To the Cairns Group Farm Leaders

Introduction

I appreciate this opportunity to meet with you today, on the eve of the 25^th Cairns Group Ministerial meeting and of the 5^th WTO Ministerial Conference, here in Cancun. 

Your presence here is a salutary reminder that Cairns Group countries are pushing for wide-ranging agricultural trade reform for a single, compelling reason –because their farmers need it. 

Only by governments and farmers working together can we end the discrimination against agriculture that unfairly disadvantages all but a handful of rich subsidising countries. 

Negotiations at a crossroads

In 2001 trade ministers from around the world stood together at Doha and agreed an ambitious mandate and timetable for agricultural reform.  It is now time to turn those commitments, made by all WTO members, into concrete actions.  If we don’t, we will lose what I believe is the last opportunity to reform global agricultural trade. 

For a country like Australia this is an opportunity we cannot afford –and we are not prepared - to miss. But we are not the only country with a lot riding on reform.   I know that all the farmers sitting here today have a vital stake in these negotiations. 

And the decisions we make at Cancun will have a fundamental impact on the future of the developing world –countries that were promised genuine agricultural reform at Doha.

A high level of ambition

We have heard the argument that minor adjustments to the status quo, combined with some preferential arrangements, are the solution, particularly for developing countries.  Such an approach would be disastrous.  It would benefit none but a handful of rich countries seeking to maintain huge agricultural subsidies, regardless of the damage their policies inflict on less privileged farmers around the world.

I welcome the efforts to bridge the gaps that exist between the reformers and anti-reformers on agriculture.  But we will not sacrifice what has already been agreed in the Doha mandate for process. While we want a timely outcome, this will not be at the expense of an ambitious outcome.

The draft “framework for establishing modalities on agriculture”circulated by General Council Chair Perez de Castillo on 24 August is an effort to reconcile widely divergent views.  But we would need to see more on subsidy and tariff reductions and TRQ expansion, and we would need to see an end-date for export subsidies.

Similarly, attempts by the EU and US to find common ground are welcome.  But not if all they produce is another Blair House deal - which sidesteps cuts to domestic support, finds a way to protect all but the least sensitive tariffs, and backtracks on the commitment to phase out export subsidies. 

The negotiating modalities for agriculture that we work towards this week must be capable of delivering outcomes in line with the Doha mandate –that is:

• an end date for the elimination of export subsidies
• real cuts to trade-distorting domestic support
• and substantial improvements in market access. 

Anything short of this is a failure: a failure of ambition; a failure to deliver on the promise of Doha, and a failure to improve the circumstances of efficient farmers all around the world

Role of the Cairns Group

The Cairns Group will remain central to our effort to push the boundaries of agricultural reform.  We have tabled proposals on domestic support, market access and export subsidies that would deliver substantial outcomes, while building in the flexibility needed to meet the special needs of developing countries.

Cairns Group farm leaders have a key role to play in reminding all concerned of the real issue at stake here –defending efficient, unsubsidised farmers whose livelihood is undermined by the protectionist practices of a few rich countries.

We have been very pleased with the close industry-government contact we have enjoyed in the Cairns Group.  We need to stay in close contact with you over the next few days, to ensure you are fully engaged in the process.

We also want to work with others, such as the G20, which includes many Cairns Group members and which has adopted many of the Cairns Group’s stated positions. 

We have welcomed the new coalition and the new partners it brings for agricultural trade reform, including important agricultural producers such as India and China.

It is my hope that together we will finally be able to translate the rhetoric of Doha into a new reality at Cancun.

Conclusion

Ladies and Gentlemen, this week in Cancun, we face a stark choice.  Deal seriously with the issue of agricultural reform, or watch the Doha round become an irrelevance.  

Let’s hope that the countries assembled here will have the courage to make the right choice. 

Thank You.