5th Cairns Group Ministerial Meeting

Waitangi, New Zealand, 19 March 1989

Ministerial Statement

Ministers and representatives of the cairns Group (argentina, australia, sadfsdf canada# chilet
mvng " in bzw cc t a nal~a

Colombia fiji

1 m
philippines, nw zeaxand, thailand and mumay) met 19

Wattang1 17?19 " ch 1989*

Representatives from the commission of the european communities, sweden and the united states attended as observers at the opening session of the meeting.

The purpose or the meeting was to assess developments in the negotiations 09 agriculture since tire group last net at ministerial level in budapest in november 1988 amd the mid?term review meeting 12; montreal in december, and to determine the group's position for negotiations leading to the meeting of the trade negotiations committee m be held in geneva in early april. That meeting will review the entire package or uruguay round topics, including agriculture and the three other issues which could not 93 resolved at montreal.

Ministers reiterated their deep disappointment at the

Failure or the montreal meeting to contribute to a satisfactory agreement on agriculture. They regretted also the serious loss or momentum of the uruguay round

Negotiations in the first quarter of this year ms had resulted from a lack of flexability on the part of the united states and the european community and their failure to demonstrate the political commitment needed to bridge

Fundamental differences over objectives for long?term

Reform of agricultural trade.

Ministers regretted that the lziieab*?lrd impass between the us and ec

At montreal had prevented detailed consideration of the group's own proposals. In particular no serious

Consideration had been given at 24ontreal to proposals for

Short term action in the fork of a freeze and cutback in

Trade distorting support and protection to the end or the round.

Against this background, ministers consider= it vital

That negotiations over the coming weeks succeed in

Establishing the framework for long term reform resulting

19 substantial, progressive and sustained reductions in agricultural support and protection. This framework, to be elaborated during the subsequent process of the negotiations, should be based 09 the objective of full

Liberalisation of agriculture and its complete integration

Into the general rules and disciplines of the gatt. It should encompass, as outlined in proposals by the cairns

Group, the elaboration of yew gatt rules and disciplines,

Including the elimination of country specific exceptions

And the determination of the measures and actions to be taken for implementing the reform process

Ministers considered that adoption of target dates for
Developing new gatt rules for examining the role in the

Negotiations of aggregate measures of support, and for

Indicating how national policies would be modified to conform with new rules, would help focus negotiations on the reform process.

Ministers reaffirmed the importance of securing agreement m both a freeze and cutback in support and protection, such short term commitments were mecessary to demonstrate the willingness of the major industrialised countries to arrest and reverse a major cause of tension in world trade. A freeze capturing the 'status, quo in agricultural support would prevent backsliding and would se a necessary pre?condition for embarking on long?term agricultural reform. Cutback would be thy, start of this process.

Ministers agreed that, to be effective, the freeze and cutback would need to be specifically applied

Administered support prices, export subsidy expenditures, both overall and commodity specific, and production control arrangements. In this context ministers also agreed that ~et access levels be maintained and improved.

In this regard minister reaffirmed their view that the basic ingredients for progress on both the short and long term elements remained air outlined in the group's own comprehensive negotiating proposal.

Ministers noted that there had been some changes 19 the negotiating environment since montreal. In particular, the us and e".*. Had recently commenced a dialogue aimed at narrowing differences.

Ministers welcomed indications of flexibility on the part of the united states. They considered, however, that more evidence was required of united states' preparedness to negotiate fundamental adjustments to its park policy in both the $moat and long tern, including commitments on

Export subsidisation, market access and supply controls.

Moreover they were disturbed to note recent reports

Suggesting that the us was prepared to intensify competitive export subsidisation aimed at exercising leverage in the negotiations.

Ministers expressed regret now m r, that this c w ged
Atz40sphere had yet to result in substantive progress 19

The consultations convened by mr arthur dunkel.

Ministers expressed their particular concern at
Lam #twig

Of the european community. The community ms given no clearindication of its commitment to comprehensive long tham agricultural reform, the community continues to advocate use of an overall measure of support as the basic tool for worm in both the long term and short term and has been reluctant to consider commitment bearing directly on fundamental elements of the common agricultural policy, such as administered support prices, export subsidies, and market access barriers.

The community has been insisting on credit for reforms of the common agricultural policy undertake14 since 1984. While recognising that some steps had been taken by the community ministers noted that measures had been adopt= unilaterally by a number of countries, among them mant developing countries, which have also had a positive effect on agricultural trade. They considered however, that any incorporation of credit into the long?term reform programme should be based 014 tar demonstrated positive impact of measures instituted since the beginning of the uruguay round, balanced against actions that nave had a negative effect. Ministers believe that, in any case, the question or credit should not be addressed 19 relation to

Short?term commitments,

At the same time, ministers noted that many developing countries were concerned to ensure mat future agricultural and trade reform mechanisms did not prejudice their domestic food requirements in the framework of overall economic development

Ministers reaffirmed their commitment to the principle of differential and more favourable treatment for developing countries. They expressed the need for participants in the c014sultatious to reach consensus on the group's approach to this issue, noting at the same time that a considerable number of countries rave already expressed their support for it. They referred, in particular, to the part of the proposal that developing counties be exempted from contributing to short term. Undertakings.

Ministers indicated that in negotiating the long term framework the modalities of application of differential and more favourable treatment for developing countries should be specified.

Ministers noted the concerns expressed by some food importing developing countries over the possible adverse impact on their economies of agricultural trade reform. Ministers acknowledged the importance or continued dialogue with those countries with a view to indentifying the problems associated with 171e process of reform and to what extent they could be addressed within the gatt framework and in cooperation with other institutions. At the sake time ministers confirmed their view that all participants would benefit from liberalisation of trade in agriculture and other areas of irt2r2st to developing countries covered by the uruguay round.

Ministers noted that there appeared to 53 emerging
Consensus among participant& 014 the broad objectives for

Sanitary

1 phytosanitary

On sanitary ale phytosanitary measures

Including greater transparentcy and harmonisation of regulations, the basing of measures on sound scientific evidence and the need to recognise the principle or equivalence, technical assistance for developing countries and the establishment or consultative and dispute settlement mechanisms

As a result of their discussions, cairns group ministers stressed that the consultative process in geneva would not be successfully concluded if the views of the cairns group were not taken fully into account.

Ministers expressed their commitment to securing a positive result on agriculture at the tnc meeting in april. This would be essential to restore momentum to the uruguay round. On the other hand, ministers cautioned that a lack of political will to secure a satisfactory agruculture agreement wo= 2~ failure lure in the tnc meeting in april. This would seriously jeopardise overall prospects for the uruguay round and represent a serious setback to efforts to strengthen the multilateral trading

Ministers welcomed the kind offer of the government or thailand to most the next ministerial meeting of the cairns group at a time to 02 determined.

Finally, ministers congratulated the government or new zealand on its initiative in convening th19 meeting and expressed their gratitude for its hospitality.

Waitangi
New zealand

19 march 1989

7 December 1990

Australia, Argentina, Brazil, Canada, Chile, Colombia, Hungary, Indonesia, Malaysia, New Zealand, Philippines, Thailand, Uruguay