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Agreement on Agriculture

in
World Trade Organization

Arun G C
Agriculture Extension Officer
International Trade Promotion Section
Agribusiness Promotion and Statistics Division
Ministry of Agricultural Development

Arun G 8 June 2014


C, International Trade
Promotion Section, Ministry of
Agricultural Development
Organizational Chart of WTO

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Agreements on WTO
The basic structure of the WTO agreements: how the six main areas fit
together the umbrella WTO Agreement, goods, services, intellectual
property, disputes and trade policy reviews.
Umbrella AGREEMENT ESTABLISHING WTO
Goods Services Intellectual prope
rty
Basic principles GATT GATS TRIPS

Additional details Other goods Services annexes


agreements and
annexes
Market access Countries Countries
commitments schedules of schedules of
commitments commitments(and
MFN exemptions)
Dispute settlemen DISPUTE SETTLEMENT
t
Transparency TRADE
Arun G C, POLICY
International Trade REVIEWS
Promotion Section, Ministry of
Agricultural Development
Why Agriculture in WTO
Agricultural trade is important part of overall
economic activity and plays a major role in domestic
agricultural production and employment

History of distortion in agriculture sector

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Agriculture Negotiations Timeline

2000 Agriculture talks starts


2001 Doha Negotiation lunched
2003 March- Modalities deadline missed
2003 Cancun Ministerial conference- failure to conclude
modalities
2004 July Framework
2005 Hongkong ministerial conference
2006 July draft modalities negotiation suspended
Late 2006- Quiet deplomacy
2007 Resumption of negotiation, revised modalities, intensive
negotiation
2008 failure to conclude modalities;
2010- Data templates and clarificaiton
2013 Bali Ministerial conference- hope for DDA conclusion

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Structure of AoA
Part I
Article 1: Definition of Terms
Article 2: Product Coverage

Part II
Article 3: Incorporation of Concessions and
Commitments

Part III
Article 4: Market Access
Article 5: Special Safeguard Provisions

Part IV
Article 6: Domestic Support Commitments
Article 7: General Disciplines on Trade
Arun G C, International Domestic Support
Promotion Section, Ministry of
Agricultural Development
Structure of AoA.
Part V
Article 8: Export Competition Commitments
Article 9: Export Subsidy Commitments
Article 10: Prevention of Circumvention of Export Subsidy
Commitments
Article 11: Incorporated Products

Part VI
Article 12: Disciplines on Export Prohibitions and
Restrictions

Part VII
Article 13: Due Restraint

Part VIII
Arun G C, International Trade
Article 14: Sanitary Promotion
and Phytosanitary
Section, Ministry of Measures
Agricultural Development
Structure of AoA.
Part IX
Article 15: Special and Differential Treatment

Part X
Article 16: Least-Developed and Net Food-Importing
Developing Countries

Part XI
Article 17: Committee on Agriculture
Article 18: Review of the Implementation of Commitments
Article 19: Consultation and Dispute Settlement

Part XII
Article 20: Continuation of the Reform Process

Part XIII Arun G C, International Trade


Article 21: Final Provisions
Promotion Section, Ministry of
Agricultural Development
Structure of AoA.
ANNEX 1: PRODUCT COVERAGE

ANNEX 2: DOMESTIC SUPPORT: THE BASIS FOR EXEMPTION


FROM THE REDUCTION COMMITMENTS

ANNEX 3: DOMESTIC SUPPORT: CALCULATION OF AGGREGATE


MEASUREMENT OF SUPPORT

ANNEX 4: DOMESTIC SUPPORT: CALCULATION OF EQUIVALENT


MEASUREMENT OF SUPPORT

ANNEX 5: SPECIAL TREATMENT WITH RESPECT TO PARAGRAPH 2


Arun G C, International Trade
OF ARTICLE 4 Promotion Section, Ministry of
Agricultural Development
PRODUCT COVERAGE
(ANNEX 1)
This Agreement shall cover the following products:
(i) HS Chapters 1 to 24 less fish and fish products, plus*
(ii) HS Code 2905.43 (mannitol)
HS Code 2905.44 (sorbitol)
HS Heading 33.01 (essential oils)
HS Headings 35.01 to 35.05 (albuminoidal substances,
modified starches, glues)
HS Code 3809.10 (finishing agents)
HS Code 3823.60 (sorbitol n.e.p.)
HS Headings 41.01 to 41.03 (hides and skins)
HS Heading 43.01 (raw furskins)
HS Headings 50.01 to 50.03 (raw silk and silk waste)
HS Headings 51.01 to 51.03 (wool and animal hair)
HS Headings 52.01 to 52.03 (raw cotton, waste and cotton
carded or combed)
HS Heading 53.01 (raw flax)
HS Heading 53.02 (raw hemp)

