Brussels, 06/02/2015 (Agence Europe) - Focused on the chapters on domestic support, market access and public stockholding, the first working session of the year on the agricultural section of the Doha Round at the WTO on Wednesday 28 January showed that the divide between the main actors remains significant.
With regard to domestic support, the delegations examined a document submitted by the Cairns Group (the net agricultural exporting countries including Australia, Canada, Pakistan and Chile) to assess how the six key actors should adjust their current domestic support with regard to the limitation provided for in the draft 2008 framework agreement, which remains on the negotiating table. In these countries' view, the EU, China, India, Brazil and Japan would have nothing to do, whilst the US should move to cuts as its support exceeds the thresholds planned by $3.6 billion. The US has counter-attacked, believing that the aid that the emerging countries give their agriculture results in trade distortion.
With regard to market access, the delegations examined two documents from the G33 group of developing countries. The documents were presented by Indonesia and deal with 'special products' (products for which these countries could move to weaker tariff reductions than normal, or none at all) and with the special safeguard mechanism (a mechanism that would authorise them to increase customs duties temporarily should prices fall or should there be a sudden surge in imports). The G33 countries insisted on the need for this protection for agriculture but the protection continues to be criticised by the Cairns Group and the US.
During this first meeting, the EU reiterated that the reform of its common agricultural policy (CAP) represented a significant effort on its side. Supported by Switzerland, the EU also called for geographical indications to feature in a final agreement.
“My really strong advice to you all, as we leave this meeting, is please get more concrete with each other because if we stay in this sea of generalities, we're probably not going to get that far”, said the WTO mediator on the agricultural file, New Zealand ambassador John Adank.
During a separate working session, the delegations addressed the issue of public stockholding for food security purposes in developing countries - the objective being to reach an agreement on a permanent solution by the end of December. Last November, India succeeded in having the 'peace clause' on this file (a clause which authorises developing countries to stock agricultural products exceeding the limits set by the WTO for domestic support) made valid for an indeterminate period while awaiting a permanent solution. The only proposal on the negotiating table for this issue is that of the G33 - which wants to put public stocks in the 'green box'. Australia, Brazil, Canada, the US, Japan and the EU warned against the risk of trade distortion produced by such a derogation.
Following the Bali mini-agreement that was concluded in December 2013, the 160 WTO member countries are due to set up a detailed work programme by 31 July on the main sections of the Doha Round - agriculture, industrial products and services. The idea is to make a comprehensive agreement possible for the next WTO ministerial conference in Nairobi (Kenya) in December. (EH)