Media Release
Thursday, 14 August 2003 - MVT61/2003
US/EU Paper Welcome but Fails to Deliver Farm Trade Reform
While Australia welcomed attempts by the United States and European Union to find a way forward in World Trade Organisation agriculture negotiations, a number of aspects of the paper they released last night were unacceptable, Trade Minister Mark Vaile said today.
“Since the last mini-ministerial meeting in Montreal last month the US and EU have been working to find a way to advance reform of world agricultural trade,” Mr Vaile said.
“We welcome their co-operation, because it is necessary to ultimately conclude a deal, but it is important to remember that 144 other WTO members also have to agree – and we haven’t yet.”
The US and EU have presented for consideration of all WTO members a three-page paper which outlines the elements of a possible reform framework for world farm trade in three key areas: market access, domestic support and export competition – but leaves open the extent and timing of cuts in tariffs and subsidies.
“We will be analysing the paper in detail, and consulting closely with Cairns Group allies in the next few days,” Mr Vaile said.
“However, there are elements of this joint paper which cause Australia serious concerns. In particular, the paper is vague on the central question of how substantial improvements are to be made in market access.
“Access for farm products is the key to this round – so tariffs and tariff quotas must be brought down. The provisions on domestic support appear to legitimise the long-term use of the trade-distorting ‘blue box’ payments. And we cannot accept an outcome which falls short of the clear Doha mandate to phase out export subsidies.
“The US-EU paper also proposes to end single desk export powers. Australia finds this totally unacceptable, and we will continue to defend Australia’s export single desk arrangements, which involve no subsidies at all.
“Australian officials will be discussing the paper in Geneva with other WTO members during the next week as recommendations are prepared for the forthcoming Ministerial Conference of the WTO in Cancun, Mexico, on 10-14 September.
“Australia’s farmers have waited too long for real reform in world farm trade. We will not accept an outcome in these negotiations that falls short of the far-reaching mandate we achieved in Doha at the start of this Round.”
- Joint EC-US Paper (PDF - 29KB)
Contact: Matthew Doman 02 6277 7420