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WTO DDA Negotiations

Policy Position

• FDF supports a successful negotiation, conclusion and implementation of the WTO Doha Development Agenda (DDA) which would result in improved access to agricultural raw materials at competitive prices and to export markets for value added food and drink products for the UK manufacturing industry. This is vital for the long term economic wellbeing of the sector as a whole. ­
• FDF welcomes the latest WTO Agriculture “modalities” text to provide a new basis for agriculture negotiations to conclude the DDA. FDF members look to the DDA to produce further trade liberalisation and a fairer and clearer set of multilateral trading rules ­
• As such, it is a FDF priority to ensure that WTO negotiators maintain a balance between the three pillars of the Agriculture negotiations – market access, domestic support and export competition - and that there is a coherent approach in the treatment of processed products and their component raw materials ­
• With this in mind, FDF will continue to contribute into these important negotiations with the European Commission, the UK Government and others.

Background

1. In 2001, World Trade Organisation (WTO) members launched a new round of multilateral trade negotiations under the Doha Development Agenda. Negotiations have been ongoing with progress in narrowing members’ differences being made at the Hong Kong Ministerial Conference in December 2005. Some gaps however remained unbridgeable and WTO Director-General Pascal Lamy suspended the negotiations in July 2006. Negotiations resumed in early 2007 and in July 2008, a Ministerial meeting took place which made considerable progress on agriculture. Unfortunately, Ministers failed to reach an agreement on safeguard mechanisms for developing countries against an influx of third country imports. Technical talks have continued to take place, seeking to take advantage of the progress already made.
2. The DDA mandate focuses on five main dossiers – Agriculture, NAMA, Services, Trade Facilitation and Development. The UK food and drink manufacturing industry is primarily interested in the Agriculture negotiations. The three pillars within the Agriculture negotiations are:
   i. market access – trade restrictions to imports i.e. tariffs
   ii. domestic support – subsidies and other programmes for farmers
   iii. export competition – export subsidies to make exports artificially competitive.
3. FDF members look to the DDA to produce further trade liberalisation and a fairer and clearer set of multilateral trading rules. It is therefore essential for our industry’s growth that the DDA is successfully concluded. Crawford Falconer, Former WTO Agriculture Chairman, published a draft 'modalities' text last year, following the Ministerial meeting in the summer, which contains the parameters for the agreement on agriculture. Don Stephenson, WTO NAMA Chairman, has also published a revised modalities text. It is hoped the new WTO Agriculture Chair David Walker and new NAMA Chair Luzius Wasescha will continue to engage with WTO members and seek agreement on these modalities later in 2010.