US Sticks to October 2005 Ag Position

Geneva A senior US farm trade official on Friday restated Washington's negotiating policy for an "ambitious" outcome to the Doha Development Agenda negotiations, arguing that the G-20 framework falls well short of US expectations especially relating to the formula tariff-cutting thresholds for developing countries (see related report this issue).

Assistant US Trade Representative for Agriculture Jason Hafemeister said the G-20 framework, in some respects, is not in the middle ground as regards thresholds and tariff cuts for developing countries. "For developing countries, the G-20 has not offered very much at all," he declared.

Doha farm negotiations chair Crawford Falconer has said the G-20 plan would eventually emerge as the "middle ground" where real negotiations will take place.
Mr. Hafemeister told reporters the G-20 tariff cuts of 40 percent in the highest tariff band falls well short of the 90 percent reduction proposed by the United States last October.

But a senior trade negotiator from the Group-of-33 developing countries that is seeking special flexibilities for developing countries denounced the US official's remarks as "wishful"thinking. He said the US proposal is a sure recipe for disaster.

The US official also argued that Washington will not move into product-specific bilateral negotiations until it knows the "core" modalities. He suggested that side deals with the European Union on the treatment of sensitive products and expanded tariff-rate quotas will not take place without core modalities in place.

USTR's Hafemeister also emphasized that product-specific caps in the "de minimis" part of the "amber box" should not be introduced.

Both the European Union and the G-20 coalition of major developing countries have slammed the US position on "de minimis," saying the US stance would allow a "huge shelter" for some important products.

The US official also insisted on a "peace clause" in the final agreement that would protect US agriculture producers from countervailing and antidumping charges.