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IPC Seminar Multilateral Trade Negotiations: Update on The Doha Development Round

IPC Seminar Multilateral Trade Negotiations: Update on The Doha Development Round MARCELO REGUNAGA Hanoi – October 2005. THE G-20: A NEW MAIN PARTNER FOR AGRICULTURE NEGOTIATIONS. Two years of activities (inauguration in September 2003)

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IPC Seminar Multilateral Trade Negotiations: Update on The Doha Development Round

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  1. IPC Seminar Multilateral Trade Negotiations: Update on The Doha Development Round MARCELO REGUNAGA Hanoi – October 2005

  2. THE G-20: A NEW MAIN PARTNER FOR AGRICULTURE NEGOTIATIONS • Two years of activities (inauguration in September 2003) • Main partner for Agriculture negotiations: 63% of world farmers from Asia, Africa and Latin America; 51% world population; 20% ag. production; 26 % ag. exports; 17% ag. imports • Bases: • Linkage between Agricultural Trade and Development • Agricultural Reform can unlock potencial of Agriculture in the developing world: poverty erradication • Views: • Differentiated responsibility of developed countries to address distortions and adopt reforms in Agriculture • Fair and balanced process that ensures inclusiveness and participation (G20 : cross section of developing members) • Doha Round must result in a fairer trading system

  3. THE DOHA MANDATE AND THE FRAMEWORK AGREEMENT • Developing Round: should provide concrete results on agricultural reforms to level the playing field with other sectors • Framework incorporates more that reasonable flexibilities in domestic support and market access • Domestic support: • Increased permitted support: blue box; de minimis • Reductions in OTDS must be very large too be effective • Market access flexibilities: • Water in tariffs • Sensitive products, special products • Special safeguard

  4. RECENTS DEVELOPMENTS • The G-20 has tabled proposals during 2005 on the three pillars which tend to drive the negotiations forward • Concerns after the Dalian Meeting (lack of progress in relevant issues) • New impetus after the USA October proposal • However, the US and the EU October proposals are not enough to induce substantive reforms • The G-20 also tabled new proposals for the three pillars

  5. G – 20 PROPOSALS : DOMESTIC SUPPORTTo deliver the Doha mandate of substantial reductions in trade distorting domestic support it is neccesary to count with a combination of significant cuts, disciplines and monitoring • Structure for reductions in AMS, de minimis and OTDS • Base for the overall reduction on domestic support • Disciplines (review and clarification of green box criteria; elements for discussion: blue box; product-specific capping) • Improving Monitoring and Surveillance Mechanisms, to ensure transparency and compliance with the commitments

  6. G – 20 PROPOSALS : DOMESTIC SUPPORT • OTDS and AMS bands and cuts • OTDS Thresholds Cuts AMS Thresholds Cuts Over 60 US$ billion 80 % Over 25 US$ billion 80 % 10 to 60 75 % 15 to 25 70 % 0 to 10 70 % 0 to 15 60 % • S&D: given the 10 % entitlement in de minimis, special band for developing countries cuts in OTDS • Developing countries without AMS entitlements: exempt of an overall reduction (exemption in de minimis cuts) • De minimis: • Both product and non-product specific reductions to adjust to OTDS cuts • Developing countries with AMS entitlements adjust to OTDS cuts • Exeptions for subsistence poor farmers and countries with no AMS • Cotton: early agreement on effective measures

  7. G – 20 PROPOSALS: EXPORT COMPETITION • Credible date for elimination of export subsidies: no longer than 5 years and with a front-loading of commitments • Proposal on export prohibitions and restrictions • Maintaining the special status of STEs in developing countries • New disciplines on export credits, export credit guarantees and insurance programs and food aid (proposals to be tabled in the next days)

  8. G - 20 PROPOSALS: MARKET ACCESS • Market access: Developed Bands Cuts Developing Bands Cuts 0 to 20% 45% 0 to 30% 25% 20 to 50% 55% 30 to 80% 30% 50 to 75% 65% 80 to 130% 35% + 75% 75% + 130% 40% • Lineal reductions • No flexibilities in the reduction formulas • Sensitive products: • 1% of the products which have tariffs • Base: 6% of consumption • Maximum deviation : 30%; the largest deviation in the formulas more increase in TRQs and reduction in intra-quota tariffs

  9. G - 20 NEW PROPOSALS TO BE TABLED SOON • Tariff escalation • Expansion of TRQs • Special products • Special safeguard • Preferences • Special compensatory measures • Food aid • Export credits • Recently acceded members

  10. MARTKET ACCESS SIMULATIONS (Applied tariffs and % reductions of alternative proposals)

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