100 likes | 322 Vues
Multilateral Trade Negotiations: Update on The Doha Development Round. A European Perspective Dr Rolf Moehler. The Basic Approach of the EU to the Agricultural Negotiations. The EU is fully committed to the objective of establishing a fair and market-oriented trading system
E N D
Multilateral Trade Negotiations: Update on The Doha Development Round A European Perspective Dr Rolf Moehler
The Basic Approach of the EU to the Agricultural Negotiations • The EU is fully committed to the objective of establishing a fair and market-oriented trading system • The EU wants to preserve a competitive European agriculture that protects the environment and keeps rural areas viable • To this end the CAP has been reformed several times, last time in 2003 and 2004. This reform is the basis for the EU negotiating position. • The Doha Round is not only about agriculture but also about non-agricultural market access and services among other subjects
The EU Approach to Developing Countries • The EU pays particular attention to the needs of developing countries • It has a special responsibility to the Cotonou Convention countries • Least developed countries have free access to the EU market • Developing countries have more to export than agricultural products • South-South trade is important, too
Where are we in the Agricultural Negotiations? • The July Framework Agreement in 2004 has been a milestone in the negotiations • Recent negotiations have focused on the three pillars: market access, domestic support and export competition • Progress has been made but negotiations seem to have run aground on market access • Other problems remain e.g. cotton, erosion of preferences, geographical indications
EU on Market Access • Four bands with the thresholds: 0 – 30%, 30% - 60%, 60% – 90%, >90% • Reduction rates of 20%, 30%, 40% and 50% • Tariff cap of 100% • Sensitive products cover 8% of tariff lines; main candidates are beef, dairy, sugar • For developing countries higher thresholds, lower reduction rates and cap of 150%
EU on Market Access • The EU proposes a substantial reduction of tariff protection • The EU is less ambitious than the US and the G-20 as • EU agriculture has still major structural problems, enhanced by enlargement and • The EU is a net importer of agricultural products • Exports will decrease with elimination of export subsidies
EU on Domestic Support • On AMS reduction three bands • The EU accepts to be in the highest band with a reduction rate of 70% on an AMS of 73 billion Euro • Proportionally similar reduction rates for others e.g. 60% for the US and Japan • De minims support to be reduced by 65% • Further reduction of “blue box” beyond 5% value of production limit • Definition of “blue box” must not allow inclusion of US “countercyclical payments” without further discipline • Reduction of Overall Trade Distorting Support (OTDS) similar to AMS reduction • For developing countries much lesser reduction rates and de minimis of 10% • The “green box” is not up for re-negotiation
EU on Export Competition • Setting a date on the elimination of export subsidies is dependent on agreement to eliminate all other forms of export subsidisation by the same date • On export credits there is still no clarity on disciplines for export credits of 180 days or less • There may be less strict rules on emergency food aid but discretion of donors where low income countries are concerned is a non-starter. Programme aid should be banned. • The export monopoly of state trading companies in developed countries has to go.
What Else Needs to Be Done? • Besides the three pillars there are a few matters that should not be forgotten, e.g. • Cotton • Tariff erosion • Geographical indications • Geographical indications may not be so important economically but they are a political issue for the EU.
What Outlook for Hong Kong? • Agreement on export competition and domestic support should be possible • Setting a date on the phasing-out of export subsidies depends on tighter discipline for food aid and state trading enterprises • On domestic support the key issue is the definition of the new “blue box” • But on market access we are far apart and this may hamper progress in the other two pillars • Does Hong Kong come one year too early?