17-10-2006 - Trade and Development - Australian Permanent Mission to the United Nations

Australian Permanent Mission to the United Nations

New York

Permanent Mission address: 150 East 42 Street, Level 33, New York, New York 10017 - Telephone: 1 212 351 6600 - Fax: 1 212 351 6610

Statement to the 61st session of the UN General Assembly
17 October 2006

Second Committee
Agenda item 51(a): International Trade and Development

Delivered by the Hon Bruce Baird MP
Parliamentary Advisor to the Australian Delegation
on behalf of the Cairns Group

(Check against delivery)

Madam Chair,

I have the honour today to speak on behalf of the Cairns Group of agricultural trading countries, namely Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, the Philippines, South Africa, Thailand and Uruguay.

The Cairns Group has invested heavily in the Doha Round. We are deeply disappointed at the suspension of talks in July this year, and urge WTO members quickly to re-engage in negotiations. The Cairns Group met in September this year to reaffirm its strong support for resumption of the round.

The goal of fundamental reform of agricultural markets is as urgent today as it was at the founding of the Cairns Group twenty years ago. Farmers world-wide urgently need relief from the costly support and protection in the markets of the major agricultural subsidisers.

The Round cannot be allowed to drift. Further delay adds to the risk that we lose the gains secured to date in the negotiations and the continued momentum for trade reform. The costs of continued delay will be borne by our farmers and our rural communities. While difficult, negotiating gaps can be bridged. We are determined to do all that we can to facilitate convergence and an early return to the negotiating table. To this end, WTO Members should assess prospects for resumption and take the necessary steps to resume negotiations no later than November.

Madam Chair

The failure to conclude an agreement on agriculture modalities is the result of significant gaps in positions in both domestic support and market access.

I emphasise the view of the Cairns Group that genuine and deep policy reforms in both pillars are necessary in this Round to deliver real change in global agricultural markets. The plain negotiating reality should also be clear: modest reforms in these areas will simply be insufficient to conclude a deal on agriculture or to unlock the benefits of the broader Doha agenda.

The EU, US, G10 and others with the highest levels of support and protection must make the necessary improvements to their offers on market access and domestic support to establish the basis for the early resumption of negotiations. For our part, we will continue to help establish the conditions for a successful conclusion to the Round. To that end, we will continue to work to help build convergence on the substance of the agriculture modalities, in preparation for the resumption of negotiations. Substantial efforts will be required.

This is especially true for market access, where the substantive differences in negotiating positions are most significant. For Sensitive Products, we need a transparent and objective market-based approach, that is capable of delivering substantial and meaningful improvements to access. A strong outcome on market access, including for tropical products, is an essential element in securing the development benefits of the Round.

The Cairns Group is resolved, as a matter of priority, to establish convergence on Special Products and the Special Safeguard Mechanism in order to provide greater definition to these instruments, consistent with the mandates and the Group’s objectives.

Urgent work is also required on domestic support. Unless there are effective cuts in trade distorting subsidies, we will not achieve an outcome in these negotiations. Levels of overall trade-distorting support must be significantly reduced with meaningful disciplines applied, including to prevent concentration of support on particular products. Adjustments are required to the Green Box to ensure that this category of support is genuinely non or minimally-distorting. The particular issue of cotton should be addressed, taking into account its importance to many developing countries.

The Cairns Group welcomes the decision in Hong Kong to abolish export subsidies according to a phased schedule. Further work is required on the schedule and to elaborate the parallel disciplines in the export competition pillar.

We recognise the importance for developing countries of special and differential treatment in undertaking new commitments. We are committed to achieving a strong outcome to the Doha round for agriculture – in all three pillars – in order to provide the best possible conditions for sustainable development.

At the recent Cairns Group Ministerial Meeting, we agreed on an ambitious work program to help establish the conditions for the early resumption and successful conclusion of the Doha Round. We are committed to building convergence on issues of common interest.

I thank you.