Description
While
it is widely recognised that developing countries, as a whole, will
benefit from removing trade distortions in agricultural trade, some
fear that vulnerable farming communities in developing countries might
suffer from further trade liberalisation in the Doha Round. As tariffs
are removed, the livelihood of communities employed in import-competing
sectors might be affected by lower prices, mainly resulting from international
competition in subsidized products. In a response to this concern, the
General Council Decision of 1st August 2004 gives developing countries
the flexibility to designate an appropriate number of products as Special
Products (SPs) based on criteria of food security, livelihood security
and rural development needs. These products will be eligible for more
flexible treatment. In addition, it states that a Special Safeguard
Mechanism (SSM) will be established for use by developing country members.
The purpose of the informal dialogue was to present and discuss some
of the implications of the current WTO negotiations on agriculture in
this regard. With this background, the ICTSD presented its recent paper
"Special Products and the Special Safeguard Mechanism: Strategic
Options for Developing Countries". The aim of the paper is to contribute
to the ongoing WTO negotiations by providing some empirical and scientific
elaboration on the particular concepts of SPs and the SSM from a sustainable
development perspective that could be of practical use to developing
country negotiators. The paper provides possible options in terms of
the SP/SSM negotiations that could ensure that modalities agreed upon
in the lead-up to the Hong Kong Ministerial Conference are pro-poor
and pro-development, as well as responsive to the, food-security, livelihood
security and rural development needs of developing countries.
The
informal dialogue was initiated by Ms. Sandra Polaski, the Carnegie
Endowment for International Peace, who presented new modelling research
on the differential impact of the Doha Round negotiations on different
developing countries and regions. The findings were based on a general
equilibrium model of global trade with emphasis on trade in agriculture
and low-skilled labour, which are issues of particular concern to developing
countries. The presentation outlined some of the implications for the
Doha negotiations and identified potential winners and losers of the
Doha Round, as well as possible responses for developing countries.
For example, it was argued that the current agricultural trade debate
lacks a critically needed focus on small-scale farming as a source of
livelihood security, thus failing to deal with the trade impact on the
poor.
In this context, the ICTSD presented some of the findings and experiences
learned from different developing countries in the process of identification
of possible SPs and products eligible for the SSM in the preparation
of a number of country case studies commissioned by the ICTSD. In addition,
representatives from Indonesia and the Philippines presented the rationale
and state of play on SPs and the SSM in the ongoing WTO negotiations
on agriculture. See Documents for the entire presentations.
