WORLD TRADE
ORGANIZATIONG/AG/NG/W/96
28 December 2000
(00-5620)
Committee on Agriculture
Special SessionOriginal:  English
WTO NEGOTIATIONS ON AGRICULTURE
Negotiating Proposal by Mauritius
Introduction
The Mauritius negotiating proposal is based on the objectives contained in the Preamble to
and the sequential order specified in Article 20 of the Agreement on Agriculture.  In making its
proposal, Mauritius accordingly bears in mind its commitments under other multilateral agreements.
Mauritius remains committed to negotiations that seek to achieve a balance between trade and non-
trade concerns;  and favours the continuation of a reform process in Agriculture that acknowledgesand provides for the diversity of agricultural systems and situations worldwide and in particular, the
specificities of Small Island Developing States (SIDS).  The latter countries which have not
effectively benefitted from the Uruguay Round should be afforded concrete, operational and
commercially meaningful measures in the context of the negotiations.
Agriculture is a worldwide activity which spans the developed and developing worlds
including high and low potential areas, all of which must co-exist.  Given the varying levels of
development and the diversity of agricultural situations, each country and each region has its own
concerns, particularly so when one considers that the role of agriculture goes beyond the production
of food and fibre and covers a list of functions that underpin the socio-economic fabric of rural areas.
Agriculture is also called upon directly or indirectly, to increasingly contribute to the
reduction of global warming.  It is useful to recall, in this context, that most SIDS whilst being devoid
of fossil fuels, are the first victims of global warming.
Commitment 3 (paragraph 28) of the Action Plan arising from the Rome World Food Summit
very well highlights that "Small Island Developing States face the threat of land loss and erosion dueto climate changes and sea level rises and have particular needs for their overall sustainable
development.  Improvements in trade, transpor tation, communication, human resources, stabilization
of income and higher export earnings will increase food security in these countries".
1. Non-trade concerns
The issues of food security, rural development and environmental preservation, amongst
others, are of common concern in both developing and developed countries.  Nonetheless the
instruments to be used to address such concerns wi ll differ from country to country in view of their
specificities and diversities mentioned earlier.  There is indeed no single measure that would besuitable for all countries.
Whilst it is recognized that transparent measures should be taken to address non-trade
concerns, financial resource constraints are such that the "no more minimally trade-distorting"
approach is inadequate in the case of most SIDS and smaller producers.G/AG/NG/W/96
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SIDS should be allowed to use appropriate means to ensure that agriculture plays its
multifunctional role.  In particular, trade arrangements that procure SIDS with the means to pursue
their agricultural policy objectives should be safeguarded.
2. Food Security
Food security, as defined and underscored in the Rome declaration, exists when all people at
all times have physical and economic access to sufficient, safe and nutritious food to meet their
dietary and food preferences for an active and healthy life.  A "one size fits all" approach may
therefore not be suitable when addressing food security concerns;  instead the specificities of the
countries should be taken into consideration.
SIDS are mostly food deficit countries and as such, they are largely dependent on imports to
meet their food requirements.  However, SIDS are not priority recipients of food aid.
On the basis of our experience in Mauritius, we believe that food security can be best
achieved through a combination of measures, that, inter alia ,
(a) ensure stable and predictable export earnings to build up critical foreign exchange
reserves for the purchase of food on reasonable terms and conditions and in a timely
manner;
(b) ensure physical access to food through accessing different and adequate supply
sources;  securing effective reliable transportation and storage facilities;
(c) encourage domestic agricultural production bearing in mind various constraints of a
topographic or agro-climatic nature.  The exclusion of certain products fromreduction commitments would also contribute to maintaining food production.
(d) allow for the establishment by donor countries of an international reserve of food;(e) promote access to relevant agricultural technology including new seeds and plant
varieties.
3. Special and Differential Treatment
The Preamble to the Agreement on Agriculture recalls that special and differential treatment
for developing countries is an integral part of the reform process.
The primary intent of S&D, as outlined in G/AG/NG/W/55, is to establish equity and fair
competition where structural conditions across countries are different.  This is in line with the Action
Plan of the Rome World Food Summit, which highlights the situation of low and high potential areas.
To date, S&D provisions have been generally formulated so as to provide a longer time-frame to
developing countries to undertake reform as compared to developed countries.
Whilst this aspect should remain an important element of S&D provisions, the latter should
evolve into more effective instruments to address the various concerns of developing countries and in
particular the structural difficulties which deter them from achieving high levels of competitivity.
This is an issue of particular concern to SIDS in view of their diseconomies of scale and theiraccentuated structural difficulties.
Special and Differential Treatment could include  the elaboration of instruments that would:
(a) exempt from reduction commitments any measures aimed at poverty alleviation;G/AG/NG/W/96
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(b) make available appropriate technology with a view to enhancing competitivity;  and
(c) seek to achieve security of access for SIDS and smaller producers, in particular those
that are unable to take advantage of any increase in de minimis levels or greater
flexibility in providing domestic support measures.
4. Market Access
Most SIDS depend on only one or two agricultural commodities for export.  Hence, the
earnings that are derived from the export of such commodities play a crucial role in the overall
development of the economy of these countries.  Therefore market access which is guaranteed,predictable and secure for such commodities continues to be of particular importance to these
countries.
