NCGA
Notes Disappointment in WTO Agriculture Negotiation Setback (03-24-05)
The National
Corn Growers Association (NCGA) today expressed disappointment in
the setback in World Trade Organization (WTO) agriculture negotiations
when members last week broke off talks on establishing a common methodology
for farm tariff conversions.
Talks were suspended
late March 17 due to continued differences between the European Union
(EU) and the G-10 alliance (Switzerland, Norway and Bulgaria) on one
side and the far exporting nations (Brazil and the United States)
on the other, regarding the conversion of specific tariffs for products
traded under the most distorted markets.
Tim Groser, chairman
of the WTO negotiation group, gave no indication when the talks would
be reconvened. One trade diplomat said that the “delay
would not doubt impact efforts to finalize the methodology and complete
the conversions for submission to WTO by the end of April.”
Negotiators are still hopeful that they can get something in the next
few weeks.
Completion of
tariff conversions are considered by many WTO members a prerequisite
to negotiations on the tariff formula, which is the key element for
market access for agriculture, said June Silverberg, NCGA director
of public policy. WTO members agreed as part of their Aug. 1 framework
package for advancing the Doha Round trade talks that tariffs will
be cut using a tiered (“banded”) formula that will lead
to greater harmonization in tariff levels across countries. The harmonization
of domestic support levels is a key U.S. objective.
On Feb. 14, Tim
Groser, chairman of the WTO negotiation group, warned that WTO members
would need to agree on a conversion methodology within weeks if the
goal of finalizing a formula for the Hong Kong ministerial in December
is to be met.
Negotiators have
been meeting in Geneva since March 13 in an effort to strike a deal
on how to convert specific tariffs and other non-ad valorem tariffs
into ad valorem equivalents (AVEs) for use in an eventual tariff-cutting
formula. Ad valorem tariffs are based on the market value of a product.
Values must still be calculated for products traded in highly distorted
markets where “normal” global prices do not exist.
The United States,
European Union, Switzerland, Norway and Bulgaria are the WTO members
with the most specific tariffs on agricultural imports. The
EU’s 25 member states have more than 7,000 non-ad valorem tariff
lines, while nearly all of Switzerland’s farm tariff lines are
specific tariffs.
Last reviewed
March 24, 2005