Poor nations’ modest gains in recent WTO talks may be wiped out

Modest gains in agriculture achieved by developing countries‚ in the recent World Trade Organization (WTO) ministerial conference in Hong Kong could be wiped out by potentially damaging proposals on service and industry, a ranking official of an international group following the trade talks said.

"The ministerial text reflected rich countries’ interests far more than those of developing countries. It would not deliver the reforms poor countries needed. Poor countries have had to fight a rearguard action simply to keep some of their issues on the table. Small progress on some aspects of agriculture is more than cancelled out by extremely damaging proposals on services and industry," said Phil Bloomer, head of Oxfam International’s Make Trade Fair campaign.

Bloomer said developing countries were faced with an impossible position: "Either accept a text which is seriously flawed, or be blamed for the failure of the round."

The gains, while wanting, at least spelled out 2013 as the end date for export subsidies, and provided poor countries with extra flexibility to protect small farmers with the adoption of special productions and special safeguard mechanisms.

The detailed agreements are expected to be firmed up in early 2006, but Bloomer warned that "unless rich countries fundamentally change their attitudes to these negotiations no amount of extra time will make a difference."

In agriculture, the text includes a welcome commitment to ensure developing countries have the right to protect products of vital importance to poor farmers. There is also a pledge to eliminate export subsidies and equivalent payments by 2013. But this is three years later than originally hoped and European Union (EU) export subsidies account for only 3.5 percent of its overall agricultural support.

Bloomer noted that agriculture is the area of the greatest importance to developing countries but the bulk of negotiation remains to be done. He said the text does not offer to cut rich countries’ domestic subsidies that cause dumping, nor does it propose tightening the disciplines on allowable payments.

"There is no guarantee that developing countries will gain significantly greater access to northern markets."

While the final hammering out of details takes place next year, developing countries like the Philippines should oppose further tariff reductions in view of the turtle-paced elimination of subsidies committed by rich countries such as the EU.

Alyansa Agriculture (AA), the largest coalition of farmer-fisherfolk groups in the Philippines said the country’s agriculture sector needs to be protected from more tariff cuts until such time that the developed world begins to phaseout their trade-distorting subsidies.

"We are disappointed that the elimination of the European Union export subsidies has been extended to the very far away date of 2013. Because the Alyansa considers leveling the playing field as leveling not only tariffs but the summation of tariffs and subsidies across countries, we believe that we should oppose further tariff reductions in light of the very slow elimination of subsidies of other countries." said AA national coordinator Ernesto M. Ordoñez.

Ordoñez also pointed out that the exact formulas for implementation of provisions agreed upon at the recent ministerial conference in Hong Kong, will still be negotiated in Geneva in the next six months.