May19,2005 NAPC_TPD

by: Mahmoud Babili 1

Multilateral trade negotiations and

Agricultural policies in the developed

economies

May19,2005 NAPC_TPD

by: Mahmoud Babili 2

• SAT2005: Ch1, Ch4, and the special issue• Review paper: Negotiations' Position of

the Main trading partners and their Rationale

• Commodity brief: Wheat• Policy briefs:

– Decoupled payments– The WTO negotiations: Will developing

countries benefit from a new agreement?

• Other tasks requested by the director• Establishing a website for the division

May19,2005 NAPC_TPD

by: Mahmoud Babili 3

Negotiations' Position of the Main trading partners and

their Rationale

May19,2005 NAPC_TPD

by: Mahmoud Babili 4

• The aim of the paper is to help public understanding about the agriculture negotiations

• It is NOT an official record of the negotiations.

• It explains:– agricultural issues raised before and in the

current bilateral and multilateral negotiations; – developing countries’ requirements; – July Package, and the dispute settlement and

the SPS measure; and– four multilateral study cases.

May19,2005 NAPC_TPD

by: Mahmoud Babili 5

Who are main traders?

• USA: the first exporter for agricultural commodities

• EU: the largest trader & the first exporter globally

• China: the biggest Asian market

• India: the major player in its region • Brazil: the leader of G22

May19,2005 NAPC_TPD

by: Mahmoud Babili 6

The WTO and Agriculture

The three pillars – market access: tariff + quotas and non-tariff

barriers – domestic support: amber box – export subsidies (competition): limit spending and

quantities affected by export subsidies Agricultural disputes: The rules-based WTO

dispute settlement system SPS measures: food safety, animal, and plant

health regulations

May19,2005 NAPC_TPD

by: Mahmoud Babili 7

Objectives of developing countries

• diverse and complex • The main common goal is achieving

agricultural development through agricultural trade

• the Win-Win concept • agricultural subsidies in developed

countries deter developing countries from maximizing their gains

• food security

May19,2005 NAPC_TPD

by: Mahmoud Babili 8

Current agricultural negotiations

• The continuation of agricultural negotiations:– first phase began in early 2000, then the

Doha declaration– Up to Cancun: Negotiators missed the 31

March 2003 deadline for producing numerical targets

– Up to the July package: individual initiatives were crucial in this period

May19,2005 NAPC_TPD

by: Mahmoud Babili 9

• July Package

On 1 August 2004, the WTO’s 147 member governments approved a package of agreements that includes an outline (or “framework”) to be used to complete the “modalities” on agriculture. in 2005, more high-level General Council meetings are to be expected to evaluate what the objectives for the Hong Kong Ministerial might be.

May19,2005 NAPC_TPD

by: Mahmoud Babili 10

Case Studies

• representative of trade disputes

• related to the main traders in the world

• great importance from point view of trade, economic, environment, poverty reduction

May19,2005 NAPC_TPD

by: Mahmoud Babili 11

GM food

• Biotechnology can provide with essential food for countries that have food insufficiency

• The United States is the world's biggest GMO producer

• EU in 1998 has ensured virtually no GM crop varieties to be produced or sold in it

• the U.S. initiated an action with the WTO challenging the EU’s moratorium

May19,2005 NAPC_TPD

by: Mahmoud Babili 12

Chinese shrimps to USA

• one of the largest anti-dumping cases in recent years

• shrimp was dumped on the U.S. market • US Commerce Department proposed new

tariffs on Chinese shrimp• China rejected dumping allegations • The parties vowed to dispute the tariffs in

the WTO

May19,2005 NAPC_TPD

by: Mahmoud Babili 13

Cotton dispute

• Brazil brought a dispute on US subsidies on upland cotton

• The WTO found that the U.S. violated the Peace Clause

• countries in West Africa are the worst hit by current US cotton subsidies

• the US is legally obliged to cease the subsidization in excess

• However, The US is intending to appeal

May19,2005 NAPC_TPD

by: Mahmoud Babili 14

Sugar exports

• It is one of the most distorted commodities• The WTO panel, hearing Brazil's challenge

against the EC's sugar export subsidies, issued its final report in favor of Brazil

• poorer countries (ACP) warned that this threaten their preferential access into EU

• The EC is reforming its sugar sector• Probably, similar cases could be brought

May19,2005 NAPC_TPD

by: Mahmoud Babili 15

conclusion

• agricultural trade reform is best pursued within the ongoing WTO negotiations, not through dispute settlement

• Geneva framework is an important step, but there are some critical variables that should shape it

• Developing countries need redressing the trade flows imbalances and treating them for the benefit of all

• legal challenges, such as sugar and cotton cases, may provide additional impetus to spur negotiations

May19,2005 NAPC_TPD

by: Mahmoud Babili 16

Thank you