| CCP: GR-RI-ME-OF 01/4
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| CCP: GR-RI-ME-OF 01/4
|
Point III.a(ii) of the Provisional Agenda |
COMMITTEE ON COMMODITY PROBLEMS |
JOINT MEETING OF THE
|
Rome, 4-5 July 2001 |
REVISION OF THE GUIDELINES FOR INTERNATIONAL COOPERATION IN THE OILSEEDS, OILS AND OILMEALS SECTOR |
1. At its 27th session in 1995, the Intergovernmental Group on Oilseeds, Oils and Fats decided to initiate a process of revision of the Guidelines in order to take account of the new trading regime and associated agricultural policies, after the conclusion of the Uruguay Round of Multilateral Trade Negotiations, and of the emergence of sustainability and environmental issues related to agriculture. The Group agreed that the Secretariat should circulate a questionnaire to its members in order to elicit their views. This questionnaire also included proposals for additions to the Guidelines to cover environmental issues and policies.
2. During the Group's 28th session in 1997, the Secretariat presented the results of the replies to the questionnaire 1 and suggested new language for the Guidelines (based on proposals made by members) for consideration by the Group. The approach to revising the Guidelines took into account similar exercises by the Intergovernmental Groups on Meat and on Rice.
3. A number of delegates provided detailed comments on the proposed changes to the Guidelines and/or made additional suggestions. Finally, the Group concluded that, given the number of revisions proposed and that further negotiations on some of the issues at hand would be taking place in the WTO, it needed to reconsider this matter at its 29th session. Hence, the Group asked the Secretariat to compile the various comments provided by delegates during the 28th session and submit them, together with those received previously, to all governments for review and comment and, possibly, further modifications. Accordingly, the Secretariat put together all the necessary information and dispatched a second questionnaire to member countries in 1999 to which a total of 12 countries responded 2.
4. In response to the Group's request, this document presents, in a tabular form, the results of replies by the individual governments to the Secretariat's questionnaires as well as the various comments and suggestions made by delegates during the 28th session. In general, the results show that the majority of countries were in favour of keeping the Guidelines without any modification to the text. However, there were a number of cases where some countries suggested modification or total replacement with new text and others where an outright deletion of the Guideline was proposed.
5. Table 1 presents a detailed compilation of the results of the Guideline revision exercise thus far. The first column of the table contains the original text of the Guidelines together with specific suggestions made by Group members either during the 28th Session or through responses to the Secretariat's questionnaires. Please note that underlined text refers to that portion of a Guideline that has been suggested for replacement by the bold print that immediately follows, unless otherwise specified. In the second column of the table, the Secretariat presents a summary description of the views expressed by member countries with regard to the different Guidelines and the accompanying proposals.
6. Taking into account the various recommendations made by member countries, the Group is invited to re-examine the Guidelines and discuss them fully during the forthcoming session, with a view to reaching a consensus regarding the text of the Guidelines as proposed for amendment by the different member states. In doing so, the Group may wish to consider the discussions currently ongoing within WTO in preparation for the next round of multilateral trade negotiations, especially in the field of agriculture.
