Global Dairy Alliance Plans WTO Strategy

Global Dairy Alliance Plans WTO Strategy to End Dairy Trade Distortions

The Global Dairy Alliance (GDA) met in Montevideo this week to develop a detailed work program to support strategies into the next phase of the Doha Round negotiations. The work builds on the framework agreed in Geneva in August.

The GDA speaks for 1.5 million dairy farmers and GDA Chairman Mr Osvaldo Cappellini warns that there are still many issues to be resolved.

“Detailed negotiations are still needed on all three key aspects: export competition, market access and domestic support”, he said.

“We are working hard to ensure that the final phase of the negotiations delivers the substantial improvement in market access that all countries committed to at the launch of the Doha Round.”

Participants discussed elimination of trade-distorting export subsidies on dairy products and strongly advocate a full phase-out in no more than three years.

“We are working to highlight and overcome pitfalls in the text and a lot of work remains in order to take the text forward,” Mr Cappellini said.

To support the process, the GDA has developed a detailed program of technical work. The program involves detailed analyses in relation to areas of the text such as tariff reduction formulae, tariff quota expansion, ad valorem tariff equivalence and special and sensitive products.

“We need to ensure the Agreement results in substantial genuine new trade and that we avoid the risk that protectionist countries make so-called ‘tariff concessions’ that leave landed prices still well above domestic levels” said Mr. Cappellini.

The GDA is also actively considering the potential implications for dairy of the recent WTO panel findings on cotton and the forthcoming decision on sugar.

As part of its efforts to engage with dialogue partners around the world, the GDA also met with the US dairy industry in Montevideo. This follows meetings earlier this year in Washington.

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