Report No.241203
Vol.24 No.12 August  2007

- International -

WHO Chair's Draft Modalities of Agriculture Castigated by Member States' Agricultural Groups

Central Union of Agricultural Co-operatives (or JA Zenchu) summarized responses of agricultural groups in member states of World Trade Organization (WTO) to draft modalities (standards for the reduction of protective measures) proposed by Mr. Crawford Falconer, chairman of the WTO Committee on Agriculture, Special Session. Comite des Organisations Professionnelles Agricoles (COPA), a farmers' organization in EU that has cooperated with JA Zenchu, criticized it for "being lax on U.S. while containing demanding requirements for European Union (EU) such as the increase in tariff-rate quotas."

The draft states the number of sensitive products, as an example, being 4% or 6% of taxable products. Moreover, it mentions that the tariff-rate quota should increase by 4% or 6% of the relevant domestic consumption. This means that Japan's minimum access quota for rice imports will be over 1 million tons. Without any direct reference to the tariff capping, it does include a compensatory measure.

JA Zenchu showed strong opposition, and its President Isamu Miyata told that the text, which might have a devastating effect on the agriculture in importing countries, was not acceptable at all as it was.

The position is shared by COPA and other groups in countries and areas with sensitive products. A group in Canada, which has products under supply control, criticized the draft for "its extremely small number of sensitive products and treatment of them that significantly lack flexibility", and regarded it as "a threat for a nation's right to determine a supplier of its food." 

Problems pointed out by an Irish farmers' association include an excessively high level of the tariff reduction and of the increase in tariff-rate quotas for sensitive products. On the other hand, major agricultural groups in the U.S., with some exceptions, have not issued any comment.

Toward the intergovernmental negotiations that are expected to resume in September, JA Zenchu is now making an all-out effort to strengthen the cooperation among agricultural groups in food-importing countries so as to improve the draft modalities.

Responses of agricultural groups in member states to draft modalities

COPA

*Taken into account is the consistency with the domestic subsidies in U.S. 
*Awful text that opens the door to the import of inexpensive products from exporting countries while requiring the significant increase in tariff-rate quotas, as a compensatory measure, even for sensitive products.
*The European Council has to refuse it.

5 Canadian supply control organizations (dairy farming, chicken and hen eggs)

*It suffers a setback when compared with Chair's text at the end of April in terms of the number of sensitive products. It allows only half of the number necessary for the maintenance of the supply control system. The treatment lacks flexibility.
*Threat for a nation's right to determine a supplier of its food

Canadian Federation of Agriculture

*As it will not lead to the actual reduction of domestic subsidies in U.S., Canada adjacent to the country should face the crisis of the safety net for farm households.

Irish Farmers' Association

*Excessively high level of tariff reduction is applied to the non-sensitive products.
*It requires significant compensation for the designation as sensitive products while not referring to the review of food safety, environment and other standards in exporting countries.

Zenchu

*It does not contain any concrete non-trade concern such as food security.
*The increase in tariff-rate quotas for sensitive products and reduction of tariff for non-sensitive ones provided for in the text might have a devastating effect on the agriculture in importing countries.
*Drastic improvement is necessary for the number of sensitive products.

U.S. National Association of Wheat Growers

*The reduction of domestic subsidies is larger than that in U.S. proposal.
*As U.S. has already presented its remarkable proposal, other member countries should respond to it. Tariff reduction and other market access negotiations are the most important key to the conclusion.

（Source: Based on the data from Zenchu）

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