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Info Service on WTO and Trade Issues (Jul24/21) Geneva, 22 Jul (D. Ravi Kanth) — Brazil is seeking approval of its draft General Council (GC) decision on “Moving Agriculture Negotiations Forward” at the World Trade Organization’s GC meeting on 22-23 July, but several developing country members seem to reckon that the draft decision fundamentally changes the hierarchy of the mandated negotiating bodies by seeking GC/Trade Negotiations Committee (TNC) oversight and direction, said people familiar with the discussions. In the timelines spelled out in Brazil’s draft GC decision (WT/GC/W/939/Rev.2), it is clearly stated that “the General Council and the TNC shall regularly review progress in the negotiation.” The Brazilian proposal also appears to give a short-shrift to the draft mandate contained in document WT/MIN (24)/W/13 and the subsequent “heated” negotiations that followed at the WTO’s 13th ministerial conference (MC13) in Abu Dhabi on 1 March when the Indian minister declared that there will be no decision on agriculture without a decision on the issue of public stockholding (PSH) programmes for food security purposes, said people familiar with the development. It appears that the GC chair and the WTO Secretariat seem to be working behind the scenes to ensure passage for the Brazilian proposal, said people familiar with the discussions. The GC chair seems to have conveyed to one member that even if it opposes the draft decision, it should allow the issue to be shifted to the Doha negotiating body on agriculture, which is also referred to as the Committee on Agriculture in Special Session, said people familiar with the discussions. The DG, who recently tried hard to broker a compromise between two contrasting proposals – one by Brazil that is seeking GC direction and the other by the African Group which accorded primacy to the Doha agriculture negotiating body – seems to have urged the African Group to drop its opposition to the Brazilian proposal, said a person familiar with the discussions. CHANGING HIERARCHY OF AGRI-TALKS Brazil appears to be changing the hierarchy of the mandated bodies and more importantly, the draft decision has dropped the “either/or” language on the permanent solution for PSH as contained in document WT/MIN(24)/W/ 13, said people familiar with the proposal. Paragraph 28 of document WT/MIN (24)/W/13 states: “[Pursuant to the Bali Ministerial Decision (WT/MIN (13)/38-WT/L/913), the General Council Decision (WT/L/939), and Nairobi Ministerial Decision (WT/MIN(15) /44-WT/L/979), Members adopt a permanent solution as set out in Annex […] to this Decision.]” OR [Pursuant to Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/939), and the Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members undertake to pursue and intensify negotiations on PSH in Dedicated Sessions of the CoA-SS and agree and adopt a permanent solution on the issue of public stockholding for food security purposes by MC14, which shall be available to all developing country Members. Public stockholding programmes shall not distort trade or adversely affect the food security of other Members.] In contrast, Brazil’s draft decision that comes up before the GC states in paragraph 10: “Pursuant to Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/939), and the Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members commit to pursue and intensify negotiations on PSH in Dedicated Sessions of the CoA-SS. The negotiations on PSH should pay particular attention to the needs of LDCs and NFIDCs. A permanent solution on the issue of public stockholding for food security purposes shall be available to all developing country Members. Public stockholding programmes shall not distort trade or adversely affect the food security of other Members. Members will agree on the elements and the methodology of implementation according to the Timeline of Implementation section below.” For the last three months, Brazil conducted an informal process in parallel, even though several members, including India, challenged the legitimacy of the Brazilian process, said people familiar with the negotiations. Apparently unruffled by any criticism of the informal process, Brazil went ahead to circulate the draft GC decision that lays out a comprehensive plan and timelines. Brazil’s “comprehensive” proposal has dealt with all the issues on the table, and has proposed the following language on each item of the Doha agriculture negotiations: “[…] DOMESTIC SUPPORT 8. Members commit to pursue and intensify negotiations on domestic support, with a view to reducing substantially and progressively trade-distorting support in a fair and equitable manner, to encourage a shift towards less trade-distorting support, and improving disciplines in accordance with the reform objective in the AoA within a reasonable implementation period to be agreed by Members. These negotiations shall preserve developing country Members’ ability to assist agricultural and rural development, including to assist low income and resource poor farmers, as well as to encourage diversification from growing illicit crops. Members will agree on the elements and the methodology of implementation according to the Timeline for Implementation section below. MARKET ACCESS 9. Members commit to pursue and intensify negotiations on agricultural market access with a view to reducing substantially and progressively protection in a fair and equitable manner, to improve market access opportunities for all Members, and improving disciplines in accordance with the reform objective in the AoA and within a reasonable timeframe to be agreed by Members. These negotiations shall take into account exporting Members’ interests and importing Members’ sensitivities. Members will agree on the elements and the methodology of implementation according to the Timeline for Implementation section below. PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES (PSH) 10. Pursuant to Bali Ministerial Decision (WT/MIN(13)/38-WT/L/913), the General Council Decision (WT/L/ 939), and the Nairobi Ministerial Decision (WT/MIN(15)/44-WT/L/979), Members commit to pursue and intensify negotiations on PSH in Dedicated Sessions of the CoA-SS. The negotiations on PSH should pay particular attention to the needs of LDCs and NFIDCs. A permanent solution on the issue of public stockholding for food security purposes shall be available to all developing country Members. Public stockholding programmes shall not distort trade or adversely