TWN
Info Service on WTO and Trade Issues (May15/01)
6 May 2015
Third World Network
South against Doha "re-calibration", jettisoning "development"
Published in SUNS #8013 dated 30 April 2015
Geneva, 29 Apr (Kanaga Raja*) -- A large majority of developing countries
appear to have disapproved of the "re-calibration" strategy
in the Doha Development Agenda (DDA) negotiations, being promoted
by the WTO head, Roberto Azevedo, and the industrialised countries,
that will change the existing goalposts of the talks, to the detriment
of its "development goals".
This came out at the formal Trade Negotiations Committee (TNC) meeting
on Monday, in the speeches and statements of developing countries
and their groupings, following status reports by Director-General
Azevedo and the Chairs of the various negotiating bodies under the
TNC.
The upbeat assessment of the WTO D-G on the state of play in the Doha
talks (the text of his remarks and the call to members "to focus
on the doable", and for all members to "leave their comfort
zones... and contribute", posted on the WTO website), seemed
to echo the stands of the United States and Europe for "re-calibration"
of the DDA to conclude the Round by the Nairobi Ministerial Conference.
The D-G's assessment was also in sharp contrast to the rather sombre
view of no progress in the agriculture talks that was given to the
TNC Monday (previewed by his statement at the informal agriculture
meeting last week, see SUNS #8011 dated 28 April 2015) by the Chair
of the Agriculture Negotiations, Ambassador John Adank of New Zealand.
The D-G and Chairs of the negotiating groups are continuing their
consultations on the task of defining a post-Bali work programme on
the remaining DDA issues, and working to an end-July deadline for
agreeing on the work programme, set by the General Council in November
2014.
The developing countries, both the various coordinators, and key individual
countries who spoke at the TNC insisted on the talks continuing to
adhere to the existing texts and mandates, and that agriculture and
the development dimension must remain at the heart of the negotiations.
The developing countries insisted on the post-Bali work programme
being firmly anchored in the previously agreed Doha mandates such
as the 2001 Doha Ministerial Declaration and Work Programme, the 2004
July Framework agreement at the General Council (after the collapse
of the Cancun Ministerial), the 2005 Hong Kong Ministerial Declaration
and the 2008 draft revised modalities texts. Trying different approaches
could not mean changing mandates, they insisted.
China, India, Indonesia, Turkey, Venezuela and Brazil, as well as
the coordinators of the ACP (Africa, Caribbean and Pacific) group,
the African Group, the G-33 developing country grouping (of which
Indonesia is the coordinator), the G-20 developing country agriculture
group and the Least Developed Countries (LDCs) insisted that the 2008
revised draft agriculture modalities text (Rev. 4), and the 2008 Rev.
3 draft revised modalities in non-agricultural market access (NAMA)
must remain the basis for drawing-up the post-Bali work programme.
The various developed countries, the United States and the European
Union in particular, issued a common message on the need to "re-calibrate"
the level of ambition for accomplishing doable and realistic results
by the end of this year.
These countries significantly made no mention of the previous Doha
ministerial mandates as well as the Rev. 4 text on agriculture and
Rev. 3 text on industrial goods. A few, such as the EU, suggested
new approaches without elaborating on the underlying framework.
During his confessional meetings, the Director-General had asked the
coordinator of G-33 coalition (Indonesia) as to why the group was
demanding special safeguard mechanism and special products (in agriculture)
when the level of ambition is sought to be lowered substantially by
adopting a simple average and minimum cut tariff formula, according
to a South American member of the G-33 group.
[While a simple average and minimum cut tariff formula have been proposed
in informal meetings recently by Argentina, Paraguay and Norway, these
in fact have not been accepted by most of the developing countries.
SUNS]
In its comments at the TNC, China issued the strongest message at
attempts to mislead members by raising the bogey of "re-calibration"
while undermining the previous Doha mandates, while India said that
attempts to impose "differentiation" to seek higher commitments
from some developing countries in an attempt to make progress in the
negotiations was not "acceptable."
In their interventions at the TNC, the developing countries underscored
that the Rev. 4 draft agriculture text remains the basis for the negotiations
and that agriculture holds the key that will enable members to make
progress in the other areas.
The G-33, for example, wants the hard-won gains from the Rev. 4 text,
especially Special Products (SP) and the Special Safeguard Mechanism
(SSM), to be preserved. It also stressed on the importance of public
stockholding for food security purposes.
