ISLAMABAD, April 9: Pakistan will urge the farm products’ exporting countries to seek substantial reduction in subsidies in the rich countries market under the current Doha round of negotiations.

The subsidies paid on products include sugar, wheat, milk and cotton etc, which restrict entry of these products from the developing countries, including Pakistan, into the developed countries.

A senior official told Dawn on Monday that Pakistan can become one of the leading exporter of milk and its products, sugar, and wheat in case the rich countries eliminate subsidies and scale down tariffs on these products.

These issues, among others, will be taken up in the upcoming 31st Cairns Group Ministerial Conference, to be held in Lahore from April 16.

The meeting will bring together trade ministers from the Cairns Group — a coalition of 19 agriculture products exporting countries — which account for over 25 per cent of the world’s agriculture exports.

Other key ministers who may be invited include trade ministers of US, EU, India, China and representatives of Least Developed Countries, African Group, Cotton-4 etc.

Pakistan joined the group as new member in December 2005 before the Hong Kong Ministerial Conference.

“This meeting is occurring at an important make or break time for the Doha negotiations,” the official said and added it is expected that some breakthrough would be made in the stalled negotiations.

Ambitious results in agricultural negotiations are considered critical to the outcome in other trade negotiations, such as non- agriculture market access (NAMA), Services, and Rules.

Throughout the Doha Round of negotiations, the Cairns Group has presented ambitious and comprehensive proposals within global trade negotiations to eliminate export subsidies, cut global trade-distorting subsidies, and reduce agricultural trade barriers, added the official.

On average, support to agricultural producers in OECD countries has been estimated at $273 billion per annum between 2003 and 2005. Of this amount, almost 60 per cent arises from market price support, where market access barriers limit imports and support high domestic market price.

Developing countries face tariffs in developed countries on staples, such as rice, meat, sugar and tropical products many times higher than those on manufactured goods.

According to the official, the meeting to be chaired by Pakistani commerce minister with co-chair by Australian trade minister would debate all the available options for reviving the talks in agriculture sector.

The Cairns group is an influential voice in the agriculture reforms debate since its formation in 1986.

The Cairns group, including Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand and Uruguay are expected to attend this meeting.