WTO Members Discuss Farm
Policies, Address Food Security, Technology Transfer, Transparency
At the 25-26 September
meeting of the Committee on Agriculture, WTO members assessed progress on issues
ranging from food security and technology transfer to improving transparency. Members
also participated in the regular review of each other's agricultural policies to
ensure compliance with WTO commitments. Additionally, a group of members requested
a discussion on the European Union's Deforestation Regulation.
The Chair of the
Committee, Ms. Anna Leung of Hong Kong, China, facilitated the discussions.
Updates on agriculture
market developments, food security
Members heard updates
from the UN Food and Agriculture Organization (FAO), UN Trade and Development (UNCTAD),
the World Bank, the World Food Programme(WFP), and the
International Grains Council (IGC) regarding recent market developments and food
insecurity. The international organizations were invited to the Committee to share
experiences in a follow-up to the MC12 declaration on the response to the COVID-19
pandemic and the MC12 declaration on food insecurity.
The FAO presented
the latest findings from the July release of the State of Food Security and Nutrition
in the World (SOFI) report, revealing that global chronic hunger remains significantly
above pre-pandemic levels, affecting 733 million people (9.1% of the global population)
in 2023, compared to 581 million people (7.5%) in 2019. Conflicts, climate variability,
and economic shocks continue to drive recurrent food insecurity, it said. The FAO
also stressed its ongoing efforts to address the situation.
The WFP warned of
alarmingly high global hunger levels, noting that acute food insecurity is projected
to worsen in 18 hunger hotspots between June and October 2024. The WFP reported
an increase in local and regional procurement as a strategy to support and stabilize
food systems, with 57% of its food being sourced locally and regionally by September
2024. Of these purchases, over 49% in value and 43% in volume came from least developed
countries and net food-importing developing countries. The WFP called on partners
to boost investments in preparedness and information systems while committing to
long-term, multi-year solutions that tackle the root causes of food insecurity.
The World Bank highlighted
that African countries are facing escalating agricultural import bills, expected
to rise from US$ 40 billion to US$ 90 billion by 2030. Additionally, over 90% of
smallholders in Africa still lack access to finance, and only 1% of climate finance
is reaching the continent. The World Bank outlined its ongoing efforts to channel
more financial resources into Africa’s food system across the entire value chain
and to incentivize private capital investment.
UNCTAD underscored
the detrimental effects of export restrictions on food security and the importance
of maintaining transparency to ensure stable food prices and resilient supply chains.
It commended the Agriculture Market Information System (AMIS) for providing timely
and useful market insights. It also advocated for smoother international trade,
along with increased investments in developing economies and least developed countries
to strengthen productive capacity along the agricultural value chain.
The IGC reported
stable demand and supply for most agricultural commodities, including wheat, maize,
and soybeans, but emphasized the persistently elevated price levels for rice. The
IGC drew attention to the complexity and lack of transparency in the rice market
and called for measures to address these issues. It also provided an update on the
status of various shipping routes used for grain transportation.
The Chair reported
on the Committee's follow-up work to the Work Programme on Food Security for Least
Developed Countries (LDCs) and Net Food-Importing Developing Countries (NFIDCs)
during an informal session on 24 September (G/AG/38). She noted that the FAO had
presented the work of AMIS, responding to calls to strengthen links with regional
economic cooperation institutions for the collection and dissemination of timely
and reliable food market data. The FAO expressed openness to enhancing regional
collaboration through AMIS but emphasized the need for further reflection on the
feasible next steps. The Chair urged members to continue deliberating on advancing
this discussion, considering the FAO’s input.
The Chair provided
an update on the ongoing discussions regarding the regular review of the NFIDC list,
part of the follow-up to the NFIDC Decision. She noted that members remain divided
on the scope of the Committee's review of the NFIDCs list, signalling the need for
further discussions.
Review of agricultural policies
A total of 215 questions
were raised concerning individual notifications and specific implementation matters
during the Committee meeting. This peer review process allows members to address
issues related to the implementation of commitments outlined in the Agreement on
Agriculture. Of these, 24 issues were raised for the first time, while 29 were recurring
matters from previous Committee meetings.
