AS WTO MEMBERS GEAR UP FOR MEETING, LITTLE MOVEMENT SEEN ON KEY ISSUES
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18/07/2008
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Economic Times (New Delhi)
INDIA and several other developing countries with defensive interests in agriculture (G-33 group) have said that the revised text on agriculture modalities at the World Trade Organisation (WTO) does not meet their concerns on protection of food and livelihood security of poor farmers.
In an informal special session of the agriculture committee in Geneva on the eve of the mini-ministerial meeting of trade ministers from 30 countries beginning July 21, the G-33 said the number of farm products which the draft allowed to be exempt from tariff cuts (as part of the package on special products) was much lower than what it wanted. Special products are goods which could either be exempt from tariff cuts or be subjected to lessthan-formula cuts (cuts applicable on all agri products based on a formula agreed by members).
While the draft has said that up to 6% of tariff lines, and possibly none, could be exempt from tariff cuts, the G-33 wants at least 8% products to be outside the ambit of cuts, sources said. Moreover, the G-33 is also against the concept of an average cut in tariffs of special products, which would mean steeper cuts on some products if others are exempt any cuts.
On the special safeguard mechanism (SSM), which has been designed to allow developing countries to raise duties temporarily to deal with import surges or price slumps, the G-33 said the price and volume triggers to set off the SSM are inadequate. The G-33 said it is still too difficult to use because the restrictions on triggering the safeguard are too tight, the size of the permitted tariff increase is too small, and the option remains of preventing tariffs from rising above present (Uruguay Round or pre-Doha Round) bound ceilings.
According to sources, the committee of agriculture chairman Crawford Falconer said that further modifications to the latest agriculture draft text, in the form of corrections, are possible in the next few days but only if members make more progress in smallgroup consultations. He, however, ruled out a full revised text before the mini-ministerial.
The mini-ministerial, where trade ministers from 30 countries including the US, Brazil, India, China and the EU will participate, is aimed at arriving at a consensus on the modalities for liberalising trade in agriculture and industrial goods. Agreements in other areas under the single undertaking of the ongoing Doha round like services and rules is scheduled to be firmed up in the subsequent months.
NO CONSENSUS
G-33 said the number of goods to be exempt from tariff cuts was much lower
The group wants at least 8% products to be outside the ambit of tariff cuts
It is also against the concept of an average cut in tariffs of special products
Besides, it said the price and volume triggers to set off the SS