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Multilateral trade negotiations and Agricultural policies in the developed economies

Gain insight into key issues in agricultural negotiations and the positions of major trading partners in developed economies. Explore complexities, disputes, and objectives of developing countries in the WTO negotiations.

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Multilateral trade negotiations and Agricultural policies in the developed economies

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  1. Multilateral trade negotiations and Agricultural policies in the developed economies by: Mahmoud Babili

  2. SAT2005: Ch1, Ch4, and the special issue • Review paper: Negotiations' Position of the Main trading partners and their Rationale • Commodity brief: Wheat • Policy briefs: • Decoupled payments • The WTO negotiations: Will developing countries benefit from a new agreement? • Other tasks requested by the director • Establishing a website for the division by: Mahmoud Babili

  3. Negotiations' Position of the Main trading partners and their Rationale by: Mahmoud Babili

  4. The aim of the paper is to help public understanding about the agriculture negotiations • It is NOT an official record of the negotiations. • It explains: • agricultural issues raised before and in the current bilateral and multilateral negotiations; • developing countries’ requirements; • July Package, and the dispute settlement and the SPS measure; and • four multilateral study cases. by: Mahmoud Babili

  5. Who are main traders? • USA: the first exporter for agricultural commodities • EU: the largest trader & the first exporter globally • China: the biggest Asian market • India: themajor player in its region • Brazil: the leader of G22 by: Mahmoud Babili

  6. The WTO and Agriculture The three pillars • market access: tariff + quotas and non-tariff barriers • domestic support: amber box • export subsidies (competition):limit spending and quantities affected by export subsidies Agricultural disputes: The rules-based WTO dispute settlement system SPS measures: food safety, animal, and plant health regulations by: Mahmoud Babili

  7. Objectives of developing countries • diverse and complex • The main common goal is achieving agricultural development through agricultural trade • the Win-Win concept • agricultural subsidies in developed countries deter developing countries from maximizing their gains • food security by: Mahmoud Babili

  8. Current agricultural negotiations • The continuation of agricultural negotiations: • first phase began in early 2000, then the Doha declaration • Up to Cancun: Negotiators missed the 31 March 2003 deadline for producing numerical targets • Up to the July package: individual initiatives were crucial in this period by: Mahmoud Babili

  9. JulyPackage On 1 August 2004, the WTO’s 147 member governments approved a package of agreements that includes an outline (or “framework”) to be used to complete the “modalities” on agriculture. in 2005, more high-level General Council meetings are to be expected to evaluate what the objectives for the Hong Kong Ministerial might be. by: Mahmoud Babili

  10. Case Studies • representative of trade disputes • related to the main traders in the world • great importance from point view of trade, economic, environment, poverty reduction by: Mahmoud Babili

  11. GM food • Biotechnology can provide with essential food for countries that have food insufficiency • The United States is the world's biggest GMO producer • EU in 1998 has ensured virtually no GM crop varieties to be produced or sold in it • the U.S. initiated an action with the WTO challenging the EU’s moratorium by: Mahmoud Babili

  12. Chinese shrimps to USA • one of the largest anti-dumping cases in recent years • shrimp was dumped on the U.S. market • US Commerce Department proposed new tariffs on Chinese shrimp • China rejected dumping allegations • The parties vowed to dispute the tariffs in the WTO by: Mahmoud Babili

  13. Cotton dispute • Brazil brought a dispute on US subsidies on upland cotton • The WTO found that the U.S. violated the Peace Clause • countries in West Africa are the worst hit by current US cotton subsidies • the US is legally obliged to cease the subsidization in excess • However, The US is intending to appeal by: Mahmoud Babili

  14. Sugarexports • It is one of the most distorted commodities • The WTO panel, hearing Brazil's challenge against the EC's sugar export subsidies, issued its final report in favor of Brazil • poorer countries (ACP) warned that this threaten their preferential access into EU • The EC is reforming its sugar sector • Probably, similar cases could be brought by: Mahmoud Babili

  15. conclusion • agricultural trade reform is best pursued within the ongoing WTO negotiations, not through dispute settlement • Geneva framework is an important step, but there are some critical variables that should shape it • Developing countries need redressing the trade flows imbalances and treating them for the benefit of all • legal challenges, such as sugar and cotton cases, may provide additional impetus to spur negotiations by: Mahmoud Babili

  16. Thank you by: Mahmoud Babili

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