The 24 new items
addressed the following topics: Argentina's support for beef producers, various
farm support policies in Australia, Brazil's new tax measures and harvest plan,
Egypt's certification requirements, Indonesia's agricultural support programmes,
Kazakhstan's import restrictions on apples, Mozambique's import quotas, New Zealand's
support for the milk industry and other sectors, Pakistan's trade restrictions on
wheat and flour, Paraguay's support for potato and onion producers, the Philippines'
minimum access volume, Togo's import restrictions on frozen poultry, the United
Kingdom's sustainable farming incentives, and the United States' various agricultural
investments and food programmes.
As many as 80 individual
notifications have been submitted to the Committee since the previous meeting in
May 2024 relating to market access, domestic support, export competition as well
as notifications in the context of the NFIDC Decision.
All questions submitted
for the meeting are available in G/AG/W/249. All questions and replies received
are available in the WTO's Agriculture Information Management System (AG IMS).
European Union's
Deforestation Regulation
The EU Deforestation
Regulation (EUDR) was added to the agenda at the request of Argentina, Brazil, Colombia,
Ecuador, Honduras, Indonesia, Nigeria, Paraguay and Peru. The EUDR is set to take
effect on 30 December 2024.
These countries,
joined by several others, expressed concerns about the trade impact of the new regulation.
While they acknowledged the policy's objective, they criticized the EUDR as a unilateral
measure with a punitive nature. They also noted the lack of clear guidance on enforcement
regulations, with only three months remaining before implementation.
Several members
highlighted the risk of significant trade disruptions, particularly for small farmers
in developing economies who may struggle to comply and face exclusion from the European
market due to capacity constraints. Others argued that the regulation was unnecessary
and created excessive burdens for producers in economies with low deforestation
risk.
Some members called
for further consultations with the EU on the matter. The group strongly urged the
EU to delay the implementation of the regulation and the enforcement of penalties
until these substantial challenges are addressed. Brazil said that it submitted
a letter to the EU on 11 September, requesting a suspension.
In response, the
EU noted the members' concerns regarding the EUDR's implementation and stated that
some questions had been addressed in the meeting on 25 September. It also confirmed
the receipt of Brazil's letter and stated that a reply was being prepared.
Transparency
regarding Nairobi and Bali decisions
Regarding the third
triennial review of the Nairobi Decision on Export Competition in 2024, the Chair noted
that recent discussions focused on modifying export subsidy notifications and enhancing
transparency around international food aid, as outlined in the latest draft (RD/AG/118/Rev.3).
Given the remaining
divergences on certain elements, the Chair indicated that further consultations
would be organized to continue the discussions, with the aim of concluding the review
at the November meeting. At this meeting, the committee also undertook the 2024
annual dedicated discussion on export competition supported by a detailed updated
background document by the Secretariat in the G/AG/W/125/ series.
The Chair also reported
on the ongoing discussions regarding the review of market access notification formats,
particularly the inclusion of information on the operation of the Bali Decision
on Tariff Rate Quota (TRQ) administration. Members expressed differing views on
whether to adopt the proposed amendments in G/AG/W/230, aimed at improving the monitoring
of the Bali TRQ Decision. The Chair said she planned to present a draft text for
consideration after the September meeting, taking into account the diverse positions
of members.
Additionally, the
WTO Secretariat introduced an updated background paper (G/AG/W/183/Rev.3) that compiles
information on members' TRQ administration and fill rates, highlighting those TRQs
with a fill rate below 65%. Members welcomed the paper as a valuable resource and
emphasized the need for greater transparency in this area.
Technology transfer,
other matters
Members
praised the productive discussions during the second thematic session on technology
transfer held on 24 September. At the meeting, experts from international organizations,
farm organizations and member governments shared their experiences in promoting
new technologies, enhancing productivity, and improving supply chain efficiency
across various countries. Some experts also explained how they assisted farmers
in adopting these technologies and aligning their practices with climate goals.
The
Secretariat encouraged members to provide suggestions for the next session, scheduled
for 25 November in conjunction with the upcoming Committee meeting.
Additionally,
the Secretariat announced the upcoming phase II of the advanced agriculture notification
workshop, which will take place from 15 to 17 October. This session will bring together
25 government officials from developing economies and least developed countries
to complete their training in notification skills. The first phase of the workshop
was conducted virtually in May.