Serbia and Montenegro WTO Accession Conference and Workshops on Agriculture

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Serbia and Montenegro WTO Accession Conference
and Workshops on Agriculture

• Belgrade 12-14 May 2004
• Serbia and Montenegro
• Ministry of Foreign Economic Relations
• Swiss Cooperation Office SDC-SECO

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Serbia and Montenegro WTO Accession

• Agreement on Agriculture
• Key Elements
• Presentation by Laurent Matile
• IDEAS Centre, Geneva,
• Belgrade 12.-14 May 2004

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Serbia and Montenegro WTO AccessionConference
and Workshops on AgricultureMain Objectives

• Inputs for better understanding of implications
  of WTO Accession on agriculture in Serbia and
  Montenegro
• Foster consultation among stakeholders, both
  public and private
• Share experiences and  lessons learned  in
  other transition countries (WTO - EU Accession)
• Inputs for  re - thinking  agricultural and
  trade policies
• Instrumental for defining negotiating strategies

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Serbia and Montenegro WTO AccessionAgreement on
Agriculture

• Content
• Introduction
• Market Access (bindings, tariffs only)
• Internal Support (AMS vs. de minimis)
• Export Subsidies
• Other applicable WTO agreements GATT 1994, SPS,
  TRIPS, Services

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WTO Agreement on Agriculture Key features
Introduction

• Integral Part of the Results of the Uruguay Round
  (UR) Negotiations
• Three  Pillars  of WTO (1)Trade in Goods,
  including Agriculture (2) Services (3)
  Intellectual Property (TRIPS)
• Entry into force 1 January 1995
• Integral part of the Accession negotiations
  (plurilateral bi-lateral).

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WTO Agreement on Agriculture Key features
Introduction

•  establish a fair and market-oriented
  agricultural trading system ()
•  Substantial progressive reductions in
  agricultural support and protection () resulting
  in correcting and preventing restrictions and
  distortions in world agricultural markets .

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WTO Agreement on Agriculture Key Features

• Coverage HS Chapter 1-24
• Basic agricultural products cereals, milk, fruit
  and vegetables, live animals
• Products derived from them (butter,meat) and
• Processed agricultural products (biscuits,
  chocolate)
• Wines, spirits and tobacco products
• Fibres (cotton, wool, silk)
• Excluded fish and fish products, forestry
  products.

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WTO Agreement on Agriculture Key elements

• Functioning of the Agreement
• Two parts
• General Rules on Market Access, Domestic support
  and Export subsidies
• Country-specific commitments ( Schedules )

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WTO Agreement on Agriculture Market Access

•  Meaningful market access commitments 
• Tariffs only (Bound rates vs. Applied rates)
• Tariff Rate Quotas (TRQ) current and minimal
  market access
• Special Safeguard Clause (SSG) against import
  surges

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WTO Agreement on Agriculture Domestic Support

•  Amber Box 
• Binding and reduction of support that is
   production and trade distorting  (e.g. direct
  price support, subsidies linked to quantities)
• Total  aggregate measure of support  (AMS)
  (base years 86-88) 20 for developed members
  over 6 years, starting 1995 - 13 for
  developing countries over 10 years
•  de minimis  Developed countries 5
  Developing countries 10
• 30 WTO Members have commitments to reduce their
   amber box 

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WTO Agreement on Agriculture Domestic Support

•  Blue Box 
• Subsidies linked to limitation of production
  (e.g.  set-aside  program)
• Present Agreement no limits on spending
• Current negotiations  caps , respectively
  reduction commitments

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WTO Agreement on Agriculture Domestic Support

•  Green Box  (Annex 2)
• No or minimal Trade distortion.
• Public funding (no consumer tax)
• Do not involve price support
• Present Agreement no limits on spending
• Current negotiations stricter rules re. Trade
  distorting effect.

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WTO Agreement on Agriculture Domestic Support

•  Green Box  (Part 2)
• Programs that are not targeted at particular
  products
•  decoupled  from production levels and prices
• E.g. RD, pest and disease control marketing and
  promotion services infrastructure, rural
  development programs, social and environmental
  protection,

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WTO Agreement on Agriculture Export Subsidies

• Principle export subsidies are prohibited,
  unless specified in the lists of commitments
• Reduction of total value of subsidies
• Reduction of quantities of exports which are
  subsidized.
• Value Base level 86-90 developed countries 36
  , over 6 years transition period developing
  countries 24 over 10 years.
• Quantities developed countries 21 (6
  years) developing countries -14 (10 years)

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WTO Agreement on Agriculture other WTO
Agreements

• Sanitary and Phytosanitary (SPS)
• GATT 1994 (e.g. customs valuation, rules of
  origin, licensing agreement)
• TRIPS (patents, trademarks, GI)
• Services distribution, transport

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WTO Agreement on Agriculture Policy implications

• Market Access transparent, predictable trade
  regime for both traders and producers less
  discretionary power
• Internal support limit on  trade distorting 
  types of support
• Green Box flexibility for various policies
• Export subsidies clear limitations
• 
  
• Preferential regimes Regional integration, EU
  Agreement
• Doha Round  moving target 

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Serbia and Montenegro WTO Accession

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