RP readies list of products for preferential treatment

The Philippines is now identifying its list of special products (SP) which it wants protected when the World Trade Organization (WTO) talks on agriculture resume in September.

Agriculture Assistant Secretary Segfedo Serrano said the Philippine Task Force on WTO Agricultural Agreement Renegotiations (WAR) is in the process of developing modalities on agriculture that will give flesh to the agriculture framework agreed upon by 141 members of the WTO last month.

"What we will fight for is for our list of special products to be given the preferential treatment they require based on food, livelihood security, rural development objectives and market access," said Serrano.

Initially, the Philippines’ traditionally sensitive products such as rice, corn and sugar will be placed under the special products list.

Serrano said the G-33 alliance led by the Philippines and Indonesia want the talks to address developing countries’ concerns on how many items will be included as special products.

"The talks should focus more on how many items will be included in the special products category and which will be given preferential treatment. After the number is addressed, it should be up to the respective countries to identify which products they want protected, including the schedule of their commitments," said Serrano.

Previously, Serrano said the G-33 will also push for the removal of existing special safeguard mechanisms (SSMs) for protected agricultural commodities of developed countries and replace these with rules that reflect new realities in the global market.

"The old special safeguards should be replaced with new SSMs and should be applied only to developing countries," noted Serrano.

The highlights of the talks that ended on July 31 included the agreement on the modalities for the WTO talks on agriculture. These include requiring lesser tariff reduction commitments or tariff quota expansion commitments from developing country members; giving developing countries flexibility to assign a number of products as special products to be given preferential treatment and implementation of SSMs by developing country members.

Serrano noted that the new SSMs have to be more relevant to specific needs of developing countries because they are more susceptible to inflation adjustments and fluctuations in the foreign exchange rates and markets.

Oftentimes, developing countries have no choice but to absorb these unfavorable adjustments and are forced to price their export products at below production costs just to keep their market share.

"We also want to establish a new base period for pricing because we are still using 1986 to 1988 as the benchmark which is already ridiculous. Those prices are very remote from existing realities and have not benefited developing countries," added Serrano.

The tougher negotiations begin next month, a month after rich and poor nations struck a crucial deal that would pave the pay for a new global trade order.

The reforms being sought by poor nations include slashing billions of dollars in farm subsidies and better market access.

The framework reached at the recent WTO talks, commited the United States, to exercise discipline in using its export credits and food aid, while the EU commited to eliminate farm export subsidies.