Referring to the calls made by some major developed countries for
a "re-calibration" of the level of ambition, a number of
developing countries said that the negotiations must continue to adhere
to the texts and the mandates emerging from Doha and right up to Bali.
The African Group, for example, said that any novel idea must be tested
against those mandates, and the flexibilities for African countries
must be preserved. The group underscored that the current consultations
on the work programme are not a renegotiation of existing and agreed
mandates.
The African, Caribbean and Pacific (ACP) Group underlined that re-calibration
must not entail undermining the development dimension of the Round
and the special and differential treatment (S&D) and flexibilities
of ACP Member States.
China said that re-calibration of the Rev. 4 and Rev. 3 texts must
take into account the mandates coming from Doha, as well as that of
2004 (the July framework), Hong Kong and Bali. While it can look at
alternatives, these mandates need to be respected, China stressed.
India said that progress can be made only if members seeking "re-calibration"
spell it out in clear terms. This has not been done thus far, it added.
Exploring different approaches is surely not tantamount to inverting
the ministerial mandates and the principles that guide the negotiating
process in this organisation, India further said (see below).
D-G STATEMENT AT TNC MEETING
Director-General Azevedo, speaking in his capacity as Chair of the
TNC, draw three essential conclusions from the reports of the Chairs
of the various negotiating bodies that were made early on in the meeting,
and from his own consultations.
First, he said that a lot of good work has been done, particularly
in the three core areas of Agriculture, Non- Agricultural Market Access
(NAMA) and Services, and that it is clear that achieving outcomes
in these areas will be essential to the success of these negotiations.
His second conclusion was that it remained very clear that development
and LDC issues remain central, and that members must continue working
to move these issues forward.
His third conclusion was that while it is clear that "we still
have a long way to go, and that some areas are proving very problematic,"
there was no doubt in his mind that "we are making progress."
In this context, he referred to the great amount of engagement on
the core DDA issues, and the high level of participation with Ambassadors
getting involved.
As had been heard from the Chairs, members were still at odds on some
major issues, and some big gaps remained. Some were still repeating
their old positions, or taking more time to move to a solution-finding
approach, he said, urging members not to be discouraged by it.
Referring to the horizontal discussion to identify inter-sectoral
trade-offs, Azevedo said that there was need to put more focus on
identifying the trade-offs within pillars and between them. These
trade-offs were clearly not on the table yet, he said.
Noting that members were working to conclude a "clearly defined"
work programme on the remaining DDA issues by July this year, the
D-G said: "We are getting close to July now. And therefore we
have to be realistic about just how specific and modalities-like it
can be. That is a question which only you can answer."
Whatever the nature of the work programme members get by July, clearly
it will have to fulfill certain criteria: First, it will have to be
substantive and meaningful; second, it must give us guidance on how
to conclude the negotiations; and third, it must be a springboard
towards a successful 10th Ministerial Conference in Nairobi in December.
"We have to maintain our focus on what is doable. We have to
be prepared to leave our comfort zones. And we will all have to contribute,"
said the D-G.
REPORTS BY THE CHAIRS OF THE NEGOTIATING BODIES
The D-G's statement was preceded by progress reports from the chairs
of the various negotiating bodies under the TNC, including on agriculture,
NAMA, services, trade and development, TRIPS, Rules Group, trade and
environment, and the Special Session of the Dispute Settlement Body.
The Chair of the Special Session of the Committee on Agriculture,
Ambassador John Adank of New Zealand, said that members were a long
way from where they should be, given the July deadline (for agreeing
on the post-Bali work programme). Members were far from convergence
on some threshold issues in key areas, and this is inhibiting progress
in other areas, he added. (See SUNS #8011 dated 28 April 2015 for
the full report by the Chair at an informal meeting of the Committee
on 24 April and reactions from members.)
The Chair of the NAMA negotiating group, Ambassador Remigi Winzap
of Switzerland, said that there has been constructive engagement by
members, but it was difficult to move - as many members have said
- without visible progress in agriculture. He also reported that there
has not been much progress on non-tariff barriers (NTBs).
The Chair encouraged members to accelerate the exploratory phase to
evaluate possible options, saying that this would enable members to
move on NAMA. But what is clear is that this can happen only after
members start to see some progress in agriculture, he said.
