Trade Policy from a Brazilian Perspective

Emerson Kloss

Brazilian Mission to the WTO

Trade policy: the needs and necessities for a balanced global trade environment

The results of Nairobi in EC

• Immeditate Elimination of Export Subsidies by developed countries. Developing countries : 2018 (2017 for cotton), standstill.

• Footnotes: extended phase-out period for Canada, the EU, Norway and Switzerland: 2020 for PAPs, dairy and pork (shall eliminate for LDCs by 2016);

• Footnote: extendend phase-out period for developing countries that notified use of ES in one of the last three ES notifications: 2022.

• New disciplines for export credits, STEs, food aid.

What is next?

G/AG/W/150 – Trends in Domestic Support, submission from some Cains Group members, Notified Article 6 support

$0

$10,000,000,000

$20,000,000,000

$30,000,000,000

$40,000,000,000

$50,000,000,000

$60,000,000,000

2006 2007 2008 2009 2010

USD

Years

Australia

Brazil

Canada

China

European Union

India

Indonesia

Japan

Russian Federation

United States of America

Notified Article 6 Support per hectare 2006-2010

$0.00

$500.00

$1,000.00

$1,500.00

$2,000.00

$2,500.00

2006 2007 2008 2009 2010

USD

Australia

Brazil

Canada

China

European Union

India

Indonesia

Japan

Russian Federation

United States of America

G/AG/W/150 – Trends in Domestic Support, submission from some Cains Group members, Notified Article 6 Support per hectare 2006-2010. Area data from FAOSTAT.

Notified Article 6 Support per person in Agriculture 2006-2010

$-

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

2006 2007 2008 2009 2010

USD

Australia

Brazil

Canada

China

European Union

India

Indonesia

Japan

Russian Federation

G/AG/W/150 – Trends in Domestic Support, submission from some Cains Group members. Area data from FAOSTAT.

Brazil’s perspective

• Negotiation cycles between ministerials with results leading to incremental reforms in agriculture.

• Work with like-minded members

• Priority to Domestic Support for MC-11

• Positive engagement: Paper submmited to the COA-SS with Argentina, Colombia and Paraguay

Paper on Domestic Support

• Option 1: a new overall limit (OTDS) linked to the VoP.

• Option 2: using the current structures of the AoA, agree to cuts in TDS.

• Option 3: anti-concentration disciplines: product-specific caps.

• Option 4: commitments linking limitations to TDS to exports (subsidized exports) or approach by types of instruments of support.