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Export-Subsidies ban Vital to WTO Talks
The dairy industries in
the United States and the Global Dairy Alliance nations of Argentina,
Chile, Brazil, Uruguay, New Zealand and Australia — which together
represent two-thirds of global dairy trade — last month agreed that
totally eliminating dairy product export subsidies is essential to
successful negotiations within the World Trade Organization (WTO).
These nations came together to make the following
joint announcement in Washington:
“Export subsidies are highly trade-distorting
and depress world markets, with particularly harsh effects on dairy
producers around the world.
“Export subsidies for industrial goods were
banned within the GATT more than 40 years ago, resulting in great and
enduring benefits to trade, and the increased economic prosperity of both
developed and developing countries.
“Although the Uruguay Round imposed important
disciplines on world agricultural trade and subsidies, it left in place a
number of inequities that have perpetuated an unfair trading system in
agricultural products. This is particularly true for dairy products.
“We believe that the total elimination of export
subsidies is essential to deliver the broader Doha reform mandate. The
current trade negotiations on a framework text offer a unique opportunity
to finally eliminate export subsidies.
“We welcome the willingness by the European
Union to consider the elimination of export subsidies, but it should be
viewed in the context of an ambitious outcome across all three pillars of
support.
“To provide a commercially sustainable adjustment process
for dairy products, the phased elimination of export subsidies should include
transition measures such as:
Placing a limit on the ‘per unit’ subsidy and phasing the limit down over time.
Prohibiting the ‘roll-over’ of export-subsidy provisions (such that countries with export-subsidy commitments cannot exceed their commitment in any one year).
Eliminating the use of component subsidies.
Maintaining the disaggregation commitments of export subsidies.
Establishing a simultaneous period of elimination for all products.
Establishing a time frame for elimination that is not greater than comparable time frames in increased market access.
Placing a limit on the ‘per unit’ subsidy and phasing the limit down over time.
Prohibiting the ‘roll-over’ of export-subsidy provisions (such that countries with export-subsidy commitments cannot exceed their commitment in any one year).
Eliminating the use of component subsidies.
Maintaining the disaggregation commitments of export subsidies.
Establishing a simultaneous period of elimination for all products.
Establishing a time frame for elimination that is not greater than comparable time frames in increased market access.
“The elimination of export subsidies is of
particular importance to developing countries in the Doha Development
Round.”
The U.S. dairy industry is represented by the National
Milk Producers Federation, the U.S. Dairy Export Council and the
International Dairy Foods Association. df
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