TABLE 1: Guidelines for International Cooperation in the Oilseeds, Oils and Oilmeals Sector - Proposals for revision, deletion and addition of certain guidelines
Column 1 |
Column 2 |
Summary of Recommendations |
|
| A. SCOPE AND PURPOSE | |
| The main purpose of the guidelines is to help harmonise national policies
in the light of agreed objectives for the world oilseeds, oils and oilmeals economy. It is
understood that acceptance of the guidelines would reflect the intention on the part of
member countries to take them into account when considering the formulation of policies at
national and international levels. It is also understood that acceptance of the guidelines
would not subordinate national policies to a global blueprint. The role of the guidelines
is rather to serve as an overall framework within which each country would develop its own
policies affecting oilseeds and oils according to its circumstances on a voluntary basis. [It
is understood that for WTO member countries all trade related policies mentioned in the
Guidelines should be consistent with their Uruguay Round commitments]. Assessments would be undertaken of the progress made towards achieving the agreed objectives and policies covered in the guidelines. |
The majority of the respondents were in favour of retaining the original text. One member country was in favour of adding the proposed text (in bold) at the end of the Guideline. A couple of member states wanted the Guideline revised but did not provide alternative text. |
| B. GENERAL OBJECTIVES OF INTERNATIONAL COOPERATION | |
| The broad objectives of international cooperation should be to secure, within the context of a New International Economic Order [establishing a fair and market oriented agricultural trading system], a balanced expansion of production, consumption and trade in the oilseeds, oils and oilmeals sector. In the achievement of these objectives, the interests both of producers and consumers, as well as of exporting and importing countries, should be taken into account; an appropriate balance should be aimed at between the interests of developed and developing countries, with special attention to sustaining the expansion of the sector in developing countries [least developed countries] or [developing countries, especially least developed]. In particular, national and international measures taken should: | A clear majority of the respondents were in favour of keeping the
original text. A small minority favoured the change proposed (i.e. replacing the
underlined text with the text shown between square brackets in bold print) while a few
others wanted the Guideline revised but did not provide alternative text. Regarding the replacement of the term "developing countries", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing countries, especially least developed". |
| i) achieve and maintain reasonably stable prices, equitable to consumers and remunerative to producers; | A big majority of the respondents were in favour of keeping the Guideline. A small minority wanted the Guideline revised but did not provide alternative text while yet another smaller minority wanted it deleted. |
| ii) lead to a progressive improvement in access to markets and a steady expansion of world trade, particularly for the products exported by developing countries [least developed countries] or [developing countries, especially least developed]; | Regarding the replacement of the term "developing countries", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing countries, especially least developed". |
| iii) facilitate [, in non-trade distorting ways] greater participation of and increased exports from developing [all] countries in a general expansion of world trade; | The majority of the respondents were in favour of keeping the original text of the Guideline. A small minority favoured the change proposed (one addition and a modification) while a few others wanted the Guideline revised but did not provide alternative text. |
| iv) aim at ensuring continuity of adequate exportable supplies of oilseeds, oils and oilmeals to meet the requirements of importing countries [, particularly by reducing and minimizing recourse to trade distorting measures such as export taxes, and export embargoes] or [, particularly by reducing and minimizing recourse to measures distorting international trade] or [by reducing the measures that distort international trade and eliminating measures such as taxes, export bans as well as tariff escalation policies]. | A clear majority of the respondents were in favour of keeping the Guideline unchanged. Four countries provided three different versions of phrases to be added at the end of the Guideline. A few other countries wanted the Guideline revised but did not provide alternative text. A couple of countries wanted the whole Guideline deleted. |
| v) assist developing [least developed] or [developing, especially least developed] importing countries to obtain their import requirements on reasonable terms; | Regarding the replacement of the term "developing", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing, especially least developed". |
| vi) enable developing [least developed] or [developing, especially least developed] countries to develop more fully their production and processing potential in order to promote their greater contribution to the growing world supplies of these products and to improve their ability to meet consumption needs and their objectives in an expansion of world trade [to the extent justified by the market-indicated capacity of the domestic market to absorb additional oil and meal products, without aggravating any global or regional excesses in oilseed processing capacity]; | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". As to the remainder of the text, a clear majority of the respondents were in favour of keeping the original formulation of the Guideline. Two countries favoured the replacement of the underlined text with the text in bold print. A few other countries wanted the Guideline revised but did not provide alternative text. |
