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WTO - OMC

Agriculture and the Environment

WTO Rules and Commitments

John Finn

Agriculture and Commodities Division

Note: The views expressed do notrepresent the WTOSecretariat or the Memberstates of the WTO.

WTO - OMC


Agriculture both positive and negative effects

Positive Effects

Landscape managementPrevention of ErosionBiodiversity wild flora/faunaDomestic animalsFlood ControlControl of noxious weedsReduction in greenhouse gases

Negative Effects

Landscape degradationExcessive ErosionBiodiversity wild flora/fauna

Domestic animalsFloodingPesticide/Herbicide ResiduesFertilizer RunoffGreenhouse gas emissionsetc

- Do national polices make things worse?- Agriculture trade could have similar affects?- Affects of trade-related measures on other countries?



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WTO - OMC


Agreement on Agriculture

A.Market Access B.Domestic Support C.Export Competition

TariffsBound tariffsCeiling bindings

Market AccessTariff Quotas

Special Safeguard

Amber BoxReduction Commitments

Blue BoxProduction Limiting

Green BoxNon Trade Distorting

S & D BoxExceptions for Dev’g

Quantity Reductions

Value Reductions

Special and Differential Treatment, Peace Clause, Commitment to Reform

Other Rules

WTO - OMC


Environment Related Trade Measures on Agriculture

Article XX(g) of GATT: - Exhaustible Natural Resources

SPS Agreement: - Measures to protect a country fromentry, establishment or spread of pests

Agreement on Agriculture: - Preamble- Annex 2 (Green Box) governmentservices programmes and direct payments

But significant implicit flexibility in agriculture as well...



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WTO - OMC



Governments can use general rules for environment programmes…….

Market Access: Agriculture Tariffs highBUT many countries apply tariffs below bound rates

Domestic Support: Green BoxBlue BoxAmber BoxSpecial and Differential TreatmentBUT for many countries lack of resources limit support

Export Subsidies: Some countries have reduction commitmentsSpecial and Differential TreatmentBUT export subsidies most distorting form of subsidy

Export Restrictions: Consultation requirementsBUT export restrictions affect food security in othercountries

WTO - OMC



Agriculture Subsidies by Category in 1998

0

20,000

40,000

60,000

80,000

100,000

EC United

States

Japan Korea Switze

rland-

Liecht.

Brazil Norway Canada

U S

$

m i l l i o n

Export Subsidies

Current Total AMS

De Minimis

Blue

S & D

Green less

Environment

ProgrammesEnvironment

Programmes

Note: Environment programmes refer only to programmes specifically stated as such in Members’ notifications.Therefore, the graph may under-represent the actual level of support given to environmental programmes



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WTO - OMC


Subsidies in some WTO Members in 1998

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

C z e c h R e

p u b l i c

A u s t r a l i a

S w i t z

e r l a n d

- L i e

c h t.

E C J a

p a n

T h a i l a n

d

K o r e

a

U n i t e

d S t

a t e s

N o r w a

y

C a n a

d a

P o l a n

d C u

b a

M e x i c

o

B r a z i l

p e r

c e n t a g e

o f

t o t a l s u b s i

Export Subsidies

Current Total AM S

De Minimis

Blue Box

S & D Box

Green Box less

Environmental

Programmes

Environment

Total Value of Subsidies

US $ 270 4740 30414 5535 3080 1162 2838million 899 100669 1560 65113 2140 1621 3284

Note: Environment programmes refer only to programmes specifically stated as such in Members’ notifications.Therefore, the graph may under-represent the actual level of support given to environmental programmes

WTO - OMC1997-1999 AIE Process- informal open ended process, no conclusions- concluded September 1999

1999 Ministerial Conference- Preparations in Special Sessions of General Council

- Seattle - no agreement but agriculture negotiations mandated

2000-Feb 2002 Article 20 Agriculture Negotiations- Negotiations in Special Session of Committee on Agriculture- Services negotiations, Panels, Peace Clause and Special Safeguard

2001 Ministerial Conference- Agriculture once again difficult but round launched- Mandate and deadlines


Negotiations

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