Ag, NAMA and S&DT Issues for HK

Geneva Agriculture, nonagricultural market access and Special and Differential Treatment for developing countries will be the most difficult issues for trade ministers to tackle at the upcoming Hong Kong ministerial, said World Trade Organization Director General Pascal Lamy yesterday (WTD, 11/28/05).

The Director General said negotiators must "focus" their attention on the three issues this week putting aside the other aspects of the Doha Development Agenda negotiations for now. He made the remarks at an informal heads of delegations meeting.

There are three categories of issues in the draft text that was circulated to members over the weekend. First, "issues where there was high degree of convergence/agreement in consultations or meetings" such as Dispute Settlement Understanding reform, trade facilitation, technical cooperation, the Integrated Framework and rules.

In the second category, Mr. Lamy placed services including the separate issue of benchmarks trade and the environment and electronic commerce.

The third and toughest category includes agriculture, NAMA and S&D where there is "no declaration-type language or competing texts."

"On agriculture and NAMA, very significant divergences remain both within them as well as in the relationship between them," the WTO chief said. Despite divergence in S&DT proposals, they can be improved "if not in substance at least in the way the issues are presented for the consideration of ministers."

Clarity of Texts

US Ambassador Peter Allgeier told WTD that members should aim for the same degree of specificity and clarity in both agriculture and NAMA. He said ministers in Hong Kong must be provided clear texts.

The European Union continued to resist the inclusion of specifics including numbers in the draft texts on agriculture and NAMA, trade diplomats told WTD.

Speaking for the Group-of-20 developing country coalition, Brazil said attempts should be made in agriculture to improve the ministerial draft by highlighting areas of convergence in the chair's report and introducing them in the main text of the declaration. Ambassador Clodoaldo Hugueney conceded that it will not be an easy task. But, some central issues should be identified for ministers to negotiate, nonetheless. In agriculture, they should cover the central elements in the three pillars, while keeping in mind the need for proportionality of commitments.

Benin which is leading three other West African cotton producing countries called for a "down-payment" at Hong Kong by having all major industrial countries agree to eliminate export subsidies and pledge substantial reduction in trade-distorting domestic subsidies in the sector.

Nepal said there should be a clear package for developing countries in the five areas already identified by the least-developed countries.