2 Background and need for a specific Agriculture agreement outside the GATT, 1947. Agricultural trade important for many countries. The prevalence of distortions. MEPs are not prepared to fully integrate agricultural trade with other goods. Tropical Products – Preference Erosion – Significant progress in July 08 mini-ministers – Much depends on the outcome of the banana agreement – The President wanted to make progress on the latest draft text modalities, but due to „some substantial changes“ that took place after July, the Chair was unable to amend the text of the draft text – Existing text: – Tropical products – primarily with the aim of reducing tariffs that are greater than the formula adopted – More implementation period Article 6.2 Investment aid generally available for agriculture – Subsidies to inputs generally available to low- and low-resource producers – Support for the promotion of diversification through cultivation of illegal dizziness plants Development programs excluded from reduction Examples of Article 6.2 programmes notified: Bangladesh – 2% interest rate reduction for repayment of loans on time – Thailand – Agricultural Aid Support Programme – Brazil – Production Credit; Investment credits Rescheduling of subsidies – Article 10 – Other forms of export subsidies – Export credits, insurance and guarantees – Development of internationally accepted disciplines – but … Unsuccessful negotiations – OECD Agreement on officially supported export credits does not apply to agriculture – food aid – specific criteria, food aid agreement, FAO – but … Is it still real help or dumping? Cotton – Support Reduction – AMS Support for Cotton Reduced under the following formula: Rc – Rg – (100 – Rg) – 100 3 – Rg Rc – specific reduction for cotton in percentage – general reduction in AMS in percentage – Average cotton support base value over 1995 to 2000 – Blue Box cap for cotton – 1/3 of the specific ceiling product, The reduction of OTDS implemented over a three-year period – Developing countries with AMS and blue-box commitments for cotton reduce the reduction for SDCs by two triples and implement it over a long period of 14 Peace Clause Green Box – No CVD action, no nullity and harm. Amber and Blue Box – There are no significant measures possible, no nullity and impairment, finding of prejudice for CVD. Export subsidies – No possible serious bias measures, determination of the harm necessary for CVD. General safeguards, BoP provisions, possible anti-dumping in some cases.
5 Tariff Contingent (TRQ) Applied from 43 members to 1425 products. Quota allocation methods: First-come, first serve. Licenses on demand. Auction. Historical importers. Import by STEs. Imports by group/group of producers. Rate applied.
Agricultural Government Commercial Enterprises (SETs) – Provisions applicable to all exporting SSTs that meet the definition of the Article XVII Interpretation Agreement – Removal of: – export subsidies – public financing of STEs – Assumption of losses by the State – monopoly powers, with the exception of a small share of trade, „de minimis“ – S-D – Provisions for countries of clearing, including AES and LDCs, for the maintenance or use of monopoly powers Other cotton issues – Prohibition of export subsidies for cotton in industrialized countries – Developing countries to comply with the ban by the end of the first year of the implementation period – New or additional commitments arising from credit Exports, Food Aid and Food Aid – the first day of implementation for developed countries – until the end of the first year for developing countries Export bans and restrictions – Disciplines strengthened Green Box Basic criteria Measures freely used as long as they meet the schedule 2 criteria, and amend the old programs – ongoing commitment to ensure that all programs are and remain