CTA, http://agritrade.cta.int/, April 2008
The EU's approach to the WTO agricultural negotiations is based on the process of CAP reform, (essentially involving a shift from price support to direct aid payments), allowing export refunds to be eliminated and import tariffs to be reduced. This is linked to a growing emphasis on non-trade concerns, which embraces issues of concern to developing countries, such as the right to use measures to promote food security and the alleviation of poverty, free of WTO restraints. However it also includes issues of primary concern to the EU such as establishing an international system for the protection of geographical indications (GIs). EU cotton subsidies are to be reduced in line with ACP concerns.
For the EU it is seen as vital that the WTO continues to tolerate the ‘blue box’ and ‘green box’ concepts which embrace the new forms of EU support. Measures accepted as trade-distorting, such as export refunds, will be phased out and EC assistance will increasingly focus on the single-farm-payment system and rural-development support. Levelling the playing field for export competition will not, however, take full account of the impact of new forms of EU support on EU production levels, trade outcomes and price competitiveness, which impact on the production and trade prospects of ACP countries in a number of sectors. Access to the EU market will be improved, largely on a reciprocal basis, but there is little substantive attention being paid to the question of preference erosion. It is recognised that as reform will allow some world prices to rise, measures to help net-food-importing countries will be required.
ACP governments have expressed concerns in five main areas:
- the effect of developed countries’ domestic support on production and trade outcomes;
- the disciplining of export-support instruments;
- the impact of market-access commitments, both in terms of ACP tariff reductions and the impact of EU reforms on the margins of ACP trade preferences;
- the cotton issue;
- rising food prices.
Few of these concerns have as yet been substantively addressed through the process of negotiations.
Although WTO negotiations broke down in July 2006 they were subsequently resumed. In the interim the EU and USA placed renewed emphasis on bilateral trade negotiations. Some issues of concern to developing countries have been taken up in the 16 WTO working documents distributed since November 6th 2007 and the revised draft modalities paper tabled in February 2008. However, substantive movement will still be required if ACP countries are to become net winners from the Doha Round. The final outcome of the WTO negotiations remains uncertain.
Author(s): Agritrade