| vii) pay special attention to the interests of the developing [least developed] or [developing, especially least developed] countries that are heavily dependent on the production and trade of commodities within the sector; | Regarding the replacement of the term "developing", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing, especially least developed". |
| viii) promote [in non-market distorting ways] the consumption of oilseed, oil and oilmeal products where per caput intake is low, so as to improve nutritional standards; | A majority of the respondents were in favour of the proposed change. A minority of countries felt the need to revise the Guideline but did not provide alternative text. |
| ix) promote harmonious development of the world market with a view to avoiding any destabilizing impact on international trade [promote harmonious development of the world market, minimizing and reducing national measures which aggravate world market instability, such as domestic price supports, export subsidies, export taxes, differential export taxes, and import duties and quotas. National policies should be framed and should evolve so as to maximize the transmission of global market signals to producers, processors, and users, and encourage their responsiveness to such signals]. | A majority of the respondents were in favour of keeping the original text of the Guideline. A couple of countries supported the replacement of the Guideline with the proposed text (in bold print) while a few others wanted the Guideline revised but did not provide alternative text. One country wanted the whole Guideline deleted. |
| C. POLICIES REGARDING PRODUCTION, PROCESSING AND STABILITY OF SUPPLIES | |
| i) The objectives of national price and other production support policies for oilseed and oil crops should be to obtain reasonable incomes for farmers through remunerative prices for these crops, the protection of producers from excessive fluctuations in world market prices and, when appropriate, the provision of an incentive to increased production in developing [least developed] or [developing, especially least developed] countries. In setting support price levels within national production policies, governments should, as appropriate, take account, inter alia, of the world market situation. Policies should also pay due regard to consumers' interest in obtaining adequate supplies at reasonable prices. [National policies to support production should be formulated in such a way as to allow producers and processors to respond to market signals. Support policies should also have minimum trade distorting effects]. | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". As to the remainder of the text, the majority of the respondents were in favour of keeping the original formulation of the Guideline. A small minority favoured the replacement of the Guideline with the text in bold print while a few others wanted the Guideline revised but did not provide alternative text. Three countries proposed an outright deletion of the Guideline. |
| ii) International aid-giving agencies and bilateral donors should consider assisting developing [least developed] or [developing, especially least developed] countries in their efforts to improve the efficiency of production, domestic marketing and processing industries within the sector by providing increased technical and financial aid. | Regarding the replacement of the term "developing", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing, especially least developed". |
| iii) Recognizing that considerable year-to-year fluctuations in output, particularly of annual oilseed crops, are likely to continue, governments should adopt measures, where feasible and economically advisable, to improve market stability, such as appropriate national stocking policies in order to help stabilize domestic and international markets and to help ensure continuity of supplies for importing countries [encourage market transparency in producing and trading countries, and private sector (non-state-funded) stock management initiatives to deal with annual production fluctuations. Producing countries should abstain from trade distortive measures that limit export supplies (i.e. export taxes). Governments should adopt minimal national stocking policies to conform to Uruguay Round, which allows stocking only for food security reasons] | Most of the respondents were in favour of keeping the original text. Two countries supported replacing the underlined text with the text in bold print while a few others expressed the desire to have the Guideline revised but did not provide alternative text. Four countries wanted the whole Guideline deleted. |
| iv) International aid-giving agencies and bilateral donors should consider assisting interested developing [least developed] or [developing, especially least developed] countries to obtain the financial and physical resources needed to hold stocks of oilseeds and oils [for food security reasons]. | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". Two countries favoured the addition of the phrase (in bold print) at the end of the Guideline while a few others expressed the need to revise the Guideline but did not provide alternative text. One country wanted the whole Guideline deleted. |
