SLOW PROGRESS ON AGRICULTURE

Trade diplomats at the WTO are expecting to discuss lists of specific farm commodities facing demands for either gentler-than-normal or expedited liberalisation at meetings later this week. Talks on these exceptions to standard tariff treatment, long among the more contentious issues in the Doha Round agriculture talks, will affect the timing of the release of a revised draft deal by the chair of the negotiating committee.

The countries actively engaged in consultations on sensitive products, tropical products, and preference erosion have repeatedly requested more time to prepare proposals so that "substance," and not an arbitrary deadline, "guides the process." As a result, New Zealand Ambassador Crawford Falconer's draft text, once expected in early May, might now be released the week of 19 May or possibly at the end of the preceding week, officials say.

All Members will be allowed to slate some 'sensitive' farm products for gentler tariff cuts, in exchange for expanding market access through import quotas. Although countries have agreed that future quota size should be based on total domestic consumption of a given product, determining consumption levels has been complicated, especially for processed foods and very specific products for which data is not available. A group of six major importers and exporters have over the past month tried to reach a compromise 'partial designation' methodology for determining domestic consumption for very specific products. Australia, Brazil, Canada, Japan, the EU and the US have circulated their potential compromises to other Members, to see whether they can gain wide enough currency to become the basis for a broader agreement. Reactions to the proposals have been mixed so far. Developing countries in particular have requested time to assess how they might be affected, expressing concern about the minimal expansion of fruit and vegetable import quotas.

At a recent limited-attendance meeting convened by the group of six importers and exporters to explain partial designation, the US suggested that developing countries draft their list of sensitive products by the end of the week. Developing countries have not moved aggressively to propose a list, citing the tight time frame.

Proponents of expedited liberalisation for tropical products succeeded in removing bananas from a potential list of sensitive products issued last week. Preference-receiving countries had hoped that major markets be allowed to designate bananas as sensitive, which would preserve more of their margin of preferential access.

Delegates say that though they are eager to come to an agreement, they are taking a "wait and see" approach to the glacial progress on key issues.

ICTSD reporting.