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Structure of AoA

Market Domestic Export


Access Supports Competition
Tariff Green Box Export
Tariff Quotas Blue Box subsidies
Special Article 6.2 Anti-
safeguard Development circumvention
program Export
Amber box prohibitions
and restrictions

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
The Three Pillars

Market
Access
Domestic
Supports

Export
competition

Agreement on Agriculture
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Market Access
Part III: Article 4
Before Uruguay Round- many NTBs making MA unpredictable, non-
transparent and in many case prohibited.
NTBs are
Quantitative Restriction
Variable Import Levies- above domestic price
Minimum Import price
Discretionary Import Licensing
Voluntary Import Restraints

Post- Uruguay Round Tariffication


Bound tariff and applied tariff
Arun G C, International Trade
Exception- Annex 5, Special treatment
Promotion Section, Ministry of
Agricultural Development
Market Access.
Special Safeguard- Article-5

Additional temporary import duty on over-quota imports, if:


Product was tariffied
SSG is listed in Schedule against product
Import volume above trigger or import price below trigger
35 member have the right to use SSG

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Domestic Supports

All domestic
This is the amber box It is defined in Annex 2.
support measures
with conditions In order to qualify, green
considered to
conditions designed to box subsidies must not
distort production
reduce distortion. distort trade, or at most
and trade (with
cause minimal distortion.
some exceptions)
Paragraph 5 of They have to be
fall into the amber
Article 6 government-funded (not
box, which is
by charging consumers
defined in Article 6
higher prices) and must
not involve price
support.
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Domestic Support
Exempt from Subjected to
Reduction Reduction

Green Box
De minimis
(Art. 6.4)
Amber Box
Development
programs

Blue Box

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Domestic Support..

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Who have Tariff Rate Quota
EU (87) Norway (232)
Australia (2)
Guatemala (22) Panama (19)
Barbados (36)
Hungary (70) Philippines (14)
Brazil (2)
Bulgaria (73) Iceland (90)
Indonesia (2) Poland (109)
Canada (21)
Israel (12) Romania (12)
Chile (1)
Japan (20) Slovak Rep (24)
China (10)
Slovenia (20)
Chinese Taipei (22) Korea (67)
South Africa (53)
Colombia (67)
Latvia (4) Switzerland (28)
Costa Rica (27)
Lithuania (4) Thailand (23)
Croatia (9)
Malaysia (19) Tunisia (13)
Czech Rep (24)
United States (54)
Dominican Rep (8) Mexico (11)
Morocco (16) Venezuela (61)
Ecuador (14)
El Salvador (11) New Zealand (3)
Nicaragua (9)
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Export Competition

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Export Competition
Article 8 of the agreement reads Each Member undertakes not
to provide export subsidies otherwise than in conformity with
this Agreement and with the commitments as specified in that
Member's Schedule.

The AoA provides that the level of export subsidies cannot be


increased and that the existing level of subsidies could continue
subject to conditions and the commitments to reduce (1)
subsidized export quantities, and (2) the amount of money
spent subsidizing exports.

The SCM Agreement is also applicable to agricultural products.


However, Members also agreed that the provisions of the SCM
Agreement on export subsidies would apply "except as provided
in the Agreement on Agriculture"
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Export Competition.
At the 6th Ministerial Conference held in Hong Kong in 2005, WTO
Members agreed to eliminate agricultural export subsidies by
2013, as part of the single undertaking and subject to the parallel
elimination of all forms of such subsidies. This date was to be confirmed
only upon completion of modalities.

The SCM Agreement added precision to the rules, for example, it


defined subsidies for the first time and further elaborated on subsidy
disciplines, classifying subsidies into three categories (prohibited,
actionable and non-actionable)

The Agriculture Agreement does not contain any definition of the term
"subsidy". Under the SCM Agreement, a subsidy exists if:
there is a financial contribution by a government or any public
body within the territory of a Member;
there is any form of income or price support in the sense of
Article XVI of the GATT 1994;
a benefit is thereby conferred.
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Export Competition..
The right to use export subsidies is now limited to two situations:
(i) export subsidies subject to product-specific reduction commitments
within the limits specified in the Schedule of the WTO Member concerned;
and
(ii) export subsidies consistent with the special and differential treatment
provision for developing country Members (Article 9.4 of the Agreement
on Agriculture).

