ࡱ> oqn C0bjbj]q]q (j??5( J J     !!!!8Y,!CIHHHHHHHJMH H  H~  HH,Cl  tGpR!D*H4I0CIDNNTtGtG" HJ :   Session 23: Rebalancing the rights of importers and exporters: How to address agricultural export restrictions? Sub-theme I: Food security Moderator Mr Nicolas Imboden, Executive Director, IDEAS Center and IPC member Speakers Mr Bipul Chatterjee, Deputy Executive Director, CUTS; Head, CUTS CITEE Dr Dmitri Rylko, General Director, Institute for Agricultural Market Studies (IKAR), Moscow Dr Debapriya Bhattacharya, Centre for Policy Dialogue, Bangladesh; IPC member Ms Arancha Gonzlez Laya, Chief of Cabinet, Office of the Director-General, ϲʹ Organized by International Food & Agricultural Trade Policy Council CUTS International Report written by Mr Thom Achterbosch, Senior advisor for Europe, International Food & Agricultural Trade Policy Council Tuesday, 20 September, 14:00 - 16:00 Summary Over the past four years, food prices have repeatedly jumped to crisis levels. Over two dozen governments, all from low- and middle-income countries, have responded with policies that curtail exports of agricultural products in order to promote national food security. Such measures have been shown to trigger further price increases on the world market, and to make world markets a less reliable source of food supplies in both the short and the long run. The existing international trade rules impose few disciplines on export restrictions, and are primarily focused on the rights of exporters. There have been proposals to put in place greater rights for importers, most recently from G20 agricultural ministers and from the group of low-income net food importing countries, as part of the Doha Round negotiations. This discussion examined the motivations behind agricultural export restrictions and their impacts on price volatility in the world food market, and on the access to food in low-income food importers. The panellists explored whether and how international trade disciplines on agricultural export restrictions can be improved. In particular they addressed the question of the kinds of rules regarding notification, limitation, and special and differential treatment that the international community should agree to with regard to agricultural export restrictions. A panel of ambassadors and policy advisors examined the political factors involved when advocating rules governing export restrictions. The ultimate aim has been to speed up the process towards much-needed progress on this dossier. 1. Presentations by panellists More and more experts agree that the fundamentals of the world food market have changed substantially. If the world is indeed moving into an era of higher and more volatile prices, there are significant implications for food security in low-income regions that rely on food imports from the world market. This presents a need for rule-making focused on the instruments and actions of food exporters. Yet in past decades, the trade community under GATT and ϲʹ has been more concerned with situations of food surpluses and depressed prices. This calls for a rebalancing of importers and exporters rights under the ϲʹ, said Mr Chatterjee in his introduction. (a) Rebalancing trade rules The discussion recalled the long-standing debates about export restrictions under the GATT/ϲʹ. Panellists agreed that export restrictions are not a new phenomenon, and that there are no easy solutions. Ambassador Yoichi Otabe, Permanent Representative of Japan to the United Nations and other international organizations in Geneva, reminded participants of efforts by his country to advance rule-making in this area from the early days of the Doha Round. Export restrictions are also relevant in other sectors, in particular on rare earth materials, but agricultural export restrictions merit particular attention given their link to food security. It is important to keep the existing rules in mind: quantitative restrictions are banned under the GATT 1994 Rules, although there are notable exceptions that have made it easy for countries to justify export restrictions. GATT 1994 states, in Article XI paragraph 2(a), that the prohibition on export restrictions does not extend to restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party. While such language provides a basis for disciplining export restrictions, substantial efforts are required to better define key terms, such as temporarily and critical shortages, and the ϲʹ Agricultural Committee should undertake such efforts. The Agricultural Committee was urged to elevate the profile of export restrictions in its deliberations. (b) Focus on transparency and dialogue and abide by existing rules Several contributors suggested that a practical and potentially potent way of raising the Committees profile on export restrictions is for members to insist on a better implementation of existing rules on transparency. There are clear notification rules under Article 12 of the Uruguay Round Agreement on Agriculture, which have hardly been followed (even though providing information