Brussels / Geneva, 21/08/2003 (Agence Europe) - Largely considered as a real step forward in Geneva, where work resumed last week at a sustained rate, the presentation of Euro-American guidelines on arrangements for reform of farm trade, negotiated in the context of the Doha Agenda, causes considerable reticence from other exporting powers and developing countries. Headed by Brazil, China and India, sixteen of them responded, on Wednesday, by presenting their own "canvas", calling on the heavyweights of the system to agree to clear cuts in their arsenal of subsidies and to bear most of the customs reduction burden intended to improve access to agricultural markets. "Nothing new" was the comment from the European side. Peter Carl, Director General for Trade, said that well-known positions had been repeated, stances that have been presented over the past three years. Nonetheless, this should inspire Stuart Harbinson whose new draft compromise is awaited for the end of the week, and also Carlos Perez del Castillo, who is preparing a draft final declaration for the key test of Cancun where the next ministerial conference of the World Trade Organisation (WTO) is to be held from 10 to 14 September.
As indicated (see EUROPE of 20 August), the Euro-American document -which is supposed to be a balanced, sound and sustainable base for completing the farm talks that are the cornerstone of the Doha Agenda, according to the description given by Commissioner Franz Fischler- is focused on internal support, market access and export competition, recommending the following three "pillars" for each: (1) significant reduction in subsidies that have a distorting effect on trade, an extra effort being expected from countries that use this kind of subsidy the most; (2) certain tariff protections will be reduced according to the "Swiss" model favoured by the United States (greater cuts for the highest tariffs) and others according to the formula already applied during the Uruguay Round and preferred by Europeans (average and minimum cuts), the remainder being eliminated or ceilinged where necessary. Substantial improvements for market access in all sectors are also foreseen (tariff reductions or expansion of tariff quotas), with longer periods for implementation granted to developing countries; (3) "parallel" disciplines are proposed for subsidies and export credits, some of which would be rapidly eliminated and others gradually, the public international trade and food aid companies having an impact on the commercial markets before also being submitted to common disciplines. This is the first time since the beginning of agricultural negotiations in 2000, one is pleased to note at the WTO, that members have been prepared to move away from their starting positions and to seriously negotiate a compromise on the main issues on the table. The partners stressed that their approach aims to bring their stances as close as possible on the three essential "pillars", the remainder still having to be negotiated, especially questions of development, special and differentiated treatment, and non-trade concerns on which Washington and Brussels have not yet come to an agreement.
Brazil, China and India and the thirteen other developing countries (mainly Latin American, as well as South Africa, the Philippines and Thailand) propose an alternative framework for a final agreement on agriculture. The intention is to be as inclusive as possible, by including the concerns and interests of all participants, the coalition states in an annexed declaration.
The "Sixteen"'s document is also focused on internal support, market access and export competition, mainly calling for: drastic cuts in internal subsidies, the elimination of all export subsidies (and not for just a few products), very strict rules for export credits, hybrid tariff reduction for the developed countries and according to the Uruguay Round formula for developing countries, a list of special products from developing countries and a special safeguard mechanism for their benefit, with provision, however, for elimination of that currently available to developed countries. "As expressed by developing countries, the need to ensure balanced levels of commitments in all three pillars ranked high in our priorities", stressed Luiz Felipe de Seixa Correa, Brazil's representative at the WTO.
Other countries including the Dominican Republic, Honduras, Kenya, Nicaragua, Panama and Sri Lanka presented a singular position, here too making a clear distinction between commitments and reductions to be made by the developed and developing countries, without a word, however, on internal subsidies and export subsidies.
Finally, others (including Japan which has just revealed a new proposal in Geneva) and a group of six countries headed by Switzerland (South Korea, Taiwan, Bulgaria, Iceland and Liechtenstein) took positions to reinforce the Euro-American approach.