07 August 2004	Saturday	20 Jamadi-us-Saani 1425

ISLAMABAD, Aug 6: The Sustainable Agriculture Action Group (SAAG) had termed the July package agreement concluded recently at Geneva a disaster for the developing countries , which, it believes, will destroy the small scale farmers due to increased dumping by the developed countries.

The SAAG, a coalition of civil society and farmers group in Pakistan, in its comments on the package released to the media on Friday said the agreement held nothing but non-specific promises for the developing nations as usual.

"During the negotiations, the developing and poor countries showed strong resistance and opposition to the economic interests of developed countries but eventually everyone bogged down due to the worst arm-twisting, bribes, threats, divide and rule strategies as well as the exclusionary process that marginalized the majority," the group said.

As regards the text, the agricultural portion did little to address the problem of export dumping, which was undermining food security and food sovereignty world-wide to the benefit of multinational agribusiness companies.

"The framework is a legal instrument for the US and the EU to maintain their subsidies which has been the bone of contention in the ongoing trade negotiations. It is nothing but a box-shuffling exercise, even as developing countries markets are forced to be open. The rich countries have managed to protect their subsidies," they said.

According to SAAG, despite massive subsidies, developed countries have also used high tariffs by using special safeguards measures (SSG) to successfully block imports from developing countries.

While the SSG measures were still under negotiation and might continue for quite some time, developed countries, this time, came with a demand of sensitive products.

"The framework text grants such concession which means they will continue high tariffs on certain products under this head," the SAAG added. Industrial market access has been expanded through the use of non-linear formula and sectoral approach that would eventually reduce significantly higher tariffs in the developing countries, the group said and added that the industrial tariff cut would wipe out the domestic industries of poor countries.

The draft also nullifies the demand by developing countries to go through clarification and discussion phase rather than fast tract negotiations on Trade Facilitation.

According to the SAAG, the deal intensifies pressure on developing countries to place more of their service sectors under free trade rules of the General Agreement on Trade in Services (GATS), with a deadline for revised offers being set for May 2005. Members have been pushed to come up with high quality offers and the progressive liberalization in the service sector.

The July framework package provides a win-win situation to the developed world, win-loose situation to well-off developing countries (Such as Brazil, South Africa, India) and lose-lose state for the rest of the poor countries.