U.S. Advocates Sectoral Approach In WTO Agriculture Trade Negotiations

GENEVA--The United States has called for the use of a sectoral approach for cutting tariffs and reducing subsidies for agricultural goods which would result in more ambitious commitments on products of export interest.The U.S. proposal, outlined to a March 16-17 informal meeting of the WTO's negotiating group on agriculture, would specifically target tariffs and subsidies for beef, pork, poultry, oilseeds, barley, fruits and vegetables, distilled spirits, and some processed products.

The United States did not spell out the details of its proposal, other than to say that it should result in deeper reduction commitments for products covered by the initiative. Trade officials following the talks said it appeared to be the first time that the United States has advocated such an approach and identified specific products.

Colombia and Costa Rica also called for a sectoral initiative focusing on flowers, which they argued would mainly benefit developing countries.Colombia in specific called for a WTO agreement on reducing the tariffs to zero.Cool Reception

Officials taking part in the meeting said that the initiative received a cool reception. Developing countries such as Argentina, India, and Kenya voiced their opposition, with India expressing concerns that it would undermine the special and differential treatment promised to developing countries.Canada and New Zealand expressed interest in the initiative but argued that WTO members should first concentrate their efforts on finalizing the formula for reducing tariffs. WTO members have due to reach an agreement on the formula and the specific figures for reducing tariffs by the time of the organization's Dec. 2005 ministerial conference.

Washington has also advocated a sectoral approach in the separate Doha Round negotiations on nonagricultural market access (NAMA), with a mixed degree of success. The U.S. approach in NAMA is based on the concept of 'critical mass,' whereby a deal on substantially reducing or eliminating tariffs for certain products would be contingent on the participation of the major exporting and importing countries.