Doha Development Round – the current challenges

Liz Stuart, Oxfam, May 24th 2006

State of the round

Long way from the developmental objectives US and EU still driven by mercantilism, ‘tit-

for-tat’ Bad offers on the table in both market access

and domestic support Time pressures. Oxfam still wants a good

deal, but dcs shouldn’t sign a bad one

The answer……

US and EU need to improve their offers on agriculture….but not at the price of aggressive position in Nama

The policy solutionswhat developed countries must do

Domestic support- Real cuts, not just water- Caps and product-specific

caps- Ban on updating- Box-shifting needs to stop- Green Box review- No peace clause

Market access- Real market access – not

just overhang- Cutting tariff escalation- Sensitive products must not

hurt dcs

What developing countries need

2/3ds cuts in agricultural tariffs Special products Operational SSM Aid for trade

And LDCs?

50 LDCs but only account for 1% of world trade Offensive interests - they benefit from elimination of

trade-distorting support too (eg Zambia) And need additional market access- Dfqf 100% (looking at volumes)- Better Roos Defensive interests – SSM and special products

… and cotton, food aid, IF, adjustment costs, trade facilitation

The politics

US – won’t move until EU gives better market access

EU – won’t more until US improves domestic support offer

G20 – no move until they get what they want in ag

G33 – SP/SSM deal breaker

G90 – dfqf, cotton, food aid

EU and US need to move. But if they don’t …..

……. there’s always the legal route

11 new potential panel cases – $13bn dollars of illegal subsidies

Potential panel cases

EU- tomatoes- canned peaches- canned pears- citrus fruit juice- wines and spirits- tobacco- butter- skim milk

US- corn- rice- sorghum