Dalian Fails to Live Up to the G8 Challenge

The World Trade Organization informal ministerial meeting in Dalian, China, has not lived up to the expectations of the recent G8 meeting, where leaders called for renewed momentum in world trade talks, according to Trade Minister, Mark Vaile.

Mr Vaile said "There has been some convergence of positions on reducing agricultural tariffs but key players, such as the EU and US, need to show more leadership in order to move these talks forward. We have heard all the right words, most recently from President Bush on this issue, now we need action.

"While some progress has been made towards finding common ground, much more work is needed before the critical Ministerial Meeting in Hong Kong in December. Hong Kong will be the last chance to lock in everlasting benefits for the developing world."

Mr Vaile said after his meetings that he believed the world stood on the verge of a major reform in agriculture, but this historic opportunity required vision and leadership from those who have most recourse to agriculture protection.

"What we do in this Round will shape the multilateral trade environment for the next 25 years. Improved market access, reductions in trade distorting domestic support and the elimination of export subsidies are essential outcomes for Australia," Mr Vaile said.

"I am concerned at the extreme positions on agriculture taken by a number of rich countries such as Switzerland and Japan who still stand apart from the trend towards compromise among the wider WTO membership.

"Australia has important interests in this round of talks beyond agriculture particularly in freeing up industrial products and services, but these interests will go begging without real progress on agriculture in coming weeks.

"Let's not forget why we are here; real progress on farm trade reform can play a critical role in helping to reduce poverty in developing countries. The G8 leaders said as much but the message is not getting through at WTO level.

"Australia's farmers also deserve the right to compete on a level field on the global stage. Thirty three per cent of farm income in the EU comes from Government support, in the US it is 18 per cent. Government support in the EU and US is $180 billion. Australia provides just $1.1 billion (4%) to its farmers.

"We must ensure that the World Trade Organization membership maintains the level of ambition we agreed at the start of this Round in 2001 and again in the so-called July framework last year," Mr Vaile said.

Contact: Mr Vaile's office 02 6277 7420 - DFAT Media Liaison 02 6261 1555