Posted on October, 3, 2023 at 01:57 am
At a meeting of the Committee on Agriculture on 27-28 September, WTO members reviewed each other's farm policies to ensure compliance with WTO disciplines. Food security was the main focus of discussions but members also addressed other topics, such as the interconnection between agri-food trade, technology transfer and protection of the environment. Participants exchanged views on ways to improve transparency on members’ agricultural measures and to enhance the overall functioning of the committee.
The committee continued to discuss how to implement the MC12 declaration on the response to the COVID-19 pandemic and the MC12 declaration on food security.
Members received updated analyses on food markets and global food security from the International Grains Council (IGC, G/AG/GEN/227) and the UN Food and Agriculture Organization (FAO, G/AG/GEN/228).
In its forecast for the production and potential market for grains, such as wheat, maize, soybean and rice, in 2023-24, the IGC highlighted the limited supply of wheat and the heightened prices for rice, drawing attention to recent trade-restrictive measures that may impact the market.
The FAO reported that according to the latest data 783 million people face hunger. The FAO rice price index increased by 9.8 per cent month-on-month in August, reaching a 15-year high, it said. Meanwhile, the global food import bill is projected to reach USD 1.98 trillion in 2023. The FAO highlighted key factors contributing to the food crisis, including geopolitical conflicts, the economic downturn, extreme climate events and growing inequality.
Members welcomed the analysis of the food market, suggesting ways to keep markets open, enhance transparency and provide emergency assistance. Some called for restraint on the use of export restrictions in times of crisis. Others pointed out the work undertaken by the working group on food security for least developed countries (LDCs) and net food-importing developing countries (NFIDCs), emphasizing the necessity for more collaboration with international organizations to address the issue of food insecurity.
Mr Tysdal, coordinator of the working group, provided an update on recent progress. Mindful of the deadline of end-November for issuing recommendations , one developing member suggested that the coordinator revise the latest report to take account of new submissions. Mr Tysdal said he intended to circulate an updated report in October.
India also briefed members on its trade-related measures taken during the COVID-19 pandemic to address food insecurity.
Members discussed 26 new issues concerning each other's farm policies, which encompassed market access, domestic support and export competition. These issues included farm support programmes by Australia, Brazil, Canada, the European Union, India, Mexico, New Zealand, Pakistan and the United Kingdom. Specific questions on import and export-limiting measures by Malaysia, the Philippines, Russia, Tanzania and the United Arab Emirates were also addressed. All the questions are compiled here.
Among the 23 issues raised in previous committee meetings, members continued seeking further information regarding the EU's deforestation regulation, Argentina's and India's export restrictions, Canada's dairy policies, China's policies on beef and grain, the Philippines tariff regime and Türkiye's import and export measures, among other topics.
Participants also seized the opportunity to seek more information on notifications submitted by members concerning tariff quota administration, special agricultural safeguards, domestic support and export subsidy notifications as well as notifications in the context of the NFIDC Decision.
All questions submitted for the meeting are available in G/AG/W/241. All questions and replies received are available in the WTO's Agriculture Information Management System (AG IMS).
The committee continued discussions on strategies to enhance transparency on members' agricultural trade measures, particularly by streamlining and simplifying the current export subsidy notification requirements. The chair proposed several elements for members to consider, aiming to build consensus for a streamlined export competition transparency package.
Members generally responded positively to the chair's proposal, highlighting specific elements they consider important. They especially emphasized the need to address duplication in the current transparency requirements in the wake of the new obligations arising from the 2015 Nairobi Decision on export competition without curtailing the existing level of transparency.
Members also welcomed Costa Rica's submission in G/AG/W/230, which contains specific suggestions for modifying the existing notification format to report tariff quota administration practices.
The discussion continued on how to improve the “Functioning of the Committee on Agriculture” based on document RD/AG/111, which compiles members' suggestions. Members appreciated the recent progress made by the Secretariat in enhancing the meeting organization mechanisms and improving the reporting and analytical functions of the Agriculture Information Management System (AGIMS).
