After extensive negotiations, the European Union (EU) agreed to end agriculture subsidies by 2013, which was the main hurdle to develop consensus among the 150 member countries of World Trade Organisation (WTO).
The progress on different thorny issues, which were hindering real progress, was achieved on Sunday afternoon in the 'Green Room', the meeting venue.
"We agree to ensure the parallel elimination of all forms of export subsidies and disciplines on all export measures with equivalent effect to be completed by the end of 2013," said the final draft declaration of WTO issued here on Sunday evening.
The progress will be achieved gradually and in a parallel manner to be specified in the modalities, so that a substantial part is realised by the end of first half of the 'implementation period'.
"We recognise that much remains to be done in order to establish modalities and to conclude the negotiations. Therefore, we agree to intensify work on all outstanding issues to fulfil the Doha objectives. In particular, we are resolved to establish modalities not later than April 30, 2006, and to submit comprehensive draft schedule based on these modalities no later than July 31, 2006."
The date for the elimination of subsidies, together with the agreed progressively and parallelism will be confirmed only upon the completion of the modalities.
"We note emerging convergence on some elements of disciplines with respect to export credits, export credit guarantees on some insurance programmes with repayment periods of 180 days and below," the declaration said.
The WTO draft said that the member countries had agreed that such programmes should be self-financed, reflecting market consistency, and circumvent real commercially-oriented discipline.
As a means of ensuring that trade-distorting practices of STEs are eliminated, disciplines relating to exporting STEs will extend to the future use of monopoly powers so that such power can not be exercised in any way that would circumvent the direct disciplines on STEs on export subsidies, government financing and underwriting of losses.
On food aid, the WTO members reconfirmed their commitment to maintain an adequate level and to take into account the interests of food aid recipient countries.
To this end, a 'safe box' for bona fide food aid will be provided to ensure that there is no unintended impediment to commercial displacement.
"The disciplines on export credits, export credit guarantees or insurance programmes, exporting state trading enterprises and food aid will be completed by April 30, 2006," the draft said.
Developing country members will continue to benefit from the provisions of Article 9.4 of the agreement on agriculture for five years after the end date for elimination of all forms of export subsidies.
COTTON:
It has been agreed that all forms of export subsidies on cotton will be eliminated by the developed countries in 2006.
On market access, developed countries will give duty- and quota-free access for cotton exports from the Least Developed Countries (LDCs) from the commencement of implementation period.
It is recognised that the objective is that as an outcome for the negotiations, trade distorting domestic subsidies for cotton production should be reduced more ambitiously than whatever general formula is agreed and that it should be implemented over a shorter period of time than generally applicable. The member counties, according to the declaration, commit to give priority in the negotiations to reach such an outcome.
On market access, the WTO has adopted four bands for structuring tariff cuts, recognising that there was need to agree on the relevant thresholds, including those applicable for the developing country members.
"We recognise the need to agree on treatment of sensitive products, taking into account all the elements involved. We also note that there have been some recent movements on the designation and treatment of special products and elements of the special safeguard mechanism," the draft added.
Developing country members will also have the right to have recourse to a special safeguard mechanism based on import quantity and price triggers with precise arrangements to be further defined. Special products and the special safeguard mechanism will be an integral part of the modalities and the outcome of the negotiations in agriculture.
On other elements of special and differential treatment, it is noted that in particular the consensus existed in the framework and several issues in all three pillars of domestic support, export competition and market access and that progress had been made on other special and differential treatment issues.
NAMA:
The WTO has adopted Swiss Formula with coefficients at levels according to which tariff will be reduced or as appropriately eliminated including reduction or elimination of tariff peaks, high tariffs and tariff escalation, in particular on products of export interest to developing countries.
"We note the concerns raised by small, vulnerable economies and instruct the negotiating groups to establish ways to provide flexibilities for these members with creating a sub-category by the WTO members," the declaration said.
The negotiating group has made progress in the identification, categorisation and examination of noted NTBs. The WTO also takes note that members are developing bilateral, vertical and horizontal approaches to the NTB negotiations and that some of the NTBs are being addressed in order for including other negotiating groups. The WTO members have been asked to make specific submissions as quickly as possible.
Since there was high level of ambitions on agriculture and Nama, the negotiators have been instructed to achieve in a balanced and proportionate manner consistent with the principle of special and differential treatment.
SERVICES SECTOR:
The negotiations on trade in services shall proceed to their conclusion with a view to promoting the economic growth of all trading partners and the development of developing countries and LDCs. In this regard it has been reaffirmed that the objectives and principles stipulated in the GATS, the Doha Ministerial Declaration, the guidelines and procedures for the negotiations would be adopted.
The WTO has also urged all members to participate actively in negotiations towards achieving a progressively higher level of liberalisation of trade in services with appropriate flexibility for individual development countries.
The WTO has reaffirmed its commitment to the work programme on small economies, and urged members to adopt specific measures that would facilitate the fuller integration of small, vulnerable economies into the multilateral trading system, without creating sub-category of WTO members.
The member countries have also been asked to intensify work on aid for trade programme, trade debt finance, trade and transfer of technology, E-commerce.
On LDCs, the WTO member countries have committed to effectively and meaningfully integrate LDCs into the multinational trading system and continue to implement the work programme for poorer countries as adopted in February 2002.
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