Indonesian Political, Business & Finance News

G-33 ministers meet to push balance, fair farm trade

G-33 ministers meet to push balance, fair farm trade

Zakki P. Hakim, The Jakarta Post, Jakarta

The Group of 33 developing countries kicked off its first ministerial meeting here on Saturday in a bid to pursue better balance and fairer global trade in agriculture, taking into account the needs of developing and least-developed countries.

Indonesian Minister of Trade Mari E. Pangestu said in her opening remarks that host country Indonesia -- which on Saturday launched a national program of revitalizing the agriculture sector -- would fight for "food security" and rural development in global trade diplomacy, such as through the G-33 in the World Trade Organization (WTO) talks.

Indonesia leads the group fighting for the Special Products and Special Safeguard Mechanism (SP-SSM), which would work as an incentive for farmers in the developing world. Such schemes, will in turn, increase farm output and total exports.

"Increasing income in rural areas will have immediate and significant multiplier effects to increase demand for manufacturing goods and services," said Mari.

The group is fighting for the SP-SSM at the WTO to be allowed to slap exorbitant tariffs on staple foods, such as rice, sugar, soybeans and corn, from, among other regulations, excessive cuts in customs duties in the WTO and an influx of heavily subsidized imports.

The G-33, which is now an alliance of 42 developing countries, has a goal to ensure that the issues of food security, livelihood security and rural development become an integral part of the current WTO trade negotiations and outcome, as called for by the Doha Development agenda.

The two-day meeting was the first G-33 ministerial meeting since the collapse of WTO talks in Cancun, Mexico, in 2003, Mari said, and it was just in time before the agreed deadline of "July 1 approximation", in which WTO members should already have prepared their negotiation modalities.

Trade ministry's secretary-general Hatanto Reksodipoetro said the meeting was held at a critical moment, as there were less than six months left before the Doha negotiation round was supposed to conclude.

He said if the series of talks within the next six months fail, it would result in a deadlock in the multilateral talks for trade liberalization, and it could result in most countries returning to protectionism.

Only 18 G-33 member countries attended the two-day meeting, with six of them represented by ministers namely India, Sri Lanka, the Philippines, Kenya, Tanzania and the host country.

"But (countries which couldn't come) have said that they would agree on whatever decision we make," Indonesian Ambassador to WTO Gusmardi Bustami said, adding that the limited participation should not be seen as a lack of commitment.

He said the SP-SSM proposal was a result of a formulating process conducted by the respective member's permanent WTO representatives in Geneva.

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