Media releases
Thursday, 21 November 2002 - MVT151/2002
Cairns Group Calls for an End to Export Subsidies
The Cairns Group has called for trade-distorting export subsidies
to be eliminated and prohibited in proposals tabled overnight in the
World Trade Organisation agriculture negotiations, Trade Minister
Mark Vaile said today.
The proposals aimed at freeing up trade in agriculture deal with
export competition issues such as export subsidies, export credits
and food aid.
"Export subsidies are the most trade-distorting agricultural policies
and damage all exporting countries. The Cairns Group calls for their
elimination and prohibition within three years for developed countries,
and six years for developing countries," Mr Vaile said.
"Stronger rules on export subsidies will mean tighter rules on export
credits which were promised during the Uruguay Round but not delivered.
The Doha Round can now deliver on that promise and ensure there is
no opening for countries to evade rules on export subsidies."
The Cairns Group proposals define export credit transactions to be
covered by WTO rules, and include a list of support providers to which
the rules would apply. In addition, officially supported export credits
outside agreed rules would be prohibited. This would avoid the need
for complex formulas to identify and reduce the subsidised element
of export credits.
The proposals also cover the disposal of surplus food.
"For too long, some countries have subsidised the production of agriculture
well beyond national and commercial export capacities, and disposed
of the surplus food in other countries under the guise of food aid.
This has pushed out normal commercial imports, and discouraged domestic
production in recipient countries," Mr Vaile said.
"The Cairns Group proposals are specifically designed not to lessen
the ability of developing countries to access food aid which would
not be subject to WTO rules but to ensure food aid is not misused
whereby it assists the donor more than the recipient."
These export competition proposals add to ambitious proposals already
submitted by the Cairns Group on domestic support and market access.
"The package of proposals now on the table in the Doha agriculture
negotiations reflects the Cairns Group's determination to strengthen
WTO rules in a way which deals with the interests of all agricultural
exporting countries," Mr Vaile said.
Media Contact: Robyn Bain +61 02 6277 7420
Local Date:
Friday, 05-Dec-2008 13:54:37 EST