The Chair of the Special Session of the Council for Trade in Services,
Ambassador Gabriel Duque of Colombia, said that there had been an
open discussion on aspirations of members, i. e. what exactly they
would like to see from the services negotiations. The outcome would
be a Chairman's summary which would be factual, non-binding, non-attributable
and neutral.
Referring to a services meeting held last week, the Chair said that
Members recognised the need for reality and doability. They understand
that any outcome here will be calibrated based on what happens in
agriculture and NAMA. Many delegates said that it was important to
reduce "water" in commitments and that this should be a
priority. Delegates highlighted the modes of supply that are important
to them, with a number of countries reiterating the importance of
Mode 4 (movement of natural persons).
On rules under the services pillar, the Chair reported that there
were differing assessments made between domestic regulation and the
General Agreement on Trade in Services (GATS). A number of delegations
said that domestic regulation would form an important part of the
outcome of the post-Bali work programme.
VIEWS OF MEMBERS
A number of delegations spoke following the report by Director-General
Azevedo, outlining key issues of priority to them.
Lesotho (on behalf of the African Group) underscored two points. Firstly,
substantial differences primarily among Members with greatest share
of international trade remain, and this is certainly not a surprise
in light of previous experiences.
Secondly, novel ideas on how to move the agenda forward have not been
in short supply. Request-offer, offer- request, average cuts, simplified
approach, mixture of request-offer and average cuts, cutting the water,
new approaches to disciplining domestic support under agriculture,
re-calibration of the level of ambition, matching of contributions,
and such like concepts have emerged since members embarked on a process
to develop the work programme as per the Bali Outcome.
"Nonetheless, in figuring out solutions to move our consultations
forward, it is worth recalling the message that the Group has consistently
conveyed to Members. On this occasion, allow me to once again underline
that all the novel ideas on how to move the agenda forward, proposed
negotiating approaches, the nature of the work program and the content
therein and such like efforts to make a breakthrough, must all conform
to the golden standards set by Doha Ministerial Declaration and attendant
mandates. The DDA negotiations must pass the litmus test prescribed
in these mandates," said Ambassador Nkopane Monyane of Lesotho,
on behalf of the African Group.
According to the African Group, agriculture is an important pillar
of the negotiations for African countries and an outcome in this area
is of critical importance. In this context, it is hard to foresee
the African Group supporting any approach running short of levelling
the playing field and eliminating and/or significantly reducing trade-distorting
subsidies. African countries' investments in agriculture have been
sinking in a huge black hole, simply because these legitimate investments
cannot compete with distorting subsidies derived from the current
Agreement on Agriculture regime.
"From the perspective of the African Group, Members can no longer
afford the luxury of turning a blind eye to the fact that the current
architecture of the Agreement on Agriculture cannot be sustainable
in the 21st century."
Referring to the task of developing a well-defined work programme,
the African Group was of the strong view that:
* The work programme should be comprehensive and cover all remaining
DDA issues as per the MC9 (Bali ministerial) mandate. It must also
respect the existing mandates for the negotiations including negotiation
principles enshrined therein. Drawing from our previous intervention,
it is worth underscoring that the current consultations on the work
programme are not a renegotiation of existing and agreed mandates.
* Development dimension must cut across every subject matter under
negotiations in a way that proves it economically meaningful.
* Every novel idea must be tested against the existing mandates and
no effort should be spared in ensuring that the process, approaches,
the substance and principles of negotiations are adhered to, to the
fullest extent.
* Lastly, the flexibilities of the African Countries, in all their
categories, must be fully preserved. This is a golden standard against
which every new idea should be subjected to.
Barbados (on behalf of the ACP Group) referred to its elements paper
of March 2015 as a contribution to stimulate thinking on a modalities-type
work programme from its perspective. The paper addresses the areas
of importance to the Group in concluding the DDA, recognising that
the work programme must be comprehensive and include all remaining
DDA areas, it said.
With only three months left to complete the mandated clearly defined
work programme, it is imperative that members move to specifics and
begin to clearly detail not only the contours, but the specifics of
the work programme, said Barbados.
According to the ACP, its Member States will also seek to do their
part, bearing in mind that:
* Development must remain at the centre of discussions. In this regard,
special and differential treatment must be integral part of the various
pillars. However, these are integral elements, not negotiating points
to be traded and measured against overall balance.
