AGRICULTURE: WTO MEMBERS TO PURSUE "COMPREHENSIVE" APPROACH

The recent week of agriculture negotiations at the WTO wrapped up on 15 September, a day earlier than planned. The meeting -- convened for the first time by the committee's new chair, Ambassador Crawford Falconer of New Zealand -- generally agreed that Members need to take a comprehensive approach to the agriculture negotiations and tackle a range of issues at once, instead of the "incremental" approach they have used so far.

This shift in strategy responds to the fact that negotiators now are working directly on the actual agriculture modalities -- percentages for tariff and subsidy cuts, reduction formulae, criteria for domestic support, deadlines, and transition periods -- rather than a mere outline of them. They failed to agree on such 'first approximations' of modalities at the end of July (see BRIDGES Weekly, 3 August 2005), and are now under pressure to agree on the modalities themselves at the WTO's Hong Kong Ministerial Conference in December. Falconer has noted a "manifest sense of increased urgency" in the negotiations, given that the ministerial summit is less than three months away.

The 'agriculture week' took place against the backdrop of high-level bilateral talks between the EU and US in Washington DC, which strongly emphasised the agriculture elements of the Doha Round negotiations (see related story, this issue). These bilateral talks will continue in Paris from 22-23 September, and will also involve Brazil and India (together, the so-called 'new Quad'). These countries will then be joined by Australia (to make up the Five Interested Parties, FIPS) and a larger group of countries (dubbed FIPS+).

Speaking to journalists, Falconer hailed the meeting of the new Quad in Paris, noting that "Those four players have some views, and if we want to get consensus they must talk." He also commented that all Members must use the upcoming weeks to "talk among themselves, seize the issues and wrestle with the approaches that may work." He stressed that while all countries need to be involved, "We need political emphasis to transform into something operational.''

Countries agree on need for a comprehensive approach in ag talks

Following a formal meeting on 13 September (see BRIDGES Weekly, 14 September 2005), Members met in different configurations. Falconer asked delegations whether it was time to move towards a more comprehensive approach to the talks, and then called an informal plenary meeting on 15 September to hear them respond. Members generally agreed, with the G-33 countries (an alliance in support of allowing developing countries to designate 'Special Products' for lower tariff cuts and the creation of a 'Special Safeguard Mechanism' to protect these countries against import surges) stressing the importance that Members pay adequate heed to the development dimension of the agriculture negotiations.

One disagreement that surfaced during the session related to the degree of ambition under each of the three 'pillars' of the agriculture talks: export subsidies, domestic support, and tariff reduction. The G-20 and agricultural exporters demanded high levels of ambition under all three pillars. The G-10 (mainly developed country agricultural importers) said cuts in export subsidies should be most ambitious, followed by cuts to domestic support, and finally, moderate reductions to agricultural tariffs. The US indicated that it was willing to start considering specific numbers or scenarios in order to make the talks more concrete. After the meeting, one US official noted that the current sequencing of the talks is off balance, since progress on market access, the area of greatest interest to the US, is lagging behind that on the other pillars.

Also during the 15 September meeting, the EU said it wanted the agriculture negotiations in the lead-up to Hong Kong to include the extension of geographic indications (GIs) to products other than wines and spirits. The EU is, however, fighting an uphill battle in this area, and very recently concluded a bilateral agreement with the US on the names related to wines and spirits (see related story, this issue).

A number of countries stressed the need for an inclusive or "bottom-up" approach to the talks, which would involve all Members of the WTO. They have requested a first draft of the Hong Kong ministerial text in mid-November, in order to have sufficient time to consider and review the document. Falconer stressed that Members need to have something concrete on the table in mid-October, which would in turn indicate what they could realistically expect in Hong Kong.

Members permanently "on call"

Following the close of the meeting on 15 September, negotiators are "on call" on a continuing basis; Falconer may convene a larger plenary meeting at any point. The next agriculture week is scheduled to start on 17 October. In practice, negotiations will take place continuously between now and Hong Kong. WTO Director-General Pascal Lamy is expected to call regular stocktaking sessions of the Trade Negotiations Committee. A number of high-level meetings are also scheduled to take place in capitals, with the upcoming meeting in Paris from 22-23 September next in line.

ICTSD reporting.