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Europe Daily Bulletin No. 9410
Contents Publication in full By article 27 / 35
GENERAL NEWS / (eu) eu/wto/doha

FAO favours special and differential treatment for developing countries in multilateral negotiations

Brussels, 19/04/2007 (Agence Europe) - In a report, “State of Agricultural Commodity Markets 2006” presented on 11 April, the United Nations Food and Agriculture Organisation (FAO) warned of the harmful consequences of trade liberalisation in agricultural products, looking at Doha Round multilateral trade negotiations. According to the report, many lower-income countries, especially in sub-Saharan Africa, are not only less well placed to gain in the short-to medium-term from trade liberalisation that includes improved access to export markets, or from further opening of their own markets, they could also be “adversely affected” if protection measures are not put in place to protect agricultural production and ensure food security. The FAO stresses the need for the Doha negotiations to take account of the widely differing agricultural and trade situations. It adds that, by emphasising African countries exposure to import competition, reductions in customs duties could harm agricultural growth, food security, income and employment in these countries. Faced with these real risks, the benefits of liberalisation seem less tangible, the report says, highlighting the fact that a multilateral agreement which assumes commitment to reduce protection at the border has little chance of success unless these issues are dealt with in a more appropriate manner. “It is clear that many countries will need to be allowed some flexibility in the implementation of new trade rules, and also to be given assistance, at least for the short term, while they adjust to the new market realities arising from trade liberalization,” the FAO goes on, noting that “in the language of the World Trade Organization, these countries need significant special and differential treatment”. (eh)

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