Gap between chairman and Commission at WTO farm talks

Date: 06/03/03

TALKS are underway at the World Trade Organization aimed at mapping out the details of how agricultural commerce should be regulated.

A deadline for agreement on this issue has been set for 31 March. But a recent draft paper by Stuart Harbinson, who is chairing the farm trade negotiations at the WTO, differs considerably from proposals which the European Commission had made to the body.

Market access

What Harbinson suggests: Tariffs for farm produce should be cut by an average 40%-60% and a minimum of 25%-45%, depending on the proportion of the product value that the tariffs are set against.

What the Commission suggests: Tariffs would be cut by an average of 36% and minimum 15%.

Harbinson: At least 25% of products considered of vital importance for developing countries should be allowed to enter rich countries' markets duty-free. But this would not be mandatory.

Commission: Mandatory duty-free access for at least 50% of those goods.

Export competition

Harbinson: Export subsidies should be eliminated after five to nine years.

Commission: The EU would be willing to phase out export subsidies for products deemed to have a major impact on poor countries, provided that the rest of the wealthier world does likewise.

Food aid

Harbinson: Surpluses in farm output may be distributed as aid to poor countries, provided principles set by the UN's Food and Agriculture Organization are respected.

Commission: Food aid must not be used as "a surplus disposal mechanism" as this distorts trade.

Domestic support

Harbinson: Under present arrangements, farm subsidies paid in rich countries do not have to be cut if they constitute less than 5% of the value of production. The so-called de minimis clause should be subject to a 50% reduction in subsidies.

Commission: Abolish de minimis clause completely.

Talks are underway at the World Trade Organization aimed at mapping out the details of how agricultural commerce should be regulated. A deadline for agreement on this issue has been set for 31 March 2003.