WTO disciplines on Domestic support. Belgorod, Russian Federation 20 November 2013

Similar documents
WTO Agreement on Agriculture. Bishkek, 26 May 2015

Course on WTO Law and Jurisprudence Part I: Basic WTO Legal Principles

Notifications on WTO domestic support in agriculture: how to review?

Agreement on Agriculture: Three pillars

( ) Page: 1/5 TRENDS IN DOMESTIC SUPPORT COMMUNICATION FROM THE CAIRNS GROUP 1

Border Protection under Pressure - WTO Grensevern under press II - WTO

Detailed Presentation of Domestic Support

Accession to the WTO. Eurasian Economic Union members

Aligning U.S. Farm Policy With World Trade Commitments Farm income support and trade programs

AGREEMENT ON AGRICULTURE

Classifying, Measuring and Analyzing WTO Domestic Support in Agriculture: Some Conceptual Distinctions

Ulla KASK Agriculture and Commodities Division WTO

Agricultural policy and trade in Central Asia and the South Caucasus in the context of WTO rules

WORLD TRADE ORGANIZATION

WTO Commitments and Support to Agriculture: Experience from Canada

Agricultural Policy and Trade in Central Asia and the South Caucasus in the Context of WTO Rules. Lars Brink

Anti-dumping and Subsidy Issues in Agricultural Trade. Presentation by G. Tereposky Thomas & Partners CATPRN Workshop 6 March 2005

( ) Page: 1/28 ACCESSION OF KAZAKHSTAN DOMESTIC SUPPORT AND EXPORT SUBSIDIES IN THE AGRICULTURAL SECTOR. Revision

5. Stabilization Policies and the WTO

Agriculture Subsidies and Trade. US$ Billion

Perspectives on U.S. Agricultural Trade Policy

Event 1. Module 3. Key Elements of IIAs and their impact on domestic reform Session Two: The rules of the game on investment incentives

The current basis for multilateral negotiations of global agricultural trade is

Market Price Support in Large Developing Countries

MULTILATERAL TRADE NEGOTIATIONS THE URUGUAY ROUND

Workshop on Agriculture Notifications Geneva, September 2009 Domestic support

Introduction to the Agreement on Agriculture and to the Negotiating Process

SAFEGUARD MEASURES. By R. K. GUPTA Former Chairman, Settlement Commission; Director General (Safeguards); and Director, Ministry of Commerce

Introduction to the Agreement on Agriculture and to the Negotiating Process

THE WTO AGREEMENTS AGRICULTURE

Agricultural Policies and Risk Management

( ) Page: 1/9 SUBMISSION OF BANGLADESH ON BEHALF OF THE LDC GROUP

( ) Page: 1/12 WTO NEGOTIATIONS ON AGRICULTURE COMMUNICATION FROM THE CO-SPONSORS OF THE SECTORAL INITIATIVE IN FAVOUR OF COTTON 1

Agriculture Export competition 9 November 2018

Adding value to applied policy models: The case of the WTO and OECD support classification systems

CHAPTER [X] INVESTMENT SECTION X SCOPE

LDC Positions in the World Trade Organisation-AoA

U.S. Farm Policy and the World Trade Organization: How Do They Match Up?

Current Trade Issues for Canadian Agriculture

CHAPTER 2 NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS ARTICLE 2.1. Objective

EU-Mexico Free Trade Agreement EU TEXTUAL PROPOSAL. Chapter on Trade in Goods. Article X.1. Scope. Article X.2

INFORMATION NOTE, MAY

Ratnakar Adhikari. Presented at Training on International Trading System 7-9 February 2012, Lalitpur

SECTION B INVESTMENT LIBERALIZATION

Draft Cancun Ministerial Text

Pakistan s position on July Framework Issues: 1.1 Agriculture

WTO s MC10: Agriculture Negotiations Public Stockholding

RE: WTO Agriculture: Revised Blueprint of Final Deal

Overview of WTO Rules: Subsidies and Trade Remedies. Prof. Mukesh Bhatnagar Centre for WTO Studies IIFT, New Delhi

The 2014 U.S. Farm Bill: DDA Implications of Increased Countercyclical Support and Reliance on Insurance

COMMENT ON THE EC-US JOINT PAPER ON AGRICULTURE IN WTO. By Martin Khor, Third World Network 14 August 2003

Prospects for Canadian Agriculture in the WTO Doha Round A Message to the Canadian Delegation A SPECIAL REPORT. Larry Martin and David Coney

A NEW STRATEGIC COURSE FOR THE CAP

US WTO Agricultural Subsidy Notification

Trade Protectionism vs Trade Liberalization in

THE EC 'S PROPOSAL FOR MODALITIES IN THE WTO AGRICULTURE NEGOTIATIONS. Introduction

Public Stockholding for Food Security Purposes

Classifying Barriers to Trade. Abhijit Das Professor and Head Centre for WTO Studies

