Twenty-Five Ways to Improve the Derbez Draft

1. Twenty-Five Ways to Improve the Derbez Draft International Food and Agriculture Trade Policy Council www.agritrade.org

2. The Doha Development Round Challenge Go beyond accomplishments of Uruguay Round 888888888 Ensure meaningful increases in market access 8888888888 Ensure meaningful reductions in all forms of trade-distorting support 888888888 Ensure that all commodities participate in all reforms

3. Uruguay Round Accomplishments & Shortcomings: Market Access • Made border protection visible and binding • Eliminated exemptions on sensitive products • Sugar, dairy • Required minimum market access • Increased quotas with formulas • But….allowed some products to avoid real reductions or increased access

4. Derbez Draft Concerns: Market Access Does not require duty, quota free access for LDCs ####### Blended tariff formula does not guarantee highest tariffs will be reduced ######## Does not require tariff ceiling for all products, countries ######## Does not guarantee expansion of tariff rate quotas

5. Recommendations: Market Access • Allow minimal use of Uruguay Round formula for developed countries. Broader use of Uruguay Round formula for developing countries. • Reduce most peak tariffs to tariff ceiling immediately; phase down tariffs to ceiling for sensitive products, developing countries. • Expand quotas by formula on commodity by commodity basis.

6. Recommendations: Market Access • Allow special safeguards for developed and developing countries, bind thresholds, tariff lines. • Do not designate, or sharply limit Special Products. • Require immediate duty and quota free access for Least Developed Countries.

7. Uruguay Round Accomplishments & Shortcomings: Export Competition • Disciplined explicit export subsidies • But… did not discipline all forms of subsidized export competition • Export credits • Food aid • State trading entities • Did not discipline embargoes, restrictions, taxes

8. Derbez Draft Concerns: Export Competition Does not guarantee end date for all forms of subsidized export competition 888888888 Could delay elimination of subsidies on products of real interest to developing countries 888888888 Does not discipline export bans, taxes and restrictions

9. Recommendations: Export Competition • Commit to fix date to eliminate all forms of subsidized export competition. • Allow developing countries to determine “products of interest” for export subsidy and credit elimination • Reduce and eliminate subsidies for state-trading entities, and monopoly trading powers. • Discipline tenor, guarantees of export credits

10. Recommendations: Export Competition • Require all food aid in grant form • Reduce commodity specific export subsidies under S&D on same timetable as other export subsidies. • Require domestic market to share burden of export restrictions.

11. Uruguay Round Accomplishments & Shortcomings: Domestic Support • Classified domestic support according to trade impact • Encouraged shift away from trade-distorting subsidies • But… allowed subsidies on some products to increase • Did not reduce all forms of trade distorting subsidies

12. Derbez Draft Concerns: Domestic Support Does not guarantee reductions in all forms of trade-distorting support 888888888 Creates new loophole: new Blue Box ####### Does not reduce support commodity by commodity

13. Recommendations: Domestic Support • Cap and reduce overall level of trade distorting support (Blue, Amber, de minimis), product by product. • Revise Green Box criteria to minimize trade distortions. • Do not add “non-trade” concern rationales, do not allow offsets for “negative” support.

14. Recommendations: Other Issues • Allow grace period for new members, but not allow shallower commitments. • Extend full Peace Clause only for duration of negotiations, afterwards extend on Green Box only.

15. Conclusion • The Uruguay Round was a major accomplishment: brought agriculture under global rules • But, did not reduce trade distortions as anticipated • The Doha Development Round must ensure that trade distortions are reduced, and market access increased for all commodities, all countries

16. For a copy of Twenty Five Ways to Improve the Derbez Draft or other IPC publications, visit the IPC website at www.agritrade.org.