on trade policies is part and parcel of ϲʹ membership obligations). Article 12 stipulates that any ϲʹ member implementing export restrictions shall give due consideration to the effects of such prohibition or restriction on importing Members food security, give notice in writing, as far in advance as practicable, to the Committee on Agriculture comprising such information as the nature and the duration of such measure and consult, upon request, with any other Member having a substantial interest as an importer with respect to any matter related to the measure in question. Panellists from the missions of Egypt, Japan, the Netherlands and the United States, agreed that existing rules are not perfect. Ms Gonzlez voiced the widely shared sentiment that We may not be able to craft big rules on export restrictions in the present, but we should abide by the existing rules. Participants emphasized that improved transparency and information on export restrictions would facilitate dialogue among members. It could also make an important contribution to the transparency and dialogue efforts launched under the G20 process, in particular the new agricultural market information system (AMIS). (c) Ramifications and solutions go well beyond the trade agenda Food inflation has risen across the world, but many low-income net food importing countries (NFIDCs) have experienced particularly profound food crises with rising food insecurity and deep ramifications on their macroeconomic fundamentals, said Mr Bhattachariya. He recalled that the Marrakesh Agreement on NFIDCs and subsequent conferences issued calls to eliminate measures on food imports into the least-developed countries. Yet, as pointed out by Mr Rylko, export restrictions are being imposed more frequently and rapidly in Kazakhstan, Russia and Ukraine. Livestock producers that rely on domestic feedstock supply have been observed to call upon the Russian government for restrictions. Following extraordinary droughts last year, the transparent export tax system was temporarily replaced with more trade-distorting export bans. This year, however, Russia is back on the world grain market as a major exporter. The April 2011 proposal of the NFIDCs also called for improved disciplines on export measures, as explained by Mr Mokthar Warida of Egypts Mission to the ϲʹ. This proposal has not been taken up in the trade debate, which so far is limited to carving out an exemption on export measures for purchases by the World Food Programme. It is important to keep in mind that the scope of that exemption in terms of volume on the global grains market is very limited, as Mr Gregg Young of the US Mission reminded the audience. It was also stated that the solution to the food crises lies to a large extent beyond the trade domain. Mr Pieter Gooren of the Netherlands Mission and other contributors highlighted the positive thrust of the G20 process, which includes a much-needed agenda on agricultural productivity and growth, in particular in developing countries. 2. Questions from the audience Spurred by some panel members outspoken preferences for enhancing the enforcement of existing rules, several participants called for more stringent disciplining of export restrictions. This would in part be motivated by the widespread use of such measures for reasons other than food security, including tax collection, environmental and health considerations and industry policy. Other participants connected the issue to the standstill in the agenda for agricultural trade reform. They questioned whether advanced rule-making on export restrictions would be possible given the fragile consensus in this agenda (e.g. on removal of export subsidies and increased transparency regarding domestic support) between the key players. The suggestion was made that the low-income net food importing countries, who particularly need to benefit from the rebalanced trade rules, stand to lose from the removal of the status quo on farm protection. The argument was that reduced farm support will curtail food supplies, thus contributing to price rises and more thin and volatile markets. In response, Mr Bhattacharya insisted on the need to protect vulnerable consumers from price shocks, but also reminded the audience not to underestimate the potential response in low-income countries. 3. Conclusion There are several options to improve disciplines on food export restrictions, as Mr Chatterjee pointed out at the session, even if only the humanitarian exemption seems feasible in the short term. He called for stepping up the dialogue in the Agriculture Committee. With population growth, dietary changes and more frequent climatic incidents expected over the next decades, more upheavals in the food system seem inevitable. In his summary of the session, Mr Imboden said that the disciplines on export restrictions can substantially be improved by ensuring enforcement of existing rules and operationalizing the definitions contained in present rules. 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