Training session - Vietnamese agriculture and WTO - Hanoi - sept The on-going negotiations

Training session - Vietnamese agriculture and WTO - Hanoi - sept Renegotiating the AoA: context Started in January 2000, according to article XX of the Marrakech agreement Reinforce the liberalisation process taking into account –the experience of implementation –effects on world trade –non trade concerns, and Special and differential treatment

Training session - Vietnamese agriculture and WTO - Hanoi - sept Points of negotiation Market access –New decrease in tariffs –Transparency in the management of quotas, licenses and NTBs –Safeguard provision: maintain or not, for which countries ? Export competition –One of the most controversial issue –Extension to exports credits and food aide abuse ? –End of exports subsidies ?

Training session - Vietnamese agriculture and WTO - Hanoi - sept Points of negotiation (cont’d) Domestic support –Further reduction in Amber box –Preservation or not of the blue box –Redefinition of Green box criteria Other issues –Assessment of implementation of AoA –Improvement of SDT –Non trade concerns

Training session - Vietnamese agriculture and WTO - Hanoi - sept Negotiations group US and EU : aim at defend their policy : protection, support to farmers, export support. Common paper before the Cancun Conference Cairns group : full liberalisation developing countries : not grouped –assessment of implementation –development box : right to protect strategic crops –better access to Developed countries market

Training session - Vietnamese agriculture and WTO - Hanoi - sept Ministerial Conferences From Seattle to Cancun

Training session - Vietnamese agriculture and WTO - Hanoi - sept Seattle, December 1999 Failure of the Conference : impossibility to adopt a final declaration High pressure from Civil society Electoral process in the US Developing countries claim for an assessment

Training session - Vietnamese agriculture and WTO - Hanoi - sept The Doha Conference 142 countries November in Doha Needs for a result : after the failure of Seattle, after the September 11 attacks Seattle lessons non learned: –civil society still excluded from the debate –DCs put at the side of the debate (except India, Brazil on medicines)

Training session - Vietnamese agriculture and WTO - Hanoi - sept The new round Decision to launch a new round: The Doha Development Agenda (DDA) To be end on 1 January 2005 Inclusion of new topics : the so-called Singapore issues –Investment, competition policy, transparency in government procurement, trade facilitation China accession

Training session - Vietnamese agriculture and WTO - Hanoi - sept Agriculture : mixed results Commitment without prejudging the outcome of the negotiations on 3 points : -Substantial improvements of market access; -Reduction in all-forms of export subsidies, with a view to phasing out; -Substantial reductions in trade distorting domestic support Special and differential treatment to DCs -be an integral part of all elements of negotiations Take note of Non trade concerns Modalities for further commitments no later the 31 march 2003

Training session - Vietnamese agriculture and WTO - Hanoi - sept TRIPS: success for Developing countries Access to medicines –For public health matters, possible not to respect patents on medicines –For countries which do not product medicines : decision on rules for imports at the end of 2002 the later Re-examination of the art 27.3b –According to the Convention on biodiversity and the protection of traditionnal knowledge

Training session - Vietnamese agriculture and WTO - Hanoi - sept Between Doha and Cancun Brazil complained against EU sugar policy, and US cotton policy, in September 2002 Crucial step : 31 march 2003 : was not respected still strong oppositions between countries

Training session - Vietnamese agriculture and WTO - Hanoi - sept Agriculture from Doha to Cancun Harbinson’s draft –Market access: reduction of tariffs proportional to their initial level –Domestic support: maintain of green box with reinforcement of criteria, strong reduction in blue box, strong reduction of Amber box, reduction of De minimis levels –Exportation: end of export subsidies, disciplines on export credits, food aid, state trading enterprise. –SDT : creation of “Strategic products”(no definition) for which the tariffs reduction is smaller. Less reduction, and more time to implement. No reduction commitment for LDCs. All countries refused this draft In May : Cotton initiative In August : Common EU-US text on agriculture

Training session - Vietnamese agriculture and WTO - Hanoi - sept The failure of Cancun New grouping : –G20, led by China, Brazil, India, South Africa. Ask for the end of developed countries support to agriculture –LDCs + African countries + ACP : fully support to the Cotton Initiative - right to protect their agriculture (Strategic products) Draft declaration: more or less, US/EU Proposal. On Cotton : diversify your economies End of the Conference

Training session - Vietnamese agriculture and WTO - Hanoi - sept From Cancun to Geneva Takes several months to relaunch the discussions But agriculture remains the hard point of debate July 2004 : adoption of the July Package –Essential for the credibility of the WTO –Pre-negotiation between EU, US; Australia, India, Brazil

Training session - Vietnamese agriculture and WTO - Hanoi - sept The July Package - cotton Creation of a sub Committee on Cotton –In the framework of the AoA –Ambitiously, expeditiously and specifically

Training session - Vietnamese agriculture and WTO - Hanoi - sept The July package – Market Access Two principles for a reduction formula –Progressivity –Flexibility: Sensitive products : for all countries, with lesser market access commitments Special products: for Developing countries, based on food security, livelihoods and rural development. More flexible treatment All members will improve market access, except LDCs Developing countries: Special Safeguard Mechanism

Training session - Vietnamese agriculture and WTO - Hanoi - sept The July Package – Export subsidies “Establish detailed modalities ensuring the parallel elimination of all form of export subsidies and disciplines on all exports measures, with equivalent effect by a credible end date” Discipline on export credits : –Reimbursement, payment of interests, premiums –Avoid the use of food aid for commercial purposes –Interest of LDCs and NFIDC taken into account

Training session - Vietnamese agriculture and WTO - Hanoi - sept The July Package – Domestic support Amber box –Tiered formula: the higher the trade-distorting support are, the higher the cuts will be –Ceiling products by products –Reduction of the De Minimis provision, for all Blue box –New measures may be included, such as countercyclical payments. –Ceiling at 5% of the total value of the agricultural production Green box : –Redefinition and clarification of criteria later

Training session - Vietnamese agriculture and WTO - Hanoi - sept The way to Hong Kong 6 th Ministerial Conference December 2005

Training session - Vietnamese agriculture and WTO - Hanoi - sept The negotiation stages Principles included in the Marrakech Agreement (build-in agenda) Definition of the mandate during the Doha Conference Establishment of the negotiation modalities Definition of the modalities We are here

Training session - Vietnamese agriculture and WTO - Hanoi - sept Alliances EU USA G20 : South Africa, Argentina, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Cuba, Egypt, El Salvador, Ecuador, Guatemala, India, Mexico, Pakistan, Paraguay, Peru, Philippines, Thailand, Venezuela G33 : Indonesia, Cuba, Kenya, Nigeria, Turkey, Pakistan, Philippines, and others: defence of special product G10 : Switzerland, Bulgaria, Taiwan, Iceland, South Korea, Japan, Israel, Liechtenstein, Mauritius, Norway. Net importers. Multifunctionnality, protection G90 : ACP + LDCs – Cotton, commercial preferences.

Training session - Vietnamese agriculture and WTO - Hanoi - sept The EU and the US under pressure Brazil wins two complaints –US – cotton –EU – Sugar Obligation to modify: –Their agricultural policies –Or the WTO rules