Presentation of Sectoral SIA on Agriculture and Final Report of the SIA Methodology to Civil Society Representatives on 6 May 2002

As the documents were available just a few days before the meeting, the discussion on the studies is considered as preliminary.

I. Sectoral SIA on Agriculture

As the only document available for the meeting was the executive summary, the goal of the meeting was to open a discussion which should be continued in the following weeks.

i. Presentation by Stockholm Environmental Institute

ii. Discussion:

Michel Insausti (WWF) mentioned the interest of WWF for edible oils as WWF is conducting several studies in particular in Indonesia and Brazil. He raised several issues, regarding the choice of countries for case studies (why not Brazil), the weakness of analysis in some areas (tariff escalation) and the lack of consultation of local NGOs.

WWF strongly support the proposal mentioned in the final SEI report to create a fund for LDCs.

The consultant indicated that taking into account the limited budget of the study, co-operation with local NGOs and researchers was not possible, and that only a limited number of case studies could be worked out. One of the lessons of this pilot study is that more complete consultation with external NGOs and third parties is needed. Tariff escalation is a complex issue which deserves stronger analysis.

The Commission underlined that this is a pilot study. An important outcome of this study is the fact that a lot of impacts are not directly linked with trade issues but with domestic regulation (gender issues, environmental impacts).

Other points were raised during the discussion: the role of productivity increase when agriculture liberalised can make the pressure on land use less damaging (in particular in the Indonesian case).

The question of the assessment of impacts of different areas of trade liberalisation (subsidies, tariffs…) separated from each other was raised. This food crops study carried out the assessment globally but this possibility could be envisaged in following studies.

Follow up:

As a pilot study, the use of the final report will constitute a real test of the way the results of SIA will be shared. The Commission will try to disseminate the final report internally and externally as broadly as possible. The report will in particular be forwarded to member states, and to the Committee on Trade and Environment.

2. Final Report of the SIA Methodology

A presentation of the final report of the methodological study was made by IDPM.

WWF presented a written response to the final report indicating among other points:

- the latest version is a significant advance

- but too much reliance on M&E

- non-WTO drivers of liberalisation should be covered

- more guidance on how to prioritise areas for studies

- more consultation of stakeholders

- range of scenarios is too limited

- developing countries should receive support when carrying out own studies

- list of indicators too limited

Generally, there should not be trade liberalisation as usual with some M&E-measures attached. Trade liberalisation itself should be shaped to be sustainable.

Special and different treatments and transitory time frames are not covered.

The Commission replied by welcoming the contribution of WWF in the debate by raising important and interesting questions. The Commission committed to note all the points mentioned.

Regarding consultation, the Commission is aware of the need for a broader consultation process and will ask the consultant to work on this in the frame of the Phase III study.

SIA is clearly seen by the Commission as a policy tool : results should feed the reflection of policy makers and flanking measures are not the only effective outcomes.

Regarding the role of flanking measures, they are important for mitigating negative impacts, and to make explicit the fact that some impacts are not linked with trade policy but with domestic/regional/international policies.

UNICE noted that the indicator technology progress is missing and that transitional economies are not classified.

The European Services Forum stated that it is important to evaluate past developments, and that the difference between trade agreements and their implementation should be taken into account.

Phase III study :

Presentation of Phase III of the SIA of WTO negotiations by the consultant.

The choice of sectors raised some concerns by business (ESF) and by NGOs (Friends of the Earth). In particular, NGOs were asking for a study in the agriculture field. WWF asked for a broader approach for the SIA, including interactions with regional trade agreements

The Commission stated the importance of having a transparent process and of enhancing consultation during studies. In particular the Commission want to find new ways to inform countries which are addressed by case studies.

Diffusion of final report of the food crops and methodology studies:

CTE at the WTO : 13 – 14 June

Next meeting with civil society on Phase III - 25^th July, Brussels