| v) Governments should, if a longer-term tendency towards over-supply develops, consider taking measures [, which are not trade distorting] to promote consumption, including non-food uses, and to increase productivity so as to reduce unit costs of production. | Most of the respondents were in favour of the suggested addition. A few countries expressed the need to revise the Guideline but did not provide alternative text. One country wanted the whole Guideline deleted. |
| D. TRADE POLICIES3 | |
| i) Governments should, to the maximum extent possible, avoid the imposition of any new tariff and non-tariff barriers to trade in the products of the oilseeds, oils and oilmeals sector [in line with their Uruguay Round commitments]. | A majority of the respondents were in favour of keeping the Guideline unchanged. Three countries expressed the desire to delete the underlined text and to also add the text in bold print at the end of the Guideline. A few countries felt the need to revise the Guideline but did not provide alternative text while one country suggested an outright deletion of the whole Guideline. |
| ii) Governments should move towards the progressive reduction and/or elimination of tariff and non-tariff barriers to trade in products of the sector, [in line with their Uruguay Round commitments]. | A majority of the respondents were in favour of keeping the Guideline without any modification. Three countries expressed the desire to delete the underlined text and to also add the text in bold print at the end of the Guideline. A few countries felt the need to revise the Guideline but did not provide alternative text while one country proposed an outright deletion of the whole Guideline. |
| iii) Measures to improve access to markets should, [if possible and in line with a country's Uruguay Round commitments], give priority to the progressive reduction and/or elimination of those tariff and non-tariff barriers which restrict the development of processing industries in developing countries. [*Governments should minimize and reduce national measures which restrict access for the least developed countries, and minimize and reduce national measures in all countries, such as export taxes, differential export taxes, and export rebates, which distort production, processing location, and trade. They should rely on market signals to avoid promoting the development of inefficient processing facilities through preferential production or trade arrangements] or [**Governments should try to reduce tariff differentials between products at different levels of processing]. | A majority of the respondents were in favour of keeping the Guideline in its original form. One country felt the need to modify the Guideline as indicated in the first set of bold text, while a few other countries suggested two different alternatives for replacing the entire Guideline (denoted by * and **). A small minority wanted the Guideline revised but did not provide alternative text while two countries preferred an outright deletion of the whole Guideline. |
| iv) Governments concerned should, whenever feasible, extend and improve the benefits of the GSP schemes by such means as increasing the number of products covered in the oilseeds, oils and oilmeals sector, improving the degree of preference given and limiting the circumstances under which preferences may be suspended. | Most of the respondents were in favour of keeping the original text while a few others expressed the desire to have the Guideline revised but did not provide alternative text. |
| v) Those governments and international organizations concerned should consider, within the context of relevant schemes, the extension of compensatory payment arrangements with the purpose of stabilizing export earnings of developing countries, particularly of those heavily dependent on the export of commodities within the sector. | A clear majority of the respondents were in favour of keeping the original text while a few others expressed the desire to have the Guideline revised but did not provide alternative text. A small minority wanted the whole Guideline deleted. |
| vi) Within the framework of increased economic cooperation between developing countries and] recognizing that the increase in import demand for vegetable oils during the coming years is likely to be mostly in developing [least developed] or [developing, especially least developed] countries, governments concerned [the international community] should make special efforts to encourage the expansion of trade between developing [least developed] or [developing, especially least developed] countries. [*Within the framework of increased cooperation and trade stemming from market liberalization and economic growth, and recognizing that the increase in import demand for vegetable oils during the coming years is likely to be mostly in least developed countries, governments should rely on international market signals for the encouragement of such trade with and among least developed countries]. | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". As to the remainder of the text, a majority of the respondents were in favour of keeping the Guideline unchanged. One country suggested replacing formulation "governments concerned" with alternative text shown in bold print. A couple of countries suggested replacing the entire Guideline with a new set of text (denoted with *) while a few others expressed the desire to have the Guideline revised but did not provide alternative text. Two countries wanted the whole Guideline deleted. |
| vii) Interested governments and international organizations concerned should consider helping developing [least developed] or [developing, especially least developed] exporting countries increase their international competitiveness by improved marketing, including market information, market research and export promotion. | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". A few countries expressed the desire to have the Guideline revised but did not provide alternative text. |
