Thanks to @StevePeers for alerting us to this.
To be clear, it’s NOT about separating the UK’s and EU27’s agricultural tariff quotas post-Brexit.
This IS about WTO members’ efforts to improve how tariff quotas are managed or administered
An explanation and update
1/11
To be clear, it’s NOT about separating the UK’s and EU27’s agricultural tariff quotas post-Brexit.
This IS about WTO members’ efforts to improve how tariff quotas are managed or administered
An explanation and update
1/11
A tariff quota is when quantities inside the quota are charged low or zero import duty; quantities outside are charged higher duty, sometimes so high imports are uneconomical.
tradebetablog.wordpress.com/2018/09/08/beg…
2/11
tradebetablog.wordpress.com/2018/09/08/beg…
2/11
PROBLEM: The way tariff quotas are shared out among importers/exporters (the administration method) could impede trade.
Here 👇🏽 are some methods that have been used. Some are controversial, disliked by exporters but defended by importers.
(From tradebetablog.wordpress.com/2018/09/08/beg…)
3/11
Here 👇🏽 are some methods that have been used. Some are controversial, disliked by exporters but defended by importers.
(From tradebetablog.wordpress.com/2018/09/08/beg…)
3/11
SOLUTION STAGE 1: At the WTO Ministerial Conference in Bali, 2013, members agreed on ways to tackle this, drawing on a draft agreement in deadlocked agriculture negotiations.
Here 👇🏽 is some background on decision (from here: wto.org/english/thewto…)
4/11
Here 👇🏽 is some background on decision (from here: wto.org/english/thewto…)
4/11
The full decision is here: wto.org/english/thewto…
It includes transparency: members have to declare the extent to which the quotas are filled and unused.
Members also agreed to react when their quotas are underfilled and apparently not because of normal supply and demand
5/11
It includes transparency: members have to declare the extent to which the quotas are filled and unused.
Members also agreed to react when their quotas are underfilled and apparently not because of normal supply and demand
5/11
Annex A creates a “mechanism” for dealing with tariff quota “underfill”. It's technical and detailed.
If you’re interested it’s here: wto.org/english/thewto…
Paragraph 4 says if underfill persists the allocation method should be first-come-first served or on demand.
6/11
If you’re interested it’s here: wto.org/english/thewto…
Paragraph 4 says if underfill persists the allocation method should be first-come-first served or on demand.
6/11
The 2013 decision says this will be reviewed after four years, ie in 2017.
This took place in the (regular) Agriculture Committee (comprising all members) and concluded at the end of October.
The report goes to the WTO General Council in December
wto.org/english/news_e…
7/11
This took place in the (regular) Agriculture Committee (comprising all members) and concluded at the end of October.
The report goes to the WTO General Council in December
wto.org/english/news_e…
7/11
The report says WTO members have not been able to agree on how to proceed with the “underfill mechanism” (paragraph 4 of the Annex A in the 2013 decision), particularly “special and differential treatment” (S&D) for developing countries.
docs.wto.org/dol2fe/Pages/S…
9/11
docs.wto.org/dol2fe/Pages/S…
9/11
Annex 2 of the new report requires a General Council decision: to extend to the end of 2021 the review of the “underfill mechanism” — Annex A paragraph 4 of the 2013 decision — particularly treatment for developing countries.
docs.wto.org/dol2fe/Pages/S…
10/11
docs.wto.org/dol2fe/Pages/S…
10/11
And that’s what the EU decisions that @StevePeers tweeted are about.
They confirm that the EU is OK with this and the UK abstains.
11/11
They confirm that the EU is OK with this and the UK abstains.
11/11