Noting the efforts made by a few members to submit overdue notifications, the chair highlighted the significant backlog of notifications and unanswered questions, as outlined respectively in G/AG/GEN/86/Rev.50 and G/AG/W/204/Rev.10. The chair called on members to redouble their efforts and enhance the efficiency and effectiveness of the review process by promptly addressing each other's inquiries.
The chair also encouraged members to make full use of the newly established oral announcement mechanism to declare their non-recourse to agricultural export subsidies, which are counted as “nil” notifications. This mechanism aims to assist members with capacity constraints and provides an additional avenue for addressing outstanding export subsidy notifications.
The African Group introduced its new submission on the “Role of Transfer of Technology in Resilience Building: Agriculture” in G/AG/W/238. It underscored the essential role of technology transfer in increasing agricultural productivity, promoting sustainable farming and boosting digital trade in Africa. The group called for enhanced international cooperation among different stakeholders to scale up research and development, capacity building and information sharing.
Members expressed strong support for the African Group's initiative, with some sharing their ongoing projects in this area and expressing a willingness to engage in further discussions. Some members suggested conducting a thematic session to foster discussions and improve understanding of the scope of this complex issue. The chair proposed that this item be included on the agenda for the next informal meeting to further members' engagement on this topic.
Regarding the topic of agriculture and the environment, members heard presentations on two submissions from the African Group (G/AG/W/239) and the Cairns Group of agri-food exporting countries (G/AG/GEN/222/Rev.1). These members expressed concerns about the growing trend of unilateral trade-restrictive measures invoked on the ground of environmental protection and battling climate change.
The African Group highlighted the key principles guiding the development and implementation of trade-related environmental measures, emphasizing the importance of providing flexibilities for developing members and least developed countries.
The Cairns Group's statement focused on the contribution of the multilateral trading system to sustainable and resilient agriculture and food systems. It stressed the crucial role of a resilient agriculture sector in feeding the growing population and called for a science-based and inclusive approach to collectively address environmental challenges.
Many members acknowledged the importance of the issue. Some members argued against one-size-fits-all solutions, emphasizing the need for tailored approaches in leveraging trade policies to address environmental concerns. Others pointed out the necessity of assisting developing countries in building capacity and improving access to funding and technology. Some suggested more substantive discussions on the topic at the Committee on Trade and Environment.
Brazil, on behalf of 17 developing members from Asia, Latin America and the Caribbean region expressed deep concerns over the EU's deforestation regulation adopted on 29 June 2023. Their joint letter, circulated on 7 September, conveyed the group's belief that the new law is punitive and discriminatory, imposing excessive burdens on producers of agriculture goods in developing countries, especially small producers with limited means to fulfil stringent regulations. They urged the EU to engage in open and collective dialogue and consider providing flexibilities to developing countries in its implementation guidelines.
Several members raised concerns about the potential trade barriers and implementational challenges resulting from the EU's deforestation regulation. Many called for a collaborative approach in addressing environmental issues and ensuring trade measures align with WTO rules.
The EU referred to the severe environmental challenges currently faced globally, which are necessitating both international and national efforts to cope with them. The EU acknowledged the concerns expressed by members and emphasized its commitment to transparency and dialogue in the implementation of trade-related environmental measures, which the EU stated it had consistently practised regarding its Green Deal measures, including on the deforestation regulation. Inviting all members to work constructively to address challenges, the EU assured involvement of third-country stakeholders in developing the implementation guidelines for the new environmental regulations. Stressing the WTO's role in addressing climate change and environmental issues, the EU noted that the Committee on Environment is the key forum for discussing the trade and environment nexus.
The chair announced the circulation of a factual report on the “Functioning of the Committee on Agriculture” in October, and he called for members to submit their inputs in writing. The finalized report is set to be submitted to the Council on Trade in Goods in November.
The next meeting of the Committee on Agriculture is slated for 27-29 November 2023.
More information on the work of the committee is available here.
Source: WTO