A month away from the 11th WTO ministerial conference, to be held in Buenos Aires on 10-13 December, persistent differences of opinion are reducing the hope of fruitful results on the liberalisation of agricultural trade at multilateral level, particularly on the reform of 'domestic supports'.
In Geneva, the WTO member countries are still divided over the reduction of 'domestic supports' – which was the key theme of the informal ministerial meeting in Marrakesh on 9-10 October. Most member countries want to prioritise the adoption of a decision on this in Buenos Aires.
The leader of the WTO agricultural negotiations, Kenya's Ambassador to the WTO Stephen Ndun'gu Karau, also noted, at the last meeting of his committee on 19-20 October, the divergence of positions on the issue of how to treat cotton, on the permanent solution for public stockholding for food security purposes, and on the special safeguard mechanism in agriculture for developing countries. Meanwhile the chances of reaching a compromise on the pillar on market access are practically nil.
There are two opposing camps on the reform of 'domestic supports': the countries favouring an overall limitation on aid that distorts competition, and the countries such as the Africa, Caribbean and Pacific (ACP) group which think that the 'amber box' that includes measures linked to the price or quantities produced must be eliminated.
The first option is supported by the EU and Brazil in a joint proposal, presented in July and supported by Colombia, Peru and Uruguay, on limiting subsidies distorting trade in proportion to the value of agricultural production (see EUROPE 11831). Their proposal is aimed at finding a calibrated balance, including a substantial development dimension and excluding the least advanced countries from the new disciplines. Furthermore, the first option addresses the issue of public stockholding for food security purposes, which is dear to India, which does not want to link this issue to 'domestic supports'.
Speaking at the WTO agricultural negotiations committee at the end of October, the EU said that its proposal would require the EU to give up between €50 billion and €60 billion in customs duties. The EU thus gave assurances that its offer was "less egocentric" than that of countries putting forward other proposals.
The USA for its part repeated its scepticism about the possibility of reaching any agreement in Buenos Aires, stating that the interest of member countries for a decision on domestic support would not be enough to overcome all the differences of opinion.
France again calls on EU for caution
At an Agriculture Council on Monday, the European Commission will review the preparatory work for the WTO conference in Buenos Aires (see EUROPE 11896).
In a position supported by Austria, Greece, Hungary, Ireland, Lithuania, Poland, Romania, Slovakia and Slovenia, France calls on the Commission for caution and asks that the proposal from the EU and Brazil on the reform of domestic supports not involve any commitment that would require changes in the current CAP or that could anticipate internal discussions on the CAP post-2020, thus leaving the possibility open for using any type of domestic support instrument, including all categories of instrument in the 'blue box' (aid linked to limiting production).
On Thursday 9 November, the European Parliament's international trade committee will vote on a draft resolution on the WTO negotiations ahead of the Buenos Aires conference, on the basis of a report by its leader Bernd Lange (S&D, Germany) and Paul Rübig (EPP, Austria). (Original version in French by Emmanuel Hagry)