The demand to end all western subsidies to their agricultural products, stopping support to their domestic agriculture, and a greater market access to developing countries farm exports, are the three pillars over which G-20’s struggle intended to be intensified.
“The G-20 has given new dynamism to trade negotiations at the World Trade Organisaion as its members account for 65 per cent of the world’s population, of which 72 per cent are farmers and have a 22 per cent share in agriculture output,” Prime Minister Shaukat Aziz, addressing the ministers said. “G-20 has to ensure, decisions taken at Doha Summit of WTO nations a timetable for withdrawal of subsidies is met fully—-otherwise all free trade agenda will collapse,” Aziz warned.
“We are committed to a free trade in its truest sense. The developing countries can only meet the millennium development goals if they can gain greater market access to developed countries’ markets,” he stressed
All the Bhurban participants agreed that globalization has added new characteristics to these challenges through new markets, new tools, new rules and innovative and dynamic framework.
But there is constant US and EU hedging on farm products, holding up any noticeable move forward on agricultural commodities. One of the underlying reasons offered by US-EU group is their problem with their own farmers, who cannot survive, in spite of fact that their farming is highly mechanized and agri-inputs are available to hem at low-cost, compared to the developing countries.
The G-20 insisted that US, EU and other advanced countries and major subsidizers eliminate all of their export subsidies within five years. A substantial reduction, and finally, complete elimination of all of the trade distorting actions and measures, they are increasingly adopting, must end. “If globalization has to stay, the opportunities and benefits it offers need to be shared more widely,” as Aziz said.
China, India, Pakistan, and Brazil are among the biggest agricultural economies in the group, and face a lot of problems.
This is why, the Indian Commerce Minister Kamal Nath said that the next 12 weeks are “very crucial,” when Hong Kong Ministerial conference takes place in December.
“Unless the main players, US and EU, change their perceptions and position, the Hong Kong meeting will not be able to move forward,” Kamal Nath cautioned. “All WTO members, especially US-EU attending Hong Kong conference should achieve results to make global trade not only free but fair as well.
“ The Group echoed the view that the developed countries should accept 100/100 concept— providing that the developed countries bind 100 pc of their tariff lines in ad valorem terms with a cap on tariff at 100 per cent. In order to arrive at a consensus, the G-20 is working on a middle ground that will protect their interests, and soften the US-EU resistance.
Kamal Nath aptly pointed out that there should be free and fair trade, providing equal opportunities to the farmers, globally. “The farmers of India and Pakistan can compete farmers of United States, but not the government of United states, which provides subsidy to its farmers,” Nath maintained. The soul of WTO should be understood, and its vision adhered to.
G-20 laments are not confined to developed countries’ unjust treatment of farm products alone. It extends to services and other areas, too. The Group is unhappy that offers made by advanced nations are “very poor and inadequate.” The offers have been whittled down on various pretexts, and conditions.
The ministers also pledged to strengthen further unity with G-33-ACP, Africa Group, and LDC’s so that they can attain development dimension of the Doha Development Agenda (DDA).
While the “three pillars” weighed over the entire conference, there was a strong demand for capping of tariffs, and special and differential treatment for developing countries. The group said, the July conference failed to reach any concrete results which has put “the Doha Development Agenda in a critical situation.”
“We have changed our line of action after the failure of the earlier two WTO ministerial rounds at Cancun and Seattle. Issuance of many drafts on agriculture negotiations will only lead to disaster. But, the draft through negotiations will be acceptable to all nations. The ball is now in the court of richer countries,” Commerce Minister Humayun Akhtar said.
Celo Luiz Nunes Amorim, the Brazilin Minister for External Relations, said the Bhurban Declaration will be handed over by the groups permanent representatives in Geneva to EU Chief Trade Negotiator Pascal Lamy.
A five-year deadline will be given to the richer countries to eliminate all forms of export subsidies. The Group demanded “an early agreement on cotton. Several African nations are dependent on cotton, besides its importance to large countries like China, India, and Pakistan.
John Chun Wah Tsang, Hong Kong Secretary for Commerce, Industry and Technology, “between now and December when Hong Kong conference opens, it will be a very crucial time for making a breakthrough in the negotiations.” He will also arrange a meeting of civil society groups in Hong Kong with Director General WTO, preceding the Ministerial Conference, to get their views on issues being negotiated.
Robert Haydn Davies, South African Deputy Minister, “G-20 has given a clear message to the world to have a credible formula for reduction in tariffs, subsidies and domestic support. The richer countries need to come to the negotiating table to discuss our proposals, and it is time they show flexibility in their stance on agriculture products.”