./.WORLD TRADE
ORGANIZATIONTN/AG/GEN/8
19 August 2003
(03-4326)
Original:  English
INITIAL REMARKS BY THE AFRICAN GROUP TO THE
JOINT EC-US PAPER ON AGRICULTURE
Communication from Morocco on behalf of the African Group
The following communication, dated 18 August 2003, has been received from the Permanent
Mission of Morocco on behalf of the African Group, with the request that it be circulated to
delegations.
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Introduction
By this submission, the WTO African Group ( AG) proposes to address some of the issues
presented in document JOB(03)/157 dated l3 August  2003 presented as the "Joint EC-US Paper" on
agriculture.  Said paper was intended to facilitate the preparatory process for the Cancún Ministerial
insofar as agriculture is concerned.
Basic comments
In view of the importance of agriculture to th e Doha work programmes, and in view of the
apparent impasse on a possible consensus on the "Revised First Draft of Modalities" (Harbinson Text)
contained in document TN/AG/W/l/Rev.l dated 18 March 2003, the African Group is, first and
foremost, grateful for all efforts by the Majors aimed at revitalizing this issue.  However, a number of
AG members have expressed a variety of opinions during the General Council informals on 13 and
14 August  on the "EC-US Paper" a synops is of which is to be found below.
Ambition:  Since almost all important variables of the "EC-US Paper" have no values or
figures attached, it is very difficult to judge the level of ambition proponents are putting on the table.
This issue becomes doubly important in view of the linkages most WTO Members make between
agriculture and other issues on the DDA.  Over and above this, it has always been the AG's consideredopinion that each Round of agriculture negotiations should aim at incremental reform, both in terms
of values and rule-making.  The Paper offers neither.
Coverage:  The "EC-US Paper" seems to address itself only partially to some elements of the
three main pillars.  It is, therefore, difficult for the AG to see how, in and by itself, it can constitute a
fully fledged "modalities paper".
Special & Differential Treatment:  Harbinson's "First Draft of Modalities" truly enshrined
S&DT in all areas and under all elements of further reform.  Most prominently, the "Draft"
introduced a variety of developing- and least-developed-country-specific concepts (such as the
Special Products and the SSM) which are important to the reform process.  On the other hand, theTN/AG/GEN/8
Page 2
"EC-US Paper" only makes vague mention of possible S&DT, while limiting such treatment to
lower tariff reductions and longer implementation periods.
LDCs:  Nowhere in the "EC-US Paper" do specific modalities for least-developed
countries feature, an issue that has particular resonance with a majority of AG Members.  The
"Draft" (Harbinson Text) had exempted the LDCs from any reduction commitments.
Domestic Support:  The EC-US contribution seems to be retreating from the Doha spirit
insofar as domestic support is concerned.  It proposes a complex set of rules that appear to
formalize the continued use of the Green Box without new disciplines and a general cap, and re-
defines the Blue Box as a non-trade-distorting instrument whose continued use should be
allowed.  Under this rubric, no mention is made of possible time-frames for the elimination ofmajor portions of trade-distorting domestic support, a matter of great importance to the AG.
Export Competition:  This is another critical area for all AG members.  As presented, the
"EC-US Paper" does not foresee the elimination of all forms of export subsidization, nor does it
propose rules that may lead to such.  In fact, it seems to propose a product-specificelimination/reduction (a new and potentially divisive concept), while "other products" are left
specific commitments - except a vague reduction in budgetary and quantity allowances.
Timing:  In view of the brevity of time left before the Cancún Ministerial, in view of the
need to arrive at an agreement on a text to be transmitted by the General Council to the Ministers
in Cancún, and in view of the effort that has been undertaken in the preparation  and debate of the
"First Draft" (Harbinson Text), it is the view of the AG that a possible way forward could be to
incorporate some positive elements from the "EC-US Paper" into the former, to achieve the
necessary consensus in the shortest  possible time-frame.
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