As the 147 states in the World Trade Organization edge towards an end of July deadline for the broad outline of a deal on liberalizing agricultural trade, even wealthy countries seem to believe that the end of export subsidies is near, the World Bank reports in its press review Tuesday.
– The good news is that we all agree that export subsidies should be eliminated, US farm trade negotiator Allen Johnson said during yet another negotiating session. – We all agree that this historic step has to be taken, he said as the session drew to an end at WTO headquarters in Geneva on Friday, although he admitted the negotiators were still trying to figure out how.
Johnson said the member states had reached “a consensus” on the need to bring “disciplines” to all forms of export subsidies. – Exactly how we do it is what we are talking about, he added. The US negotiator also said there was “growing consensus” on the need to reduce other forms of agricultural subsidies paid to farmers, starting with the highest ones.
As for levering open markets to imports – another key poor country demand – Johnson also detected “convergence” among member states on the need to reduce the highest tariffs more, while allowing countries to protect some “sensitive” produce. But time is running short. The 147 negotiators have another four weeks to relaunch the whole Doha round of trade talks, with only three more days devoted to agriculture on July 14 to 16.
A proposal by developing countries to introduce a proportional tariff cut system for farm products gained broader support in the latest sessions of WTO talks, trade sources said Friday. The proposal by the so-called Group of 20 developing countries such as India and Brazil calls for implementing greater cuts on agricultural products carrying higher tariffs.
It may become a basis for a framework agreement on farm trade liberalization ahead of the end of July deadline, the sources said. The sources said Japan and the European Union have suggested excluding certain politically sensitive products with high tariffs, such as rice for Japan, from the proposed tariff cut system. But the United States seeks greater tariff reductions.
The Financial Express of India meanwhile notes that WTO director general Supachai Panitchpakdi said after his meeting with commerce minister Kamal Nath on Friday that developed country members have to recognize the sensitivities of developing countries such as India in agriculture if the on-going WTO negotiations are to move forward.
Nath emphasized that his government would not budge from its position to protect the livelihood concerns of its farmers. – Agriculture is not a trade issue and cannot be treated like one by the WTO, he added.
