Progress
in Agriculture Talks in “Immediate Future” is Crucial, Chair Tells Negotiators
At meetings open to all WTO
members on 3-4 May, the chair of the agriculture negotiations — Alparslan Acarsoy of Türkiye — urged participants to accelerate their efforts to
find common ground ahead of the 13th Ministerial Conference (MC13), which is
due to take place in Abu Dhabi in February 2024. “Making progress in the
immediate future is crucial if we want to reach an outcome at MC13,” the chair
said at a meeting of the Committee on Agriculture in Special Session.
The chair told participants
that MC13 was an opportunity to build on what was achieved at the last
ministerial conference in June 2022, where trade ministers agreed a package of
outcomes that included a declaration on the emergency response to food
insecurity and a decision on humanitarian food aid.
“But time is short before
MC13, and each day counts,” he warned.
The chair said his
consultations with members have confirmed that food security is top of the
agenda for most members and is expected to be at the core of any MC13 outcome.
“It's important in my view
to continue brainstorming collectively in this direction,” he said, while also
noting that more work is required on topics such as domestic support.
The chair called upon
members to pitch tangible ideas that could bridge differences, building on the
good momentum seen in a series of recent thematic seminars.
“Such a process is a
difficult one and requires both boldness and trust from each member to step out
of its comfort zone. It also requires imagination, pragmatism and flexibility
to build the basis for a balanced outcome acceptable by all,” he added.
Addressing market access and
export restrictions
Before the meetings, members
participated in two thematic seminars on 2 May covering market access and food
export restrictions, following three earlier seminars convened by the chair at
the end of March.
Academic experts and staff
from the WTO Secretariat and other international organizations presented
analysis. The UN Food and Agriculture Organization (FAO), the Organisation for
Economic Co-operation and Development (OECD) and the UN World Food Programme
were among those who contributed as invited speakers. Their presentations are
available on the web page for the event.
WTO members also shared
their national experiences during the seminars.
Moving forward on public
food stockholding
The chair noted that, in
previous meetings, WTO members had continued to express divergent views on the
question of public stockholding for food security purposes.
Since the Bali Ministerial Conference a decade ago, WTO members have been seeking a
“permanent solution” to the problems some developing countries face when
purchasing food at government-set prices as part of their public stockholding
programmes for food security purposes. Procurement at “administered” prices
must be counted towards WTO members' overall support limit, unlike stock
purchases at market prices. However, a number of developing countries argue
that food price inflation has affected their ability to buy food at minimum
prices under these programmes.
To move forward, the chair
asked members to identify their top-three important elements so that the
negotiations could be more focused.
At the meeting, members
exchanged views on elements such as the external reference price used to calculate
levels of market price support, the products that might be covered by an
eventual permanent solution and requirements related to sharing information
transparently. They also discussed measures aimed at preventing circumvention
of existing subsidy commitments and the importance of access to dispute
settlement.
Special Safeguard Mechanism
The chair convened a
dedicated discussion on the “special safeguard mechanism” (SSM) — a proposed
policy tool that would enable developing country members to increase tariffs
temporarily in the event of a sudden import surge or falling food prices.
He noted that no significant
progress had been made due to different views among WTO members on whether the
SSM should be linked to progress in improving access to agricultural markets.
He asked members to advise whether there is a need to hold technical thematic
sessions to share experiences on the existing special agricultural safeguards
(SSGs, provided for under Article
5
of the Agreement on Agriculture) and on designing a safeguard mechanism that
would allow members to take countervailing measures to address trade-distorting
subsidies.
In the discussion, most
members welcomed more information about SSGs. Several agricultural exporting
countries suggested that more evidence and data could help WTO members better
understand how the existing safeguard rules in the Agreement on Agriculture are
being applied.
Brainstorming on all topics
The chair asked members to
focus their discussion on two questions: the contribution MC13 could make to
enhance food security; and which elements of an agricultural package at MC13
might be acceptable to all.
Members welcomed the chair's
initiative to start detailed discussions. They generally shared the view that a
food security package should be the centrepiece of an MC13 outcome, given the
urgent need to combat hunger. However, there were divergent views on the
package's contents, scope and level of ambition, among other things.
Several members emphasized
that the continuation of the reform process aimed at a reduction in domestic
support and protection in line with Article 20 of the Agreement on Agriculture
is the best vehicle to contribute to enhancing food security while other
members stressed the centrality of the permanent solution on public
stockholding for food security purposes. Different views were also expressed on
how to address domestic support in the negotiations, which remains a key
priority for many members.
Members debated various
mandates and the balance between pursuing specific elements and broader topics
that reflect all members' interests in the negotiations.
Members welcomed the two
thematic seminars that had provided WTO members with useful insights and
possible ideas on how they could move forward. Several members referred to
these seminars to support their views that progressing on better market access
and/or on export restrictions, especially through enhanced transparency and
predictability, would also contribute to food security. Other members
considered that these topics did not constitute a priority at this juncture.
Several members also
referred to the work programme on food security for least developed countries
(LDCs) and net food-importing developing countries (NFIDCs) under the regular
Committee on Agriculture (CoA) as a possible source of inspiration for
developing a comprehensive package on food security for MC13.
The chair briefed the
meeting on the constructive engagement in the “quad-plus” negotiation meeting,
which restarted in April. This negotiation forum dedicated to cotton involves
the “Cotton-4” countries (Benin, Burkina Faso, Chad and Mali), Côte d'Ivoire
and several major cotton players, such as the United States, the European
Union, China, Brazil, India and Pakistan. Talks among members had focused on
how to make progress in reducing trade-distorting subsidies for cotton, he
said.
The WTO's agriculture
negotiations encompass various topics, including domestic support, market
access, export competition (covering export subsidies and measures seen as
comparable), export prohibitions and restrictions, cotton, public stockholding
for food security purposes, the special safeguard mechanism, and the
cross-cutting issue of transparency.
Next steps
The chair thanked members
for the highly engaging discussions and acknowledged that members are still at
the stage of testing ideas and consulting with one another. He noted that major
breakthroughs should not be expected yet and reiterated the importance of
pragmatism and compromise in bridging gaps.
The next committee meetings
are slated for 21-22 June and 17-18 July. The chair expressed the hope that the
July meeting would allow members to take stock of the brainstorming process and
obtain a clearer idea of the elements that could be incorporated into an
outcome on food and agriculture at MC13.
The chair also called on
members to contribute suggestions for upcoming thematic seminars on the
negotiating topics.