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1、Chapter 7 Agriculture Agreement Content pIntroduction pBasic principles on agricultural productspSpecific commitments relative to trade of agricultural productspSpecial safeguard measures of agricultural products pCase 1.Introduction pThe volume of world agriculture exports has substantially increas
2、ed over recent decades.pAgricultural trade remains in many countries an important part of overall economic activity and continues to play a major role in domestic agricultural production and employment.pAlthough agriculture has always been covered by the GATT, prior to WTO there were several importa
3、nt differences with respect to the rules that applied to agricultural primary products as opposed to industrial products.pIn the aftermath of the second world war, many governments were concerned primarily with increasing domestic agricultural productions so as to feed their growing populations.pIn
4、the lead-up to the Uruguay Round negotiations, the causes of disarray in world agriculture went beyond import access problems which has been the traditional focus of GATT negotiations. pThe agricultural negotiations in the Uruguay Round were by no means easy.pThe agreement on agriculture and the agr
5、eement on the application of sanitary and phytosanitary measures were negotiated in parallel.pThe WTOs agriculture agreement was negotiated in the 1986-1994 Uruguay Round and came into force on January 1, 1995. pThe Uruguay Round produced the first “multilateral agreement” dedicated to the sector.pI
6、t was a significant first step towards order, fair competition and a less distorted sector. Question pPlease say some agricultural subsidies in the normal lifepWhat are the influences of agricultural subsidies on international trade？Relationship with other WTO agreementspIn principle, all WTO agreem
7、ents and understandings on trade in goods apply to agriculture. pHowever, where there is any conflict between these agreements and the agreement on agriculture, the provisions of the agreement on agriculture prevail.Product coverage pThe agreement defines in its Annex 1 agriculture products by refer
8、ence to the HS of product classification.pThe definition covers not only basic agricultural products such as wheat and animals, but also the products derived from them such as bread, butter and meat, as well as all processed agricultural products such as chocolate and sausages.pFish and fish product
9、s are not includes, nor are the forestry products.Rules and commitmentspThe agreement on agriculture establishes a number of generally applicable rules with regard to trade-related agricultural measures, primarily in the areas of market assess, domestic support and export competition.pThese rules re
10、lated to country-specific commitments are contained in the individual country schedules of the WTO members.Implementation periodpThe implementation period for the country-specific commitments is the six-year period commencing in 1995.pHowever, developing countries have the flexibility to implement c
11、ommitments over a period up to 10.pThe Uruguay Round agreement included a commitment to continue the reform through new negotiations. These were launched in 2000, as required by the Agriculture Agreement.Committee on agriculture pThe agreement established a committee on agriculture.pThe committee us
12、ually meets four times per year. Special meetings can be convened if necessary.pAgreement on Agriculture is divided into 13 parts, 21 articles and 5 annexes.2. Basic principles on agricultural productspEstablish a fair and market-oriented agricultural trading system.pProvide for substantial progress
13、ive reductions in agricultural support and protection, correct and prevent restrictions and distortions in world agricultural markets.pAchieve specific binding commitments in the area of market assess, domestic support and export competition.pProvide for a greater improvement of opportunities and te
14、rm of assess for agricultural products of particular interest to developing countries.pPertinent commitments should be made in an equitable way among all members, having regard to non-trade concerns, including food security and the need to protect the environment and to special and differential trea
15、tment for developing countries.3.Specific commitments relative to trade of agricultural productspThe original GATT did apply to agricultural trade, but it contained loopholes. pFor example, it allowed countries to use some non-tariff measures such as import quotas, and to subsidize. Agricultural tra
16、de became highly distorted, especially with the use of export subsidies which would not normally have been allowed for industrial products. Export subsidiespthe provision by governments or their agencies of direct subsidies, including payments-in-kind, to a firm, to an industry, to producers of an a
17、gricultural product, to a cooperative or other association of such producers, or to a marketing board, contingent on export performance; pThe sale or disposal for export by governments or their agencies of non-commercial stocks of agricultural products at a price lower than the comparable price char
18、ged for the like product to buyers in the domestic market; Export subsidiespPayments on the export of an agricultural product than are financed by virtue of governmental action, including payments that are financed from the proceeds of a levy imposed on the agricultural product concerned or on an ag
19、ricultural product from which the exported product is derived;pSubsidies on agricultural products contingent on their incorporation in exported products. Export subsidiespThe provision of subsidies to reduce the costs of marketing exports of agricultural products (other than widely available export
20、promotion and advisory services) including handling, upgrading and other processing costs, and the costs of international transport and freight; pInternal transport and freight charges on export shipments, provided or mandated by governments, on terms more favourable than for domestic shipments; 3.1
21、 The Agriculture Agreement: new rules and commitmentspThe objective of the Agriculture Agreement is to reform trade in the sector and to make policies more market-oriented. This would improve predictability and security for importing and exporting countries alike.pThe new rules and commitments apply
22、 to: market access various trade restrictions confronting imports domestic support subsidies and other programmes, including those that raise or guarantee farmgate prices and farmers incomes export subsidies and other methods used to make exports artificially competitive. 3.2 Market access: tariffs
