JOB/AG/227  
 
14 April 2022  
(22-3074) Page: 1/3 
Committee on Agriculture  
Special Session  Original: English/French  
 
COMMENTS BY THE  LDC GROUP ON THE  
DRAFT TEXT ON AGRICULTURE  (TN/AG/50)  
COMMUNICATION FROM  CHAD ON BEHALF OF THE LDC GROUP  
The following communication , dated 13 April 2022, is being circulated at the request of the 
delegation of Chad on behalf of the LDC Group .  
 
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INTRODUCTION  
1. In reaction to the draft text of the Chair of the negotiating group on agriculture circulated on 
23 November 2021 (TN/AG/50), the LDC Group would like to share some initial reflections building 
on its previous submission on post -Nairobi priorities. It focuses on areas of particular relevance to 
food security and economic resilience for which ministerial mandates already exist.  
BACKGROUND  
2. It should be reminded at the outset that agriculture remains a vital sector for most LDCs, 
representing a significant share of GDP and directly contributing to export earnings, rural livelihood, 
poverty reduction, and food secu rity. The vast majority of producers in LDCs are small or 
semi-subsistence farmers and remain highly vulnerable to external shocks in spite of a large 
underutilized production potential in agriculture. Between 2018 and 2020, LDCs accounted for 
around 0.83%  of global agricultural exports and this share has been continuously declining to reach 
0.54% in 2020, not least as a result of the COVID -19 pandemic.1 In this context, enhanced LDCs 
integration in world markets can significantly strengthen LDCs exports a nd increase their economic 
resilience. To achieve this objective, however, LDCs need to develop their productive capacity, and 
have access to technology, inputs, financing, and undistorted international markets.  
3. For these reasons, the LDC Group support s a reform of the Agreement on Agriculture (AoA) 
towards a fair and market -oriented agricultural trading system, which gives priority to issues related 
to food security and resilience, such as trade -distorting domestic support including cotton, the 
special  safeguard mechanism and public stockholding for food security purposes. Given LDCs 
vulnerabilities and their marginal share in agricultural trade, special and differential treatment should 
be an integral part of future negotiations and exempt LDCs from an y reduction commitments, in 
accordance with all our mandates originating under Article 20 and Article 15.2 of the AoA, and 
Article  XI.2 of the Agreement Establishing the WTO.  
DOMESTIC SUPPORT  
4. After several years of negotiations, the trade -distorting effects of domestic support in 
agriculture continue to displace LDC producers on global markets while creating conditions of unfair 
competition on domestic and regional markets. Such policies directly hamper the development and 
food security pro spects of LDCs.  
 
