WORLD TRADE
ORGANIZATIONG/AG/NG/W/106
5 February 2001
(01-0557)
Committee on Agriculture
Special SessionOriginal:  English
WTO NEGOTIATIONS ON AGRICULTURE
Proposal by Turkey
INTRODUCTION
As a developing country member of the World Trade Organization, Turkey has been striving to
improve and increase the competitiveness of her agricultural sector on the basis of the Uruguay Round
Agreements.  However in Turkey, like in many other developing countries, the agricultural sector still
does not fully respond to the requirements of competitive environment.
For developing countries, sustainability of the agricultural sector is one of the important policy
goals.  There is also much to be done for Turkey in this respect.
Considering the strategic importance of the agricultural sector in national economies of
developing countries, viability of the agricultural sector is crucial for maintaining stable trade and
economic relations with other countries.
The agricultural sector provides 45 per cent of the total employment in Turkey, however, its
share in GNP is about 16 per cent.
In Turkey, 35 per cent of the population lives in rural areas.  Therefore agricultural policy and
long-term stability are important in rural development, improvements of  agro-industries in rural areas
and preventing desertification.  In this respect, purely market-oriented approach may not be fully
compatible with the existing conditions in this sector for the developing countries.
Stemming from the Law of Inheritance, agricultural landscapes can not be kept in optimum sizes,
thus, most of the agricultural enterprises in Turkey, which currently round to 4 million, are small-sized
and not well-organized.  These fundamental problems challenge the well-functioning of the sector.
Therefore, it is not realistic to expect short-term improvements in the agricultural sector, without having
resolved the structural problems.
In this respect, the agricultural reform and investment programme is being implemented.
Turkey would like to emphasize that the credibility of the reform process, to a large extent will
depend on how far the developed countries will be able to reduce the imbalances and inequities.  We
expect that the developed countries make further improvements in the three pillars of negotiations for thebenefit of developing countries in order to achieve this goal.
The implementation issues and the burden of the existing commitments of developing countries
should take the highest priority in the negotiations, if a fair world trading environment for agricultural
products is to be achieved.G/AG/NG/W/106
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I. MARKET ACCESS
1. Tariffs
The tariffication process of the Uruguay Round  resulted in higher tariff levels than their non-
tariff equivalents for developed countries.  Providing the opportunity of increased base levels in tariff
reductions, the tariffication process brought about unfair market access conditions to developing
countries vis-à-vis  the developed ones.
Contrary to market access improvements of tariff reductions, current applications of developed
countries under the SPS and the TBT Agreements appear as additional protectionist instruments for the
exports of developing countries.
Tariffs are the only instrument to protect the agricultural sector in Turkey against the
considerable level of export subsidies and domestic supports provided by developed countries which have
significant financial resources.  This fact should justify Turkey's cautious approach regarding further
tariff reductions.
Consequently, for Turkey, further tariff reductions can only be considered under circumstances in
which the export subsidies and domestic support are substantially reduced or eliminated by developed
countries, taking into account that the implementation period for developing countries will be concluded
at the end of the  2004.
Furthermore, tariff reductions should be undertaken by developed countries since the
implementation period has not ended yet for developing countries.  Possible tariff reductions are to be
undertaken at the end of the implementation period provided that Special and Differential Treatment of
the Agreement on Agriculture is duly respected, and strengthened .  Allowing for minimum reductions per
each tariff line on the basis of average bound rates, the Uruguay Round approach should be adopted in
the negotiations.
In compliance with the Special and Differential Treatment, developing countries should be able
to apply a lower level of tariff reductions and be allowed a longer period for implementation.  Moreover,
with a view to eliminating imbalances existing between developed and developing countries, the
proportional difference which was determined as 2/3 in the Uruguay Round should be increased.
Taking into account the importance of the agricultural sector, developing countries should have
the flexibility of identifying some key products to be exempted from further reductions or at least to be
reduced at minimum rates.
With a view to providing more favourable market access conditions, substantial tariff reductions
should be undertaken by developed countries for the products that developing countries have significant
export interest.
Tariff peaks and escalations applied by developed countries should also be eliminated.Specific and complex tariffs applied by developed countries create a non-transparent tariff
structure which limits the market access opportunities for developing countries.  Thus, Turkey proposes
that all tariff commitments should be converted into ad valorem  duties and that tariff structures  be
simplified through the elimination of all variable and compound duties.
Turkey is not in favour of sectoral tariff reductions.  However, any country introducing sectoral
tariff reduction is welcomed, provided that comprehensive tariff reductions are not impaired. In other
words, sector-based tariff reductions should on no account be used as an escape clause for overall tariff
reductions.G/AG/NG/W/106
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2. Special Safeguard Clause
Special Safeguard Mechanism which was invoked as a transitional instrument for the countries
which had converted non-tariff barriers into tariff equivalents in the Uruguay Round should be
eliminated.  Otherwise, a Special Safeguard Mechanis m similar to that which already exists should also
be formulated for the countries which did not take this advantage in the Uruguay Round.
3. Tariff Quotas
Turkey does not apply tariff quotas, since no tariffication was made in the Uruguay Round.On tariff quotas, Turkey shares the views expressed by many other countries, pointing out the
necessity of introducing a discipline in tariff quota administration with a view to achieving transparent,
predictable and non-discriminatory quota allocation.
Although the tariff quotas have been introduced to improve market access opportunities, there are
great disparities among countries regarding modalities of tariff quota application that limit the realization
of intended  objectives.  Thus the negotiations should result in improvement of the effectiveness of tariff
quota administration, allowing a more transparent, predictable, non-discriminatory quota allocation.
