WTO - OMC

Agriculture and the Environment

WTO Rules and Commitments

John Finn
Agriculture and Commodities Division
Note: The views expressed do not
represent the WTO
Secretariat or the Member
states of the WTO.

Agriculture and the Environment

Agriculture both positive and negative effects
Positive Effects
Landscape management
Prevention of Erosion
Biodiversity wild flora/fauna
Domestic animals
Flood Control
Control of noxious weeds
Reduction in greenhouse gases

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Negative Effects
Landscape degradation
Excessive Erosion
Biodiversity wild flora/fauna
Domestic animals
Flooding
Pesticide/Herbicide Residues
Fertilizer Runoff
Greenhouse gas emissions
etc

Do national polices make things worse?

Agriculture trade could have similar affects?
Affects of trade-related measures on other countries?

Agriculture and the Environment

Agreement on Agriculture
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A.Market Access

B.Domestic Support

C.Export Competition

Tariffs
Bound tariffs
Ceiling bindings

Amber Box
Reduction Commitments

Quantity Reductions

Market Access
Tariff Quotas
Special Safeguard

Blue Box
Production Limiting

Value Reductions

Green Box
Non Trade Distorting
S & D Box
Exceptions for Devg

Other Rules
Special and Differential Treatment, Peace Clause, Commitment to Reform

Agriculture and the Environment

Environment Related Trade Measures on Agriculture

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Article XX(g) of GATT:

- Exhaustible Natural Resources

SPS Agreement:

- Measures to protect a country from

entry, establishment or spread of pests

Agreement on Agriculture: - Preamble

- Annex 2 (Green Box) government
services programmes and direct payments

But significant implicit flexibility in agriculture as well...

Agriculture and the Environment

Environment Related Trade Measures on Agriculture
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Governments can use general rules for environment programmes.

Market Access:

Agriculture Tariffs high

BUT many countries apply tariffs below bound rates

Domestic Support:

Green Box
Blue Box
Amber Box
Special and Differential Treatment
BUT for many countries lack of resources limit support

Export Subsidies:

Some countries have reduction commitments

Special and Differential Treatment
BUT export subsidies most distorting form of subsidy

Export Restrictions: Consultation requirements

BUT export restrictions affect food security in other
countries

Agriculture and the Environment

Environment Related Trade Measures on Agriculture
Agriculture Subsidies by Category in 1998

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Export Subsidies

100,000

Current Total AMS

80,000
US $ million

De Minimis
60,000

Blue

40,000

S&D

20,000

Green less
Environment
Programmes
Environment
Programmes

0
EC

United
States

Japan

Korea

Switze

Brazil

Norway

Canada

rlandLiecht.

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

Agriculture and the Environment

Subsidies in some WTO Members in 1998
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Total Value of Subsidies

US $
million

270

899

4740

30414
5535
3080
1162
2838
100669
1560
65113
2140
1621
3284

100%

Export Subsidies

per centage of total subsi

90%
Current Total AMS

80%
70%

De Minimis

60%
50%

Blue Box

40%
30%

S & D Box

20%
10%

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Environmental
Programmes
Environment

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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

Agriculture and the Environment

Negotiations
1997-1999
AIE Process
- informal open ended process, no conclusions
- concluded September 1999

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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

Agriculture and the Environment

Negotiations
Doha Declaration 14 November 2001 on Agriculture

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- Building on the work undertaken already

- Long term objective of fair and market orientated agriculture
trading system
- Work programme:
(i) substantial improvements market access
(ii) reduce/phase out export subsidies
(iii) substantial reductions in trade distorting support
- Special and differential treatment integral to negotiations and outcome
- Take account of non-trade concerns

Deadlines
- March 2003 for modalities - work programme decided 26 March 02
- Fifth Ministerial for Offers
- 2005 for conclusion

Agriculture and the Environment

Negotiations Issues
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Linkage between agriculture production and environmental

objectives

Efficiency and effectiveness of policy measures and impact

on environment

Impact on other countries of trade/production measures

Impact of changing structures of agriculture production from

reform of agriculture trade
BUT

Debate now more about trade distortion and damage caused to other
countries than about specific non-trade concerns such as environment