This Technical Note seeks to address two central questions relating to negotiations towards further disciplines on domestic support measures: (i) what are the characteristics of domestic support measures that cause such measures to have a potential trade distortionary effect? and (ii) will further the World Trade Organization(WTO) disciplines on domestic support measures be effective in reducing levels of trade-distorting support.

Access for developing country exports to developed country markets on preferential terms has been a long standing component of multilateral trading arrangements. The main purpose of preferences is to promote increases in the volume and value of exports from developing countries, thereby contributing to their growth and development the logic being that through greater volumes of sales, on a more stable basis and at higher prices than would otherwise be...

An FAO/WFP Crop and Food Supply Assessment Mission visited Zambia from 1 to 21 May in order to assess and forecast the 2005 harvest of the main cereal and root crops, and to estimate the country’s cereal import requirements for the 2005/06 marketing year (May/April), including food aid needs.

Over the past decade, Swaziland has repeatedly experienced droughts or inadequate rainfall and resultant poor harvests. The rainfall this ending season, though more favourable overall, was characterized by a late start in October and deficits in December at crop establishment stage and in February at tusselling stage. Concerned about the potential impact of these breaks on the nation’s food production, the Government of Swaziland requested FAO and WFP for assistance...

Following the reports of poor harvests in southern and central provinces due to drought, an FAO/WFP Crop and Food Supply Assessment Mission (CFSAM) visited all the production areas in the country from 25 April to 13 May 2005. The Mission evaluated food crop production in the 2004/05 agricultural season, assessed the overall food supply situation, forecast cereal import requirements and possible exports in marketing year 2005/06 (April/March) and determined the...

An FAO/WFP Crop and Food Supply Assessment Mission (CFSAM) visited Malawi between 24 April and 15 May 2005 following a request by the Ministry of Agriculture, the Government of Malawi (GOM). Early indications showed that the country may face severe food shortages for the ensuing year and, therefore, the CFSA Mission was requested to assess the situation and the impact of the perceived food shortages on the population at large...

During March 2005, a mid-season crop assessment was carried out by an agronomist at the request of FAO and WFP Country Offices. This was not the usual FAO/WFP Crop and Food Supply Assessment Mission (CFSAM) which in addition to crop assessment evaluates the prospective overall food supply and demand situation and the food needs of vulnerable population groups. It was subsequently proposed that a full but relatively short CFSAM be...

There is broad agreement that interventions to support exports of agricultural commodities have the potential to distort competition on world commodity markets. In particular, the use of export subsidies can displace not only third-country exporters but also domestic producers in importing countries, with particularly detrimental effects to the development prospects of developing countries. In principle, it is also possible that other government interventions, e.g. through the use of export credits,...

Prospects for the 2005 global cereal crop remain favourable. Latest production forecasts indicate a decline from the record output of 2004 but not as large as anticipated earlier. FAO’s first forecast of world cereal trade in the 2005/06 marketing season points to a slight decrease from the revised 2004/05 level, mainly due to lower wheat import demand. Global cereal utilization is expected to increase somewhat in 2005/06, which coupled...

Following its enlargement to include ten Central and Eastern European countries in May 2004, the European Union (EU) has now become the largest banana market in the world. It is forecast to import some 3.8 million tonnes of bananas in 2005, which would account for almost a third of world banana imports. As bananas enter freely into United States territory, and Japanese banana imports originate mainly in Asia, the rapidly...