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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