No Breakthrough in World Trade Talks

Deputy Prime Minister and Trade Minister, Mark Vaile, expressed serious disappointment today that the World Trade Organization negotiations in Geneva have not made progress.

WTO Members have failed to meet their goal of agreeing on first drafts of a new agreement on agriculture and other key issues by the end of July.

Mr Vaile said “the failure to make progress on agriculture, and particularly agricultural market access, has again proved the critical stumbling block. We now face a major challenge if we are to lay the basis at the WTO Ministerial Meeting in Hong Kong in December for completing the Doha Round.

“The promise foreshadowed around the time of the G8 meeting at Gleneagles in Scotland has not been turned into concrete results in the WTO.

“Time is now running very short. Key players, especially the rich countries such as the EU, US and Japan that provide high levels of support for agriculture, will have to show greater leadership and political commitment to put the negotiations back on track in the lead up to Hong Kong. The stakes are too high for us to fail.

“The fact the Central American Free Trade Agreement has now passed the US Congress is a positive sign that further liberalisation can occur.

“The Doha Round will determine the international trade rules for the next 25 years – improved market access, reductions in trade-distorting farm subsidies and the elimination of export subsidies are essential outcomes for Australia in agriculture.

“It remains the sector that is most distorted by trade barriers and agricultural trade reform is crucial to the delivery of the Doha Round’s development and poverty-alleviation goals. Without progress on agriculture, we will not be able to move forward on other critical issues including industrial products and services.

“Agriculture is the gateway issue, but progress is needed in all key areas of the negotiations - agriculture, industrial products, services, rules and trade facilitation, and development.

“Australia remains committed to ensuring an ambitious result for our world class farmers, manufacturers and service providers.”

Contacts: (Minister Vaile) 02 6277 7420 - DFAT Media Liaison 02 6261 1555