WTO inks trade agreement framework, starts trade facilitation

WTO inks trade agreement framework, starts trade facilitation    Trade officials from rich and poor countries on Friday agreed on a negotiation framework at the World Trade Organization that promises the removal of some farm subsidies, a further liberalization of international trade and the start of negotiations on the facilitation and simplification of international trade.
   The so-called WTO “July package” outlines proposed actions and agreed principles for future negotiation. The United States and Europe have reportedly pledged an immediate 20-percent cut in their financial support for farm exports. On agricultural subsidies, the latest agreement reiterates the Doha Ministerial Declaration calls for “substantial reductions in trade-distorting domestic support.” It said WTO countries will work to make a substantial reduction in trade-distorting domestic support in agricultural trade.
   The agreement avoided the repeat of last year’s trade talks fiasco in Cancun, and is regarded as bridging some of the differences between developed and developing countries.
   On trade facilitation, the latest agreement said the general council of the WTO “decides by explicit consensus to commence negotiations on the basis of the modalities set out in annex D to this document.” The annex states that negotiations will aim to expedite the movement, release and clearance of goods, including goods in transit. It refers to the need for technical assistance for developing countries and support for capacity building in this area. “The negotiations shall further aim at provisions for effective cooperation between customs or any other appropriate authorities on trade facilitation and customs compliance issues,” the annex to the agreement says.
   The trade facilitation negotiations must also take into account the principle of differential treatment for developing and least-developed countries. “In particular, the extent and the timing of entering into commitments shall be related to the implementation capacities of developing and least-developed members,” the agreement annex on trade facilitation says. “It is further agreed that those members would not be obliged to undertake investments in infrastructure projects beyond their means.”
   The text of the “July package” agreement is posted online at https://www.wto.org/english/tratop_e/dda_e/draft_text_gc_dg_31july04_e.htm.