GATT Obligations: -Shailja Singh Assistant Professor Centre for WTO Studies, New Delhi

GATT Obligations: Article I (MFN), II (Bound Rates), III (National Treatment), XI (QRs), XX (Exceptions) and XXIV (FTAs) -Shailja Singh

PROTOCOL ON THE ACCESSION OF THE PEOPLE'S REPUBLIC OF ClDNA. Preamble

( ) Page: 1/10 TARIFF IMPLEMENTATION ISSUES COMMUNICATION FROM THE UNITED STATES OF AMERICA

WORLD TRADE ORGANIZATION

Elements of a Trade and Climate Code

( ) Page: 1/7 REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES 1

TRADE POLICY AND SUSTAINABLE DEVELOPMENT MEETING

AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES: NEED FOR CLARIFICATION AND IMPROVEMENT

WTO Appellate Body rules against USA in the Cotton Dispute Case. Parthapratim Pal

Public Stockholding for Food Security Options for Small Developing Countries and LDCs Towards a Permanent Solution at MC11

WORLD TRADE ORGANIZATION

Dumping: the Beginning of the End?

The Doha Development Agenda Round.

The WTO Dispute on China s Agricultural Supports

Official Journal of the European Union. (Non-legislative acts) REGULATIONS

Construction and related engineering services

Article XII (WTO Agreement) Accession

Official Journal of the European Union

Who are they?! Countries that negotiated and joined the WTO after 1995 under Art. XII of Marrakesh Agreement (open membership)

WTO Constraints and the CAP: Domestic Support in EU 25 Agriculture. Jean-Pierre Butault Institut National de la Recherche Agronomiqu, Grignon, France

TRADE-RELATED INVESTMENT MEASURES

in.wro' 'imits Us o Yin :r. ~':~ ':".: .. Plant Breeding Activity SJantsToward the Private Sector e.. F~rmStip 'on~ ..f,. USDA PAL'1 BOX "".-.--.".

The European Union Trade Policy

SUBSIDIES AND COUNTERVAILING MEASURES

SUBSIDIES AND COUNTERVAILING MEASURES

1. OVERVIEW OF RULES. (1) Rules of Origin

Trade and Currency. Can WTO Rules Have a Role?

Investment and Input Subsidies: A Growing Category of Farm Support Exempted from WTO Limits. Lars Brink

NATIONAL TREATMENT PRINCIPLE

GOVERNMENT OF THE REPUBLIC OF LITHUANIA. RESOLUTION No 1122

AQA Economics A-level

GATT Council's Evaluation

Regional Trade Agreements and the WTO: WTO Consistency of East Asian RTAs

The Denunciation of the Sugar Protocol

Role of international trade rules in the current economic crisis

2014 Farm Bill Provisions and WTO Compliance

Uruguay Round. The GATT. A Negotiating History ( ) KLUWER LAW INTERNATIONAL TERENCE P. STEWART, EDITOR VOLUME IV: THE END GAME (PART I)

Japan. Total MAP Caseload. Average time needed to close MAP cases (in months)

NATIONAL TREATMENT PRINCIPLE

IIEA Conference, Dublin, 5 July 2011

OECD Council Working Party on Shipbuilding Mr. Wolfgang Hübner WP6 Workshop on Maritime Clusters and Global Challenges

Transcription:

WTO disciplines on Domestic support Diwakar.dixit@wto.org Belgorod, Russian Federation 20 November 2013

Agreement on Agriculture* Covers three areas/pillars: Market access (border measures) Export competition Domestic support Rule-based commitments plus countryspecific commitments in the Schedule Framework for reforms (unfinished task) *Other multilateral trade agreements on goods apply simultaneously.

Domestic Support Fundamental change in the treatment of domestic support (production subsidies) Three important specific considerations: To address tariff-based as well as subsidy-based distortions deemed important for ensuring respect of commitments in the other two pillars (i.e., market access and export competition) Level-playing field (more enabling atmosphere for policy reforms) 3

Domestic Support rules Coverage: Support to agricultural producers (definition/scope of agricultural products included in the Agreement) Nature: Binding guidance to policy makers (i.e. subsidizing country) Difference from Subsidy Agreement (ASCM): where the thrust is on offering remedies to countries affected by subsidization Per-se obligations and not dependent on any trade-effect test 4

Domestic Support: classification of measures Offering scope for governments for policies which are essential and whose potential distorting effect on trade and production is minimal: EXEMPT MEASURES (Detailed Criteria for policy makers) Residual category (no criteria): NON-EXEMPT MEASURES subject to monetary limit (i.e. Total AMS commitment or de minimis limits) Encouraging a reform process towards exempt support measures

