Will WTO members concur on agriculture?
The World Trade Organisation (WTO) continues to be sceptical about its members reaching an agreement on agriculture during the Cancun round of negotiations, scheduled during September 10-14, 2003. The main concern being that if the rich and developed nations are not open on market access and do not show flexibility on agriculture, they will not have an agreement.

The Organisation for Economic Cooperation and Development (OECD), which groups the world’s richest nations, itself reported that developed countries pay out almost $1billion a day to their farmers in terms of agriculture subsidies which is nearly four times of the development assistance extended to poor nations.

The fifth WTO ministerial meeting on liberalisation is scheduled to take place in Cancun, Mexico, between September 10 and 14 and is seen as an important mid-point to negotiations, which began at the last round in Doha in November ‘01.

The 146 members of the WTO have widely different views on the pace and extent of agricultural reform, especially concerning subsidies and tariffs. The Harbinson report, named after WTO agriculture committee chairman Stuart Harbinson, which outlines proposals for farm trade liberalisation like improving market access, elimination of export subsidies and reduction in distorting domestic support, was criticised by less-developed WTO nations. The report outlines the proposals to be tabled at the Cancun meet in September this year. India, on its part, wants developed economies like EU and US to open up their markets for Indian commodities and reduce their farm subsidies.

US AND AUSTRALIA CLASH OVER WHEAT EXPORTS
The US and Australia, allies in the overthrow of Iraqi leader Saddam Hussein, are now quarrelling over which nation will supply wheat to the oil-rich nation.

US Wheat Associates, a Washington-based trade group, has asked Secretary of State Colin Powell to persuade the United Nations to introduce competitive bidding for Iraq’s wheat market. The group wants to eliminate negotiated contracts such as one the Australian Wheat Board, that nation’s monopoly exporter, had under a UN-sponsored program that allows Iraq to sell oil for food. The US group says Australia sold its wheat at “undoubtedly inflated’’ prices, though it says Australia and the UN haven’t been willing to say how much was sold and at what cost. 

Iraq was the second-biggest buyer of Australian wheat last year. Under the oil-for-food program, which the UN began as a humanitarian effort in 1996, Iraq was scheduled to import $526 million of Australian wheat this year.

France and Germany deal to influence EU
France and Germany have agreed to reduce considerably the direct proportion between subsidies and the production of grains and oilseeds in a proposed reform of the EU’s costly farm regime. Under this arrangement, from 2007, only 40 percent of the aid received by EU farmers for growing cereals and oilseeds would be linked to production.

The Franco-German deal was set to influence the European Commission as it works on a second compromise bid to reform the EU Common Agricultural Policy (CAP).

They have agreed that there would not be any total decoupling in any sector but for grains they have envisaged a 60-40 partial decoupling.

France and Germany also agreed on a partial decoupling for livestock but the split between decoupled assistance and traditional subsidies would be made according to the type of aid, not by percentage. Under the deal, some subsidies for sheep and dairy cows including slaughtering would be linked to production as at present.

Pakistan to develop strategy for agriculture
The Pakistani Government is considering a comprehensive development strategy to boost productivity of the agriculture sector in the country. The agriculture sector makes 26 percent of GDP in the country and also provides massive employment opportunity to major segment of society settled in rural areas.

A number of incentives were given in fiscal budget to this sector and some amendments have also been made in the light of suggestions made by parliament members.

The world flour trade drops significantly, EU hit
ccording to a recent report of the USDA Foreign Agricultural Service the ‘world flour trade has dropped by 30 per cent in just the past seven years’ as the pattern of trade has changed.  Intensive privatisation and expansion of capacity of milling facilities in major markets ‘has shifted demand from imported flour to imported wheat’. As a consequence ‘competition has increased for the shrinking flour market’. Regional flour suppliers are increasing their market share by ‘providing quicker delivery, smaller shipments and cheaper transportation to quality sensitive buyers’.

As a consequence, the EU – once the world’s dominant flour supplier – has seen its exports drop nearly 60 per cent. Many French mills, which were built near ports for export, have slashed capacity in half or closed, whereas a third of Italy’s mills have already closed. This trend is most noticeable in markets in North Africa, the Middle East, India and the former Soviet Union.

This means that the flour markets of the African Caribbean and Pacific nations (ACP) are increasingly important as the European milling industry faces a major crisis.

Philippines expects mango exports to touch $70 mn
The Philippines expects its mango exports to double to $70 million this year from $34 million a little over two years ago as part of the government’s efforts to get greater market access from its top trading partners like the United States.

According to the Trade Secretary, the Philippines emerged as the world’s sixth largest producer of fresh mangoes after it cornered 9 per cent of $34 million of $220 million worldwide fresh mango market in 2000.

For the US market alone, exports of fresh mangoes from the Philippine surged 1,446 percent to $606,411 last year from only 39,200 in 2001. At present, only mangoes produced from Guimaras are authorized to enter US ports.

The Philippine government is also planning to seek a $10 million stand alone grant for the establishment of a comprehensive irradiation facility for tropical fruits.

Vietnamese rice gaining prominence in market
Vietnamese rice has found a niche in the world market. Aside from Iraq under the “Oil for Food” programme, Nigeria and the Philippines have agreed to buy Vietnamese rice for a long term.

According to evaluation in the international market,  Vietnam’s rice can be compared to Thailand’s in terms of quality but is cheaper in price. Vietnam has so far caught the attention of major rice importers in Poland, Russia, Switzerland, Asian and African countries.

TO READ FURTHER... SUBSCRIBE TO YOUR COPY TODAY!!!