WTO backs agricultural reforms, split on Doha

“This is a great achievement, something successive governments and generations of New Zealand trade negotiators have fought long and hard to achieve, and a great way for Minister McClay to kick off his new role” said DCANZ Chairman, Malcolm Bailey.

The decision was taken to ensure that the food security initiatives do not compromise the broader deal of ensuring the playing field in agricultural trade is level to allow all players to compete equitably.

According to the Nairobi Declaration approved at the conference, developed members shall immediately eliminate their scheduled export subsidies while the developing country members shall do so by 2018.

Trade ministers have paved the way for a much more focused approach to removing trade barriers in future by cutting a deal on farm export subsidies but failing to endorse the global negotiations that have been at the heart of world growth since World War II. “We pledge to strengthen the multilateral trading system so that it provides a strong impetus to inclusive prosperity and welfare for all Members and responds to the specific development needs of developing country Members, in particular the least-developed country Members”.

Cecilia Malmström, welcoming the deal, said “We’ve had some long days and nights of intense negotiations here in Nairobi, and our work has paid off. The EU has successfully concluded what we set out to achieve”.

On the controversial USA and European Union proposal to expand the WTO agenda into new issues, the Nairobi declaration states simply: “some wish to identify and discuss other issues for negotiation; others do not”. We have delivered on our objectives outlined ahead of the negotiations. Now, for the first time, there are binding disciplines on subsidies such as export credits, where our competitors are subsidising trade worth billions every year. “The food aid deal will mean less displacement of local African production, which means it’s good for African farmers and good for the Migration agenda”.

“Today’s decision tackles the issue once and for all”.

As per the draft ministerial decision, the WTO members reaffirm their commitment, pursuant to the 2013 Bali Ministerial Declaration on Export Competition, to exercise utmost restraint with regard to any recourse to all forms of export subsidies and all export measures with equivalent effect. This move is crucial to bring additional manufacturing businesses to Africa and assemble goods for re-export, towards which end many countries have already established export processing zones.

US Trade Representative Michael Froman said the agreement “marked a turning point”.

During the conference that kicked off Tuesday, Afghanistan and Liberia, two LDCs, were also approved to join the WTO. Emerging economies have repeatedly alleged they were being sidelined on the issues of reducing farm subsidies and providing protection to poor farmers. “It does some things that are important, but they are agreeing to disagree on Doha”.