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Report No.231006
Vol.23 No.10 July 2006


NEWS

- International -

WTO Agriculture Chairman Presents a Reference Paper on Market Access

Ambassador Crawford Falconer, the chairman of the WTO agriculture negotiations, presented on June 6 'a reference paper' on agricultural market access, one of the major issues of agricultural negotiations in the ongoing talks under Doha Development Agenda. The paper reflects a wide divergence of opinions among member countries and as such is so structured to list up opposing stances in parallel. 

Commenting on the reference paper, Vice Minister Mamoru Ishihara of the Ministry of Agriculture, Forestry and Fisheries (MAFF) in his press meeting on June 12 emphasized, with regard to the rate of tariff reduction of general agricultural products, saying "Many food importing member countries have been making it loud and clear that it is difficult to go as far as the reduction rates proposed by G20. We do not consider that G20 proposal should sit at the center of negotiating table."

Meanwhile, some of the chairman's comments on some items of discussion reflect the opinions of Japan. For example, with regard to the treatment of special products, MAFF takes a positive note that the idea of the sliding-scale method is being accepted, which would allow members to use a combination of reduced tariff and expanded tariff-rate quota in meeting tariff reduction commitments on sensitive products; with regard to the issue of tariff capping, the state of discussion is presented in a form different from other items, using weak expression. 

At a later date, that is on June 22, Chairman Falconer circulated a draft text of modalities to member countries on which he expects an agreement reached toward the end of the month. On the main controversial issues, the text puts forward all the stance of different countries/groups (this is seen resulting from the gap of opinions failing to be narrowed down by the preceding officials' level of discussion based on the reference paper.) The draft text of modalities is meant to serve as a basis on which ministers are expected to make political decisions at meetings during the week beginning on June 26. 

Main Opinions as Summarized in the Chairman's Reference Paper

Rate of Tariff Reduction by Formula

G20 proposal: Reduce the tariff in the highest tier by 75%.
G10 proposal: Reduce the tariff in the highest tier by 45%.

Tariff Capping

Chairman's comments:

Yet to discuss the role of ceiling in reducing tariffs.
Need to make sure introducing the ceiling does not lead to an obviously 
unbalanced results.

G10: Opposed to tariff capping.

Sensitive Products

Chairman's comments:

On the number: 

15% of the tariff lines as proposed by G10 is too much while 1% as
 proposed by the U.S. can not meet political concerns;
As the number of tariff lines is different among different countries, an idea of fixing the number of sensitive products based on their share in the trade may be explored.

On the rate of tariff reduction:

Sliding-scale method of combined reduced tariff and expanded low-tariff-quota may be negotiated within the range of 30-70% of the formula reduction applied to general products.

G10 proposal: suggests a sliding-scale method within the range of 20-80% of the formula reduction.

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