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Agriculture in the WTO FAO Regional Workshop on WTO Accession Damascus, 26-28 October 2008

Agriculture in the WTO FAO Regional Workshop on WTO Accession Damascus, 26-28 October 2008. Hamish Smith Agriculture and Commodities Division. Legal Framework. Modalities + Supporting Tables. Legally Binding Commitments. Agreement on Agriculture. Schedules of Commitments.

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Agriculture in the WTO FAO Regional Workshop on WTO Accession Damascus, 26-28 October 2008

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  1. Agriculture in the WTOFAO Regional Workshop on WTO AccessionDamascus, 26-28 October 2008 Hamish Smith Agriculture and Commodities Division

  2. Legal Framework Modalities + Supporting Tables Legally Binding Commitments Agreement on Agriculture Schedules of Commitments Other WTO Agreements Protocol of Accession ACC/4 FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  3. Structure of the Agreement Three Pillars - Interlinkages Market access Domestic support Export competition Other rules: S&D, Peace Clause, commitment to reform, NFIDC Decision FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  4. Market Access FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  5. Tariffs and Tariffication • Tariffs – bindings and reduction commitments • Tariffication – non-tariff measures (NTMs) converted to tariffs • Tariff only regime (incl. tariff quotas) FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  6. Tariff Only Regimes Prohibition not to maintain, resort or revert to: • Quantitative Restrictions • Variable Levies • Minimum Import Prices • Discretionary Import Licensing • NTMs Maintained Through STEs • Voluntary Export Restraints • SimilarBorder Measures [...] BUT... Annex 5 “Special Treatment” FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  7. Special Safeguard – Article 5 FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  8. Domestic Support FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  9. Categories of Domestic Support Subject to reduction commitments exempt from reduction All other support No/minimal effects on trade or production Development programmes Production limiting programmes De minimis Art. 6.2 Blue Box Amber Box Green Box FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  10. Amber Box – Current Total AMS Any form of domestic support not included in either the Green or Blue Boxes or under Article 6.2 De minimis allowance • Market price support • Non-exempt direct payments (e.g. loan deficiency payments, grants, compensatory payments) • Other non-exempt measures • All product-specific EMS Product-specific support + Water subsidies Fertilizer subsidies Crop insurance Subsidized credits Non-product-specific support Current Total AMS FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  11. De minimis Allowance Product-specific support Wheat Intervention price for wheat $200/t Fixed external reference price $100/t Eligible production of wheat 1,000,000 t Value of wheat production $150 million Wheat AMS (AMS 1) $100 million De minimis threshold $15 million Non-product specific support Generally available interest rate subsidy $10 million Value of total agricultural production $800 million Non-product-specific AMS (AMS 2) $10 million De minimis threshold $80 million CURRENT TOTAL AMS (only AMS 1) $ 100 million 0 FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  12. Export Competition FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  13. Export Subsidies Definition Article 1(e): Subsidies contingent upon export performance, including the export subsidies listed in Article 9 Legal Framework • General prohibition under Article 3.3 of the AoA, except: • If listed in a Member’s Schedule – subject to reduction commitments (volume and budgetary outlays) • Roll-over provisions (now expired) • S&D: Article 9.4 - subsidies for marketing and internal transport (during the implementation period – now expired) • Anti-circumvention provisions FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  14. Subsidy Coverage - Article 9.1 • Direct subsidies contingent on export performance • Sale or disposal for export by governments or their agencies of non-commercial stocks at prices below domestic market price • Payments on exports financed by government action (including producer financed subsidies) • Subsidies to reduce cost of marketing, including handling, upgrading, international transport and freight • Favourable internal transport and freight charges on export shipments • Subsidies on agricultural products contingent on their incorporation in exported products FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  15. Subsidy Circumvention – Article 10 • Other forms of export subsidies • Export credits, insurance and guarantees • develop internationally agreed disciplines • but ... negotiations with no result - OECD Arrangement on Officially Supported Export Credits does not cover agriculture • Food aid • specific criteria, Food Aid Convention, FAO • but ... is it always genuine aid or