the wto agreement on agriculture
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The WTO Agreement on Agriculture. Serafino Marchese, Chief, Training and Capacity Building Section WTO Institute for Training and Technical Co-operation. AG: Background. Agricultural trade Trade policies prior to the WTO Uruguay Round agricultural negotiations. AG: Overview. - PowerPoint PPT PresentationTRANSCRIPT
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The WTO Agreement on The WTO Agreement on AgricultureAgriculture
Serafino Marchese, Chief, Training and Capacity Building Section
WTO Institute for Training and Technical Co-operation
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AG: BackgroundAG: Background
• Agricultural trade
• Trade policies prior to the WTO
• Uruguay Round agricultural negotiations
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AG: OverviewAG: Overview
• Relationship with other WTO Agreements
• Product coverage
• Rules and commitments
• Implementation period
• Committee on Agriculture
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Tariffs
Non-tariff measures
Conversion
Tariff equivalents
Consolidation Reduction
Market access: “Tariffication”
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AG: Market access (1)AG: Market access (1)
• The conceptual framework
• Schedule of tariff concessions
• ... and tariff quota commitments
• The prohibition of non-tariff border measures
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AG: Market access (2)AG: Market access (2)
• Special treatment
• The special safeguard provisions
• Notification obligations: MA tables
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AG: Market access - RFAG: Market access - RF
• RF bound tariff generally range between 0 and 20% with the exception of meats (beef: 55%, pork: 65% and poultry: 80%)
• Most of the tariffs are bound in ad valorem terms, but some bindings are specific (e.g. sugar and alcohols) or mixed (e.g. dairy, cereals and fruit juices)
• RF has scheduled tariff rate quotas (TRQ) on beef, pork, poultry and dairy (whey)
• No SSG inscribed in the Schedule
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AG: Market access – RF notificationsAG: Market access – RF notifications
• Table MA:1 – one time + ad hoc changes – Administration of Tariff Rate Quotas (TRQs)
• Table MA:2 – annual – In-quota imports
• Integrated Data Base (IDB) – annual
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"de minimis”Article 6:4
developing < 10%developed < 5%
Non-exempt
AMS
No/minimal effects on trade or
production
Special and Differential Treatment
Production limiting
programmes
Annex 2Policy
specific criteria
Article 6:2Encouraging
agricultural and rural
development in developing countries
Article 6:5Direct
payments
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AG: Domestic support (1)AG: Domestic support (1)
• The conceptual framework
• Green Box
• Government service programmes
• Direct payments to producers
• Other exempt measures
• Developmental measures
• Blue Box
• De minimis
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Green Box (Annex 2)
• fundamental requirement that the measures have no, or at most minimal, trade-distorting effects or effects on production
• the support in question shall be provided through a publicly-funded government programme (including government revenue foregone) not involving transfers from consumers
• the support in question shall not have the effect of providing price support to producers;
• plus policy-specific criteria and conditions...
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AG: Blue Box
Eligibility: clearly-defined criteria in a fixed base period e.g income
status as a producer or landowner
factor use or production level
Payments not related to the type of production
the volume of production
prices (domestic or international)
factors of production employed in any year after the base period No production shall be required to receive such payments
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AG: Domestic support (2)AG: Domestic support (2)
• Aggregate Measurement of Support (AMS)
• Reduction commitments
• Equivalent Measurement of Support
• Notification obligations: DS tables
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AG: Domestic support - RFAG: Domestic support - RF
• RF has a Total AMS commitment in the Schedule. Total
AMS limit starts at USD 9 billion in 2012 and goes
down to USD 4.4 billion in 2018
• During the 7-year implementation period, e.g. from
2012 to 2018, RF has committed to keep its total
product-specific AMS within 30% of its non-product
specific AMS
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AG: Domestic support – RF NotificationsAG: Domestic support – RF Notifications
• Table DS:1 and Supporting Tables DS:1 to DS:9 -
annual
• Table DS:2 – ad hoc when introducing a new
support measure, or making modifications to an
existing measure, for which an exemption from
reduction is claimed
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AG: Export subsidies (1)AG: Export subsidies (1)
• The conceptual framework
• Reduction commitments
• Definition of measures
• Product categories
• Rates of cut
• Products with no specific reduction commitment
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AG: Export subsidies (2)AG: Export subsidies (2)
• Anti-circumvention
• Notification obligations: ES tables
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AG: Export subsidies - RFAG: Export subsidies - RF
• RF bound export subsidies at zero
• Table ES:1 - annual
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AG: Other provisions - RFAG: Other provisions - RF
• Export duties: Part V of the Schedules contains export dutiy bindings for all products, including some agricultural products, e.g. oilseeds and ethyl alcohol
• Export restrictions: RF explicitly confirmed that upon accession, it would only apply export restrictions in accordance with Article XI of the GATT and Article 12 of the Agreement on Agriculture
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Long term objective:
Major achievements of the Uruguay Round, but also some unfinished business
Committee on Agriculture – monitors implementation of UR commitments
Mandate for further reform - Article 20
“... establish a fair and market-oriented agricultural trading system ... ”
The Agreement on Agriculture The Agreement on Agriculture
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AG: Summary AG: Summary
Tariffs
Tariff Quotas
Special Safeguard
Green Box
Blue Box
Article 6.2
Amber Box
Export subsidies
Anti-circumvention
Export prohibitions and restrictions
Market access Domestic support Export
competition
Other rules: S&D, Peace Clause (now expired), NFIDC Decision etc.
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Art. 1 Definition of TermsArt. 2 Product Coverage
Part IIArt. 3 Incorporation of Concessions and Commitments
Part IIIArt. 4 Market AccessArt. 5 Special Safeguard Provisions
Part IVArt. 6 Domestic Support Commitments
Part I
Art. 7 General Disciplines on Domestic SupportPart V
Art. 8 Export Competition CommitmentsArt. 9 Export Subsidies Commitments
Art. 10 Prevention of Circumvention of Export Subsidy Commitments
AGREEMENT ON AGRICULTUREAGREEMENT ON AGRICULTURE
Art. 11 Incorporated Products
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Art. 12Part VII
Art. 13Part VIII
Art. 14Part IX
Art. 15Part X
Art. 16
Part VIDisciplines on Export Prohibitions and Restrictions
Due Restraint
Sanitary and Phytosanitary Measures
Special and Differential Treatment
Least-Developed and Net Food-Importing Developing CountriesPart XI
Art. 17Art. 18Art. 19
Committee on AgricultureReview of the Implementation of CommitmentsConsultation and Dispute Settlement
Part XII
AGREEMENT ON AGRICULTUREAGREEMENT ON AGRICULTURE
Art. 20Part XIII
Continuation of the Reform Process
Art. 21 Final Provisions
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Annex 2
Annex 3
Annex 4
Annex 5
Annex 1Domestic Support: The basis for exemption from the reduction commitmentsDomestic support: Calculation of aggregate measurement of supportDomestic support: Calculation of Equivalent Measurement of supportSpecial Treatment with respect to paragraph 2 of Art. 4
Product Coverage
AGREEMENT ON AGRICULTUREAGREEMENT ON AGRICULTURE