Analysis of Nigeria’s
Possible Positions on
Agriculture in the Doha
Round Negotiations
E. Olawale OGUNKOLA
TPRTP
Department of Economics
University of Ibadan, Ibadan
Market Access
 The July Framework resolved many of the key SSA
concerns, namely:
exemption of least-developed countries (LDCs) from formula
cuts
 the agreement on reductions from bound rather than applied
tariff rates
  However key issues remain unresolved:
the banding
 type of formula to be applied within the ‘tiered’ structure
 tariff cap, treatment of tariff escalation, treatment of tariff rate
quotas (TRQs)
 the SSM
 Preference erosion
 Tariff reduction formula
 Achievements so far:
 a ‘single-tiered approach’
 elements of the formula
reductions will be made from bound rates
 LDCs will be exempt from tariff reduction commitments
 ‘progressivity’ will be achieved through deeper cuts in
higher tariffs
 ‘proportionality’ will be achieved by requiring lesser
tariff reduction commitments or tariff quota expansion
commitments from developing country members
 Tariff reduction formula
 many key elements of the formula are still
under negotiation, including:
 the
number of bands and the cut-offs for
defining the bands
 the formula that will apply to each band
 the role of a tariff cap
 the treatment of tariff escalation
Market Access
(Special & Differential Treatment)
 “Without undermining the overall objective of
the tiered [tariff reduction] approach,
Members may designate an appropriate
number, to be negotiated, of tariff lines to be
treated as sensitive, taking account of the
existing commitments for these
products.” (July package, Annex A Paragraph
39)
Special Products
 Developing country Members will have the
flexibility to designate an appropriate number of
products as Special Products, based on
criteria of food security, livelihood security and rural
development needs. These products will be eligible
for more flexible treatment.
 Other related issues
 Special
Safeguard Mechanism (SSM)
 Tropical Products
Tariff cut, July 2007
Cut
Developed
Countries
Cut
Developing
Countries
0-20
48-52
0-30
2/3 of (48-52)
20-50
55-60
30-80
2/3 of (55-60)
50-75
62-65
80-130
2/3 of (62-65)
75+
66-73
130+
2/3 of (66-73)=
44-48.67
(77-84%)
Sensitive Products
 Designation
 Developed
country Members 4 or 6 % of tariff
lines
 Developing country Members “one-third more
of tariff lines
 Treatment (Tariff cut)
 Devlpd: A minimum of 1/3 and a maximum of
2/3of the reduction that would otherwise have
been required by the tiered formula
 Devlpg: No less than two thirds
Domestic Support (Overall TradeDistorting DS)
US
Bound
TAMS
EU
Actual
Bound
Actual
19.1
14.4
67.2 43.65
PS
4.87
.22
5.46
.20
NPS
4.87
6.83
5.46
.54
BB
9.74 0.006
20.89
ATDS
38.6 21.46
98.97
$60 b +
75 or 80%
$10-$60 b
66 or 73%
0-$10 b
50 or 60%
$40b +
70%
22.2
$15-40b
60%
66.6
0-15b
45%
Export Competition
 Export subsidies to be eliminated by 2013
(50% by 2010)
 Outstanding issues are
 Export Credits, Export Credit Guarantees
or Insurance Programmes
 Agricultural exporting state trading
enterprises (Annex J)
 International Food Aid