Window shut on early agriculture talks

SINGAPORE (JP): Agriculture exporting countries have run into hurdles at the World Trade Organization (WTO) ministerial conference here which have closed a path to early preparations for agriculture negotiations.

The Cairns group of 14 agriculture exporting countries, led by Australia, have failed to include in the WTO ministerial draft declaration a firm commitment to start preparations for negotiations next year.

Indonesian Minister of Industry and Trade Tunky Ariwibowo said agriculture would not appear in a separate paragraph in the declaration, but would be mentioned in a paragraph on the built- in agenda.

Sources at the conference said South Korea, Japan and some European countries had vehemently blocked efforts to start preparing agriculture negotiations before 1999, as stated in the WTO agreement on agriculture.

These countries seem unprepared for trade liberalization in agriculture.

South Korean Minister of Trade, Industry and Energy Jae Yoon Park said on the third-day of the week-long WTO conference yesterday that his country's position on agriculture had not changed.

"The agenda embodied in the agreement on agriculture should be strictly observed as agreed upon, since it represents a delicate balance reflecting the political sensitivities of the negotiating members," Park said.

The WTO's reform program for trade in agriculture comprises a vast range of rule-based commitments on market access, export subsidies and domestic support.

Progress in implementing these commitments, which began on Jan. 1, 1995, is subject to multilateral review by the WTO committee on agriculture.

In its report for the Singapore conference, the committee on agriculture, working closely with the Cairns group, suggested the WTO ministerial conference mandate the committee to start reviewing existing commitments by 1997.

But the committee's recommendations have met strong opposition from countries sensitive to trade liberalization in agriculture.

The Cairns group comprises Australia, New Zealand, Argentina, Brazil, Colombia, Chile, Uruguay, Fiji, Canada, Thailand, Malaysia, Indonesia, the Philippines and Hungary.

State Minister of Food Ibrahim Hassan, who led the Indonesian delegation at the Cairns group meetings, said the group had agreed to soften its stand as long as agriculture was included in the declaration.

But Cairns group members have different views on trade liberalization in agriculture.

Ibrahim said liberalization of processed agricultural products would surely benefit the country.

But Indonesia has said it would continue to protect unprocessed farm products through managed-trading mechanisms.

Minister Tunky contended that the liberalization of unprocessed agricultural products would affect millions of farmers, the majority of Indonesians.

Australian Trade Minister Tim Fischer said at yesterday's WTO plenary session that his country wanted the trade of processed food to be liberalized; an area where Australia has strong competitive advantage.

At the same session, Indian Commerce Minister B.B. Ramaiah said there should be a clear distinction between countries that were major exporters of agricultural products and those primarily catering for their own domestic markets, like India.

The treatment given to those countries should also be different, Ramaiah said.

He said countries with few agricultural exports should be free to retain their internal subsidy regimes to protect their farmers and achieve greater food self-sufficiency. (rid)