Agriculture: ACP Group proposes lower tariff cuts for developing countries

The African, Caribbean and Pacific (ACP) Group of countries in the WTO on Fridayt 21 October submitted a proposal on market access in agriculture, with its own set of thresholds in the tariff reduction formula for developed and developing countries, and with suggested tariff reduction rates for developing countries.

The ACP paper was presented by the Group coordinator, Mauritius, at an informal agriculture meeting on market access held at the WTO Friday morning.

The proposal was supported by many members of the Group, while several other developing countries welcomed the fact that the ACP Group was engaging in the process with its own proposal.

The ACP proposal's most notable feature is that developing countries are required to reduce their tariffs by lower rates than the rates contained in other proposals, such as those of the US and the Group of 20 developing countries.

The proposal is however silent on what should constitute the tariff reduction rates for developed countries.

The paper proposes four bands with different thresholds for developing and developed countries.

For developing countries, the thresholds for tariff lines are 0-50%; 50-100%; 100-150%; and 150% and above. The proposed reduction rates are 15% for the lowest tier and 20%, 25% and 30% for the other tiers respectively.

These reduction rates are significantly lower than those proposed for developing countries by the US and G20. In addition, the ACP said that the overall average reduction for the developing countries should not exceed 24%.

For developed countries, the thresholds are 0-20%; 20-50%; 50-80%; and 80 and above. It has not given reduction rates for these countries, saying it will soon provide numbers.

The proposal also rejects the setting of caps (maximum levels) on tariffs for developing or developed countries. The US, G20 and EU proposals have accepted tariff capping.

The ACP paper also covered other aspects, such as the treatment of developing countries with ceiling bindings, long standing preferences, sensitive products, special products and special safeguard mechanism.

The ACP countries indicated that they are putting forward their own proposal as they differed in their views with positions in several areas put forward by the other members and groupings. They wanted to ensure that the reform in agriculture is compatible with the financial and development needs and policy objectives of the ACP countries.

The ACP proposal rejects the harmonising or progressive formulae within the bands. Instead it proposes a linear uniform cut within the various bands, and with flexibility to allow for certain tariff lines within the bands to be cut less.

Furthermore, it proposes that developing countries with tariff ceilings and homogenous low bindings, be subject only to overall average reduction, and be exempted from undertaking any cuts in the highest of the tiers, whatever thresholds are agreed for the tiers.

In its paper submitted to the informal open-ended meeting of the Committee on Agriculture (Special Session), the ACP stated that "the group will not accept an outcome in the market access negotiations that disproportionately places the burden of reform on developing countries".

It added that the contribution that the group is willing to make to the reform process that is conditioned on the "full and satisfactory operationalisation of the Doha mandate on Special and Differential Treatment for developing countries in all the pillars of the negotiations".

The ACP group also stressed the importance of a transparent and inclusive process at this critical moment in the negotiations. "The ACP is not willing to accept a fait accompli in the negotiations", the paper stated, adding that the group expects to be closely involved in the consultations,