CHOGM and APEC Increase Pressure on WTO

Acting Prime Minister and Minister for Trade Minister, Mark Vaile said a strong statement on the Doha Round of world trade talks from CHOGM over the weekend puts even more pressure on the European Union and G10 to move on the key issue of agricultural market access.

It follows similar statements recently from APEC leaders meeting in Korea.

"Importantly CHOGM, led by the Prime Minister, has specifically targeted the EU and other rich nations which are holding up the Doha Round by refusing to agree to real reform of agriculture," Mr Vaile said.

"The statements from CHOGM and APEC cannot be taken lightly. Together the two groups represent 4.4 billion people or more than two thirds of the world's population, well over half the world's total trade and about 65 per cent of its GDP.

"These are crucial statements particularly because they have been agreed to by such diverse nations as Japan, India, UK, the US and Korea.

Government support in both the EU and the US totals $180 billion. As a percentage of farm income government support totals 33% in the EU, 18% in the US, with Australia providing just 4% or $1.1 billion.

"The Doha round is vital for Australian farmers, manufacturers and services exporters because it will give them the chance to compete on a level playing field. But it is being held to ransom by some of the world's wealthiest countries who refuse to reform their unfair farm policies.

"Negotiations will continue in Hong Kong next month where Australia and our allies, including the Cairns Group will keep the pressure on the EU and others. Hong Kong will be an important beachhead to allow us to finalise the round in 2006.

"We are now closer to fundamental reform of global agricultural trade than we have ever been, but it is on a knife-edge and could easily slip backwards."

Mr Vaile said draft texts for Hong Kong, released in Geneva over the weekend, showed just how much work needs to be done.

"All members agree that the three areas in need of most work in Hong Kong are agriculture, industrial products and development.

"We believe significant reform in agriculture will deliver the biggest dividend for the developing world - without new trade flows in agriculture we will lose the opportunity to lift millions of people out of poverty."

Contacts: Richard Forbes 02 6277 7420