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Multilateral trade negotiations and Agricultural policies in the developed economies

Multilateral trade negotiations and Agricultural policies in the developed economies. SAT2005 : Ch1, Ch4, and the special issue Review paper : Negotiations' Position of the Main trading partners and their Rationale Commodity brief : Wheat Policy briefs : Decoupled payments

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Multilateral trade negotiations and Agricultural policies in the developed economies

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  1. Multilateral trade negotiations and Agricultural policies in the developed economies by: Mahmoud Babili

  2. SAT2005: Ch1, Ch4, and the special issue • Review paper: Negotiations' Position of the Main trading partners and their Rationale • Commodity brief: Wheat • Policy briefs: • Decoupled payments • The WTO negotiations: Will developing countries benefit from a new agreement? • Other tasks requested by the director • Establishing a website for the division by: Mahmoud Babili

  3. Negotiations' Position of the Main trading partners and their Rationale by: Mahmoud Babili

  4. The aim of the paper is to help public understanding about the agriculture negotiations • It is NOT an official record of the negotiations. • It explains: • agricultural issues raised before and in the current bilateral and multilateral negotiations; • developing countries’ requirements; • July Package, and the dispute settlement and the SPS measure; and • four multilateral study cases. by: Mahmoud Babili

  5. Who are main traders? • USA: the first exporter for agricultural commodities • EU: the largest trader & the first exporter globally • China: the biggest Asian market • India: themajor player in its region • Brazil: the leader of G22 by: Mahmoud Babili

  6. The WTO and Agriculture The three pillars • market access: tariff + quotas and non-tariff barriers • domestic support: amber box • export subsidies (competition):limit spending and quantities affected by export subsidies Agricultural disputes: The rules-based WTO dispute settlement system SPS measures: food safety, animal, and plant health regulations by: Mahmoud Babili

  7. Objectives of developing countries • diverse and complex • The main common goal is achieving agricultural development through agricultural trade • the Win-Win concept • agricultural subsidies in developed countries deter developing countries from maximizing their gains • food security by: Mahmoud Babili

  8. Current agricultural negotiations • The continuation of agricultural negotiations: • first phase began in early 2000, then the Doha declaration • Up to Cancun: Negotiators missed the 31 March 2003 deadline for producing numerical targets • Up to the July package: individual initiatives were crucial in this period by: Mahmoud Babili

  9. JulyPackage On 1 August 2004, the WTO’s 147 member governments approved a package of agreements that includes an outline (or “framework”) to be used to complete the “modalities” on agriculture. in 2005, more high-level General Council meetings are to be expected to evaluate what the objectives for the Hong Kong Ministerial might be. by: Mahmoud Babili

  10. Case Studies • representative of trade disputes • related to the main traders in the world • great importance from point view of trade, economic, environment, poverty reduction by: Mahmoud Babili

  11. GM food • Biotechnology can provide with essential food for countries that have food insufficiency • The United States is the world's biggest GMO producer • EU in 1998 has ensured virtually no GM crop varieties to be produced or sold in it • the U.S. initiated an action with the WTO challenging the EU’s moratorium by: Mahmoud Babili

  12. Chinese shrimps to USA • one of the largest anti-dumping cases in recent years • shrimp was dumped on the U.S. market • US Commerce Department proposed new tariffs on Chinese shrimp • China rejected dumping allegations • The parties vowed to dispute the tariffs in the WTO by: Mahmoud Babili

  13. Cotton dispute • Brazil brought a dispute on US subsidies on upland cotton • The WTO found that the U.S. violated the Peace Clause • countries in West Africa are the worst hit by current US cotton subsidies • the US is legally obliged to cease the subsidization in excess • However, The US is intending to appeal by: Mahmoud Babili

  14. Sugarexports • It is one of the most distorted commodities • The WTO panel, hearing Brazil's challenge against the EC's sugar export subsidies, issued its final report in favor of Brazil • poorer countries (ACP) warned that this threaten their preferential access into EU • The EC is reforming its sugar sector • Probably, similar cases could be brought by: Mahmoud Babili

  15. conclusion • agricultural trade reform is best pursued within the ongoing WTO negotiations, not through dispute settlement • Geneva framework is an important step, but there are some critical variables that should shape it • Developing countries need redressing the trade flows imbalances and treating them for the benefit of all • legal challenges, such as sugar and cotton cases, may provide additional impetus to spur negotiations by: Mahmoud Babili

  16. Thank you by: Mahmoud Babili

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