Agricultural trade, WTO disciplines and nutrition

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1 Agricultural trade, WTO disciplines and nutrition Meeting of the minds on nutrition impact of food systems Cedric Pène, WTO Geneva 25 March 2013

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3 Outline Some figures on agricultural trade The Agreement on Agriculture The SPS Agreement The TBT Agreement Concluding points 3

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5 Main exporters 2011 (US$ Billion) Canada 60 USA EU 626 China 65 Brazil 86 TOTAL EXPORTS :

6 Main importers 2011 (US$ Billion) 185 USA 137 EU 655 Russia 41 China 145 Japan 96 TOTAL IMPORTS :

7 Repartition of agricultural trade (US$ million) 1,200, ,000, , Processed products 600, , Semi-processed products Horticulture Bulk products %processed/total 200,

8 The Agreement on Agriculture

9 Structure of the Agreement Market access Domestic support Export competition Tariffs Green Box Export subsidies Tariff rate quotas Special safeguards Blue Box Article 6.2 Development Programmes Amber Box Anticircumvention Export prohibitions and restrictions

10 Domestic support: The Boxes Trade distorting Domestic support Article 6.2 Development support De minimis Blue box Production limitation prgms Green box non or minimally trade distorting

11 Producer support Estimates by country, 2010 and 2011 (OECD) Per cent of gross farm receipts 11

12 Producer support Estimates by country, and (OECD) Per cent of gross farm receipts 12

13 Market access import duties Based on WTO World Tariff Profile

14 Agreement on the Application of Sanitary and Phytosanitary Measures The right to protect human, animal or plant life or health Avoiding unnecessary barriers to trade

15 SPS Measures Definition - Annex A A measure taken to protect: Human or animal health Human life Animal or plant life A country from from from from risks arising from additives, contaminants, toxins or disease organisms in food, drink, feedstuff plant- or animal-carried diseases pests, diseases, disease-causing organisms other damage caused by entry, establishment or spread of pests 15

16 Key Provisions Non-discrimination Scientific justification harmonization risk assessment consistency least trade-restrictiveness Equivalence Regionalization Transparency Technical assistance/special treatment Control, inspection and approval procedures 16

17 Agreement on technical barriers to trade National security requirements, Ensure the quality of its exports, the protection of human, animal or plant life or health, of the environment, the prevention of deceptive practices, at the levels it considers appropriate Etc Avoiding unnecessary barriers to trade

18 The agreement on technical barriers to trade Technical Regulation Standard Mandatory Measures Voluntary Measures Conformity Assessment Procedure

19 The Agreement on technical barriers to trade TBT Applies To: All Industrial And Agricultural Products TBT SPS TBT Does Not Apply To: SPS Measures WTO-OMC 2004 Singapore 19

20 SPS or TBT? SPS Measures human or animal health from food-borne risks human health from animalor plant-carried diseases animals and plants from pests or diseases examples: pesticide residues food additives TBT Measures human disease control (unless it s food safety) nutritional claims food packaging and quality examples: labelling (unless related to food safety) pesticide handling WTO-OMC 2004 Singapore 20

21 Key Provisions Non-discrimination Least trade restrictiveness Harmonization Equivalence Regionalization Mutual recognition of Conformity Assessments results Transparency Technical assistance/special treatment 21

22 Concluding points Rule based and more open trading system plus reduction of distorting domestic policies contribute to economic growth, global food security and more efficient allocation of production between countries (in particular to the benefit of developing countries). The WTO rules on agriculture impose limits on trade distorting policies, but preserve flexibilities especially for developing countries Members. Thanks to trade, diversification of the products available on a market. Knowledge gap? WTO disciplines (in particular TBT and GATT 94 Agreements) provide a legal framework to be respected by technical regulations and standards related to nutrition. 22

23 Thank you 23