Negotiations on Agriculture State of Play by Surabhi Mittal WTO &The Doha Round : The Way Forward 6-7 April, 2006

25 years of ICRIER - Linking India to the World Economy Hong Kong Declaration: Key Decisions Export subsidies will be eliminated by 2013, but this date is confirmed only upon completion of modalities. Export subsidies on cotton to be eliminated by the end of Developing countries can self-designate products as special products (SP) guided by indicators based on the criteria of food security, livelihood security and rural development. Developing countries can recourse to Special Safeguard Mechanism (SSM) based on import quantity and price triggers.

25 years of ICRIER - Linking India to the World Economy Domestic Support Status Three bands of reduction in final bound total aggregate measure of support (AMS) and in overall cut in trade distorting domestic support (TDS). Higher linear cuts in higher bands. Some convergence for overall cut and in product specific and non-product specific de minimis limits. Criterion laid to agree on blue box support to lie between 2-5% of aggregate total value of agricultural production. Green Box criteria to be reviewed Issues Overall cut in TDS (amber box + de minimis + blue box) with 20% in first year and more later by Tiered Formula Additional effort in AMS reduction by developed country members in the bottom band. Reduction in de minimis for developed countries. Time frame and cap to be discussed on Blue Box. Need to strengthen criteria on blue and green box to prevent box shifting.

25 years of ICRIER - Linking India to the World Economy Export Competition Status Elimination of all forms of export subsidies and disciplines on all export measures with equivalent effect to be completed by the end of The disciplines on export credits, insurance programmes, exporting STEs and food aid to be completed. To ensure that trade-distorting monopolistic practices of STEs are eliminated. A “safe box” for bona fide food aid to be provided to ensure that there is no unintended impediment in dealing with emergency situations. Issues Some convergence on disciplines on export credits but number of critical issues remained, including: possible exemptions to the 180 day rule. Differences regarding the scope of practices to be covered by the new disciplines on STEs. What type of food aid is to be permitted in non emergency situations is also still unclear. African and LDC’s want that safe box is used as for emergency food aid and should not be under any disciplines.

25 years of ICRIER - Linking India to the World Economy Market Access Status Four bands for structuring tariff cuts recognized. Convergence on a linear- based approach for cuts within bands Tariff escalation to be addressed through a formula. Focus is on sensitive products- partially shielded from any tariff cutting formula. SP and the SSM shall be an integral part of the modalities and the outcome of negotiations in agriculture. Issues To agree on thresholds, tariff cap and its size. Deeper cuts in higher tariffs should be progressively. Formula to address tariff escalation. Will SP also have automatic access to the SSM? Basis for the quantity based and price based SSM be calculated.

25 years of ICRIER - Linking India to the World Economy Country Positions EU Pressing for more concessions from developing countries like Brazil and India on Industrial tariff and services. USA US is not willing to reduce domestic support to protect its farmers. JAPAN Japan has taken a protectionist position in agriculture. Japan is against tariff cap. Developing Countries India supports taking DDA forward but is not ready to go an extra mile on NAMA and agriculture. G33 proposal contain some specific values on SSM, but nothing agreed on.

25 years of ICRIER - Linking India to the World Economy Road Block EU, US and Japan: Demanding deeper cuts in industrial tariffs and then willing to offer reduction in support on farm products. Developing countries waiting to see the magnitude of the reduction that EU, USA and other DC’s are ready to offer in agricultural subsidies. The key question is to how to reach a right level of convergence on three issues -Agricultural Domestic Support, Agricultural Market Access and NAMA to move forward. To unblock agriculture: US need to move forward on domestic support EU on market access India and Brazil and other big developing countries need to show greater flexibility on industrial goods.

25 years of ICRIER - Linking India to the World Economy Timelines Next session for Agriculture Negotiations begin on April 18, April 30 th, 2006 is the deadline to finalize modalities both for Agriculture and NAMA.

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