Moment of truth for agriculture at WTO<\/p>\n
By Martin Parry<\/p>\n
SYDNEY (AFP): Liberalizing agricultural trade will be the hot
\ntopic for the Cairns Group of exporters in a new round of global
\ntrade talks beginning this month, but analysts question the
\nlikelihood of any breakthrough.<\/p>\n
Agriculture has been one of the thorniest issues in the
\npreparations for a meeting of trade ministers in Seattle,
\nWashington, from Nov. 30 to Dec. 3 to launch a new round of
\nglobal free trade talks.<\/p>\n
The United States and the Cairns Group of 15 agricultural
\nexporters are demanding the removal of trade barriers, notably an
\nend to export subsidies for farm produce.<\/p>\n
The European Union, which accounts for 85 percent of world
\nsubsidies for agricultural exports, is firmly opposed to any
\nattempt to treat agriculture as a sector for market opening like
\nany other.<\/p>\n
It is now arguing that the "multifunctionality" of agriculture
\n-- its importance for village life, the environment and social
\nfactors -- should be protected.<\/p>\n
Japan also wants to maintain its protectionist policies.<\/p>\n
For key Cairns Group member Australia, the trade round to be
\nlaunched in Seattle is the "moment of truth" for agriculture, as
\nAustralia's Bureau of Agricultural and Resource Economics put it.<\/p>\n
"We have got to get it (agriculture) on the table and get it
\nnegotiated," Australian Trade Minister Mark Vaile said recently.<\/p>\n
He has already accused Tokyo and the EU of "seeking continued
\ndiscrimination against agriculture in the WTO."<\/p>\n
His comments follow reports that it was the Cairns group's
\n"all or nothing" stance on agriculture that was stalling progress
\nin negotiations on the text of a declaration to be issued by the
\nSeattle meeting to set the scope and timetable of the new round.<\/p>\n
"Australia and the Cairns Group are committed to the
\nsuccessful launch of agriculture negotiations as part of the
\nSeattle meeting," Vaile said.<\/p>\n
"I am therefore concerned at attempts by the EU, Japan and
\nothers like Switzerland and Norway to deflect attention from
\ntheir own uncompromising positions in this way."<\/p>\n
He accused them of making their own big demands on issues of
\ninterest to them but offering little in return.<\/p>\n
The Cairns Group and most developing countries, he said,
\nwanted a mandate for real liberalization of trade in all agrifood
\nproducts.<\/p>\n
To ignore this would be a snub for all developing countries
\nwho "most of all need fair agricultural markets."<\/p>\n
"For them agriculture is a matter of economic survival," Vaile
\nsaid, urging all WTO members to approach the meeting in a
\npositive, pragmatic and flexible spirit.<\/p>\n
But one trade analyst said that given the power of domestic
\nfarmers' lobbies in the EU, significant progress in Seattle was
\ndoubtful.<\/p>\n
"The danger for Australia and the Cairns Group is that
\nagriculture might get on the millennium round agenda but any real
\nreforms are frittered away over long negotiations that bring in
\nunrelated trade-offs on the environment, labour standards and
\ncompetition," he said.<\/p>\n
While tariffs have rapidly dropped in most other sectors,
\nprotectionism abounds in agriculture.<\/p>\n
Tariffs of more than 300 percent are not uncommon with
\nofficial statistics here showing the biggest distortions in
\nwheat, rice, oilseeds, sugar and milk in Japan and wheat, beef
\nand sheepmeat in the EU.<\/p>\n
"Australia in particular, with 80 percent of its farm
\nproduction exported, has much to gain and little to lose,"
\nanother analyst said, but also poured cold water on an outcome
\nacceptable to Cairns Group members.<\/p>\n
"The EU is happy to talk about agriculture in any millennium
\nround but not on the terms of Australia and the Cairns Group," he
\nsaid.<\/p>\n
"A 36 percent reduction in agricultural support -- the target
\nset by Uruguay -- could produce a significant gain for the global
\neconomy but the pain levels for big protectionists like the EU
\nand Japan would be very high."<\/p>\n
Agriculture proved such a thorny issue in the previous Uruguay
\nRound of global trade talks that after a marathon seven years of
\nnegotiations which ended in 1994 the participants agreed to come
\nback and try again in 2000, but it is already clear that the
\nproblem remains immense.<\/p>\n
The Cairns Group comprises Argentina, Australia, Brazil,
\nCanada, Chile, Colombia, Fiji, Indonesia, Malaysia, New Zealand,
\nParaguay, Philippines, South Africa, Thailand and Uruguay.<\/p>\n
Together, these nations account for about 20 percent of the
\nworld's agricultural exports.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/moment-of-truth-for-agriculture-at-wto-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}