* Re-calibration must not entail undermining the development dimension
of the Round and the special and differential treatment and flexibilities
of ACP Member States. As such, re-calibration must not be synonymous
with requesting greater contributions or more market access from ACP
States.
* The mandate requires a clearly defined work programme on all the
remaining DDA elements. As such we must intensify our efforts in all
the areas, not only the three main elements of Agriculture, NAMA and
Services, but Development, LDC issues and the other areas as well.
* We as a Membership must deliver a clearly defined work programme
by 31 July 2015 as we have been mandated to do and have concrete,
tangible deliverables ahead of the 10th Ministerial Conference in
Nairobi as we seek not only the development of the work programme,
but the conclusion of the Doha Development Round.
Saudi Arabia (on behalf of the Arab Group) stressed the importance
of moving to a solution-based approach as quickly as possible.
On behalf of the Recently-Acceded Members (RAMs), Saudi Arabia said
that there was need to focus on what is doable. In calibrating any
of these negotiations, it needs to be appreciated that the RAMs have
already made extensive commitments. There is no "water"
left in their schedules.
Indonesia (on behalf of the G-33) stressed the importance of food
security, livelihood security and rural development. There is need
to address the inequities of the outcome of the Uruguay Round. Some
members have been questioning the mandate and legitimacy of the G-33
proposals which would cover hundreds of millions of small farmers.
The G-33 wants to preserve the hard-won gains from the Rev. 4 draft
agriculture modalities text, and this means, for example, special
products (SP) and the special safeguard mechanism (SSM). It also stressed
the importance of public stockholding for food security purposes.
Brazil (on behalf of the G-20) said that agriculture has lagged behind
for many years. It is high time that we move to correct these imbalances.
Agriculture will set the level of ambition. There must be balance
across the three pillars - market access, domestic support and export
competition - and progress must be made in all areas, it said.
According to the G-20, the Rev. 4 text remains the basis for negotiations.
Agriculture holds the key that will enable members to make progress
elsewhere. It also stressed on special and differential treatment
(S&D) as being key. There is need to move into a more solution-oriented
approach. There is a floor of ambition beyond which the point of this
exercise stops making sense, it said.
Switzerland (on behalf of the G-10) said that the group attaches the
highest importance to the multilateral trading system and is strongly
committed to completing the DDA negotiations. At the moment, it seems
clear that the disagreement over domestic support is holding back
progress in other areas.
With respect to market access in agriculture, the G-10 has defensive
interests and this is where the G-10 countries are most exposed. But
they are prepared to engage in different tariff cutting approaches
if their sensitivities are respected. They remain strongly opposed
to tariff capping, and they would like to see the issue of export
restrictions being taken up.
On behalf of itself, Switzerland said that the situation with respect
to moving on the three pillars of agriculture is being affected by
the fact that there is very little movement on NAMA and services.
Across the board, it seems that members are having more defensive
than offensive interests. This makes negotiating very difficult. Any
solution must respect S&D.
It also said that a no outcome at the Nairobi ministerial conference
will most probably kill the round. The post-Bali work programme is
not an objective in itself but a step to concluding the DDA. The DDA
must be comprehensive but also be doable. The post-Bali work programme
needs to respect the sensitivities of all members but it must also
be a springboard for MC10 (Nairobi ministerial) and the eventual conclusion
of the round.
Mali (on behalf of the Cotton-4 countries) said that the group does
not envisage concluding any agreement that does not involve cotton.
Nepal said that MC10 and the fate of the Doha Development Agenda are
contingent on a successful outcome for the post-Bali work programme.
The LDCs want an outcome that can address their interests, specifically
putting the development dimension and S&D at the heart of the
negotiations.
Venezuela said that the development dimension should be at the heart
of the negotiations, with agriculture at the centre. There is need
to deliver on agriculture, cotton, S&D, and less than full reciprocity
in the tariff-cutting negotiations. Unfortunately, we are seeing market
access becoming the key issue in these negotiations and this only
benefits certain members, it said.
Some industrial countries are trying to alter S&D to suit their
interests, it said, adding that these principles instead need to cater
to the legitimate interests of the developing countries.
Turkey said that it would like to see a doable outcome for the post-Bali
work programme. The imbalances from the Uruguay Round need to be addressed.
