CCP 05/1

1.     Organizational Matters

1. Election of Chairperson and Vice-Chairpersons
2. Adoption of the Agenda

2.     Statement on behalf of the Director-General

3.     The State of World Agricultural Commodity Markets

4.     Policy Developments Affecting Agricultural Commodity Markets and Trade

1. Impact of Organisation for Economic Co-operation and Development (OECD) Agricultural and Trade Policies on Developing Countries
2. Trade Policy Reform and Food Security

5.     Other Current Issues in Agricultural Commodities and Trade

1. National and International Commodity Market Risk Management
2. International Negotiations Concerning Food Aid

6.     International Action on Agricultural Commodities and Trade

7.     Arrangements for the Sixty-sixth Session

8.     Any other business

9.     Adoption of the Report

AGENDA NOTES

The Sixty-fifth Session of the Committee on Commodity Problems will open at 9:30 hours on Monday, 11 April 2005. The Committee is expected to adopt its report in the morning of Wednesday, 13 April 2005.

The Session will be followed on Wednesday, 13 April 2005 by a High-Level Round Table on Agricultural Trade Reforms and Food Security open to delegations. This Round Table will discuss and share experiences related to the process of agricultural trade liberalization and its impact on food security and poverty. Separate invitations will be issued.

1.     Organizational matters

(a) Election of Chairperson and Vice-Chairpersons

The Committee will elect a Chairperson and a First and Second Vice-Chairperson. These officers will remain in office until the election of a new bureau at the Committee’s next Session. The current Chairperson is Mr Elhamy Abdel Mohamed Menaam (Egypt) and the Vice-Chairpersons are Mr Adriaan Frijlink (Netherlands) and Mr Carlos Pozzo (Venezuela).

(b) Adoption of Agenda

The Provisional Agenda (CCP 05/1) has been prepared taking into account the Committee’s terms of reference, the recommendations of the Programme and Finance Committees, and the suggestions made at the Sixty-fourth Session.

2.     Statement on behalf of the Director-General

A statement on behalf of the Director-General will be delivered.

3.     The State of World Agricultural Commodity Markets

Under this item the Committee will evaluate the state of world agricultural commodity markets.  A discussion paper will be provided outlining Major developments and issues (CCP 05/9) to assist the Committee in this task.

In addition, the Committee will be able to draw on the following background information:

• Update on commodity market developments and short-term outlook and electronic commodity notes available to delegates through computer access outside the meeting room.
• The State of World Agricultural Commodity Markets (this new flagship publication will be available in all official languages).

4.     Policy developments affecting agricultural commodity markets and trade

Under this item, the Committee will have the opportunity to discuss major policy developments impacting on commodity markets and trade. These policy developments will be covered under two headings as follows:

(a) Impact of OECD agricultural and trade policies on developing countries

The implications of market access, subsidized exports and domestic support for world commodity prices, export earnings and food import bills are central concerns of the World Trade Organization (WTO) negotiations on agricultural trade. The recent complaint by four West African countries on cotton has highlighted the potential impact of OECD agricultural and trade policies on developing countries. The Committee will consider the issues involved more generally. A background paper, Impact of OECD agricultural and trade polices on developing countries (CCP 05/10), will present model-based analyses documenting this impact.

(b) Trade policy reform and food security

Under this item the Committee will consider the implications of the latest developments in ongoing trade negotiations for food security and appropriate response mechanisms. Background papers on Policy reform and food security (CCP 05/11) and Update of latest developments in trade negotiations (CCP 05/12) will be provided.

5.     Other current issues in agricultural commodities and trade

Under this item the Committee will have the opportunity to consider further important matters relating to agricultural commodity trade. Two issues have been identified for detailed discussions as follows.

(a) National and international commodity market risk management

Commodity market instability poses problems for low–income commodity dependent countries, not only in terms of instability in export earnings but also in food import bills. National and international risk management strategies based on recently available international risk management instruments have been proposed to enhance market predictability. The Committee will have the opportunity to discuss the feasibility of such strategies assisted by a document Issues and actions on national and international commodity market risk management (CCP 05/13).

(b) International negotiations concerning food aid

Article 10.4 of the Agreement on Agriculture is becoming an important issue in the context of the ongoing WTO trade negotiations. The Committee will have the opportunity to discuss the implications of these negotiations for food aid and trade, the recipients and donors of such aid and the role of the Consultative Sub-Committee on Surplus Disposal (CSSD). The Committee will be provided with a background document on International trade negotiations and food aid (CCP 05/14) and the Report of the Consultative Sub-Committee on Surplus Disposal (CCP 05/15).

6.     International action on agricultural commodities and trade

For information, the Committee will receive the reports of the various intergovernmental commodity groups and as well as a document on Commodity project formulation, preparation and supervision (CCP 05/16), a report on product and market development activities including those undertaken in collaboration with the Common Fund for Commodities.

7.     Arrangements for the Sixty-sixth Session

The Committee will consider the date of its next Session and any relevant organizational matters.

8.     Any other business

9.     Adoption of the Report

The Committee will consider its draft report for adoption. The report of the Sixty-fifth Session will be submitted to the FAO Council at its Hundred and Twenty-eighth Session in June 2005.