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1 [1] (November 13, 2014)

handle is hein.crs/crsmthaaaxx0001 and id is 1 raw text is: CRS Insights Agriculture in the Bali Agreement: A Way Forward Randy Schnepf, Specialist in Agricultural Policy (rschnepf crs~oc~gov, 7-4277) Noeme 13I21 (IN1063 At the World Trade Oraanization's (WTO's) Ninth Ministerial Conference in Bali, Indonesia, December 3- 7, 2013, ministers adopted the so-called Bali Package. The package has measures dealing with four principal categories: Trade Facilitation, Agriculture, Cotton, and Development and Least-Developed Country (LDC) Issues. From the United States' viewpoint, the major policy initiative is the Trade Facilitation Agreement, which aims to improve the efficiency of international trade by harmonizing and streamlining customs procedures such as duplicative documentation requirements, customs processing delays, and nontransparent or unequally enforced importation rules and requirements. The Bali Package covers only a small fraction of the Doha Round mandate and leaves the more difficult trade topics for future negotiations; however, it represents the first multilateral trade deal in nearly two decades. At the time, analysts predicted that a successful Bali Package-boosted primarily by substantial efficiencies in trade facilitation-could increase .lobal gross domestic product by $1 trillion. However, many hope that its ultimate benefit will be a rejuvenation of the Doha Round. Agreement Reached The Bali Agreement was adopted by the WTO on December 7, 2013. A deal was struck after the United States gave in to India's demand on food security and agreed to a temporary peace clause to shield the food subsidy programs of developing countries-including India's food subsidy program-from challenge under WTO rules for four years (through 2017), provided that the stocks procured under these grain-reserve schemes do not distort trade or affect the food security of others. The deal also set a 2017 deadline to negotiate a permanent solution to the food security issue. Agriculture in the Bali Agreement The Bali Agreement addressed five agricultural issues. * 1. Export competition. The Bali text reconfirmed a commitment to eliminate all export subsidies as part of the ongoing Doha Round, and asked for greater transparency and restraint in their use prior to their final elimination. * 2. Tariff rate quota (TRQ) administration. To manage persistently under-filled quotas, a transparent process is first used to determine whether quota under-fill is due to selective administration or to market conditions. If it is due to inadequate administration, then unencumbered access must be granted by one of two prescribed methods. Special and differential treatment is available for developing countries, but only under certain conditions and possibly for a limited period. * 3. Temporary peace clause. To provide relief from challenge under the WTO dispute settlement process for a developing country's above-market purchases of commodities for food- security stockholding programs, a temporary peace clause was established through 2017, while members agree to work to find a permanent solution. * 4. Proposed list of green-box-eligible LDC-focused general services. New criteria of particular interest to developing countries were added to existing exemptions. * 5. Cotton. In response to a proposal from four African members, WTO members reiterated their commitment to progress in negotiations on cotton, regretted lack of progress, committed to meet twice yearly to study related issues, and reaffirmed the importance of cotton to lesser-developed countries. Deadlock on Implementation