US Initiative on Agricultural Subsidies Welcome

Deputy Prime Minister and Minister for Trade Mark Vaile, has welcomed the proposed US initiative to cut farm subsidies, describing it as an important move that should help to break the impasse in the WTO agriculture negotiations.

"The US proposal is a good start. We now need to push forward to achieve real progress in lowering barriers to agricultural trade. I urge other large agricultural subsidisers to follow the lead shown by the US."

Mr Vaile is in Switzerland this week for critical meetings with key trade ministers from around the world to push the Doha negotiations forward in the leadup to Hong Kong.

Mr Vaile said the next critical step was for the EU to match the US initiative by agreeing to improve market access substantially. "I have told the EU that improved commercial opportunities are the key test of success of the agriculture negotiations."

"As agreed by the Cairns Group, we need to eliminate export subsidies by no later than 2010," Mr Vaile said.

"Together with movement on farm subsidies and market access, this would be a crucial step toward completing the Doha Round at the Hong Kong WTO Ministerial meeting in December.

"The Hong Kong Ministerial is a unique opportunity to secure the basis for fundamental reform to global trade - a vision set out by US President Bush in his recent speech to the United Nations Summit.

"We need to see all WTO members engaging in this negotiation in the next two and a half months to ensure that the Hong Kong Ministerial is a success.

"Australia will continue to push for an ambitious result - improved market access, reductions in trade distorting domestic support and the elimination of export subsidies are essential outcomes for Australia," Mr Vaile said.

Mr Vaile said developing countries would be a major beneficiary of freer trade in agriculture, a point also made by President Bush.

"For decades, developing countries have been denied the chance to trade their way out for poverty by the protectionist agricultural policies of certain developed countries."

"The World Bank estimates that a level playing field on trade would lift 140 million people out of poverty. Hong Kong is our opportunity to reinvigorate the Round and deliver real results," Mr Vaile said.

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