Talks continue on export competition

The USA has called for a five-year deadline for the elimination of agricultural export subsidies at an informal meeting of the WTO Committee on Agriculture on June 3rd-4th 2002, according to the ICTSD BRIDGES Weekly Trade News Digest. . In its report it noted, however, that this demand came at a time of heavy criticism of the US Farm Bill, and pointed out that the EU rejected the establishment of such deadlines as inconsistent with the Doha commitments. These refer only to reductions in all forms of export subsidies, with a view to phasing them out. The EU for its part has consistently sought inclusion of export credits and the activities of state-trading enterprises in discussions on export competition. On the issue of food aid, proposals were made for all food aid to be controlled by an independent body such as the World Food Programme, so that it could not be used as a tool for dumping. However no agreement has been reached on future disciplines on the use of export subsidies, export credit guarantees, and insurance; food aid, the operations of state trading enterprises and export restrictions and taxes as noted in The June 26th BRIDGES report. Widely divergent views were apparent over the whole range of issues discussed. Comment: With OECD countries using different tools to support their agricultural sectors, the major players want to see stricter disciplines in those areas which others use, whilst allowing continued scope for support in the forms most favoured by their own policy makers. In the mean time ACP countries without the resources to support such export competition can find their markets flooded by subsidised products from one OECD supplier or another.The USA has called for a five-year deadline for the elimination of agricultural..