| viii) Governments should make every effort to enable developing importing countries, and especially low income developing countries [least developed countries] or [developing, especially least developed, countries] to obtain their import requirements on reasonable terms, including the provision of food aid. | Regarding the replacement of the term "developing importing
countries, and especially low income developing countries", two alternatives were
proposed. However, a majority of the respondents seem to be in favour of retaining the
original formulation of the Guideline. A few countries expressed the desire to have the Guideline revised but did not provide alternative text while two countries wanted the Guideline deleted. |
| ix) Where feasible and economically advisable, interested governments should consider entering into long-term contracts for exports and imports over a period of years, especially if this would impart increased security of supplies, greater stability to world trade and/or favour trade between developing countries. | A clear majority of the respondents were in favour of maintaining the Guideline unaltered while a few others expressed the desire to have the Guideline revised but did not provide alternative text. A small minority wanted the whole Guideline deleted. |
| x) In order to safeguard the interests of exporting and importing countries, all governments, whenever practicable, should undertake consultations in the appropriate manner and fora, particularly within the GATT [WTO], when either side takes action which would cause harmful interference with the normal patterns of international trade or which could adversely affect the development efforts of developing [least developed] or [developing, especially least developed] exporting countries. | Most of the respondents were in favour of keeping the Guideline in its
original form. Three countries suggested replacing the term "GATT" with
"WTO". Regarding the replacement of the term "developing", two alternatives were proposed. A majority of the respondents were in favour of using the term "developing, especially least developed". |
| xi) Governments should pursue, within the Intergovernmental Group on Oilseeds, Oils and Fats, the systematic exchange of information on trade policies to keep developments in this field under regular review and, without duplicating activities in other fora, to consult on proposals for possible remedial action when any special difficulties arise. | A majority of the respondents were in favour of keeping the Guideline without any modification. |
| xii) With a view to avoiding overall imbalance between demand and supply in the oilseeds, oils and oilmeals sector, countries engaged in international trade in these products should, in formulating policies in this sector, take account of the conclusions and recommendations of the Intergovernmental Group on Oilseeds, Oils and Fats regarding the short, medium and long-term outlook for trade, as well as for production, consumption and prices of these products. | Most of the respondents were in favour of keeping the Guideline. Only one country expressed the desires to revise the Guideline but did not provide specific suggestions. |
| New Guideline Governments should refrain from adopting sanitary or phytosanitary measures that are not based on scientific principles in accordance with the WTO's SPS Agreement. Governments should provide full transparency of their sanitary and phytosanitary import requirements. This would include public dissemination of these requirements. In addition, governments should notify appropriate international organizations of changes in their import requirements [In addition, governments should fully adhere to the notification requirements applied in the various international organisations]. |
This new Guideline was proposed by one member state and supported by
two others with a slight modification as indicated by the underlined text. A majority of the respondents were in favour of introducing the new Guideline although a few countries wanted it revised but did not provide specific suggestions for modifications. One country suggested to replace the last sentence with one that immediately follows in square brackets. |
| E. CONCESSIONAL SALES AND FOOD AID POLICIES | |
| i) Governments engaging in concessional sales and/or food aid transactions in commodities within the sector should follow the FAO procedures for notification, consultation and establishment of usual marketing requirements, within the context of the FAO Principles of Surplus Disposal [and consistent with the provision on "Prevention of Circumvention of Export Subsidy Commitments" (article 10 of the Uruguay Round Agreement on Agriculture)"]. | Most of the respondents were in favour of maintaining the Guideline unchanged. One country suggested to add the text in bold print at the end of the Guideline while a few other countries wanted it revised but did not provide alternative text. |
| ii) Taking account of nutritional needs, international agencies and bilateral donors should, where feasible, increase the participation of developing exporting countries in providing food aid in commodities within the sector [*to the least developed countries, except in emergencies] through "triangular transactions" or by other schemes to finance purchases from developing exporting countries [and, moreover, favour, through "triangular transactions" or by other schemes to finance purchases, in particular the products from least developed countries]. | A majority of the respondents were in favour of keeping the Guideline without any change. Two countries suggested to add the text in bold print (denoted by *) while another country would like to replace the underlined text with the bold print that immediately follows. A few countries wanted the Guideline revised but did not provide alternative text. |