23、only, pleasepThe new rule for market access in agricultural products is “tariffs only”. pBefore the Uruguay Round, some agricultural imports were restricted by quotas and other non-tariff measures. These have been replaced by tariffs that provide more-or-less equivalent levels of protection.pIf the
24、previous policy meant domestic prices were 75% higher than world prices, then the new tariff could be around 75%. p“Tariffication”: Converting the quotas and other types of measures to tariffs in this way pThe newly committed tariffs and tariff quotas, covering all agricultural products, took effect
25、 in 1995. pUruguay Round participants agreed that developed countries would cut the tariffs (the higher out-of-quota rates in the case of tariff-quotas) by an average of 36%, in equal steps over six years.pDeveloping countries would make 24% cuts over 10 years. pLeast-developed countries do not have
26、 to cut their tariffs. (These figures do not actually appear in the Agriculture Agreement. Participants used them to prepare their schedules i.e. lists of commitments. It is the commitments listed in the schedules that are legally binding.)pFor products whose non-tariff restrictions have been conver
27、ted to tariffs, governments are allowed to take special emergency actions (“special safeguards”) in order to prevent swiftly falling prices or surges in imports from hurting their farmers. But the agreement specifies when and how those emergency actions can be introduced (for example, they cannot be
28、 used on imports within a tariff-quota).The applying of SSGpA member ever taking such kinds of measures on the importation of its agricultural products as minimum import prices, discretionary import licensing, voluntary export restraints and otherwise which have been converted into an ordinary custo
29、ms duty may implement special safeguard measures.pThe products bound are marked in the members schedule with the symbol “SSG” as being the subject of a market assess concession.Satisfy one of the following conditions: pCondition I: pthe volume of imports of that product during any year exceeds a tri
30、gger level. i.e. imports as a percentage of corresponding domestic consumption during the three preceding year for which data are available, which relates to the existing market access opportunity.Satisfy one of the following conditions: pCondition II: pThe CIF import price, expressed in terms of it
31、s domestic currency, of that product falls bellow a trigger price equal to the average 1986-1988 reference price for the product concerned. pFour countries used “special treatment” provisions to restrict imports of particularly sensitive products (mainly rice) during the implementation period (to 20
32、00 for developed countries, to 2004 for developing nations), but subject to strictly defined conditions, including minimum access for overseas suppliers. pThe four were: Japan, Rep. of Korea, and the Philippines for rice; and Israel for sheepmeat, whole milk powder and certain cheeses.p Japan and Is
33、rael have now given up this right, but a new member, Chinese Taipei, has joined Rep. of Korea and the Philippines with special treatment for rice.3.3 Domestic support: some you can, some you cant pThe main complaint about policies which support domestic prices, or subsidize production in some other
34、way, is that they encourage over-production. This squeezes out imports or leads to export subsidies and low-priced dumping on world markets. pThe Agriculture Agreement distinguishes between support programmes that stimulate production directly, and those that are considered to have no direct effect.
35、“Amber box” subsidypAmber box: a reference to the amber colour of traffic lights, which means “slow down”.pDomestic policies belong to “amber box” do have a direct effect on production and trade have to be cut back.p WTO members calculated how much support of this kind they were providing per year f
36、or the agricultural sector (using calculations known as “total aggregate measurement of support” or “Total AMS”) in the base years of 1986-88. Aggregate Measurement of Support, AMSpAggregate Measurement of Support (AMS, 综合支持量) means the annual level of support, expressed in monetary terms, provided
37、for an agricultural product in favor of agricultural producers.Total AMS （综合支持总量）pTotal AMS means the sum of all domestic support provided in favor of agricultural producers, calculated as the sum of all aggregate measurements of support.pDeveloped countries agreed to reduce these figures by 20% ove
38、r six years starting in 1995. pDeveloping countries agreed to make 13% cuts over 10 years. pLeast-developed countries do not need to make any cuts. “Green Box” SubsidypMeasures with minimal impact on trade can be used freely they are in a “green box” (“green” as in traffic lights). pThey include gov
39、ernment services, such as research, disease control, infrastructure and food security. They also include payments made directly to farmers that do not stimulate production, such as certain forms of direct income support, assistance to help farmers restructure agriculture, and direct payments under e
40、nvironmental and regional assistance programmes.“Blue Box” SubsidypBlue box subsidy, also permitted, are certain direct payments to farmers where the farmers are required to limit production .pIt is permitted that certain government assistance programmes to encourage agricultural and rural developme
41、nt in developing countries, and other support on a small scale when compared with the total value of the product or products supported (5% or less in the case of developed countries and 10% or less for developing countries).3.4 Export subsidies: limits on spending and quantitiespThe Agriculture Agre
42、ement prohibits export subsidies on agricultural products unless the subsidies are specified in a members lists of commitments. Where they are listed, the agreement requires WTO members to cut both the amount of money they spend on export subsidies and the quantities of exports that receive subsidie
43、s. pTaking averages for 1986-90 as the base level, developed countries agreed to cut the value of export subsidies by 36% over the six years starting in 1995 (24% over 10 years for developing countries). pDeveloped countries also agreed to reduce the quantities of subsidized exports by 21% over the six years (14% over 10 years for developing countries). Least-developed countries do not need to make any cuts.pDuring the six-year implementation period, developing countries are allowed under certain conditions to use subsidies to reduce the costs of marketing and transporting exports.
