Taiwan misses impact on agriculture

It failed, however, in determining the exact formula to expedite the process for non-agricultural market access (NAMA).

Despite this, analysts view the result as a reassurance to the Taiwan farmers that they can be spared from cut-throat competition from overseas agricultural products for another two years.

“If this round can not reach conclusions (in NAMA), it will give some breathing room for Taiwan’s agriculture for sure,” said Daniel Liu, deputy executive director of WTO center in Chunghwa Institute for Economic Research.

Agriculture, particularly the issues related to the termination of the export subsidies, has been the focus throughout the conference this year. Both the developed and the developing nations agreed to this reform, but the developed nations continued to hold grudges against each other as to further concessions the other party will make in return.

The European Union (EU), for example, was reluctant to commit to a specific date when all forms of export subsidies will end on the ground that the concession has led to no altruistic responses or actions from other members. Specifically, the EU pointed out in a statement that the U.S. continues to be the largest provider for ‘officially supported export credits’ for agriculture. In 2005, the U.S. government provided up to US$6.1 billion of export credits to U.S. farmers at conditions that EU characterized as “more favorable than the private sector would offer.”

“Reforms have to be specific and comprehensive,” said EU Agriculture Commissioner Mariann Fischer Boel, “Then we can start discussing end dates. We are ready to move but we insist on taking others — the U.S., Canada, Australia and New Zealand —with us.”

Although Taiwan currently provides no export subsidies in agriculture, so the move is seen by some as a benefit to Taiwan eventually.

“It (the move) will reduce the competitive edge of exports to Taiwan and level the playing field as well,” Liu said

Taiwan, on the other hand, was tackling the issue of capping on tariff of agricultural products. In a meeting with G-10, a coalition of countries including Chinese Taipei, Japan, Korea, Iceland, Israel, Liechtenstein, Mauritius, Norway and Switzerland, Taiwan’s Council of Agricultural Affairs (COA) suggested that the WTO grants new members some flexibility in regards to the tariff adjustment.

COA minister Lee Ching-lung said although no specifics regarding adjustment were mentioned this time in Hong Kong, Taiwan is generally inclined to combine the use of quotas and low tariff systems.

The proposal was intended to apply in the case of the so-called “sensitive products,” meaning the sales of these products in one country would be affected immediately and greatly once the tariff is lowered or removed. To Korea or Taiwan, for example, rice is considered one of the sensitive products.

“The reason why Korean farmers would react so drastically to the issue is because the nation has been limiting its import of rice over the years,” Lee said, adding the agreement made in WTO would have a significant impact on the livelihood of farmers in Korea.

Lee said when Taiwan first entered WTO in 2002, it also held the policy of limited imports. However, it switched to the use of the quotas and tariffs the next year.

Chang Su-san, Taiwan’s permanent representative to WTO, suggested that the implementation of both quota and tariff systems will help reduce the impact on the agriculture.

“When the tariff on a product was cut drastically, it will get compensation instead from the increase in quota, and vice versa,” Chang said. She added that Taiwan’s stand on this particular issue is more in line with EU’s.

Currently, Taiwan applies the system when dealing with the following sensitive products, including rice, garlic, mushrooms, pears, red beans, peanuts and coconuts.

Although the meeting in Hong Kong did not reach any concrete statement in this regard and awaits further discussions in Geneva next year, COA nevertheless alerted the government about the necessity of gradually reducing the yield of rice and increasing instead the harvest of other crops, including plants such as sunflowers that could be used to make bio-diesel.

During the conference, Taiwan has also expressed its concern to head of the delegates related to issues of anti-dumping.

According to a statistics by Ministry of Economic Affairs, Taiwan was forced to pay anti-dumping duties in total of 94 cases since 1995. Meanwhile, China’s anti-dumping cases also increased. By June 2005, a total of 317 cases were filed against China on anti-dumping charges.

Steven Chen, spokesperson of Ministry of Economic affairs, said that members in Friends of Anti-Dumping Negotiation (FAN) have reached consensus that the anti-dumping cases need to be filed in a more transparent manner and should not be abused. Otherwise, he argued, it would affect the further opening of the market access and any interests that will come later.

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