1 Based on UN Comtrade data.  JOB/AG/227  
 
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  5. At this juncture, there is no agreed principle and parameter on the trade -distorting domestic 
support reduction and the positions on agricultural negotiations remain broadly divergent. Therefore, 
the LDC Group is of the view that agricu ltural negotiations should result in substantial cuts in 
trade-distorting domestic support and reduce existing asymmetries in domestic support 
entitlements, with a particular focus on products of specific export interest to LDCs.  
6. The LDC Group welcomes  the references to special and differential treatment (SDT) in 
paragraph 12 and the principle that Members who distort trade the most shall contribute more in 
the reform process under paragraph 13. Based on this recognition, the text should explicitly spec ify 
that LDCs will not be expected to undertake any reduction commitments as a result of future 
disciplines on domestic support.  
7. The LDC Group welcomes the reference to a clarification of Green Box criteria under 
paragraph  16. The text should nonetheles s explicitly state th at this  clarification should ensure that 
such measures have no or at most minimal trade -distorting effects.  
8. Domestic support provided to low-income or resource -poor farmers under Article 6.2 shall not 
be subject to further limitatio ns nor included in the calculation of trade -distorting domestic support. 
The reference to reviewing Art icle 6.2 criteria shall be removed from paragraph 16 of the draft text.  
EXPORT RESTRICTIONS  
9. Export restrictions are an important policy tool for LDCs in times of price volatility or risks of 
critical food shortages on the domestic market. At the same time, as net food -importing countries, 
LDCs are also vulnerable to price volatility resulting from shortages on the world market.  
10. For this reason, Mem bers other than LDCs and net food -importing developing countr ies 
(NFIDC) should refrain from imposing export prohibitions or restrictions within the meaning of 
Article  XI:1 of the GATT 1994 with respect to basic food products, when such products are reques ted 
or purchased by LDCs for their domestic use.  
11. The Group also supports the special and differential treatment provision envisaged in 
paragraph 29 of the draft text to exclude LDCs or NFIDC s from the notification obligations listed in 
paragraph 28.  
12. Similarly, any future disciplines in this area should fully take into account the specific needs 
of LDCs including through effective SDT provisions.  
COTTON  
13. The LDC Group recalls the importance of fully implementing the commitments contained in 
the Na irobi Ministerial Decision on Cotton in the three pillars of market access, domestic support and 
export competition.  
14. The Group also stresses the need to continue negotiations on domestic support for cotton in 
accordance with mandates agreed by Minister s in Hong Kong, Bali and Nairobi to tackle cotton in an 
ambitious, expeditious and specific manner. These negotiations should result in substantive cuts 
with a view to eliminating all forms of trade -distorting domestic support affecting cotton markets.  
15. As an interim step, Members should agree at the 12th Ministerial Conference, to:  
a. Freeze their trade -distorting support on cotton at 2019 -2020 levels and refrain from 
introducing new such subsidies, while a negotiated solution is being sought , and 
b. Negotiate, by the 13th WTO Ministerial  meeting , specific modalities to cap and 
progressively eliminate all forms of cotton trade -distorting support taking into account 
the unique challenges faced by cotton -producing Members, including developing 
countries and LDCs.  
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  SPECIAL SAFEGUARD MECHANISM  
16. The LDC Group reiterates that the establishment of a special safeguard mechanism to offset 
the negative impact of price volatility and import surges on resource -poor farmers is an important 
aspect for LDCs. We t herefore call on Members to achieve a speedy solution on this issue as a matter 
of priority, in accordance with the mandate given by our Ministers in Nairobi.  
17. As an interim step, Members should agree at the 12th Ministerial Conference to establish 
simplified investigation procedures for the application by developing countries and LDCs of safeguard 
measures on imports of subsidized agricultural products.  
PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES  
18. The LDC Group stresses the importance of agreeing on a permanent solution on Public 
Stockholding (PSH) for Food Security Purposes. This issue has been on hold for too long and concrete 
results are largely overdue.  
19. As a priority, the permanent solution  should include the purchase of food by LDCs under 
existing and future public stockholding programmes.   
20. In addition, any permanent solution should incorporate the following elements:  
a. As envisaged by most proposals to date, the permanent solution shoul d replace the 
interim peace clause with a decision that PSH programmes fulfilling certain conditions 
should not be included in the AMS calculation;  
b. The scope of the PSH programme should not be defined in terms of specific crops nor 
subject to an upper lim it on total procurement of the domestic production quantity. 
Rather it should cover any programme for the acquisition of foodstuffs at administered 
prices , provided that its objective is to support low -income or resource -poor producers , 
and  
c. In addition, t he permanent solution should cover any purchase of food at administered 
prices under PSH programmes, provided that the administered price is set below the 
level of international prices for the same crops.  
21. The notification, consultations and monitoring requirements should reflect the ones envisaged 
by the G33 in JOB/AG/105 and limit the amount of information required to the strict minimum to 
ensure that LDCs can effectively use the exemption.  
22. Safeguard and anticircumvention provisions should ensure that the exempted subsidies do 
not affect the food security of other Members and that no direct export from the stocks shall occur 
upon the release of products.  
WFP FOOD PURCHASES EXEMPTION FROM EXPORT PROHIBITIONS OR RESTRICTIONS  
23. The LDC Group suppor ts a ministerial decision at MC12 prohibiting export restrictions on 
foodstuffs purchased for non -commercial humanitarian purposes by the WFP , provided that such 
purchases are in compliance with the "do -no-harm" principle underlying WFP's procurement polic y, 
and that the supplying Member's food security is not jeopardized by such purchases.  
24. However, nothing in paragraph 23 shall be construed to prevent the adoption or enforcement 
by any Member of measures necessary for its domestic food security.  
 
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