The US Proposal on agriculture has potential to push Doha Round negotiations to an ambitious conclusion – ECA
By Andrew Allimadi, Communication Officer, ECA
17 October 2005

The recent US proposal at the World Trade Organization (WTO) for the liberalization of international trade in agriculture has the potential of moving the Doha Round negotiations towards an ambitious and successful conclusion. However, analysis by the United Nations Economic Commission for Africa (ECA) and its affiliate, the African Trade Policy Centre (ATPC) shows that the benefits likely to accrue to African countries from this proposal could be easily eroded depending on the treatment of “sensitive products.”

The US proposal, initially floated on the 10th October, proposes linear reductions on four tariff bands, with the highest tariff lines being subjected to the largest tariff reductions. At face value, this could be very beneficial to African exporters as it will greatly reduce tariffs payable on agricultural exports to rich countries, and would particularly reduce tariff peaks and other high tariffs. However, it is still not clear how the issues of sensitive and special products will be treated.

While sensitive and special products were mentioned in previous negotiations which resulted in the WTO July Package, where countries will be allowed to select certain products for exclusion from the general tariff reduction agreements, the ECA/ATPC briefing says: “If developed countries are allowed to exclude certain products of interest to African exporters from the agreement, then this proposal’s potential benefit to Africa will be eroded or completely diminished”. Products such as rice, other cereals, beef and sugar, are some of the main agricultural exports from Africa, but also attract the highest tariff rates in developed countries.

The ECA analysis recommends that African trade negotiators should pay close attention to the list of sensitive products that will emerge in later stages of the negotiations. The ECA paper states that: “ the persisting result and conclusion is that any level of ambition is going to be eroded by high levels of sensitive products.” It further adds that if Africa loses potential gains from ambitious tariff cuts to sensitive products; the effect will be like giving with one hand and taking away with the other.

ECA further recommends that African countries should insist on clear and workable rules for special and differential (S&D) treatment at the WTO. S&D was central at the launch of the Doha Round and is one of the key elements that can make the outcome of the Round truly developmental. Key features of S&D should mean that developing countries will not have to cut tariffs as deeply as developed countries; and will be given a longer time frame to implement tariff-reduction agreements. This will allow African countries the policy space needed in order to strengthen the agricultural sector and support development in other spheres of Africa’s social and economic sectors.

Click here for a full copy of the ECA briefing note.