Options for Modalities and Treatment of Special Products

Background  differential levels of development and capabilities in adjusting to market access liberalization between the developed and the developing  degradation of the target reform program in the Doha mandate  differential levels of development and capabilities in adjusting to market access liberalization between the developed and the developing  degradation of the target reform program in the Doha mandate

 … but Doha mandate calls for the full integration of SND  substantial distortions and imbalances will still persist in this Round and beyond  thus the necessity for appropriate shield mechanisms to provide adequate protection to threatened sectors critical to food security, livelihood security and rural development  … but Doha mandate calls for the full integration of SND  substantial distortions and imbalances will still persist in this Round and beyond  thus the necessity for appropriate shield mechanisms to provide adequate protection to threatened sectors critical to food security, livelihood security and rural development

Development of the SP Concept  Early proposals & ideas: Development Box (LMG), Food Security Box (India), ‘Strategic’ Products (AG), Food Security Mechanism (Philippines & Indonesia)  Harbinson’s Text and Special Products  Statement & Declaration, Alliance for SP & SSM (now G33)  Early proposals & ideas: Development Box (LMG), Food Security Box (India), ‘Strategic’ Products (AG), Food Security Mechanism (Philippines & Indonesia)  Harbinson’s Text and Special Products  Statement & Declaration, Alliance for SP & SSM (now G33)

 the 01 August Framework Agreement  flexibility to designate an appropriate number  based on criteria of food security, livelihood security and rural development needs  eligible for more flexible treatment  criteria and treatment will be further specified  the 01 August Framework Agreement  flexibility to designate an appropriate number  based on criteria of food security, livelihood security and rural development needs  eligible for more flexible treatment  criteria and treatment will be further specified

 self-designation and objective criteria  from the three criteria to operational guidelines or indicators (G33 Jakarta Ministerial)  G33’s illustrative, non-exhaustive list of indicators as guidelines for selection of SPs  self-designation and objective criteria  from the three criteria to operational guidelines or indicators (G33 Jakarta Ministerial)  G33’s illustrative, non-exhaustive list of indicators as guidelines for selection of SPs

Debate on Some Basic Issues  ‘SPs as exceptions will diminish expected market access gains’  South-South trade  either SP or SSM  linking SP & SSM to market access liberalization  views on the indicators  ‘SPs as exceptions will diminish expected market access gains’  South-South trade  either SP or SSM  linking SP & SSM to market access liberalization  views on the indicators

Modalities: Coverage  negotiated thresholds of a set of indicators  self-designation within a negotiated number  self-designation guided by indicators within a negotiated number  negotiated thresholds of a set of indicators  self-designation within a negotiated number  self-designation guided by indicators within a negotiated number

Indicators: examples  staples or part of basic commodity basket per laws or statutes  proportion of domestic consumption domestically produced  proportion of food expenditure or income spent at the household level  proportion of domestic consumption to total world exports Indicators: examples  staples or part of basic commodity basket per laws or statutes  proportion of domestic consumption domestically produced  proportion of food expenditure or income spent at the household level  proportion of domestic consumption to total world exports

 proportion of world exports accounted for by the largest exporting country  proportion of domestic production accounted for by small farms (defined)  proportion of small farms (defined)  proportion of low income, resource poor, subsistence or disadvantaged farmers  proportion of world exports accounted for by the largest exporting country  proportion of domestic production accounted for by small farms (defined)  proportion of small farms (defined)  proportion of low income, resource poor, subsistence or disadvantaged farmers

 proportion of agricultural population or rural labor dependent or employed  proportion of gross arable land under cultivation  proportion of production accounted for by disadvantaged regions, vulnerable groups  proportion of agricultural population or rural labor dependent or employed  proportion of gross arable land under cultivation  proportion of production accounted for by disadvantaged regions, vulnerable groups

 proportion of product processing relative to world average  direct contribution to rural living standards and linkages to non-farm rural economic activities  contribution to agriculture GDP  proportion of product processing relative to world average  direct contribution to rural living standards and linkages to non-farm rural economic activities  contribution to agriculture GDP

Modalities: Treatment  the hardline: no further market access commitments for all SPs irrespective of coverage scope  other modalities: nominal cuts, extended implementation periods, TRQs, indicator filters/thresholds  G33 movement: a tiered approach on 20% of agriculture tariff lines as SPs ‘guided by an illustrative, non- exhaustive, non-prescriptive and non-cumulative list of indicators’  the hardline: no further market access commitments for all SPs irrespective of coverage scope  other modalities: nominal cuts, extended implementation periods, TRQs, indicator filters/thresholds  G33 movement: a tiered approach on 20% of agriculture tariff lines as SPs ‘guided by an illustrative, non- exhaustive, non-prescriptive and non-cumulative list of indicators’

G33 flexibility tiers for SPs  50% of SPs (10% of total lines) not subject to tariff reductions  15% (3% of total lines) not subject to tariff reductions by virtue of ‘special circumstances’  a further 25% (5% of total lines) to be subjected to 5% tariff reduction  remaining 10% (2% of total lines) to be subjected to 10% tariff reduction G33 flexibility tiers for SPs  50% of SPs (10% of total lines) not subject to tariff reductions  15% (3% of total lines) not subject to tariff reductions by virtue of ‘special circumstances’  a further 25% (5% of total lines) to be subjected to 5% tariff reduction  remaining 10% (2% of total lines) to be subjected to 10% tariff reduction

Other treatment elements, G33  automatic access of SPs to the SSM  no new TRQ commitments & tariff capping  exported products with notified product-specific AMS  one indicator at the national, regional or household level is enough Other treatment elements, G33  automatic access of SPs to the SSM  no new TRQ commitments & tariff capping  exported products with notified product-specific AMS  one indicator at the national, regional or household level is enough

Task Force WAR Department of Agriculture Republic of the Philippines Task Force WAR Department of Agriculture Republic of the Philippines