Domestic support

Lively discussions took place during the session on domestic support, based on two submissions from Cairns Group members covering “Domestic support in the WTO Agreement on Agriculture" (JOB/AG/138) and “Trends in global trade-distorting support” (JOB/AG/143).

The two papers focused on trends in trade-distorting domestic support granted by WTO members since 2001. Both papers highlighted that the composition of support has changed over the years and that overall trade-distorting domestic support has remained high, with the top ten providers of support consistently accounting for the bulk of notified support.

Members commended the usefulness of the two submissions, underlining that they helped members gain a better understanding of the evolution of domestic support, a top priority for many members. Many members supported the call for improved transparency to ensure up-to-date notifications which would allow for more complete and accurate analysis in the future.

Some members insisted that the negotiations should initially focus on the aggregate measurement support (AMS) entitlements, which permitted certain members to exceed their de minimis levels (minimal amounts of domestic support that are allowed even though they distort trade) under the Agreement on Agriculture. They considered this to be the most trade-distorting support, while some others expressed the view that all components of trade-distorting support should be examined in the negotiations.

Some members demanded that the green box - domestic support for agriculture that is allowed without limits because it does not distort trade, or at most causes minimal distortion - should also be analysed Some challenged the methodology used in the two papers and requested the inclusion of per capita data.

The session ended on a high note, with some members noting that it was one of the best meetings in recent years in terms of discussions and engagement by members. The Chair invited members to use future dedicated sessions as a launch pad for more technical and factual analysis. He said: "With continued hard work, sustained level of engagement and some flexibility, progress [is] possible [in domestic support]."

Public stockholding for food security purposes

Indonesia spoke on behalf of the G33 Group (a coalition of developing countries), highlighting the importance of reaching a permanent solution for public stockholding programmes in developing members that are intended to ensure food security and small farmers' livelihood.

The proponents expressed regret about the missed deadline of the WTO's 11th Ministerial Conference for finding a permanent solution and urged members to redouble their efforts to find a solution by the 12th Ministerial Conference, which is to be held in June 2020. They said that the permanent solution should cover both existing and future public stockholding programmes of developing members.

Some members asked for more information to better understand the need for a permanent solution as well as data on which members were having difficulties with the implementation of the current rules in the Agreement on Agriculture. It was strongly suggested that proponents put forward an information paper on the issue.

In its response, Indonesia said that the G33 Group was currently studying all aspects of public stockholding that had been put forward and agreed that a technical conversation would be needed.

Cotton

The Cotton 4 reported on replies received so far to their recent data request on cotton support, production and prices. The United States presented a new paper (JOB/AG/144) which contained data on domestic support, market access and export subsidies for cotton. Members further discussed how to improve data, information collection and analysis, and possible options for advancing the negotiations.

Next step

In conclusion, the Chair said: "Time is not on our side," yet "new ideas take time to mature". The next cluster of dedicated discussions - scheduled for 22-23 October - will focus on market access and the special safeguard mechanism for developing countries. The Chair indicated he would be holding more consultations with members in various formats.