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Brochure, flyer, fact-sheetPolicy space to pursue food security in the WTO Agreement on Agriculture
The State of Agricultural Commodity Markets 2015–16
2015Also available in:
No results found.This note examines the policy space available to developing countries under the AoA to pursue their food security objectives and the use they have made of that policy space. It does not discuss whether developing countries would be likely to improve their food security by making greater use of their existing or additional policy space. Instead, the purpose is to describe the policy space available to developing countries under AoA rules, including by reference to the policy space available to de veloped countries, taking into account the special and differential treatment principle that developing countries and least developed countries (LDCs) should have less onerous obligations, and thus greater policy space, than developed countries. Issues raised in the Doha Round negotiations are also examined. Policy space is examined under the headings of import protection, domestic support and the ability to respond to volatile world market prices. -
Book (stand-alone)Potential conflicts between agricultural trade rules and climate change treaty commitments.
The State of Agricultural Commodity Markets (SOCO) 2018: Background paper
2018Also available in:
No results found.Climate change – among its many other challenges – also affects the conditions of competition along the whole food value chain. This article posits that many mitigation and adaptation policies imply a differentiation between otherwise identical products but with different carbon footprints. Where imports are affected, there is a potential for trade frictions. The main issue appears to be a climate-smart treatment of like products with different (non-product-related) production and processing methods (ppm). Now that national governments start implementing their commitments under the Paris Agreement on Climate Change, they have to closely look at the trade and investment impact of their Nationally Determined Contributions (NDCs). The NDCs presently available remain silent on concrete measures involving product differentiation according to footprint differences, be it by way of border adjustment measures, subsidies, prohibitions, or restrictions. The non-discrimination principle enshrined in the multilateral trading system can be a problem for such differentiations. No climate-smart agricultural measures have yet been notified to the World Trade Organization (WTO). But several renewable energy programmes have been found to violate WTO rules. Potential problems could arise, for instance, from differentiating tariffs, import restrictions or taxes according to carbon footprint. Conditions of competition might even be affected by labels signalling products with a bigger (or a “climate-friendly”) footprint, or through subsidies and incentives compensating domestic producers subject to emissions reductions, prohibitions, and input restrictions. A second major problem lies in the way the Paris Agreement and the WTO address the Development Dimension. In the Paris Agreement, the Development Dimension is addressed by the notion of Common but Differentiated Responsibility (CBDR), leaving Parties free in terms of how they take development into account in their NDCs. On the other side, the Special and Differentiated Treatment (SDT) foreseen in all WTO agreements for developing country products and services appears incapable of dealing with the global impact of all emissions, regardless of their origin, or with the negative impact on developing country exports to climate-smart markets in developed countries. In conclusion, we suggest that a review of the climate-relevant trade and investment rules is necessary at the international level, involving climate, and agriculture and trade regulators, supported by scientific, economic and legal expertise. The purpose of this review is to avoid litigation jeopardising the implementation of the Paris Agreement. At the same time, such a review must be comprehensive, because the objective is to ensure maximum policy space for climate mitigation and adaptation without negatively affecting other countries, or unduly restricting trade and investment, especially in poor developing countries. Last but not least, this intergovernmental and inter-institutional review is urgent, because the results should provide as quickly as possible the legal security necessary for investors and operators, regulators, NDC developments and reviews, and international standard-setting processes. -
ProjectSupport for Boosting Intra-African Trade in Agricultural Commodities and Services to Advance the Implementation of the African Continental Free Trade Area (AfCFTA) - TCP/RAF/3708 2022
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African Heads of State and Government, through the 2014 Malabo Declaration on Accelerated Agricultural Growth and Transformation for Shared Prosperity and Improved Livelihoods (Malabo Declaration), have made a clear commitment on Boosting Intra African Trade ( in agricultural commodities and services This commitment includes harnessing market and trade opportunities locally, regionally and internationally by creating and enhancing policies, institutional conditions and support systems and tripling intra African trade in agricultural commodities and services by 2025 The 2017 Inaugural Biennial Review Report of the African Union Commission on the Implementation of the Malabo Declaration found that only three of the 29 Members reporting on the commitment to BIAT in agricultural commodities and services were on track to meet the commitment by 2025 Meeting this commitment on time requires building capacity to address policy, technical and investment constraints and minimize domestic food price volatility Despite the impressive gross domestic product ( growth rates experienced on the continent in recent years, Africa has remained a marginal player in both domestic and world trade The share of intra African merchandise exports in 2017 was around 19 6 percent of total exports (by value) The relatively low performance of intra African trade in agricultural commodities is of particular concern In the face of abundant unexploited suitable resources for agriculture, the continent depends on extra African sources for more than 80 percent of imports of food and agricultural products As a result, Africa faces a food and agricultural import bill growing at a yearly average of 3 6 percent, reaching USD 72 7 billion in 2017 To take advantage of fast growing intra African market opportunities, African agriculture must undergo a structural transformation that entails shifting from highly diversified and subsistence oriented production systems towards more market oriented ones This requires both a bold shift in policy and substantial investment to overcome the severe under capitalization, as well as low productivity and competitiveness of the sector In order to tackle the constraints on national and regional food marketing and trade, there is a need to face up to two broad categories of challenges The first set of challenges concerns prioritizing and filling the deficit in hard and soft market and trade infrastructure The second set of challenges requires tackling the policy and institutional deficiencies to strengthen intra regional and inter regional market integration and trade facilitation.
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