RI can make WTO meeting a success, a failure<\/p>\n
This is the second article by Riyadi Suparno of The
\nJakarta Post
\non the recent visit to the World Trade Organization
\nin Geneva. The visit was sponsored by the Swiss
\ngovernment.<\/p>\n
The issue of Indonesia's subsistent farmers could take center
\nstage at the upcoming World Trade Organization (WTO) ministerial
\nmeeting in Hong Kong later this year, risking perhaps the success
\nof the talks.<\/p>\n
Indonesia, like most developing countries, particularly those
\nthat import a significant volume of staple food, requires the
\nflexibility to protect its small-scale farmers in the event that
\nimports increase or international prices fluctuate.<\/p>\n
According to Indonesian trade negotiators at the WTO
\nheadquarters in Geneva, Indonesia's goals for the next
\nministerial meeting are the acknowledgement of the rights of
\ndeveloping countries to decide which agricultural products are
\nprotected and the introduction of a special safeguard mechanism.<\/p>\n
For example, the country wants the freedom to protect its rice
\nand sugar farmers in case of falling international prices and
\nsurges in importation.<\/p>\n
M.I. Derry Aman, second secretary of Indonesia's permanent
\nmission to the United Nations and other international
\norganizations in Geneva, explained that Indonesia currently has
\nenough room to raise tariffs to protect farm products in case of
\nswings in international prices.<\/p>\n
Indonesia's applied tariffs for agriculture produce currently
\nstand at an average of 7 percent, but its bound tariffs -- the
\ntariffs it commits at the World Trade Organization -- stand at an
\naverage of 30 percent.<\/p>\n
This means that in the event of global price swings and
\nincreased imports, Indonesia could increase the applied tariffs
\nuntil the bound level of 30 percent.<\/p>\n
\"If we have no flexibility to maneuver, it would be difficult
\nfor us to protect our subsistent farmers,\" Derry said.<\/p>\n
Indonesia's position, however, has come up against strong
\nresistance and not just from developed countries. Developing
\ncountries like Thailand, also a major exporter of agricultural
\nproducts, have expressed firm objections.<\/p>\n
To strengthen its position, Indonesia has been active, and is
\ncurrently in a position of leadership, in the Group of 33
\ndeveloping countries committed to protecting the rights of their
\nfarmers.<\/p>\n
This group of developing countries are focusing on three main
\nagricultural issues: food security, rural livelihood security and
\nrural development at the WTO negotiations. They aim to make these
\nissues an integral part of the negotiations and outcomes of the
\nHong Kong meeting.<\/p>\n
Nevertheless, if Indonesia and the Group of 33 remain
\nunswayable in their demands, their refusal to compromise would
\nbecome a stumbling block for the meeting.
\n The outgoing director general of the World Trade Organization,
\nSupachai Panitchpakdi, has called on Indonesia and the Group of
\n33 to consider a softer approach for the sake of the talks.<\/p>\n
In particular, Supachai has asked developing countries to
\nconsider the needs of not only their farm producers but also
\ntheir farm consumers.<\/p>\n
The process of liberalization in the agriculture sector has
\nhelped bring down the prices of staple foods across the world. In
\naddition, further cutting tariffs on farm products would surely
\nbring down their prices for the benefit of consumers, Supachai
\nsaid.<\/p>\n
\"When we offer concessions, it's not a payment. When we reduce
\nour tariffs, it's not a giveaway. You are doing good to your own
\nconsumers, who are the bulk of your population, you are doing
\nthem a favor because they will pay less,\" he told visiting
\njournalists from Indonesia, Malaysia and Vietnam recently.<\/p>\n
Cutting tariffs may also be of benefit for farm producers in
\nthat low tariffs would force farmers to work harder and
\neventually become competitive, boosting their production.<\/p>\n
\"We need to get our Indonesian friends to understand that we
\nare not in the business of destroying anybody's economy, not at
\nall. This is the kind of exercise in expanding the piece of cake
\nso that everyone have a bigger slice,\" Supachai said.<\/p>\n
Agriculture will surely be the thorniest issue at the upcoming
\nministerial meeting in Hong Kong, with other topics to be market
\naccess for non-agriculture produce, services and development
\nissues.<\/p>\n
The highlight of the talks in the agriculture sector,
\nnevertheless, will be the phasing out of developed countries'
\nprovision of subsidies for their farmers.<\/p>\n
In spite of the low-profile nature of Indonesia and the Group
\nof 33, they could pose a threat to the Hong Kong meeting in that
\nany decision at the meeting requires a consensus.<\/p>\n
This farm trade issue will eventually be decided by trade
\nnegotiators coming to Hong Kong, including those from Indonesia,
\nwhether or not they side with subsistent farmers or the hungry
\nconsumers.<\/p>",
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