Media release
Australian Minister for Trade, Mark Vaile
Wednesday, June 28, 2000
MVT68/2000
Rural and regional Aust to benefit from new round of trade negotiations
Trade Minister, Mark Vaile, today welcomed the unanimous support of the Organisation for Economic Cooperation and Development (OECD) countries for a new round of global trade negotiations in the World Trade Organisation (WTO) to be launched as soon as possible.
Speaking at the end of the OECD Ministerial Council Meeting in Paris, Mr Vaile said the unanimous OECD support for the new round was a vital outcome for the people of rural and regional Australia who stood to benefit enormously from stricter and fairer rules on agricultural trade - rules that would limit the massive market corrupting subsidies currently paid to farmers in many developed countries.
Australia played a prominent role at the OECD meeting, a key forum for high level international consideration of economic, trade and broader development and social issues. The Treasurer, Mr Costello, chaired the meeting. Mr Vaile represented Australia.
This year, for the first time, the OECD held a high-level parallel conference for business and non-government organisations, Forum 2000. In addressing the Forum, Mr Vaile emphasised that increased trade liberalisation was essential for the economic prosperity of both developed and developing countries.
"Further global trade reform must include agriculture and other areas of trade that are not only of vital interest to Australia but also to the vast majority of countries, particularly developing countries," Mr Vaile said.
"I'm deeply concerned that trade distorting government support to farmers in OECD countries is now approaching record levels. It's unacceptable that OECD countries spend approximately seven times as much on farm protection as they spend on aid to developing countries.
"Australian farmers and industries have suffered for too long. As the WTO rules stand the likes of the US the EU and Japan can legally hand out billions of dollars in assistance to their agricultural producers. It's an unacceptable situation that needs to be rectified …which is why we are such a strong supporter of a new WTO round."
Mr Vaile said he was very pleased the OECD meeting had recognised the trade reform concerns that he had championed at the meeting.
"It's now up to all OECD countries to put their words into practice. The best way they can do so is through the early launch of a new WTO round of trade negotiations."