Options for Modalities and Treatment of Special Products

1. Optionsfor Modalities and Treatment of Special Products

2. 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

3. … 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

4. 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)

5. 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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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’

14. 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

15. 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

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