May19,2005 NAPC_TPD by: Mahmoud Babili1 Multilateral trade negotiations and Agricultural policies in the developed economies

May19,2005 NAPC_TPD by: Mahmoud Babili2 SAT2005: Ch1, Ch4, and the special issue Review paper: Negotiations' Position of the Main trading partners and their Rationale Commodity brief: Wheat Policy briefs: –Decoupled payments –The WTO negotiations: Will developing countries benefit from a new agreement? Other tasks requested by the director Establishing a website for the division

May19,2005 NAPC_TPD by: Mahmoud Babili3 Negotiations' Position of the Main trading partners and their Rationale

May19,2005 NAPC_TPD by: Mahmoud Babili4 The aim of the paper is to help public understanding about the agriculture negotiations It is NOT an official record of the negotiations. It explains: – agricultural issues raised before and in the current bilateral and multilateral negotiations; –developing countries’ requirements; –July Package, and the dispute settlement and the SPS measure; and –four multilateral study cases.

May19,2005 NAPC_TPD by: Mahmoud Babili5 Who are main traders? USA: the first exporter for agricultural commodities EU: the largest trader & the first exporter globally China: the biggest Asian market India: the major player in its region Brazil: the leader of G22

May19,2005 NAPC_TPD by: Mahmoud Babili6 The WTO and Agriculture The three pillars –market access: tariff + quotas and non-tariff barriers – domestic support: amber box –export subsidies (competition): limit spending and quantities affected by export subsidies Agricultural disputes: The rules-based WTO dispute settlement system SPS measures: food safety, animal, and plant health regulations

May19,2005 NAPC_TPD by: Mahmoud Babili7 Objectives of developing countries diverse and complex The main common goal is achieving agricultural development through agricultural trade the Win-Win concept agricultural subsidies in developed countries deter developing countries from maximizing their gains food security

May19,2005 NAPC_TPD by: Mahmoud Babili8 Current agricultural negotiations The continuation of agricultural negotiations: –first phase began in early 2000, then the Doha declaration –Up to Cancun: Negotiators missed the 31 March 2003 deadline for producing numerical targets –Up to the July package: individual initiatives were crucial in this period

May19,2005 NAPC_TPD by: Mahmoud Babili9 July Package On 1 August 2004, the WTO’s 147 member governments approved a package of agreements that includes an outline (or “framework”) to be used to complete the “modalities” on agriculture. in 2005, more high-level General Council meetings are to be expected to evaluate what the objectives for the Hong Kong Ministerial might be.

May19,2005 NAPC_TPD by: Mahmoud Babili10 Case Studies representative of trade disputes related to the main traders in the world great importance from point view of trade, economic, environment, poverty reduction

May19,2005 NAPC_TPD by: Mahmoud Babili11 GM food Biotechnology can provide with essential food for countries that have food insufficiency The United States is the world's biggest GMO producer EU in 1998 has ensured virtually no GM crop varieties to be produced or sold in it the U.S. initiated an action with the WTO challenging the EU’s moratorium

May19,2005 NAPC_TPD by: Mahmoud Babili12 Chinese shrimps to USA one of the largest anti-dumping cases in recent years shrimp was dumped on the U.S. market US Commerce Department proposed new tariffs on Chinese shrimp China rejected dumping allegations The parties vowed to dispute the tariffs in the WTO

May19,2005 NAPC_TPD by: Mahmoud Babili13 Cotton dispute Brazil brought a dispute on US subsidies on upland cotton The WTO found that the U.S. violated the Peace Clause countries in West Africa are the worst hit by current US cotton subsidies the US is legally obliged to cease the subsidization in excess However, The US is intending to appeal

May19,2005 NAPC_TPD by: Mahmoud Babili14 Sugar exports It is one of the most distorted commodities The WTO panel, hearing Brazil's challenge against the EC's sugar export subsidies, issued its final report in favor of Brazil poorer countries (ACP) warned that this threaten their preferential access into EU The EC is reforming its sugar sector Probably, similar cases could be brought

May19,2005 NAPC_TPD by: Mahmoud Babili15 conclusion agricultural trade reform is best pursued within the ongoing WTO negotiations, not through dispute settlement Geneva framework is an important step, but there are some critical variables that should shape it Developing countries need redressing the trade flows imbalances and treating them for the benefit of all legal challenges, such as sugar and cotton cases, may provide additional impetus to spur negotiations

May19,2005 NAPC_TPD by: Mahmoud Babili16 Thank you