WTO Ministers Agree to End Export Subsidies by 2013
Elimination of cotton export subsidies accelerated to the end of 2006.
Compiled by staff
Published: Dec 19, 2005
Little progress was made over the last week at the World Trade Organization ministerial meeting. However, a last minute agreement brought an agreement to end export subsidies in agriculture by 2013, past the 2010 guideline desired by the United States.
All the ministers agreed to a 44-page document last Sunday evening. Members now face intense pressure in the new year to complete "full modalities•bCrLf in agriculture and non-agricultural market access by the new deadline they have set themselves--April 30, 2006.
The declaration makes clear that the agreed date on export subsidies is conditional. A statement from WTO Director-General Pascal Lamy says loopholes have to be plugged to avoid hidden export subsidies in credit, food aid and the sales of exporting state enterprises.
For cotton the elimination is accelerated to the end of 2006. In addition, cotton exports from least-developed countries will be allowed into developed countries without duty or quotas from the start of the period for implementing the new agriculture agreement. Ministers have also agreed to aim to cut trade-distorting domestic subsidies on cotton by more than would normally apply under the new agreement, and to do so more quickly.
The two sides negotiating this difficult subject paid tribute to each other for what they described as the spirit of compromise: United States and the four countries pushing for an agreement on cotton (Bali, Burkina Faso, Chad and Mali).
A number of other details have been agreed in agriculture, non-agricultural market access and services.
Sen. Chuck Grassley, chairman of the U.S. Senate Finance Committee, the Senate committee with legislative and oversight jurisdiction over international trade, says the best hope for a successful Doha Round lies in small-group negotiations over the next few months.
"I can tell you right now that without substantial improvement over the next few months, this framework will go over like a lead balloon," Grassley warns. "That's not to denigrate our trade negotiators, who worked around the clock this week. They could negotiate only so much with certain trading partners who wanted to get everything and give up nothing."
Senate Agriculture Chairman Saxby Chambliss voiced frustration with how cotton was signaled out in negotiations. He explains that he acknowledges the need to promote initiatives to help developing countries reduce poverty and spur economic development. "But that cannot and should not happen by singling out cotton growers in the United States and placing their futures in jeopardy," he says.
Chambliss says negotiations should return to the underlying goal of agreeing to an end date on exports subsidies and increased market access. "There is no reason why French farmers should be able to hide behind tired rhetoric and false sympathy for their former colonies instead of matching the United States and offering increased market access for agriculture products," Chambliss says.
Permalink: Click here
Tagged: cotton
|