Friday, March 29, 2024

Eliminating subsidies on WTO agenda

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Eliminating export subsidies is one of three main items on the agenda for the December ministerial conference of the World Trade Organisation.
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Tariff-rate quota (TRQ) administration and giving developing countries some leeway when exceeding agreed domestic support limits would also be on the agenda, New Zealand ambassador and WTO agriculture committee chairman John Adank said at an informal meeting of the committee on October 11.

Adank and director-general Roberto Azevêdo have held talks with a number of delegations since September and Adank has had consultations since ambassadors last met as the trade negotiations committee on September 30.

Ministers want to adapt the way quotas are shared out to reduce the chances the allocation method is itself a trade barrier.

Some countries argue the way the quotas are managed can be too cumbersome and hamper exporters’ ability to access markets.

The G–33 group of developing countries, represented by the Philippines at the latest meeting, proposed amending the Agriculture Agreement to loosen disciplines on domestic support, including using price support for public stockholding and food aid purposes, to enhance food security by supporting poor farmers and consumers.

At this stage members did not envisage changing the rules of the WTO Agriculture Agreement, Adank said.

Instead, they are focusing on a short term way of allowing developing countries some leeway to exceed their agreed domestic support limits when they buy, stock and supply cereals and other food to boost food security among the poor.

He said there would be conditions, such as how long the provision would last, which products it could cover, what safeguards would be available to prevent the release of the stocks from affecting international markets and how countries using the provisions would provide enough information to make their actions transparent.

“Members had already taken steps towards elaborating quite specific requirements on which the flexibility will be dependent,” he said.

In Bali they would have to decide what form this leeway took – a temporary waiver, which is a formal legal exemption, a non-binding political statement by the chairman or other options.

Through this flexibility members would avoid taking legal disputes against developing countries.

He said the legal approach seems the most likely one to be adopted.

His consultation with members showed they consider all forms of export subsidy to seriously distort trade and want it eliminated.

Ministers could pledge to work actively after Bali towards eliminating the subsidies and to improve information sharing on export subsidies.

The meeting is on December 3-6.

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