US and EU Must Act Now to Save World Trade Talks

Australia will continue to pressure both the US and EU to seriously reduce farm subsidies and market access barriers when trade ministers from around the world meet in Switzerland next week, Deputy Prime Minister and Minister for Trade, Mark Vaile said today.

Mr Vaile will join other key World Trade Organization Ministers in Zurich and Geneva for what is shaping up to be one of the most critical meetings on the Doha Round of World trade talks in the lead up to the major Ministerial meeting in Hong Kong in December.

"The negotiations have stalled on agriculture and this is holding up the entire round," Mr Vaile said.

"Agriculture remains at the centre of the Doha Round and Australia will continue to push for an ambitious outcome that will see real reductions in domestic farm subsidies, cuts to tariffs that keep efficient producers like Australia out of lucrative markets and an end to export subsidies a soon as possible."

"In recent weeks, following the end of the Northern Hemisphere summer break I have had useful exchanges between a number of key Ministers. These small group meetings of core players in Switzerland provide another important opportunity for trade ministers to set the political direction to the negotiations."

Australia is a key player in these discussions as chair of the Cairns Group and will be fiercely advocating the need for global reform of agricultural trade.

Mr Vaile said, "Time is running out for the world to deliver on a new trade deal. It is incumbent on the US and EU as the major subsidisers to show leadership and break the impasse so that we can achieve a successful conclusion to the round."

"Australia's farmers deserve the right to compete on a level playing 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 totals a massive $180 billion."

The World Bank has estimated it could deliver global welfare gains as high as $269 billion and around 40 per cent would flow through to developing countries.

"The discrimination against agriculture that has distorted world trade markets for decades must be brought to an end."

Mr Vaile said only when there was movement on agriculture would there be further progress on reforms to the industrial and services sectors.

"These are also areas of crucial interest to Australian exporters and further reform will help improve opportunities for those companies and create new jobs for Australians."

Contacts: Carissa Buckland (Mr Vaile's Office) 02 6277 7420