Mauritius believes that certain sensitive products should be excluded from the ambit of
commitments in respect of market access, domestic support and export competition.  Anycommitments to be undertaken by SIDS particularly should be on the basis of bound rates.
Mauritius proposes that existing market access on developed country markets be improved
and afforded safeguards.  In particular, current market access conditions for SIDS and single
commodity producers should not be undermined.
There should be self-restraint by large exporters, both from the developing and developed
world, for products originating from the SIDS and vital for the economies of the SIDS.
Historical preferential trade agreements should continue to provide significant preferences.
This would, inter alia , imply that in the context of tariff reduction, a meaningful difference should
apply between "in-quota" and "out-of-quota" tariffs.   Any review of TRQ administration should not
impact negatively on the terms and conditions of current market access for SIDS and other single
commodity producers.
Further products benefitting from enhanced access should either be "originating in" or
"produced in and exported by" the beneficiary country.
Mauritius re-affirms that the Special Safeguard Clause should remain in force for the duration
of the reform process as determined in Article 20.
5. Domestic Support
The Agreement on Agriculture provides for the long term objective of substantial progressive
reductions in support and lays down rules in respect of the kind of support that may be granted.  As
indicated earlier, Mauritius subscribes to the view that certain sensitive products should be excluded
from reduction commitments.  Further, any commitments to be made should be done on a sector basis.
Because of the amount of budgetary outlays required for support measures, SIDS have
generally been unable to provide necessary support to their domestic constituents, primarily farmers,
but importantly also, to agricultural research institutions.  This, in turn, has severely limited the
development of SIDS-relevant agricultural research and technology development.
In light of the foregoing proposals in respect of raising de minimis  levels and relating to the
expansion of the Green Box, however attractive they may seem, are not always of much avail as they
may remain constrained by budgetary realities.  Nonetheless, due consideration should be given to the
fact that certain countries, including SIDS may be in a position to take measures listed out in Annex 2G/AG/NG/W/96
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and in particular those related to the environment through the guarantee of stable and predictable
earnings.  Preferential terms and conditions of access have an important role to play in this regard.
6. Export Competition
Mauritius notes that the continuation of the reform process, in line with Article 20, provides
for the long term objective of substantial progressive reductions in support and protection and not for
the elimination of same.  Mauritius believes that a cautious and pragmatic approach should be adopted
when dealing with all forms of export competition as such measures have a positive incidence on the
food procurement capacity of those countries which can only produce one or two commodities
because of agro-climatic factors.  Whilst export subsidies and credits are not perceived as long term
solutions for food deficit developing countries, it cannot be denied that these measures have facilitatedaccess to food supplies.
As part of the implementation process, the WTO is currently engaged in elaborating
disciplines governing export credits.  Such discip lines should provide for differential treatment in
favour of NFIDCs.  Any further reductions or strengthened disciplines in the area of exportcompetition should be accompanied by commensurate measures in favour of net food-importing
developing countries.
SIDS, which are often geographically isolated and distanced from their major markets should
continue to be exempted from reduction  commitments in respect of subsidies aimed at reducing thecosts of the marketing exports of agricultural products and lowering internal transport and freight
charges on export shipments.  In this respect, SIDS  should be able to continue to enjoy the flexibility
provided by Article 9.4 of the Agreement on Agriculture and its scope should be extended beyond the
provisions of Articles 9.1 (d) and (e).
7. State Trading Enterprises
In small markets, state trading enterprises can play an important role as single sellers and
buyers.  They have the capacity to act as shock absorbers whenever there is an upsurge of basic
commodity prices and provide security of supply whenever there is a shortage of such goods in the
market or when the free market operators are not prepared to venture in the absence of commercially
viable terms of business.
Therefore, any tightening of rules in respect of STEs must bear in mind the role that such
enterprises play in smaller markets such as SIDS, it being recalled that these often permit trading to
take place in sustainable quantities.
One should caution against the advent, in particular situations, of unhealthy cartelization and
restrictive business practices resulting from strong disciplines for STEs.
All questions relating to STEs should be addressed under Article XVII of GATT 1994.
8. Peace Clause
The Peace Clause or Due Restraint Clause is part and parcel of the agricultural set up in the
WTO.  It is a prerequisite for the pursuit of the objectives of the Agreement on Agriculture.  As such,
it should continue to be in force as long as the reform process is on.
There is however, the need to expand the scope of the commitments protected by the due
restraint clause to ensure that all countries are equitably treated.G/AG/NG/W/96
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9. Cross Linkages
The negotiations in agriculture would be incomplete if they were not accompanied by
improvements in respect of geographical indications and flexibility in the application of Sanitary and
Phytosanitary Measures.
There is need to extend the coverage of agricultural products and foodstuffs that may be
protected by indications of their geographical origins.
With a view to assisting SIDS and other developing countries in meeting increasingly
stringent SPS requirements, appropriate technology should be made available to them.  Further, the
participation of these countries in the work of international standard setting bodies should befacilitated.
The fragility of biodiversity in SIDS makes risk management particularly difficult.  SIDS
which are unable to carry out detailed risk assessment should not be prevented from denying entry of
products into their territories under the pretext of trade consideration.
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