s
domestic support programmes, Australia’s disaster relief, and the
EU’s and Switzerland’s export subsidies and food aid.
Switzerland and the EU were asked about their calculations of the
value of domestic production. This is a calculation that underpins
some present domestic support commitments (it determines the
permitted “de minimis” — or conceptually small — distorting
support). But it is also the basis for some new ideas being
negotiated in the current Doha Round, particularly limits on the
“Blue Box”, which is part of “overall trade-distorting domestic
support”, as is “de minimis”. Switzerland and the EU said the
question should be asked in the negotiations and not in these
“regular” committee meetings. Argentina, which was particularly
interested in the question, said this is also about implementing the
present agreement and therefore part of the regular committee’s
work.
China’s transitional review
The questions in this seventh review came from the US in a four-page document (G/AG/W/69) and (G/AG/W/69/Corr.1).
China replied in detail. It described its
domestic support for pork and said many of the figures cited by the
US were wrong. It argued that value-added tax exemptions do not
discriminate against imports, and it supplied information that the
US requested on value-added tax rebates on exports. But it declined
to provide information on entities receiving tariff-quota
allocations on the grounds that this is confidential commercial
information.
The US said the corrections show the value of the review, thanked
China for the detailed replies and said it would study them.
The transitional reviews are required annually for the first eight
years under China’s membership agreement, and once more after about
10 years.
Other agenda items
These passed with little or no comment.
Cuba asked for an updated report to the Goods Council on how some
provisions are being implemented — provisions in the Agriculture
Agreement on export credit, and the Marrakesh decision on net
food-importing developing and least-developed countries. The
chairperson said she would consult with Cuba on how to do this.
Chairperson: Ms Valéria Csukasi (Uruguay)
Next
The meeting scheduled for Thursday 27 November could be postponed to early December (to be confirmed)
In 2009, tentatively:
12 and 13 March
(perhaps) 18 and 19 June
21 and 22 September
19 and 20 November
• 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)
• Blue Box: Amber Box types of support, but with
constraints on production or other conditions designed to
reduce the distortion. Currently not limited
• de minimis: Amber Box supports in small, minimal or
negligible permitted amounts (currently limited to 5% of the
value of production in developed countries, 10% in developing)
• 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
• overall trade-distorting domestic support (OTDS): In
the Doha Round agriculture negotiations: Amber Box + de
minimis + Blue Box (see above)
• 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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