April 17, 2007	Tuesday	Rabi-ul-Awwal 28, 1428

LAHORE, April 16: As the three-day 31st inter-ministerial meeting of The Cairns Group went under way here on Monday, farm leaders urged their trade ministers to aggressively work for the removal of all barriers to international agriculture trade within the framework of now stalled Doha Development Round for the creation of a level-playing field.

The farm leaders from The Cairns Group countries met to discuss the long-running Doha round of multilateral trade negotiations on the sidelines of The Cairns Group’s inter-ministerial meeting before issuing the ardent call to their ministers. Farm leaders from Australia, Canada, New Zealand, Pakistan and Paraguay were present at the meeting.

The Doha round has run snags because the farmers and governments of the developing economies are demanding that the richer nations should remove all barriers to international agriculture trade by allowing greater market access to their products through substantial, across-the-board reductions in tariffs, removal of domestic as well as export subsidies, and expansion of tariff-rate quotas.

Speaking at a press briefing, The Cairns Group Farm Leaders chairman David Crombie said they had prepared a communiqué that would be presented to the ministers on Tuesday for their consideration.

“We’ve encouraged in the communiqué the ministers to be ambitious in their efforts in the multilateral trade negotiations in the Doha Round (under the banner of WTO) for a more open and wider international trade in agriculture products,” he added.

The Doha round is about opening up of the markets and the removal of distortions in the way of international agriculture trade, he asserted. “Big players are creating distortions (in international agriculture trade). We want the US to reduce domestic support it gives to its farmers and would like to see the EU allow greater market access (to agricultural products from the developing countries),” he said in reply to a query.

“There are a lot of anomalies in the international agriculture trade with some countries heavily protecting their farmers. The rules of international trade (in agriculture) need to be changed to allow level-playing field to everyone. Bilateral talks are not an answer (to the concerns of farmers),” he said.

The communiqué released at the briefing says the “farm leaders remain disappointed that the negotiations have not yet been successfully concluded and are looking for strong political leadership to bring the Doha Round to a timely and successful conclusion that benefits the world’s agricultural producers.

“Independent analysts from leading global institutions such as the World Bank, the United Nations Food and Agriculture Organisation and the Organisation for Economic Cooperation and Development have shown there are substantial gains from removing barriers to agricultural trade.

All major countries — both developing and developed — stand to gain from the comprehensive, across-the-board bold reductions in tariffs, domestic subsidies, export subsidies and the expansion of tariff-rate quotas. Most of the benefits come from removing barriers to trade at the border.

“Accordingly, we reiterate the imperative that the Doha round must be promptly and successfully concluded in a manner that delivers on the Doha mandate through:

a) substantial improvements in market access by cutting tariffs deeply, with the highest tariffs being cut more deeply, and by expanding tariff rate quotas based on a domestic consumption formula to ensure commercially meaningful gains in market access;

b) early elimination of all forms of export subsidies on all products by 31 December 2013 (agreed at the Hong Kong Ministerial Conference) with workable disciplines to ensure that food aid, government export credits and state trading enterprises do not circumvent gains from elimination; and

c) real cuts to current expenditure on trade-distorting domestic production subsidies (not merely changes to accounting procedures) and the implementation of special initiatives.”

Noting the spirit of the July 2004 Framework Agreement and the December 2005, Hong Kong Declaration, the farm leaders urge their ministers to ensure that the potential gains of any Doha agreement are not jeopardised by broad exceptions for ‘sensitive’ agricultural products, ‘special’ agricultural products or new ‘safeguard mechanisms’ and other devices such as the misuse of SPS rules that could allow commitments to be watered down. “This would be unacceptable to The Cairns Group farmers,” says the communiqué.

“Trade reform, particularly in the area of agricultural market access, remains our top priority because it is a realistic and substantial way of addressing global poverty and allowing efficient farmers to realise their full and deserved economic potential. Reductions in trade distorting domestic support are also a key issue in these negotiations.

“The Cairns Group ministers have an obligation to the farmers they represent to focus their discussions on concrete ways to conclude the Doha negotiations in the shortest possible timeframe. To this end, farm leaders believe the Lahore meeting of the The Cairns Group offers an ideal and important opportunity for ministers to demonstrate leadership on issues such as ‘sensitive’ and ‘special’ products and other technical issues,” says the communiqué. It says agriculture remains the key to the Doha round, and “we believe all WTO members must now focus on finding flexibility to bring these talks to a successful conclusion. In particular, farm leaders’ believe that developed economies must bring more to the table of market access and domestic support. In parallel, the US must show leadership on the Farm Bill.

The EU must also be bolder on offering more on market access. Leading developing economies must also make a contribution particularly by being fair and reasonable on issues like special products and safeguard mechanisms. This will benefit the growing south-south trade. It notes that the biggest losers from exceptions are urban and rural poor - who are net-purchasers of staple foods.”

Recognising the diversity and different levels of development among WTO members, the farm leaders supported continuing technical assistance. “A limited agreement will not be acceptable or sufficient for the world’s fanners. In concluding, we again underline and repeat our long-standing position that this Round will be judged by its success in leveling the playing field and creating real new commercial trade opportunities”.

“We urge our The Cairns Group ministers, who seek a truly liberalising outcome, not to weaken in their resolve. Farm leaders continue to stand ready to support you fully and we wish you well for your work over the coming days, says the communiqué.