Last week trade ministers for WTO member nations reached an important compromise on a technical issue that had held up the agricultural negotiations.
The Economist reports here: "Progress at last".
...On May 4th, negotiators from America, the European Union, Brazil, India and Australia hammered out a formula for converting specific tariffs on agricultural goods, such as 10 cents per pound in weight, into percentage (or so-called ad valorem) tariffs.
Measuring all tariffs as a percentage of the goods’ value is a prerequisite for further progress in talks about reducing trade barriers for agricultural goods. Under the broad outline for the farm-trade talks agreed last summer, countries pledged to divide their tariff barriers into different tiers. Higher tariffs will be cut more than lower ones. Not surprisingly, those countries that protect their farmers most wanted a conversion formula that translated specific tariffs into lower percentages, as that would imply smaller cuts down the road. In the end, the deal was based on a compromise proposal made by the European Union...
EUbusiness describes the negotiations leading to the compromise, here: "WTO makes progress in agriculture talks".
Bridges Weekly Trade Digest has the story here: "Agriculture: Key Trade Ministers Strike AVE Deal In Paris". This negotiation took place in the course of a "mini-ministerial" meeting of some 30 WTO member trade ministers in Paris. Bridges has the story on the overall mini-ministerial here: "Paris Mini-Ministerial Revives Optimism About July 'Approximations'". (both stories from the May 11 issue).
Peter Gallagher provides a very helpful explanation of the details: The breakthrough on agriculture.
Revised May 12
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