UNITED NATIONS GENERAL ASSEMBLY
Statement by Hon. Laurie Brereton MP
Parliamentary Adviser to the
Australian Delegation
on behalf of the Cairns Group
Second Committee
Item 84(a): International Trade and Development
New York
12 November 2002
Mr Chairman
I have the honour today to speak on behalf of the Cairns Group of agricultural fair trading countries, namely Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Paraguay, the Philippines, Thailand, South Africa and Uruguay.
The Cairns Group would like to reiterate that fundamental reform of world agricultural trade is the key to achieving the development objectives set out at Doha for the first Development Round of the WTO. Its predecessor, the Uruguay Round, irrevocably established that agriculture is an integral part of the international trading system. This heralded a significant change in the treatment of agriculture, and was the first step on the path to ensuring that agriculture could no longer be subject to unfair trade distorting behaviour.
Since the Uruguay Round implementation period concluded, however, almost no progress has been made towards actually reducing massive subsidisation and protection. Total support and protection for farmers in OECD countries exceeded $310 billion in 2001, and significant market access barriers remain in place. Export subsidies in all their forms continue to deny unsubsidised agricultural producers trading opportunities, even in third countries. By lowering the world price, such subsidies may also have an impact on prices in domestic markets, including in developing countries, and may undermine the competitiveness of local producers in those markets.
Mr Chairman
The time has arrived for political leadership by those countries with the greatest adjustments to make. This is one of the last chances that the WTO Membership has to correct deep-seated inequities in the international trading system. Failure to act will have serious consequences for the future of global trade. Without a successful outcome in agriculture, the whole Doha process will be at risk. Cairns Group members continue to follow the path of reform agreed to in Doha and expect other major participants to do the same. Agricultural trade reform is a pre-requisite to adjusting deep imbalances in the international trading system; it will promote growth, sustainable development and poverty alleviation, and it will strengthen the economies of even the major subsidising countries.
Global agricultural trade reform is a fundamental step toward achieving development and poverty alleviation in developing countries. To achieve real agriculture reform, the outcomes of agricultural negotiations in the three pillars, market access, domestic support and export competition are closely interlinked. Reform must occur on all fronts and comprise the phasing out of all forms of export subsidies, substantial reductions in trade-distorting domestic support and substantial improvements in market access for all agricultural products. To improve the welfare of people in developing countries, reform must include the fullest liberalisation of market access
for products promoted as alternatives to illicit narcotic crops. It should also include tropical products produced by developing countries. Special consideration should also be given to addressing the particular concerns of developing countries, including food security, rural employment and development, as was mandated by WTO Ministers at Doha.
There is now widespread recognition in the international community that reform of agriculture is an essential pre-condition to improving the welfare of people in developing countries. For example, leaders at the World Summit on Sustainable Development in Johannesburg underlined the fundamental importance of agricultural reform to economic development. Leaders also underlined the necessity of including provisions for special and differential treatment for developing countries in the outcomes of the Doha Round of negotiations. In addition it was clear from discussions at the 24th Cairns Group Ministerial Meeting in Bolivia recently that there is a strong commonality of views between the Cairns Group and other WTO members, particularly developing country members, regarding the importance of agricultural trade reform for development..
Mr Chairman
Cairns Group members have put forward specific, workable proposals based on the Doha mandate. We are ready to negotiate on the basis of these proposals. We welcome the proposals that have been tabled by other parties to the negotiation - but note that certain of these proposals, particularly from some developed countries, indicate a limited willingness to make fundamental reform and would retain many of the present imbalances.
The absence of proposals from key negotiating partners will continue to complicate the negotiating process. The Cairns Group urges parties to coordinate their positions and to table proposals consistent with the agreed objective of a fair and market-oriented trading system.
Mr Chairman
The Cairns Group reaffirms readiness to continue constructive participation in the Doha Development Agenda.
The various deadlines within the agriculture negotiations - including the crucial date of March 31 2003 by which modalities for further commitments are to be established -are fast approaching. Failure to live up to this Doha deadline will have serious consequences for the negotiations as a whole.
Reforming the rules for agricultural trade is an essential pre-condition to enhancing the development prospects of millions of the world's people. Only substantial reform in this area will allow developing countries to unlock the full potential of their agriculture sectors and improve the welfare of their people.