Re-calibrating would not mean revisiting the mandate of the DDA. We
cannot start from scratch. We need balance across the pillars. SP
and SSM should be at the heart of any outcome. The developing countries
that do not have AMS commitments should be exempt from any cuts in
their de minimis or OTDS reductions.
The European Union said that members talked about the need for parallelism,
simplification and doability early on in the work programme process,
and "we had what seemed to be a common understanding that those
Members making far-reaching requests on sensitive issues, need to
put forward commensurate concessions of their own. While we are seeing
ambitious requests being made, the ensuing readiness to contribute
with commensurate concessions still seems to be missing."
In the same vein, it has been clear for a long time that similar and
calibrated levels of ambition need to be pursued in the individual
pillars of negotiations. In this regard, the question of balance must
continue to be at the centre of attention. Attempting to put together
a deal in which high ambition is pursued in certain areas in order
to compensate for the fact that nothing or very little is done in
others is not a recipe for success; quite the contrary, it said.
"Similarly, trying to put certain areas before others and promoting
sequencing ideas will not help us succeed. While it is clear that
agriculture is on everyone's mind and without it there can be no deal,
it is equally true that no deal will be possible without the other
areas."
The EU further said: "As difficult as it is, we need to engage
on all issues and allow them to advance technically while keeping
at the back of our minds that ambition will have to be adjusted and
calibrated across all pillars in order to arrive at a final acceptable
balance. There should be no misunderstanding on this point: all issues,
core and non-core, need to form part of the work-programme and part
of the final deal. Anything less will simply not work."
While the EU is firmly opposed to any notion of sequencing in the
limited time before members, it fully understands that many Members
want to advance on agriculture. In this context, it welcomed, for
example, the degree of convergence that is appearing on export competition
and the need for a balanced outcome across the entire pillar.
"The discussion so far has however rightly focused on domestic
support, where we have also been clear about our interest and readiness
to have an ambitious outcome. This cannot mean however that while
some Members would dramatically cut their trade distorting domestic
support, others would be allowed to increase their spending to levels
never before seen. Trade distorting domestic support is a common concern
and everyone needs to contribute to addressing it."
It noted that creative ideas have been put on the table, which merit
further exploration and eventually more will be needed. "Nevertheless,
the debates of recent weeks have clearly shown that the best we could
collectively hope for in this round would be an outcome which respects
current policies, whilst seeking to limit excessive increases in the
use of trade distorting measures. This, together with further flexibilities
that will be needed in order to address the public stockholding issue,
will have an impact on all other areas of negotiations."
According to the EU, crucially, the approach on agricultural market
access will have to mirror the overall direction that is being taken
on domestic support. Progress in this area will only be possible on
the basis of a simplified approach, which while setting a clear benchmark
in terms of tariff reductions, will give Members the necessary flexibility
in deciding which tariff lines to cut.
Such an approach would ensure an appropriate level of ambition without
however necessitating the introduction of complicating factors, which
would be disproportionate to the overall approach being taken, it
said.
The approach on agricultural market access will of course have a knock-on
effect on NAMA, where averaging would again seem the most promising
way of proceeding. It would give a meaningful result while providing
Members with flexibility in terms of implementation.
It is the EU's firm belief that, now more than ever, "we all
need to focus on the realistic and the doable. We need to be clear
in our minds whether we would prefer to get in the near future a deal
and to close the DDA with the doable and meaningful results which
are within our reach or hold out for something bigger which may however
never materialise."
According to trade officials, Uruguay reiterated that it cannot accept
a zero outcome in agriculture.
Japan said that on the positive side, it welcomes the increased number
of ideas and proposals that are being put forward that are based upon
necessary re-calibration. On the worrisome side, there remain differences
between major members who are sticking to concepts that would not
move us forward.
The United States said that the effort for re-calibration that reality
dictates, and which most Members acknowledge as necessary, is proving
every bit as challenging as other modes and mechanisms members have
tried in the past.
"Nonetheless, re-calibration has been happening. Like others,
the United States is deeply disappointed that its original aspirations
for the Round have not been realized. We have consistently believed
that we had a real opportunity, from 2001 forward, to bring about
significant, new liberalization that would advance the economic development
prospects of all Members, particularly developing Members. That opportunity,
if not completely evaporated, has certainly been extensively eroded."
