4. Export competition/subsidies in July 2021 draft agriculture negotiations text

The draft aims for decisions at the November 30–December 3, 2021 ministerial conference (“MC12”)

See also
New agriculture draft suggests nervousness in divided WTO

Previous: 3. market access | next: 5. export restrictions

By Peter Ungphakorn
POSTED AUGUST 3, 2021 | UPDATED AUGUST 3, 2021

Note: the official July 29, 2021 draft text for the WTO agriculture negotiations is here with a minor correction here. Links to all sections are here.

This page combines the two sections of the text on export competition, the chair’s assessment, and her draft

4          EXPORT COMPETITION

4.1.         On export competition, the text acknowledges the importance of transparency to ensure a proper implementation of the Nairobi Ministerial Decision on Export Competition as well as continuation of negotiations post MC12. References are made to the triennial reviews undertaken within the Committee on Agriculture and the Secretariat’s role in supporting Members to fulfil their transparency obligations.

4.2.         The text also builds upon elements contained in the recent submission JOB/AG/211 to suggest options aimed at helping Members to find a balanced way forward to enhance and streamline transparency requirements while taking into account concerns expressed by a large group of developing country Members cautioning against burdensome additional transparency requirements. In that regard, it has been suggested that the Secretariat could provide relevant trade-related data to ease the burden on Members.


Compare with new November 2021 text

EXPORT COMPETITION
DRAFT MINISTERIAL DECISION


The Ministerial Conference,

Having regard to Paragraph 1 of Article IX of the Marrakesh Agreement Establishing the World Trade Organization;

Recalling that the 2015 Nairobi Ministerial Decision on Export Competition (WT/MIN(15)/45 – WT/L/980) constituted an historic achievement in the reform of agricultural trade with the elimination of export subsidies and the introduction of new disciplines on export credits, export credit guarantees or insurance programmes, international food aid, and agricultural exporting state trading enterprises;

Emphasizing the importance of transparency in the Export Competition pillar to ensure an effective monitoring of the implementation of the Nairobi Decision by the Committee on Agriculture as well as to gain a better understanding of the various policies in place and to assist Members to negotiate possible additional disciplines focussing on the impact of measures with equivalent effect on international markets;

Building on the experience gained by Members in the Committee on Agriculture in reviewing Members’ practices in relation to export competition following the adoption of the Nairobi Decision;

Taking note of the proposals made by Members in this regard;

Decides as follows:

1.             Members reaffirm their commitment to ensure an effective implementation and monitoring of the Nairobi Decision.

2.            Members welcome in this regard the two Triennial Reviews of the Nairobi Decision undertaken by the Committee on Agriculture in 2018 and 2021, pursuant to paragraph 5 of the Nairobi Decision [including the report adopted by the Committee on Agriculture as a result of the Second Triennial Review in document G/AG/XX][, and commit to successfully conclude the Second Triennial Review at the first 2022 meeting of the Committee on Agriculture].

3.             With a view to better assisting Members in the implementation of the Nairobi Decision, Members invite the WTO Secretariat to pursue efforts to provide support as appropriate, based on a proper assessment of the challenges encountered by developing country Members who are not yet accustomed to responding to the annual Export Competition Questionnaire, including through ad hoc advice, information sessions, technical assistance and capacity-building support.

4.            Members agree to adopt the improvements to the annual export competition questionnaire as set out in Annex I. For Members facing difficulties in providing export data by product or product group1, the WTO Secretariat shall provide these data upon request by such Members.2

5.            With a view to providing contextual information to Members’ replies to the Export Competition Questionnaire, the WTO Secretariat shall also provide as a complement to the export data by product or product group by Member1, annual data on total world exports for the corresponding product or product group.2

           
1 As foreseen in item 9 of the section on export credit, export credit guarantees or insurance programs, item 8 of the section on international food aid and item 4 of the section on agricultural exporting state trading enterprises in Annex I.
            2 These data shall be based on the definition in terms of the Harmonized System classification for the respective product or product group provided by the Member, and be sourced from officially available international databases, data provided by WTO Members to the WTO Secretariat or other relevant easily accessible well-recognized sources.


6.            [In light of the changes introduced in the area of Export Competition following the adoption of the Nairobi Decision, Members commit to explore ways through an evidence-based process to streamline, update and clarify the notification requirements and formats under G/AG/2 in conjunction with the annual Export Competition Questionnaire taking into account the capacity constraints of some Members.]

7.            Members reaffirm their commitment to continue, after MC12, negotiations on Export Competition building on the evidence amassed during the review undertaken in the Committee on Agriculture, with a view to enhancing disciplines on export credits, export credit guarantees or insurance programmes, agricultural exporting state trading enterprises and international food aid, to ensure that there is no circumvention of the relevant disciplines which undermines export subsidy elimination commitments and to prevent non-commercial transactions from being used to circumvent such commitments. [Flexibilities, when appropriate, may include inter alia longer implementation periods.]


ANNEX I

EXPORT CREDIT, EXPORT CREDIT GUARANTEES OR INSURANCE PROGRAMS (EXPORT FINANCING)

Consistent with the Bali Ministerial Declaration on Export Competition, Members shall continue to provide information on Export Credit, Export Credit Guarantees or Insurance Programs within the context of an annual examination process, based on the following structure:

1.             Description of the program (classification within the following categories: direct financing support, risk cover, government to government credit agreements or any other form of governmental export credit support) and relevant legislation

2.            Description of Export Financing Entity

3.             Total value of export of agricultural products covered by export credits, export credit guarantees or insurance programs and use per program

4.            Annual average premium rates/fees per program

5.            Maximum repayment terms per program

6.            Annual average repayment periods per program

7.            Export destination or group of destinations per program

8.            Program use by product or product group

9.            [To the extent possible], annual data on total exports of the product or product group covered by export financing programs.

FOOD AID

Consistent with the Bali Ministerial Declaration on Export Competition, Members shall continue to provide information on International Food Aid within the context of an annual examination process, based on the following structure:

1.             Product description

2.            Quantity and/or value of food aid provided

3.             Description of whether food aid is provided on in-kind, untied cash-based basis and whether monetization was permitted

4.            Description of whether in fully grant form or concessional terms

5.            Description of relevant needs assessment (and by whom) and whether food aid is responding to a declaration of emergency or an emergency appeal (and by whom)

6.            Description of whether re-export of food aid is an option under the terms of the provision of food aid

7.            [ ]

8.            [To the extent possible], annual data on total exports of the product or product group for which the Member provides international food aid.

AGRICULTURAL EXPORTING STATE TRADING ENTERPRISES

Consistent with the Bali Ministerial Declaration on Export Competition, Members shall continue to provide information on Agricultural Exporting State Trading Enterprises within the context of an annual examination process, based on the following structure:

1.             Enumeration of State Trading Enterprises
               • Identification of state trading enterprises
               • Description of products affected (including tariff item number(s) encompassed in product description).

2.            Reason and purpose
               • Reason or purpose for establishing and/or maintaining state trading enterprise
               • Summary of legal basis for granting the relevant exclusive or special rights or privileges, including legal provisions and summary of statutory or constitutional powers.

3.             Description of the functioning of the State Trading Enterprise
.               • Summary statement providing overview of operations of the state trading enterprise
.               • Specification of exclusive or special rights or privileges enjoyed by the state trading enterprise.

4.            [To the extent possible], annual data on total exports of the products affected.

Additional information subject to normal commercial confidentiality considerations

1.             Exports (value/volume)
2.            Export prices
3.            Export destination.

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Updates: None so far
Image credit: Background aerial shot of farmland | Julian Ebert, Unsplash, CCO

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