The WTO Agreement on Agriculture

1. The WTO Agreement on Agriculture Serafino Marchese, Chief, Training and Capacity Building Section WTO Institute for Training and Technical Co-operation

2. AG: Background • Agricultural trade • Trade policies prior to the WTO • Uruguay Round agricultural negotiations

3. AG: Overview • Relationship with other WTO Agreements • Product coverage • Rules and commitments • Implementation period • Committee on Agriculture

4. Market access: “Tariffication” • Tariffs Consolidation Reduction • Non-tariff measures Tariff equivalents Conversion

6. AG: Market access (1) • The conceptual framework • Schedule of tariff concessions • ... and tariff quota commitments • The prohibition of non-tariff border measures

7. AG: Market access (2) • Special treatment • The special safeguard provisions • Notification obligations: MA tables

8. AG: Market access - RF • RF bound tariff generally range between 0 and 20% with the exception of meats (beef: 55%, pork: 65% and poultry: 80%) • Most of the tariffs are bound in ad valorem terms, but some bindings are specific (e.g. sugar and alcohols) or mixed (e.g. dairy, cereals and fruit juices) • RF has scheduled tariff rate quotas (TRQ) on beef, pork, poultry and dairy (whey) • No SSG inscribed in the Schedule

9. AG: Market access – RF notifications • Table MA:1 – one time + ad hoc changes – Administration of Tariff Rate Quotas (TRQs) • Table MA:2 – annual – In-quota imports • Integrated Data Base (IDB) – annual

11. AG: Domestic support (1) • The conceptual framework • Green Box • Government service programmes • Direct payments to producers • Other exempt measures • Developmental measures • Blue Box • De minimis

12. Green Box (Annex 2) • fundamental requirement that the measures have no, or at most minimal, trade-distorting effects or effects on production • the support in question shall be provided through a publicly-funded government programme (including government revenue foregone) not involving transfers from consumers • the support in question shall not have the effect of providing price support to producers; • plus policy-specific criteria and conditions...

13. AG: Blue Box • Eligibility: clearly-defined criteria in a fixed base period e.g • income • status as a producer or landowner • factor use or production level • Payments not related to • the type of production • the volume of production • prices (domestic or international) • factors of production employed in any year after the base period • No production shall be required to receive such payments

14. AG: Domestic support (2) • Aggregate Measurement of Support (AMS) • Reduction commitments • Equivalent Measurement of Support • Notification obligations: DS tables

15. AG: Domestic support - RF • RF has a Total AMS commitment in the Schedule. Total AMS limit starts at USD 9 billion in 2012 and goes down to USD 4.4 billion in 2018 • During the 7-year implementation period, e.g. from 2012 to 2018, RF has committed to keep its total product-specific AMS within 30% of its non-product specific AMS

16. AG: Domestic support – RF Notifications • Table DS:1 and Supporting Tables DS:1 to DS:9 - annual • Table DS:2 – ad hoc when introducing a new support measure, or making modifications to an existing measure, for which an exemption from reduction is claimed

17. AG: Export subsidies (1) • The conceptual framework • Reduction commitments • Definition of measures • Product categories • Rates of cut • Products with no specific reduction commitment

18. AG: Export subsidies (2) • Anti-circumvention • Notification obligations: ES tables

19. AG: Export subsidies - RF • RF bound export subsidies at zero • Table ES:1 - annual

20. AG: Other provisions - RF • Export duties: Part V of the Schedules contains export dutiy bindings for all products, including some agricultural products, e.g. oilseeds and ethyl alcohol • Export restrictions: RF explicitly confirmed that upon accession, it would only apply export restrictions in accordance with Article XI of the GATT and Article 12 of the Agreement on Agriculture

21. The Agreement on Agriculture Long term objective: • Major achievements of the Uruguay Round, but also some unfinished business • Committee on Agriculture – monitors implementation of UR commitments • Mandate for further reform - Article 20 “... establish a fair and market-oriented agricultural trading system ... ” 21

22. AG: Summary Market access Domestic support Export competition Green Box Blue Box Article 6.2 Amber Box Export subsidies Anti-circumvention Export prohibitions and restrictions Other rules:S&D, Peace Clause (now expired), NFIDC Decision etc. 22

23. Part I Art. 1 Definition of Terms Art. 2 Product Coverage Part II Art. 3 Incorporation of Concessions and Commitments Part III Art. 4 Market Access Art. 5 Special Safeguard Provisions Agriculture Part IV Art. 6 Domestic Support Commitments Art. 7 General Disciplines on Domestic Support Part V Art. 8 Export Competition Commitments Art. 9 Export Subsidies Commitments Art. 10 Prevention of Circumvention of Export Subsidy Commitments AGREEMENT ON AGRICULTURE Art. 11 Incorporated Products

24. Agriculture AGREEMENT ON AGRICULTURE Part VI Art. 12 Disciplines on Export Prohibitions and Restrictions Part VII Art. 13 Due Restraint Part VIII Art. 14 Sanitary and Phytosanitary Measures Part IX Art. 15 Special and Differential Treatment Part X Art. 16 Least-Developed and Net Food-Importing Developing Countries Part XI Art. 17 Committee on Agriculture Art. 18 Review of the Implementation of Commitments Art. 19 Consultation and Dispute Settlement Part XII Art. 20 Continuation of the Reform Process Part XIII Art. 21 Final Provisions

25. Agriculture AGREEMENT ON AGRICULTURE Annex 1 Product Coverage Annex 2 Domestic Support: The basis for exemption from the reduction commitments Annex 3 Domestic support: Calculation of aggregate measurement of support Annex 4 Domestic support: Calculation of Equivalent Measurement of support Annex 5 Special Treatment with respect to paragraph 2 of Art. 4