Members pursue comprehensive negotiations on the three pillars of the agriculture agreement, namely:

• Market access: substantial reductions in tariffs and other non tariff barriers (NTBs) to trade;

• Exports subsidies: reductions of, with a view to phasing out, all forms of export subsidies; and

• Domestic support: substantial reductions for supports that distort trade.

Special and differential (S&D treatment for developing countries will be integral throughout the negotiations in agriculture, both in the countries' new commitments and in any relevant new or revised rules and disciplines. The outcome should be effective in practice and should enable developing countries to meet their needs, in particular in food security and rural development.
Non-trade concerns (such as environmental protection, food security, rural development, etc.) reflected in the negotiating proposals already submitted shall also be taken into account, as provided for in the Agriculture Agreement.

The " July Package" also known as the August Framework (2004) meanwhile reaffirms commitment to the Doha Declaration and sets the parameters for negotiations to conclude the Doha Round and asserts that the level of ambition in Doha remains the basis for negotiations and provides additional guidelines in pursuing the goals set in Doha.

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II. Issues:

• Market Access

This includes questions of increased access of agricultural exports to developed country markets through S&D, proportionality and progressivity. It implies a faster rate of tariff reduction and shorter implementation time frame for developed countries as well as uniformity and increased transparency of tariff measures.

The elements being negotiated include:

1. A Tariff Reduction Formula 

   The formula shall be agreed upon taking into account the principle of progressivity which means that higher tariff cuts shall be required for higher tariffs. Tariffs will be divided into tiers and reduced progressively according to their bands based on a common ad valorem equivalent (AVE). A gateway issue in the tariff reduction issue is the conversion of non-ad valorem tariffs to their AVEs. This is a necessary step to determine where the tariffs of all WTO member countries are to be placed into the tiers of the tariff reduction formula. A methodology for the conversion has been defined and this aspect of the tariff reduction agreement is nearly concluded. The progressivity principle shall work to reduce tariff escalation as well.>
   
   

2. Sensitive Products, Special Products, and Special Safeguard Measure 

   Members shall have the right to designate certain products as "sensitive" to be exempt from tariff reduction, but subject to compensation either in terms of a tariff rate quota (TRQ) expansion or tariff reductions for TRQ products. 

   As part of S&D, developing countries shall also have the right to retain "special products" which shall be exempt from tariff reductions without the need for compensation. The designation of "special products" shall be determined based on the criteria of food security, livelihood security and rural development. These criteria need to be developed further to make them operative. 

   There shall also be established a new Special Safeguard Mechanism (SSM) to replace the existing Special Safeguards (SSG) for developing countries. Necessarily the SSM shall be an improved version of the SSG through the provision of more flexibilities. 
   
   

3. TRQ/Minimum Access Volume (MAV) Administration 

Negotiations focus on improving disciplines in administrative transparency on allocations as well as fill rates.

• Export Competition

This will include elimination of all forms of export subsidies and trade distorting export support measures upon a clear deadline. Disciplines on affected export competition measures, such as food aid, must not prejudice genuine need for food and development aid programs with S&D provisions to be integrated, allowing flexibility for developing countries to promote exports

• Domestic Support

There shall be substantial reductions in total trade distorting (amber box + de minimis + blue box) support, including both non-specific and product-specific support. There shall also be the elimination of de minimis support for the developed while at the same time retaining the same for the developing countries. S&D shall be integrated in all provisions, allowing flexibilities for the developing countries to employ all forms of support for food security, livelihood and rural development. 

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III.  Unofficial Policy Thinking and Suggestions 

The Department of Agriculture has established the Task Force on the WTO AOA Renegotiations (TF-WAR). The Task Force is a stakeholder consultative-participatory assembly composed of government, private business, civic and non-government organizations, farmers' groups organized by the Department since 1998 that deliberates positions for recommendation to the Secretary of Agriculture. The TF-WAR Core (since 2000) is composed of volunteer technical experts from TF-WAR and conducts the necessary technical and substantive work in the development of proposals and positions on issues.

The Department should focus on the following approaches:

• Inter-linkage of commitments in the three pillars, to attain overall balance of reform commitments (i.e., the three pillars cannot be negotiated separately).

• General principles and disciplines, expressed in rules, should be laid down first, with the exceptions threshed out a later stage. Meanwhile, developed country counter demands for flexibilities should be dealt with as exceptions.

• S&D for developing countries should be integral in all elements, per Doha mandate & July Package. 

• There should be an active engagement of and consultations with stakeholders.
  

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