Media release

Australian Minister for Trade, Mark Vaile

Tuesday, November 14, 2000

Cairns Group Pushes for Deep Tariff Cuts in Agriculture

Trade Minister, Mark Vaile, has welcomed a negotiating proposal submitted in Geneva by the Cairns Group of agricultural trading countries calling for substantial increases in market access for all agricultural and agri-food products.

The proposal will be discussed at the next session of World Trade Organisation agriculture negotiations in Geneva on November 15-17.

"Access to markets is an essential element of establishing a fair and market-orientated agricultural trading system.  Currently, there are considerable differences between market access conditions applying to agricultural products and those applying to other traded products," Mr Vaile said.

"Average tariffs on agricultural products are more than eight times higher than tariffs on industrial products and tariffs (on agri products) of more than 300 per cent are not uncommon. These disparities and high rates must be redressed if there is to be vastly improved market access opportunities for all agricultural and agri-food products."

The Cairns Group proposal addresses all aspects of market access, including tariffs, tariff peaks, tariff escalation, tariff quota volumes and tariff quota administration and other rules applying to market access commitments, including the special agriculture safeguard provisions.  It also calls for a substantial market access downpayment to ensure that the reform process continues during the negotiations.

"Improved access to markets for agricultural products is essential to the economic progress of developing countries, including the least developed and net food importing developing countries, and to the elimination of poverty in those countries," Mr Vaile said.

"The Cairns Group proposal recognises the particular needs of developing countries regarding market access and includes special and differential provisions which will provide greater improvement of opportunities and terms of access to markets for their products, and appropriate tools to help them adapt to change."

The Cairns Group market access negotiating proposal builds on the proposals on export subsidies and domestic support measures submitted by the Group in June and September.

"These ambitious and concrete proposals maintain the momentum for taking the agriculture negotiations forward into the next phase," Mr Vaile said.

Contact: Bruce Mills 02 6277 7420

Local Date: Friday, 21-Nov-2008 05:21:25 EST