| F. CONSUMPTION POLICIES | |
| i) Governments should avoid measures specifically designed [whose intended or unintended effect is] to limit the total consumption of commodities in the oilseeds, oils and oilmeals sector and should adopt, where appropriate, measures to increase consumption of fats and oils [*but not through market intervention] when per caput intakes are low, so as to improve nutritional standards. | A majority of the respondents were in favour of keeping the Guideline unchanged. Two countries suggested to replace the underlined text with the bold print that immediately follows while another country wanted to add the text in bold print (denoted by *). A few countries wanted the Guideline revised but did not provide alternative text. |
| ii) Developing [Least developed] or [Developing, especially least developed] countries with persistently weak balances of payments should encourage, when appropriate, the consumption of fats and oils and oilmeals which can reasonably be produced and processed locally. | Regarding the replacement of the term "developing", two
alternatives were proposed. A majority of the respondents were in favour of using the term
"developing, especially least developed". As to the remainder of the text, a few countries expressed the desire to have the Guideline revised but did not provide alternative text while two countries wanted the Guideline deleted. |
| iii) Moved to new section "G", numbered as "i)" | A majority of the respondents were in favour of moving the Guideline to section "G". |
| G. ENVIRONMENTAL CONCERNS AND RELATED ISSUES 4 | |
| i) Governments should give emphasis to research and development programmes to find new end-uses for oilseed, oil and oilmeal products, both for food and non-food uses, and should, where [economically] feasible, promote the use of oilseed and oil products in preference to synthetic substitutes produced from non-renewable resources. | A clear majority of the respondents were in favour of keeping the Guideline in its original form. One country suggested to insert the text in bold print. Several countries wanted the Guideline revised but did not provide alternative text while two other countries wanted the whole Guideline deleted. |
| ii) Governments should prevent undue imposition of burdens on international trade in oilseed-based products - in particular the reduced import access to developed country markets for developing countries arising from the enforcement of environmental policies [Environmental policies and standards for oilseeds and oilseed products, as for all products, should be implemented in a way which does not discriminate against imports relative to domestic production of the like product. Any such regulations should not constitute an unjustified or arbitrary barrier to trade]. | The majority of the respondents were in favour of retaining the Guideline as proposed. Two countries wanted to replace the newly proposed Guideline with the text in bold print while several countries expressed the need to have the Guideline revised but did not provide alternative text. Two countries preferred a total deletion of the proposed Guideline. |
| iii) Governments should give due regard to international cooperation in monitoring the effects of the enforcement of environmental policies on the pattern of production and trade in the oilseeds sector [Governments should give due regard to the environmental implications of their policy actions in areas relating to soybean production, trade and consumption]. | The majority of the respondents were in favour of retaining the Guideline as proposed. One country wanted to replace the newly proposed Guideline with the text in bold print while a few countries expressed the need to have the Guideline revised but did not provide alternative text. |
| iv) The harmonization of environmental regulations between countries shall be considered so that different levels of internalization of environmental costs do not lead to important changes in the relative competitiveness of oilcrops and producing/exporting countries. | Most of the respondents were in favour of maintaining the Guideline as proposed. A small minority wanted the newly proposed Guideline revised but did not provide alternative text while two other countries wanted the whole Guideline deleted. |
1 The member countries which replied to the questionnaire were: Algeria, Argentina, Australia, Austria, Bangladesh, Barbados, Brazil, Canada, Colombia, Côte d'Ivoire, Egypt, EC, Fiji, Ghana, Hungary, Islamic Republic of Iran, Iraq, Jamaica, Japan, Madagascar, Malawi, Mali, Mexico, Morocco, Netherlands, Nicaragua, Niger, Nigeria, Pakistan, Philippines, Poland, Slovakia, South Africa, Sudan, Switzerland, Syria, Tunisia, Turkey, USA.
2 Replies to the second questionnaire were received from: Argentina, Canada, Côte d'Ivoire, Dominican Republic, Ecuador, Hungary, Mali, Mexico, Pakistan, Peru, South Africa and Switzerland.
3 One country suggested to incorporate into the Guidelines text about labelling of Genetically Modified Organisms as requested by consumers in several countries but did not indicate which specific Guideline(s) should be modified nor was any specific text provided.
4 This entirely new section was proposed by the Secretariat in the questionnaire sent to member countries prior to the 28th session, with a view to address newly emerging sustainability and environmental issues related to the oilseeds sector.
