Window shut on early agriculture talks

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)