dumping? FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  16. Export Prohibitions & Restrictions • Article XI.2(a) of GATT – provision for the temporary application of an export prohibitions or restrictions • Article 12 of the AoA – when applying GATT Article XI.2(a): • Give due consideration to impacts on importing Members’ food security; • Advance written notice, consultations on request; • Not applicable to developing countries which are not net exporters of the specific product concerned; FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  17. Accession Process - What is Required? FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  18. Data on Agriculture – WT/ACC/4 All domestic support policies Table presenting factual information, including budgetary outlays, on: Article 9.1 export subsidy policies • Sufficiently Detailed: • Presented in a manner consistent with the notification requirements of the Agreement on Agriculture (G/AG/2) • Information generally based on the most recent 3 year period for which data is available • Without prejudice to additional information which maybe requested • Forms the basis of commitments and is referenced in Schedules FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  19. A description of each measure with reference to the relevant criteria as set out in the Agreement on Agriculture, i.e., Green Box programmes, Annex 2 (including reference to the relevant paragraph) Development Programmes under Article 6.2 Blue Box programmes, Article 6.5 The monetary value and any revenue foregone involved with each measure over the base period Data source Required Information For Each Exempt Domestic Support Measure Required Format Supporting Table DS:1 Supporting Table DS:2 Supporting Table DS:3 FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  20. Example of Supporting Table DS:1 Supporting table DS: 1 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: 1998 - 2000 Measures exempt from the reduction commitment – “Green Box “ FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  21. Examples of Supporting Table DS:2 Supporting Table DS:2 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: 1995/96 – 1997/98 Measures exempt from the reduction commitment – Special and Differential Treatment - "Development Programmes" Supporting Table DS:2 REPORTING PERIOD: 1995-1997 Measures exempt from the reduction commitment – Special and Differential Treatment - "Development Programmes" FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  22. Example of Supporting Table DS:3 Supporting Table DS: 3 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: 1998 - 2000 Measures exempt from the reduction commitment – Direct Payments under Production–Limiting Programme – “Exempt Direct Payments” Supporting Table DS:3 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: Calendar year Measures exempt from the reduction commitment - Direct Payments under Production-Limiting Programs "Exempt direct payments" FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  23. Non-Exempt Measures - Calculation of the Total AMS • Total AMS – aggregation of support measures provided on a product-specific basis AND on a non-product-specific basis • Definitions – Articles 1(a) and 1(h) of the AoA • Budgetary costs PLUS revenue foregone • National AND sub-national spending • Product-Specific AMS – calculated at basic product level, “as close as practicable to the point of first sale of the basic agricultural product concerned” (Annex 3) • Non-Product-Specific AMS (e.g. input subsidies such as fertiliser, transport subsidies, preferential credit rates) • Calculation method described in Annex 3 of the AoA • De minimis - not required to be included in Schedules FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  24. Supporting Table DS:5 Examples Supporting Table DS:5 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: Calendar years 1994-1996 Product-Specific Aggregate Measurements of Support: Market Price Support REPORTING PERIOD: calendar years 1996 – 1998 Product-Specific Aggregate Measurements of Support: Market Price Support FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  25. Supporting Table DS:7 Example Supporting Table DS: 7 DOMESTIC SUPPORT: [Name of Acceding Country] REPORTING PERIOD: Calendar Years 1994-1996 Product-Specific Equivalent Measurements of Support: Other Product Specific Support and Total Product-Specific AMS Note: "n/a" means not applicable. FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  26. Export Subsidies • If used over the base period, the following information should be submitted in the form of Supporting Table ES:1 • A description of the product including tariff line references • Budgetary expenditures and any revenue foregone involved for each product • The quantity of the product exported that received export subsidies • Data sources • If no export subsidies were granted over the base period, this should be indicated FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

  27. Examples of Supporting Table ES:1 FAO Regional Workshop on WTO Accession, Damascus 26-28 October 2008

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