Media releases
Friday, 26 July 2002 - MVT83/2002
Australia Welcomes Plans for Global Agricultural Reform
Australian farmers stand to benefit significantly from US agricultural
reform proposals for the World Trade Organisation negotiations, Trade
Minister Mark Vaile said today.
Mr Vaile said ambitious reform proposals for reducing domestic support
and tariffs on agricultural products, announced by US Trade Representative
Bob Zoellick overnight, would significantlyimprove access to markets
for Australian farmers and would help build pressure for early engagement
by the EU and Japan in the Doha Round agriculture negotiations.
"The proposals would limit distorting subsidies to five per cent
of the value of a WTO member's total agricultural production. For
Australia's major trading partners this would mean significant reductions
in the amount they can spend on their farmers. Under the proposals
the US would be required to reduce its maximum handouts to farmers
from about US$20 billion to about US$10 billion; the EU from over
US$60 billion to about US$12 billion; and Japan from about US$30 billion
to about US$5 billion," Mr Vaile said.
"If adopted, the proposals would mean significant improvements in
market access with considerable tariff reform in the most highly protected
sectors of world agriculture such as dairy, beef, sugar and rice.
Tariff rate quota quantities would expand by 20 per cent and in quota
duties would be eliminated over a period of five years meaning increased
access for Australian agricultural produce into world markets.
"The US proposals clearly demonstrate its commitment to engage seriously
in WTO negotiations on agriculture. Successful passage of Trade Promotion
Authority legislation through Congress now would underscore this commitment
and increase the impact of the proposals on the negotiations.
"These proposals represent the first genuine effort by a major player
outside of the Cairns Group to put a detailed blueprint on the table
for agricultural reform.
"While Australian negotiators are still assessing details of the
US proposals, I can say the US initiative will inject much needed
momentum into the WTO negotiations to reform global farm trade and
improve access for farmers.
"Australia as the leader of the Cairns Group has ambitious goals
for improving the trading circumstances for our farmers. We are working
determinedly to hold major agricultural countries including the US
to the strong reform mandate established for negotiations by the WTO
Doha Ministerial Meeting, last November.
"Australia has welcomed moves by the EU to reform its own heavily
subsidised farm sector. But the EU needs to go further than the proposals
on the table in Brussels. We now look to both the EU and Japan to
show similar reform ambition."
Media Contact: Nicole Guihot +61 02 6277 7420
Local Date:
Friday, 05-Dec-2008 14:17:17 EST