affect the food security of other Members. Members will agree on the elements and the methodology of implementation according to the Timeline of Implementation section below. SSM 11. Pursuant to the Nairobi Ministerial Decision (WT/MIN(15)/43-WT/L/978), Members commit to pursue and intensify negotiations in Dedicated Sessions of the CoA-SS on a special safeguard mechanism for developing country Members, as envisaged under paragraph 7 of the Hong Kong Ministerial Declaration (WT/MIN(05)/ DEC), and to which the developing country Members will have the right to have recourse under paragraph 1 of the Nairobi Ministerial Decision. Members will agree on the elements and the methodology of implementation according to the Timeline for Implementation section below. EXPORT PROHIBITIONS AND RESTRICTIONS 12. Members commit to pursue and intensify negotiations on export prohibitions or restrictions. The negotiations shall take into account the interests of exporting and importing Members, with particular attention paid to the needs of LDCs and NFIDCs. Members will agree on the elements and the methodology of implementation according to the Timeline for Implementation section below. EXPORT COMPETITION 13. Members agree to continue negotiations to enhance disciplines on export credits, export credit guarantees or insurance programmes, agricultural exporting state trading enterprises and international food aid and other measures with equivalent effect to prevent circumvention of export subsidy elimination commitments including through non-commercial transactions. Special consideration shall be given to the needs and circumstances of least-developed and net food-importing developing countries. Members will agree on the elements and the methodology of implementation according to the Timeline of Implementation section. COTTON TRADE-RELATED COMPONENT 14. Members commit to pursue and intensify negotiations on cotton trade-related measures based on Members’ submissions, and pursuant to the cotton-related elements of the Hong Kong Ministerial Declaration (WT/MIN (05)/DEC), as complemented by the Bali Cotton Ministerial Decision (WT/MIN(13)/41-WT/L/916), and the Nairobi Cotton Ministerial Decision (WT/MIN(15)/46-WT/L/981) to address it ambitiously, expeditiously and specifically within the agriculture negotiations. These negotiations shall seek to reduce substantially and progressively the trade-distorting domestic support for cotton. Members will agree on the elements and the methodology of implementation according to the Timeline for Implementation section. 15. The negotiations shall also seek to significantly reduce market access barriers, pursuant to the Ministerial outcomes listed in paragraph 12, for cotton-producing and exporting LDCs. Members are encouraged to open their markets allowing greater purchases of cotton products and byproducts from cotton-producing LDCs, including through the offer of duty-free quota free market access. 16. Members undertake to continue efforts aimed at enhancing transparency and monitoring of cotton-related trade measures affecting the global cotton market through the Dedicated Discussions on Cotton held on a bi-annual basis, as mandated by paragraphs 5, 6 and 7 of the Bali Ministerial Decision on Cotton (WT/MIN (13)/41-WT/L/916) and confirmed in paragraph 14 of the Nairobi Ministerial Decision on Cotton (WT/MIN (15)/46-WT/L/981). Members reaffirm the need to respect their notification obligations in the context of the required transparency. COTTON DEVELOPMENT ASSISTANCE COMPONENT 17. Members reaffirm that development-related aspects of cotton shall be addressed as provided for in paragraph 12 of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) and paragraphs 10, 11, 12 and 13 of the Nairobi Ministerial Decision (WT/MIN(15)/46-WT/L/981). 18. Members reiterate their commitment to the rules-based multilateral trading system, which strengthens the possible synergies between trade in cotton, productive investment and development assistance for LDCs. They recognize the need for an inclusive partnership that makes cooperation and negotiations the preferred instruments for finding the most appropriate solutions to the considerable systemic and cyclical challenges faced by cotton producing and exporting LDCs, in particular the C-4 countries. 19. Members underscore the central role of the WTO Director-General’s Consultative Mechanism on Cotton as an international forum of reference bringing together the various stakeholders of the global cotton community (public and private sectors, and multilateral agencies) and as an effective multilateral consultation platform for the development of cotton-producing and exporting LDCs. As such, they agree to coordinate cotton development assistance interventions, follow up on completed and ongoing projects, and use this platform to attract and mobilize further investment with a view to promoting and supporting the production, processing and marketing of cotton and its by-products in LDCs. 20. Members welcome the initiatives undertaken with development partners over recent years such as partner conferences, World Cotton Day, or WTO-FIFA Memorandum, aimed at better integrating the cotton sector of LDCs, in particular the C-4 countries, in global value chains for value-added products deriving from cotton and its byproducts, and encourage all development partners to intensify their efforts in this perspective. TIMELINE FOR IMPLEMENTATION 21. In order to achieve tangible progress and concrete outcomes, Members instruct the CoA-SS Chairperson to provide, based on Members’ contributions, annual negotiating schedules to discuss all aspects, including the elements and the methodology, of each of the topics in this Decision. 22. Members instruct the CoA-SS Chairperson to conduct negotiations on PSH, SSM and cotton in line with the mandates of the Nairobi Ministerial Decision and in dedicated sessions of the CoA SS. 23. The General Council and the TNC shall regularly review progress in the negotiation. 24. Senior Officials will meet one year after MC13 and make recommendations for the way forward. Six months before MC14, Senior Officials will review the progress achieved in the negotiations, including PSH, SSM and cotton. 25. Members will adopt a comprehensive agricultural framework by MC14 and work towards achieving modalities that balance Members’ interests and take into consideration Members’ food security priorities to be implemented in timeframes to be decided by Members.” +
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