27 May 1995

CAIRNS GROUP MINISTERS TO SET NEW AGRICULTURAL TRADE LIBERALISATION AGENDA

Senator Bob McMullan said in Manila today that the Cairns Group Ministers meeting in Manila on 26-27 May 1995 had expressed their determination to begin new negotiations on agricultural trade liberalisation as soon as possible.

Senator McMullan, who chairs fee Cairns Group, said that the decision by the Cairns Group underlined the Group's strong commitment to continue the process begun in fee Uruguay Round to roll back barriers to agricultural trade.

"While Cairns Group Ministers recognise that the Uruguay Round was a significant first step, we do not accept that the outcome of the Round can constitute a settlement of our concerns on agricultural protectionism It is a down payment - but not enough. The Cairns Group Ministers will take every opportunity to continue to push for farther liberalisation," Senator McMulIan said.

Senator McMullan said that Cairns Group Ministers had also agreed to develop the goals for fixture negotiations on agriculture as a priority objective for the next Ministerial meeting to be hid in Colombia in the first half of 1996.

"The meeting of Cairns Group Ministers in Colombia will build momentum for further reform of agriculture find ensure that agriculture will be a central element at the first World Trade Organisation Ministerial Review Conference to be held in Singapore in December 1996. The Singapore meeting represents an important opportmity for the Cairns Group to push for the earliest possible commencement of new negotiations on agriculture."

Senator McMullan drew attention to the fact that the Cairns Group Ministers had emphasised the importance of agricultural trade liberalisation in future regional trade arrangements.

Importantly, Cairns Group Ministers had also committed to be vigilant in order to ensure therc was no circumvention of the Uruguay Round obligations on agriculture. They would be looking out for any breaches, in spirit or letter, of the Uruguay Round agreement on agriculture. In particular, the Group had expressed strong concern about

the manner in which the US and the EU were intending to implement their first year export subsidy reductions. By excluding from their 1995 reduction commitments subsidised sales approved prior to 1 July, they are clearly acting against the spirit of the Uruguay Round Agreement

Senator McMullan said that the Cairns Group would also be monitoring very closely the developments on agriculture policy in the majors (E;U, Japan, US), and specifically the new US Farm Bill to be dealt with by Congress late in 1995.

Senator McMullan welcomed the participation by WTO Director-General Ruggiero at the 15th Ministerial Meeting of Cairns Group Ministers in Manila

Cairns Group Ministers had taken the opportunity of Mr Ruggiero's attendance to register firmly their concern that the Uruguay Round agriculture commitments be firmly adhered to and the momentum for further agricultural reform did not slow. They stressed the importance that a new global effort be made to tackle agricultural protectionism and make agriculture free of trade barriers.

Senator McMullan said the results of the Manila meeting demonstrated that the Cairns Group is as strong and active a force in world agriculture as ever.

Senator McMullan said he would be consulting closely with the Australian agriculture industry in the development of a new international agenda for liberalising trade in agriculture.

Manila

CAIRNS GROUP

ARGENTINA

AUSTRALIA

CANADA

CHILE

COLOMBIA

FIJI

HUNGARY

INDONESIA

MALAYSIA

NEW ZEALAND

PHILIPPINES

THAILAND

URUGUAY