"We know that our insistence that all major agricultural subsidisers
participate in taking on new disciplines for trade-distorting support
is difficult for certain other Members. We know, as well, that some
other Members do not want to hear that it cannot be acceptable for
only some Members to contribute cuts in applied tariffs while others
contribute only policy space. We know that many Members are deeply
attached to the texts known as Rev. 3 and Rev. 4. We find this misguided,
since those texts never found consensus. And indeed, the very reasons
that prevented consensus in 2008 have grown more profound in the seven
years since, namely the changed role of emerging economies."
Referring to the frequent references to the mandate that it has heard,
the US said that if finding a solution were as simple as adhering
to the mandate, "we would have done so a decade ago. The truth
is that the mandate is ambiguous, and we have never agreed on what
it means. We certainly have not agreed how to operationalize the mandate
as an actual trade agreement."
It added that some of those who cite the mandate most seem always
to skip over the parts they don't like, including the guidance from
2011's MC8, when all of our Ministers directed us to "explore
different negotiating approaches."
"So, we are all finding that re-calibration may not be as easy
as we would have liked, in that it doesn't do away with a constellation
of conflicting political and policy difficulties that are simply extremely
hard to reconcile... We cannot bury our head in the sand and wish
reality away, and in April 2015, our choice is clear: either we adapt
our collective expectations significantly and quickly, or the WTO
must begin to confront the prospect of a definitive failure,"
said the US.
Argentina endorsed the G-20 statement. It said that it is not prepared
to discuss export restrictions, particularly when there are so many
other distortions in agriculture.
Uganda endorsed the G-33, ACP and African Group statements. While
its true that the Rev. 4 and Rev. 3 texts have not been agreed, the
new ideas put forward have not been agreed either. There is a mandate
that has been set, based on agreement by ministers in Doha, as well
as in 2004 (July framework), in Hong Kong (in 2005) and in Bali (in
2013). There is need for balance across agriculture, NAMA and services,
with the single undertaking and the development dimension being preserved,
it said.
Korea said that it is discouraged by the speed and quality of progress
made so far. It does not know what the post-Bali work programme is
going to look like let alone what the substance will be. The deadlock
on domestic support is hampering progress in other issues in agriculture
as well as in NAMA and services. The 31 July deadline (for agreeing
on the post-Bali work programme) is crucially important. Those who
call for re-calibration or simplification need to put forward proposals
that are more specific so that there can be engagement on these questions,
it said.
China said that re-calibration of the Rev. 4 and Rev. 3 texts must
take into account the mandates coming from Doha, as well as that of
2004 (July framework), Hong Kong and Bali. It can look at alternatives
but these mandates need to be respected. It cannot see how a success
can arise when some members are seeking more flexibilities and requiring
less flexibility of others, or even greater commitments from others.
On the question of domestic support, for example, China asked are
we talking about a collective or selective re-calibration. If it is
a selective approach, this will not lead to consensus. When you talk
about re-calibration, you need to talk about how much, where this
would take place and for whom.
On the question of RAMs, it said that there is no more "water"
to be given. The RAMs have already made their contribution to the
outcome of the DDA, by virtue of the commitments made on their accession.
China further said that it will be very hard to have a successful
outcome without services and rules in a final package. The Doha Round
is a very complex negotiation, more complex than any other round,
and so it bears keeping in mind the difficulties that many members
have had, and that it would not be realistic to expect one, two, three
or four members to make contributions to save the round while the
others do nothing.
Paraguay said that there is need to address OTDS, and amber box as
well as de minimis will need to be looked at as well. On SSM, it said
that this is something that should only be used selectively and there
should be a sunset clause. On public stockholding for food security
purposes, it said that the Bali decision must be respected in its
entirety, and adequate transparency and safeguards must be ensured.
Norway said that there is need to keep the development dimension at
the centre, and that agriculture will determine the level of ambition.
It is increasingly concerned about progress in other areas apart from
agriculture. While it is defensive on agriculture, it is engaging
in the negotiations. We will all have to revise our positions and
adjust them to take into account the current realities, it said.
Colombia said that there is need to study alternatives and to see
more new proposals. The post-Bali work programme is not the end of
the line but is just something that would help us get to the conclusion
of the DDA. It stressed the importance of balance across the three
pillars in agriculture.
Pakistan said that there needs to be balance across the three pillars.
