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WTO negotiations on agriculture: European Commission calls for improved market opening, reduced trade distorting support
ISLAMABAD (December 18 2002) : The European Commission has proposed cut in import tariffs by 36 percent, export subsidies by 45 percent and reduction in trade distorting domestic farm support by more than half (55 percent), providing there is fair burden sharing from other developed countries in particular.
The proposal also contains specific actions to give developing countries a better deal - duty-free and quota-free access for all farm exports from the world's poorest countries; rich countries to give access at zero duty to at least 50 percent of their imports from developing countries and a "food security box" including measures to facilitate development and preserve key food security crops through a special safeguard.
The proposal also re-emphasises the importance of non-trade concerns such as environment, rural development and animal welfare.
The Commission presented the proposal for WTO negotiations on agriculture, calling for improved market opening and reduction of trade distorting support.
The Commission stated: "We go for an approach which does not put the burden of liberalisation only on others, but leads to a fair burden sharing among developed countries.
All the developed countries have to move. The EU is ready to do its part. Our willingness to cut trade distorting farm subsidies by half, to abolish export refunds for certain products and slash them for others should not be underestimated.
Developing countries need not just rhetoric but real benefits from the North.
There is also something in it for our farmers, who will get better access to the world markets".
It further said: "EUs proposal underpins its determination to further substantial liberalisation of farm trade on a fair basis and to maintain a model of agriculture which ensures environmental protection, rural development, food safety and meets other consumer concerns.
And we need our own offensive interests, and non-trade concerns, such as environment or food safety, to be adequately addressed."
The Commission, in its proposals said: in order to increase market access for agriculture products, the Commission defends a formula of tariff reduction, which does not shield any one developed country member from making a comparable contribution.
This formula should be an overall average tariff reduction of 36 per cent and a minimum reduction per tariff line of 15 per cent as was the case in the Uruguay Round.
Contrary to the so-called "Swiss Formula" the US and Cairns group suggest, the Commission approach would achieve the objective of "burden sharing" among developed countries and would also provide flexibility for developing countries.
Scaling back all forms of export subsidies by 45 per cent, the Commission proposed an average substantial cut in the volume of export subsidies and an average 45 percent cut in the level of budgetary outlays, on the condition that all forms of export subsidisation are treated on an equal footing.
Furthermore, the EU is ready to eliminate export subsidies completely for certain key products for developing countries, such as wheat, oilseeds, olive oil and tobacco, provided that no other form of export subsidisation is given for the products in question by other WTO members.
Further cutting trade distorting domestic farm support by 55 percent, it stated, the EU is committed to further substantial reductions in trade-distorting domestic support.
The Commission, therefore, proposed a 55 percent reduction in the Aggregate Measurement of Support (AMS) starting from the level of commitments made in the last round of negotiations.
To allow for rapid progress within the agreed deadlines, the current definition of domestic support and the Uruguay Round reduction method should be maintained as this guarantees that all members will be subject to effective disciplines.
The EU recognises the need to ensure that developing countries fully benefit from the expansion of world trade.
The key is to create opportunities for increased market access for developing countries, while recognising the importance of food security and accepting the need for the most fragile developing countries to maintain protection in order to have adequate time for adaptation.
Courtesy Business Recorder
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Pakissan.com; Advisory Point
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