Turkey also supports the elimination of tariff quotas through the expansion of quota volume and
reduction in in-quota and out-quota tariffs over an agreed time frame.
II. DOMESTIC SUPPORT
Domestic support policies are dynamic in nature since they vary according to agricultural
structures and policy objectives.
The importance of the agricultural sector in developing countries necessitates an effective
domestic support strategy.
In the face of growing population, to ensure long-term food security and to maintain self-
sufficiency as well as to provide social, political and economic stability justify the domestic support
policy for the agricultural sector in Turkey.
With its " de minimis " Clause, the Agreement on Agriculture has clearly ruled out the use of
Amber Box measures that have distorting effects on trade and production.
However, the implementation up to now revealed that developed countries due to their advantage
of financial resources have intensively provided domestic supports that have been subjected to reduction,
while developing countries did not have this opportunity, even at the " de minimis "  level.
This brings us to a conclusion that there is a need of fair implementation regarding the use of
domestic support which will be in full conformity with the letter and the spirit of the Agreement.
To this end, domestic support over " de minimis " level should be reduced substantially or be
eliminated, while " de minimis " level for developing countries should be increased to a mutually agreed
level.
Developing countries should be granted the flexibility to apply " de minimis " on an aggregate
basis, instead of product basis, taking into consideration the changing production conditions.
High inflation as a major problem of many developing countries decreases the effectiveness of
domestic support policies and Members' ability to abide by their domestic support commitments.G/AG/NG/W/106
Page 4
Therefore, in line with Article 18.4 of the Agreement on Agriculture, due consideration should be given
to the negative effects of high inflation rates on implementing commitments.
Special and Differential Treatment granted for developing countries under Article 6.2 of the
Agreement on Agriculture, which stipulates the use of investment and input subsidies with the aim of
encouraging agricultural and rural development, should be continued to be exempted from reduction
commitments.
Turkey supports the continuation of Green Box measures within the framework of Annex II.  In
order to minimize any possible trade distorting ef fects of Green Box measures, Turkey proposes the
introduction of clear definitions and set of rules in compliance with the objectives of Annex II of the
Agreement on Agriculture.
III. EXPORT COMPETITION
1. Export Subsidies
Domestic support policies implemented by developed countries to guarantee the long-term food
supply capacity and food security, specifically for the basic agricultural products, have been extended to
other sectors  and resulted in excess production.
Overproduction encouraged by huge amounts of domestic supports in developed countries was
the main reason to use export subsidies intensively.
Today, extensive use of export subsidies by developed countries, with the objectives of
increasing their competitiveness and expanding market shares brings about negative effects oninternational market prices and leads to unfair competition for the exports of developing countries.  It
further damages local production capacity in importing countries.
Due to budgetary constraints, developing countries are unable to provide support against heavily
subsidized exports of developed countries that negatively affect their economies.
Competitive environment for agricultural exports of developing countries calls for the
elimination or substantial reductions in the export subsidies of developed countries.
2. Food Aid
Turkey fully supports the implementation of the provisions of Article 10.4 of the Agreement on
Agriculture which clearly sets forth the requirements of international food aid.
In order to prevent food aid programmes being used as disguised protection for export subsidies,
food aid programmes should duly respect the existing rules and disciplines of the Agreement on
Agriculture and be in grant form to the extent possible.
3. Export Credits
Article 10.2 of the Agreement on Agriculture calls upon Members to undertake to work towards
the development of internationally agreed disciplines to govern the provision of export credits, exportcredit guarantees and insurance programmes.
Turkey, taking into account the fact that widespread use of officially supported export credits by
developed countries generally brings about effects similar to that of export subsidies, calls upon all
Member countries to take concrete steps in putting into disciplines the use of export credits within theframework of the WTO.G/AG/NG/W/106
Page 5
4. Peace Clause
Aiming to facilitate the integration of the agricultural sector to the rules and disciplines of the
WTO, Article 13 of the Agreement on Agriculture, exempts domestic support and export subsidies from
being subject to the provisions of the Agreement on Subsidies and Countervailing Measures, as well asthe provisions of the GATT 1994.
In conformity with the objectives of the reform process that require a substantial and progressive
liberalization in the use of export subsidies and domestic support, it is considered that there will be no
need to recourse to the "Peace Clause".
5. Special and Differential Treatment
Special and Differential Treatment of the Agreement on Agriculture granted for developing
countries in the fields of export subsidies, domestic supports and market access should be continued and
strengthened.
Taking into account the different levels of development of the agricultural sector in Member
countries resulting from the differences in economic, financial and technological structures as well as the
qualified labour force capacity, Turkey considers the Special and Differential Treatment as an integral
part of the negotiations.
6. Non-Trade Concerns
Multi-functionality of the agricultural sector has become an important agenda item in agricultural
discussions in recent years. In this context, several countries have pointed out different arguments for
their non-trade concerns.
Naturally, as a developing country, Turkey has also non-trade concerns, some of which are
indicated in the introduction.
In commensurate with Article 20 of the Agreement on Agriculture, Turkey considers the
negotiations as an opportunity to discuss and analyze this concept in depth aiming to identify main
elements and instruments for the benefit of the agricultural sector.
However, the negotiations, should in no case result in the introduction of any measures that can
be used as an escape clause by developed countries to avoid further liberalization in export subsidies,
domestic supports and market access.
Within this process, taking into account the sign ificant role of the agricultural sector for the
overall economic activity, various non-trade concerns of developing countries should be properly
addressed with all possible implications for their agriculture.
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