25 WTO Members (counting the EU as one) can subsidize exports, but


only for products on which they have commitments to reduce these
subsidies. These Members cannot:
(1) introduce new subsidies for products not listed in their Schedules;
(2) exceed the limits in their schedules; or
(3) transfer existing commitments to other agricultural products.
These 25 Members have a total of 428 individual reduction commitments.
Some among them have decided to greatly reduce their subsidies or drop
them completely.
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Doha Development Agenda (DDA)
November 2001- Forth Ministerial Conference in Doha
14 November MC declared new round of negotiation with
development issues in focus-DDA
Agriculture became part of the single undertaking in which virtually
all the linked negotiations were scheduled to end by 1 January 2005.

Deadlines for the negotiations:


31 March 2003: formulas and other "modalities";
5th Ministerial Conference, 2003 (in Mexico): countries'
comprehensive draft commitments; stock taking; and
1 January 2005: completion of the negotiations.

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Notification Requirement
Article 18 of the Agreement on Agriculture
All notifications are submitted to Central Registry of Notification
(CRN)
Can be submitted on paper, by fax or electronically

Member

Central Registry of
Notifications : CRN@wto.org;
+41 (0) 22 739 56 38

Operational WTO
Division

Dissemination
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Scope of Notifications

Market Domestic Export


Access Support Subsidies

Export Follow-up to
Prohibition the NFIDC
and Decision
Restrictions
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Scope of Notifications.

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Scope of Notifications.

DS:1 Current Total AMS

New/modified

DS:2
exempt
measure

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Scope of Notifications.

ES:1
ST/ES:1
Vol &
outlay ST/ES:2

ES:2
Total
export

ES:3
Food
Aid
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Scope of Notifications.

Table ER:1 Export Restrictions: (name of Member)


Notification under Article 12 of the Agreement: Export prohibition
and Restriction

(1)Description of product:

(2) Tariff item number(s):

(3) Nature of, and justification for, measure to be introduced:

(4) Duration of application of measure:

Arun G C, International Trade


Promotion Section, Ministry of
Agricultural Development
Scope of Notifications.

Table NF: 1 Notification under article 16:2 of the agreement: monitoring of


the follow-up to the decision on measures concerning the possible negative
effects of the reform program on least-developed and net food-importing
developing countries: (name of Member)

Reporting period: (calendar year, marketing year, etc)

(1)Quantity of food aid provided to least-developed and net food-importing


developing countries:
(2) Indication of the proportion in fully grant form or appropriate
concessional terms:
(3) Technical and financial assistance under paragraph 3(iii) of the
Decision:
(4) Other relevant information with
Arun G respectTrade
C, International to actions taken within the
Promotion Section, Ministry of
framework of the Decision: Agricultural Development
News from WTO
Azevdo discusses trade issues affecting poorest countries in visit to
Nepal
Director-General Roberto Azevdo, on 4-5 June 2014 during the first
visit of the head of the WTO to Nepal since the countrys accession to
the organization ten years ago, discussed with authorities and
businesspeople trade issues affecting least-developed countries
(LDCs). In his meeting with Prime Minister Sushil Koirala, the
Director-General thanked Nepal for its key role in the success of the
Bali Package as coordinator of the LDC Group within the WTO.

DG Azevdo sought Nepals support in efforts to implement the Bali


Package, including the Trade Facilitation Agreement, as well as in
preparing a work programme to conclude the Doha Development
Agenda. During his visit, he also met with the Minister for Commerce
and Supplies, Sunil Bahadur Thapa.
As the visit was coming to a close, DG Azevdo tweeted that he had
had an excellent conversation with the Prime Minister, and
reiterated that the multilateral trading system
Arun G C, International Trade must work for LDCs
Promotion Section, Ministry of
like Nepal Agricultural Development
arun.gc@moadwto.gov.np
gcarun88@gmail.com

http://agri-nepal.blogspot.com/2013/02/wto-and-nepalese-agricutlure.html
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development
Arun G C, International Trade
Promotion Section, Ministry of
Agricultural Development