Domestic support Criteria-based rules Exempt from monetary limit Need to respect the criteria Detailed criteria/requirements prescribed Monetary limit based rules: When exemption criteria not respected Detailed methodology to calculate support/subsidy Monetary limit on support/subsidies

Green Box Scope General services, including: research pest and disease control training extension/advisory services inspection marketing and promotion infrastructural services Public stockholding for food security, and Domestic food aid Direct payments, including: decoupled income support income insurance and income safety-net relief from natural disasters structural adjustment assistance producer retirement resource retirement investment aids environmental programmes regional assistance programmes 7

Green Box Measures can be used freely, as long as they meet the exemption criteria (detailed in Annex 2 of the Agreement) New programmes/measures can be introduced and old ones can be modified (notification obligation) Obligation to ensure that programmes are maintained in conformity with the Green Box criteria 8

Blue Box (Direct payments under production-limiting programmes) Product limitation production quota, set-aside a part of land, levies etc. Payment based on past/historical parameters based on area and yields in the past ; or made on 85% of base level of production; or livestock payments based on a fixed number of heads Recourse by very limited number of Members (EU, Japan, Norway) 9

Amber Box No policy criteria (residual category) Calculation of annual support as per the methodological guidance prescribed in the Agreement on Agriculture (Annex 3) Classification issue between product-specific AMS and non-product-specific AMS Potential circumvention of AMS commitments using higher de-minimis threshold corresponding to nonproduct-specific AMS 10

AMS Calculations Article 1: Support in favour of the producers of the basic agricultural product or non-product-specific support in favour of the agricultural producers in general basic agricultural product : as close as practicable to the point of first sale, as specified in a Member s Schedule and the supporting material calculated in accordance with the provisions of Annex 3 and taking into account the constituent data and methodology used in the supporting material (AGST) (like for quantifying price-related direct payments or determining basic agricultural products) Annex 3: Detailed calculation methodologies 11

Current Total AMS is the sum of: All product-specific AMS/EMS Market price support Non-exempt direct payments Other non-exempt measures Non-product-specific AMS Subsidized credit instruments Subsidized transport etc. Current Total AMS: if the value of product-specific support or non-product-specific support does not exceed de minimis no need to include it (Article 6.4) 12

AMS calculations and commitments (Russian Federation) Until-2018 Total AMS commitment; and Ratio between sum of product-specific AMS and Non-product-specific AMS Post-2018 Total AMS commitment Role of non-product-specific de minimis calculations Variation in total production value Exchange rate 13

AMS calculation examples (until-2018 and using 2012/13 commitment level) Non-product-specific (NPS) AMS 5.0 6.0 6.9 7.5 9.0 NPS going to CTAMS 0.0 6.0 6.9 7.5 9.0 Max product-specific (PS) AMS contributing to CTAMS 1.5 1.8 2.1 1.5 0.0 PS + NPS 6.5 7.8 9.0 9.0 9.0 Current Total AMS (CTAMS) 1.5 7.8 9.0 9.0 9.0 Total Ag VoP: 100 billion US$ assumed

AMS calculation examples (post-2018) Non-product-specific (NPS) AMS 0.0 1.5 3.0 4.4 5.0 NPS going to CTAMS 0.0 0.0 0.0 0.0 0.0 Max product-specific (PS) AMS contributing to CTAMS 4.4 4.4 4.4 4.4 4.4 PS + NPS 4.4 5.9 7.4 8.8 9.4 Current Total AMS (CTAMS) 4.4 4.4 4.4 4.4 4.4 Total Ag VoP: 100 billion US$ assumed

Monitoring and surveillance (Review Process) Nature of commitments (criteria-based, annual, in monetary terms etc.): Important role of the review process Collective assessment as how rules/commitments are implemented by Members Process carried out by the Committee on Agriculture (CoA); based on notifications Detailed notification requirements (G/AG/2)

AoA rules a framework of reform process 19

US$ millions 140,000 US' domestic support 120,000 100,000 80,000 60,000 40,000 20,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Amber Box (Current Total AMS) Green Box

millions 70,000 EU's domestic support 60,000 50,000 40,000 30,000 20,000 10,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Amber Box (Current Total AMS) Green Box

W billions 7,000 Korea's domestic support 6,000 5,000 4,000 3,000 2,000 1,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Amber Box (Current Total AMS) Green Box

Y millions 700,000 China's domestic support 600,000 500,000 400,000 300,000 200,000 100,000 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Green Box Amber Box (Current Total AMS)

million US$ Russia's domestic support 6,000.00 5,000.00 4,000.00 3,000.00 2,000.00 1,000.00 0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 Green Box Amber Box

Main issues Good understanding of the rules and commitments Need for an efficient domestic monitoring machinery especially when disbursements are made also at the level of regional governments (to respect Total AMS limit annually) Efficient use of Committee on Agriculture s notification process (Review Process; not a legal enforcement mechanism): Learning tool on the practical application of rules

THANK YOU