There is need to look at public stockholding for food security purposes
and the unintended consequences of these programmes. In NAMA, not
only tariffs but NTBs must also be addressed. This is crucially important
for developing countries as NTBs are increasingly being used as barriers
to market access.
India (represented by Ambassador Anjali Prasad) associated itself
with the statements made by Brazil on behalf of the G-20 and Indonesia
on behalf of the G-33. It is evident that this renewed phase of engagement
has not yielded concrete progress, and the contours of the post Bali-Work
Programme still remain elusive, it said.
First and foremost, India said, we need to clear the strategic fog
over the so-called "re-calibration" in the ambition levels.
In its view, progress can be made only if members seeking "re-calibration"
could spell it out in clear terms. This has not been done thus far.
Further, "re-calibration" has to be vis-a-vis something.
What is that benchmark? Do we have a common understanding in this
regard?
"Another related question is whether we can ignore the work that
has already been undertaken by members collectively since the Round
was launched," India asked, referring to the Ministerial mandates
and the 2008 texts.
"The existing texts have a sort of inherent balance and connectivity
of issues. If that is disturbed in the name of "re-calibration",
do we start with a clean slate? If not, how will the elements of a
package be identified without the possibility of cherry picking?"
India believes that the 2008 texts should be the basis for future
work along with the Hong Kong Ministerial Decisions. Exploring different
approaches (a reference to the US remarks about the 2011 MC8) is surely
not tantamount to inverting the ministerial mandates and the principles
that guide the negotiating process in this organization.
Recalling that the Doha Round is a "development round",
India said that it is therefore crucial that in the search for the
right level of ambition in agriculture and other areas under negotiation,
"we do not lose sight of the centrality of rebalancing inequities"
and of the principle of special and differential treatment for developing
countries. Any discussion on "doability", "re-calibration"
or "simplification" should not result in the dilution of
the "development quotient" of this Round, as enshrined in
the ministerial decisions since the Doha Declaration."
Linked to this is the issue of higher contributions by some developing
countries. The attempt appears to be to make progress in the Round
conditional upon the contributions by these members, which are still
developing countries and grappling with the challenges of large scale
poverty, underdevelopment and inadequate access to the basic necessities
of life.
"Differentiation among developing countries in this manner, is
unacceptable" India said, adding that such arguments and conditionalities
undermine the very basis of the negotiating function of the WTO which
is premised on certain accepted principles, which do not allow for
such differentiation.
"Any such attempt therefore is bound to delay our movement towards
a work programme and eventually the conclusion of the Round. Contributions
have to be benchmarked to levels of development rather than some vague
sense of the world having changed."
India said it would like an early conclusion of the Round but not
at any cost and in any manner whatsoever. The conclusion must deliver
a meaningful development outcome. It appeared to India that an atmosphere
is sought to be created that if most of what the "re-calibrators"
want, is not agreed to, the Round would be dead. December 2015 is
being talked about as a defacto deadline.
"We believe that this is a hasty characterization by those who,
are perhaps, uncomfortable with the development dimension involving
correction of the inequities in the international trading system,
of which they are currently the beneficiaries," it said, pointing
out that there is still time till MC-10.
"Rather than delving in doomsday scenarios, it would be helpful
if we could engage constructively and positively in addressing the
issues most crucial to a successful conclusion of the Round."
According to India, agriculture remains central to any outcome in
this Round. "It has been our consistent position along with several
other developing members that the level of ambition in this Round
would be determined by agriculture. While we remain engaged and are
willing to redouble our efforts to discuss all areas in an exploratory
and "without prejudice" basis, meaningful engagement in
other areas would have to await clarity on possible outcomes in agriculture."
India believes that Rev. 4 provides a good basis for the work in agriculture,
and that SP, SSM and a permanent solution on public stockholding for
food security purposes must be part of an outcome in MC-10. India
also has a deep interest in NAMA and services but active engagement
in these areas would depend on the meaning of re-calibration and how
it would impact the core pillar of agriculture.
India believes that members have a unique opportunity and indeed an
obligation to level the playing field in this Round so that trade
does in fact deliver on development and poverty alleviation.
"We need to strive for balanced outcomes keeping in mind the
existing mandate and progress already achieved in the negotiations,
so far," it said.
(* With inputs from D. Ravi Kanth.) +