Introduction
On the 12th of December, 2023, the World Trade Organisation circulated the communication of the Draft Ministerial Decision of the 13th Ministerial Conference of the World Trade Organization (WTO).[1] The communication contained the decision of the ministerial conference aimed at promoting agricultural production and trade in Net Food Importing Developing Countries (NFIDCS) and Least Developed Countries (LDCs). The decision was in response to the increase in food insecurity in some countries occasioned by geopolitical instability and the covid-19 pandemic. The decision was also in response to unfair trade practices in the agricultural sector.
[1]Draft Ministerial Decision of the 13th Ministerial Conference of the World Trade Organization (WTO), Geneva, Switzerland, Promoting Agricultural Production and Trade in NFIDCs and LDCs, WT/GC/W/918
Enhancing agriculture production and productivity in LDCs and NFIDCs.
In order to enhance more productivity in the agricultural sector of LDCs and NFIDCs, the ministerial conference relaxed the rules on the level of support that member countries can provide to agricultural producers. Particularly, member countries of the WTO are allowed to provide Aggregate Measurement of Support (AMS) which exceed the maximum amount stipulated under Article 6.4 of the Agreement on Agriculture. Food products qualify for this exemption only if they have witnessed net imports and the net imports account for more than 45% of the net food availability in the last 5 years. The rules under the Agreement on Agriculture become applicable when the member country has attained self-sufficiency in respect of that product for the next 5 years. A member country that relies on the provision of the ministerial decision shall file notifications to the effect it is exceeding the support limit and that it meets the requirement for such exemption.
Where there is a food crisis which has occasioned an increase in import price, a country can exceed the AMS and must also file notifications in this regard. The initial rules will become re-applicable when the price of the particular agricultural product falls before the trigger price for a consecutive period of 6 months.
Enhancing accessibility to food markets of NFIDCs and LDCs.
In order to promote access to food markets, the ministerial conference stipulated that countries which seek to enforce export prohibition should ensure that such measures are consistent with WTO laws and have minimal impact on importing countries, especially LDCs and NFIDCs.
Member countries are also encouraged to implement an earlier ministerial conference decision on export credits, export credit guarantees and insurance while recognizing the special needs of LDCs and NFIDCs. In addition, export of basic food products to LDCs and NFIDCs should not be blocked through any means, notwithstanding its cause.
Access to Finance for Imports and Production Enhancement.
In order to promote access to finance for imports and promotion of local production in NFIDCs and LDCs, the ministerial conference established a compensatory financing mechanism which comprises multiple international organisations. The mechanism will provide credit in order to finance normal level of commercial imports of basis foodstuffs in order to promote food productivity in NFIDCs and LDCs. In the situation of a food crisis, there should be no conditionality in making credit available.
Enhancing transparency of Food Aid programmes and Export credit, guarantee and insurance initiatives.
The Committee on Agriculture is saddled with the duty to enhance notification requirements and formats relating to food aid and export credit, guarantee and insurance. This is aimed at fostering a deeper understanding of the issues and promoting global food security.
Strengthening Productive Capacity.
In collaboration with other bodies, the WTO shall seek funding mechanisms to improve the productivity in the agricultural sectors of NFIDCs and LDCs. In doing this, means of funding infrastructure and improvement of productive capacities shall be explored.
Conclusion The decision of the WTO ministerial conference to promote food security globally is commendable. This is especially so in light of the fact that the decision was drafted to accommodate concerns about unfair trade services.
