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Agricultural Trade Liberalization: Where are We Going? James Rude Edmonton June 13, 2001

Agricultural Trade Liberalization: Where are We Going? James Rude Edmonton June 13, 2001. How Far and How Fast?. BASIC STRUCTURE OF THE WTO AGREEMENTS. GATT - General Agreement on Tariffs and Trade GATS - General Agreement on Trade in Services

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Agricultural Trade Liberalization: Where are We Going? James Rude Edmonton June 13, 2001

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  1. Agricultural Trade Liberalization: Where are We Going? James RudeEdmontonJune 13, 2001

  2. How Far and How Fast?

  3. BASIC STRUCTURE OF THE WTO AGREEMENTS GATT - General Agreement on Tariffs and Trade GATS - General Agreement on Trade in Services TRIPS - Trade Related Aspects of Intellectual Property SPS - Sanitary and Pytosanitary Measures Agreement

  4. Main Elements of the Agreement on Agriculture • Market Access ( Import Barriers) • Conversion of non-tariff barriers to tariff equivalents • Provision of import opportunities with tariff-rate quotas • Domestic Support • Categorization of domestic programs: • Green (no reduction commitment) • Amber (aggregate reduction Commitment) • Export Competition • No new export subsidies • Reduce existing export subsidies by volume & value

  5. Built-in Agenda • Despite Seattle Failure Negotiations on Agriculture (and Services) are Underway- completed Phase 1: 44 proposals submitted - Phase 2: by March 2002 expect draft proposal • Factors Influencing Success/Failure • Peace Clause expires end of 2003 • Elections in 2002 • Comprehensive Round versus Sector Agreement

  6. Market Access • Single-Tier Tariffs • reduce average tariff level • reduce tariff dispersion and escalation • Tariff Rate Quotas (two-tier tariffs) • in-quota tariffs • over-quota tariffs • minimum access amount • TRQ administration • improve fill rates • source from low cost supplier

  7. Market Access (continued) • Zero for zero • zero tariffs, zero export subsidies • oilseeds, pork, malt barley • State Trading Enterprises • substitute government preferences for consumer preferences • TRQ administration • Safeguards • Special and Differential Treatment for developing countries

  8. Export Competition Direct export subsidies • how far, how fast? Circumvention • Canadian Dairy Panel Indirect subsidies • export credits • food aid • state trading enterprises price discrimination/ price pooling

  9. Domestic Support • Amber Box (disciplined) • Green Box (not disciplined) • should the green box be expanded? narrowed? • Blue Box (EU compensation programs) • should the blue box be eliminated? • Multifunctionality • non-priced spillovers: environment, rural development, food security • Non-Trade Concerns

  10. Biotechnology Issues: • Management of approval process for GMOs • Assessing potential health & environmental hazards • Providing information in support of consumer choice Regulation: • Patchwork of regulation and lack of international coordination • Two Basic Approaches • scientific risk assessment & substantial equivalence • precautionary principle and/or mandatory labeling

  11. Biotechnology (continued) WTO Disciplines: • Main WTO principle impinging on GMO regulation: non-discrimination • Should AoA include GMO provisions or will existing Agreements do the job? • GATT Article XX (right to adopt health protection) • Sanitary & Phytosanitary Measures (food safety) • Technical Barriers to Trade (labeling) • Intellectual Property Rights

  12. Make or break Round Diverse views with some common themes Delay the start of a new Round until effects of Uruguay Round can be assessed Implementation problems (clothing and textiles, SPS, TRIPS and agriculture) Developing Countries • Consideration of new issues • Reform of anti-dumping disciplines (pursue) • environment and labor standards (resist WTO inclusion) • Special and differential treatment • Development box

  13. Sample of Positions

  14. Good progress to date presentation of proposals and reactions Need for political will likely need a comprehensive round leadership void without US Fast Track Authority developing country participation and agreement is vital So where are we going?

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