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Serbia and Montenegro WTO Accession Conference and Workshops on Agriculture

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Inputs for better understanding of implications of WTO Accession on agriculture ... Integral part of the Accession negotiations (plurilateral bi-lateral) ... – PowerPoint PPT presentation

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Title: Serbia and Montenegro WTO Accession Conference and Workshops on Agriculture


1
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

2
Serbia and Montenegro WTO Accession
  • Agreement on Agriculture
  • Key Elements
  • Presentation by Laurent Matile
  • IDEAS Centre, Geneva,
  • Belgrade 12.-14 May 2004

3
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

4
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

5
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).

6
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 .

7
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.

8
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 )

9
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

10
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 

11
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

12
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.

13
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,

14
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)

15
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

16
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 

17
Serbia and Montenegro WTO Accession
  • THANK YOU
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