US calls for SR Officials MTG for G-12, plus spec products

Geneva - The United States has called for a senior officials meeting of the Group-of-12 countries next week to review the state of progress in faltering Doha modalities negotiations, WTD was told (WTD, 5/5/06).

In a fax to members of the G-12 - that include the United States, the European Union, Brazil, India, Australia, Japan, Canada, Malaysia, Egypt, Norway, Kenya and China - US Ambassador Peter Allgeier said the meeting will take place between May 17 and 19 to discuss all the key issues.

Meanwhile, Australia is considering hosting a small meeting for trade ministers attending the annual Organization for Economic Cooperation and Development ministerial meeting in Paris which starts May 23, sources said.

The 'Special Products' Debate

Geneva - Wrapping up the first week of intensive negotiations in a six-week push to finalize a text on negotiating modalities in domestic supports and market access, agriculture negotiations chair Crawford Falconer said Friday that there was nothing that would lead to a sense of profound change (see related report this issue).

But, the chair added, "The intensity is significantly up, the engagement is definitely there, we're actually starting to try and negotiate on some stuff." He addressed members in an informal open-ended meeting.

World Trade Organization negotiators remain sharply divided over the treatment of "special products" for developing countries and "sensitive products" for industrialized countries as well as specific flexibilities for newly acceded members.

A reference paper issued by the chairman last Thursday on "special products" became the focal point of a deepening rift between farm exporting industrialized countries and some larger developing countries on one side and the developing-country Group-of-33 coalition which is seeking substantial flexibility in using the special instrument.

Farm exporting developing countries such as Thailand, Malaysia and Chile defended the Falconer paper, saying the chairman is justified in calling for an assessment of the likely trade impact from the substantial flexibilities sought by the G-33. Thailand had earlier proposed strict criteria relating to how "special products" are to be designated and listed broad indicators for using the flexibility.

The United States has suggested that no more than five tariff lines be designated as "special products" per country and set out stringent criteria for their treatment.

G-33 Sharply Disagree

But G-33 leaders - which include Indonesia, India, China and Kenya, among others - sharply attacked the chairman's proposal in a small "Room F" meeting held Friday. They slammed the chairman for changing the terms of the debate - particularly his suggestion that the trade impact of "special products" must be carefully assessed.

At issue is the chair's observation in the reference paper that the G-33 proposal seeking 20-percent of tariff lines as eligible "special products" could create a big loophole in market access since it would allow some developing countries to exempt over 94 percent of their farm products from formula-based tariff cuts.

Mr. Falconer's assessment, WTD was told, was anchored on a WTO Secretariat study he had requested.

India and Indonesia called for a revised paper more in line with the mandate for "special products" which gives developing countries the right to designate an "appropriate" number of farm products as "special products."

Both argued that the chair was wrong to assume that products would be selected on the basis of their trade impact. The G-33 is seeking "special products" because of food security, livelihood security and rural development. The reference paper "amounts to a re-negotiation of the mandate," Indonesia said.

It is likely that Mr. Falconer will issue a revised paper, WTD was told.