WORLD TRADE
ORGANIZATIONG/AG/NG/W/78
28 November 2000
(00-5106)
Committee on Agriculture Original:  Spanish
FOURTH SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
15-17 NOVEMBER 2000
Statement by Peru
Submission by ASEAN on "Special and Differen tial Treatment for Developing Countries in
World Agricultural Trade" (G/AG/NG/W/55)
Peru basically shares the concerns put forward in the ASEAN submission on special and
differential treatment.
The objectives of the ongoing negotiations are to strengthen the multilateral rules governing
international trade and to continue the process of agricultural trade reform initiated during the
Uruguay Round.
In Peru's opinion these negotiations must address all the issues covered in the Agreement on
Agriculture, including those of priority concern to developing countries, and, reaffirming the general
principles of the GATT, must seek to establish a fair, transparent and predictable agricultural trading
system.
The Uruguay Round Agreement on Agriculture was an important first step in the process
aimed at reforming agricultural trade. Nevertheless, few results have been achieved in terms of
benefits for developing countries, particularly for those that were hoping to gain broader access to themarkets of developed countries.
Peru is a net food-importing developing country. In other words, it belongs to the group of
countries that were prepared to accept the negative – and supposedly short-term – effects of the
reform programme in exchange for taking part in a liberalization process that was to create wideropportunities for trade expansion and economic growth.
Today, however, Peru is experiencing the same frustration as the other net food-importing
developing countries that have seen a steady deterioration in their food security situation, while the
market has not afforded the conditions needed fo r them to continue improving their agricultural
production and developing their own export capacity.
The Marrakesh Ministerial Decision on net food-importing developing countries must indeed
be fully and effectively implemented; the issue is, however, already under discussion within the
framework of the General Council.
The situation and specific difficulties facing the net food-importing developing countries will
not be resolved by temporary stop-gap support. This approach has proved insufficient, and Peru
considers that the current negotiation process should provide for complementary measures. That is,
full implementation of the existing Marrakesh Decision must be accompanied by additionalG/AG/NG/W/78
Page 2
market-based conditions to encourage production and increase agricultural productivity in these
countries.
This will involve applying special treatment and measures adapted to the circumstances of net
food-importing developing countries, such as longer time-frames for the implementation of tariffreduction commitments;  the possibility of using certain levels and types of domestic support for
agricultural development; technical and financial assistance; and better opportunities and conditions
of access to markets in developed countries for products originating from the developing countries, so
as to help them develop their export capacity.
The Peruvian Government has made considerable efforts to ensure that the poorest sections of
the country's population have access to food and thus to achieve the priority objective of foodsecurity. Peru is simultaneously involved in developing a modern agricultural export sector, focusing
on a number of products of proven interest to the international market. In this connection, it is
important to point out the increasing importance of processed agricultural products as a key
component of economic growth.
Despite the considerable efforts and progress made, it will be impossible to achieve the above
objective to the full without the establishment of conditions that encourage production and increased
agricultural productivity and of a predictable and transparent international market.
Market access
As regards access to markets, steps must be taken to eliminate tariff peaks and tariff
escalation, which have limited both the increase and the diversification of exports from developing
countries. Countries such as Peru have been and are still hampered in their efforts to develop their
processed agricultural products sector, as a result of the adverse consequences of tariff escalation.
Substantial cuts will also have to be made in the tariffs applied by developed countries.Developing countries, and net food-importing developing countries in particular, must not be
compelled to reduce their bound tariff levels, insofar as they are still plagued by rural poverty and
food insecurity.
Access for agricultural products of particular importance to developing countries must be
effectively and tangibly improved.
In this connection, it is crucial to strengthen and give effect to the provisions of the
Agreement dealing with measures aimed at stimula ting alternative development and replacing illicit
crops. We also concur with ASEAN's proposal rega rding full liberalization of trade in tropical
products.
Domestic support
As regards domestic support, the current disciplines, as well as the rules pertaining to
reductions, have proved inadequate, since they have in fact led to a rise in domestic support levels
affecting production and trade.
Hence the fundamental need for a substantial reduction in support measures, which have been
disproportionately used by developed countries and have caused major distortions in agricultural
trade. It is, moreover, necessary to simplify the classification system for domestic support, to ensure
that its management is transparent, and to make certain that it does not generate distortions in
production and trade.G/AG/NG/W/78
Page 3
Concerning special and differential treatment, developing countries must be accorded the
flexibility they need to achieve their objectives in terms of food security, rural development and the
reduction of rural poverty.
Export subsidies
The large-scale export subsidies applied by a small number of developed countries has
aggravated food insecurity and rural poverty in developing countries.
Such subsidies tend to hamper the development of domestic agricultural production in
developing countries by creating a trade environment marked by unfair competition and distortedprice levels, which prevent price and quality from serving as decision-making indicators. This
continuing practice is giving rise to major distortions in world trade.
For all the above reasons, developed countries must eliminate export subsidies.
The specific circumstances of developing countries will have to be taken into account in order
to grant them the flexibility they need.
* * * * *
It is vital for developing countries to progress rapidly towards fulfilment of the objectives set
out in the Agriculture Agreement. The measures relating to special and differential treatment need to
be stronger and more effective if this group of countries is to derive greater benefits from world
agricultural trade.
The principle of special and differential treatment has to be consolidated, but efforts must not
be restricted to granting longer timeframes or to technical cooperation aimed at facilitating
implementation. It is essential to increase opportunities and improve terms of access for agricultural
products originating in developing countries and to create the conditions needed for these countries to
participate more actively in the market.
___________