News and Analysis • Volume 13 • Number 2 • June 2009

6 - Farm Exporters Call for Doha Restart

Meeting in Bali in June, trade ministers of the Cairns Group said negotiations on an ‘ambitious and balanced’ Doha deal should resume in earnest this summer.

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In their final communiqué, reproduced almost in its entirety below, the ministers stated:

“The Doha Development Round has a particularly important role to play at this time of global economic crisis. Concluding the negotiations would deliver a much needed contribution to economic recovery and demonstrate the benefits of the multilateral trading system. This outcome is within our grasp, and we are determined to make it happen.

“Agriculture lies at the heart of the Doha Round, particularly due to its importance for the development of developing countries. The outcome of the negotiations must build substantially on the foundation, disciplines and achievements of the Uruguay Round by taking a further step along the path of significant agricultural trade reform in line with the mandate.

“The Cairns Group recognises the good progress that has been made in the agriculture negotiations. We must build on that work, based on the draft modalities text, to secure an outcome that meets the Cairns Group’s long-term objective of a fair and market oriented agricultural trading system through substantial improvements in market access; substantial reductions in trade-distorting domestic support; and the long overdue elimination of all forms of export subsidies as agreed by ministers in Hong Kong.

“An ambitious and balanced outcome to the Doha Development Round will generate substantial improvements in agricultural market access opportunities. It will lock in significantly reduced domestic support commitments, open up new export opportunities and reduce the level of distortions in international markets. This will benefit all agricultural producers, including low income producers in developing countries. And it will eliminate export subsidies once and for all. Such reforms will provide valuable insurance against the growing threat of protectionism, and will help move the international trading system closer to a level playing field.

“At this critical time in the global economic downturn, it is essential that we guard against increased protectionism in agriculture, which includes not only tariffs but also subsidies and other restrictive non-tariff measures. The recent reintroduction by the EU and US of export subsidies for one major commodity has deepened that risk. Cairns Group ministers remain deeply disappointed by the re-introduction of such measures. The EU and the US must show leadership by removing these export subsidies in the shortest timeframe. Even measures that are applied within WTO commitments can still have a significant protectionist effect. We therefore urge WTO Members to exercise the utmost restraint and not follow this example. All WTO Members must act responsibly and resist the temptation to resort to protectionist measures at this difficult time.

“To reach a conclusion to the round, WTO Members must now summon the political will to conclude our mandate for a balanced and ambitious outcome.

“Looking ahead, we now need a transparent and inclusive process of engagement at both the technical and political levels. Trade ministers underlined the urgency for officials to engage intensively and on an ongoing basis. Senior negotiators must reconvene in Geneva as soon as possible to map out a clear path towards the conclusion of the negotiations, and to start down that path before the European summer break. USTR Kirk and Commerce Minister Sharma of India fully endorsed these views.

“At the same time, WTO Members must take advantage of every opportunity to engage at the political level to drive progress. Cairns Group ministers committed themselves to using every opportunity over coming weeks and months to this end.”