Statement to the Trade Negotiations Committee

Thank you Mr Chairman.

I think you have accurately set out the difficult situation we now face.

Our way of doing business in this organisation has evolved over recent years and we must now use a new method.

We came here to make the necessary progress to full modalities for agriculture and NAMA, and to secure the ambition that is set out in the Doha mandate, in the July framework, and in the Hong Kong text.

This has not proved possible on this occasion. It is evident that none of the majors seemed to have come here with the necessary flexibility required for progress.

Nonetheless I remain very much of the view that the landing zone for this round is in range.

But let me be clear. The landing zone can only be one that involves effective cuts to domestic support and new trade flows. We have done much work over recent months to clearly identify what this means both for cuts to domestic support and improvements to market access. We all know what needs to be done to meet expectations in these areas.

The Cairns Group played a key role in fighting for the launch of this round in Doha. It is a round that seeks to advance development and which has reform of agriculture at its core. We cannot accept an outcome that short-changes this objective - and this means both substantial improvements in market access and effective cuts in domestic support. Not ambition just in one area but not the other.

The challenge is with us - what now?

First, we should all affirm our commitment to ambition. A round lacking in ambition is not a political reality for any of us, including in agriculture. That means real reform, real cuts and real disciplines in market access, domestic subsidies and export competition. Clearly, we need some further signals from the majors to secure this.

We must intensify our work over coming days to close the gaps before us. Obviously agriculture and NAMA are central, but we should not forget other important areas like services and rules and the development dimension. Pascal we welcome the leadership you have been giving us and fully support the further efforts you propose over the next few weeks. I can assure you that I will be doing all I can with colleagues and with you to this end.

Second, we should all carefully reflect on the very substantial risks now before us. Now is the time for all of us to reflect soberly and seriously on our interests in this round and on our positions. Now is not the time for posturing, for casting blame, for playing partisan politics. I urge all to accept our joint responsibility for bringing this round to a successful conclusion.

Thank you Chair.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555