HONG KONG, Dec 13: The G-20 representing 21 developing countries has demanded a substantial reduction in domestic agriculture and export subsidies given by developed countries. They feel that these subsides are causing trade distortions and making farm produces of developing countries costlier in the world market.

The G-20 ministers in a meeting on Tuesday committed to continuing the negotiation process to get to the bottom of it. They affirmed a targeted, substantive and meaningful process in agriculture during the conference.

“A development round requires the removal of distortions in international agriculture trade rules which is the largest structural distortion in world trade and is a combination of high tariffs, domestic support and export subsidies that protect inefficient farmers in developed countries,” the declaration observed.

The G-20, led by Brazil and having active members like Pakistan and India to support the stand, pointed out that removing these anti-development measures was a core objective of the Doha Round as it would help in reclaiming the development dimension of the Doha Development Round (DDR) and the meaningful integration of developing countries into the global economy.

The group held its consultative meeting on the sidelines of WTO’s ministerial conference. The G-20 has been fighting for these objectives and continues to stand united around them and reaches out to other developing countries’ groups that share the same purpose.

Established in August 2003 in the final stages of preparation for the 5th WTO ministerial conference held in Cancun in September 2003, the G-20 ever since has worked constructively in the negotiations and made positive contributions to the negotiating process by adopting a forward-looking attitude and trying to reach ambitious results in agriculture in line with the Doha mandate.

At present the group holds centre position in the negotiations on agriculture as its member countries account for almost 60 per cent of the world population, 70 per cent of world’s rural population and 26 per cent of world’s agricultural exports.

The G-20 has presented balanced and middle-ground proposals in all areas of the negotiations. These proposals remain on the table and provide an appropriate basis for a successful completion of the round.

The G20 ministers recall that group’s proposals submitted so far in the three pillars reflect the need for proportionality of commitments between developed and developing countries. At the heart of all these proposals is the imperative to ensure substantial reductions in trade-distorting domestic support on through both reductions and disciplines.

In addition, these proposals seek the elimination of all forms of export subsidies by 2010, complemented by relevant disciplines. As export subsidies are the most distorting form of support, the group also calls for substantial improvement in market access, while at the same time securing the necessary policy space through special and differential treatment for developing countries in accordance with the DDR. The group is determined to make operational and effective the provisions on special products (SP) and special safeguard mechanism (SSM) so as to safeguard food security, rural development and livelihood concerns of millions of people.

The G20 ministers emphasized the need for a firm commitment to be taken at the MC-6 on how to address the issue of cotton ambitiously, expeditiously and specifically.

The group feels that agriculture is the engine of the negotiations and expects to see some progress in the Hong Kong negotiations necessary to put them back on track so that the deadline of concluding the Doha Round by the end of 2006 is met.