WORLD TRADE WT/L/263
21April 1998
ORGANIZATION(98-1598)
Original: English
CAIRNS GROUP MINISTERIAL MEETING
(Sydney, 1-3April 1998)
Communication from Australia
Thefollowingcommunication,dated7April1998,hasbeenreceivedfromthePermanentMission
ofAustralia.
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TheCairns Group heldits18thMinisterial Meeting from 1-3April 1998. Ihavepleasure
inprovidingyouwithacopyoftheCairnsGroupMinisterialCommuniqueandVisionStatementreleased
on3April 1998 inSydney, Australia.
Iwould begrateful ifyoucould arrange fordistribution oftheCommunique1andVision2
Statement toWTO Members asacommunication from theCairns Group.
1Reproduced asAnnex 1.
2Reproduced asAnnex 2.WT/L/263
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ANNEX I
Cairns Group Ministerial Meeting: Sydney 1-3April 1998
Communique
ThemembersoftheCairnsGroupheldtheireighteenthMinisterialMeetinginSydney,Australia
on1-3April 1998.
Ministers welcomed South Africa asthenewest member andthefirstAfrican member ofthe
Cairns Group. They noted thattheparticipation ofSouth Africa would strengthen thecapacity ofthe
group towork forafairer andfreerinternational agricultural trading system.
Ministers alsowelcomed theinaugural meeting inSydney ofCairns Group farmleaders and
theirstrong statement insupport oftheGroup 'sefforts tofurther liberalize agricultural tradeinrenewed
WTO agriculture negotiations tocommence in1999.
Ministers recalled thejointobjective agreed attheir1997 Riomeeting thatthenextWTO
agriculture negotiations achieve fundamental reform toplace agriculture onthesame basis asother
areas ofworld trade. Inthisconnection Ministers agreed upontheattached "Vision Statement" setting
outtheCairns Group 'sobjectives inthethreekeyareasofexport subsidies, market access anddomestic
support.
Ministers called upontheMayMinisterial Meeting oftheWTO tolaunch apreparatory process
which willallow themandate andstructure oftheagriculture negotiations, agreed aspartoftheUruguay
Round "built-in agenda", tobeefficiently settled sothatsubstantive negotiations cancommence by
end1999.
Ministers alsoagreed touseallopportunities, including work inother foraandcontacts in
relevant regional organizations andothergroupings, topromote theCairns Group 's"Vision". Between
nowandthe1999negotiations thegroup willintensify itslinksandcontacts withother WTO Members
and,inparticular, work todemonstrate thattheagricultural reform process willbenefit alldeveloping
andleast-developed countries.
Inreviewing thework programme agreed attheir1997 Riomeeting, Ministers agreed that
thegroup willcontinue tocoordinate closely -inparticular onfullimplementation ofcommitments
onagriculture andsanitary andphytosanitary measures, including provision oftechnical assistance;
toensure thatnewWTO Members comply fullywithWTO agriculture disciplines; indiscussions on
thelinksbetween tradeandtheenvironment; andintheprocess ofanalysis andinformation exchange
related totherenewed negotiations.
Ministers agreed thattheSPSreview should notbeusedasapretext torelaxpresent disciplines
ontheground ofnon-scientific arguments. Acleardistinction should bemade between concerns based
onobjective andscientific considerations andthose based onsubjective perceptions. TheSPSreview
should contribute toimprove thenotification procedures, toprovide more transparency andtoavoid
unjustified andarbitrary barriers totrade.
They noted thatdespite theundertaking intheUruguay Round Agriculture Agreement,
negotiations intheOECD hadasyetfailed todevelop effective disciplines ontheuseofagricultural
export credits andurged allparticipants toseriously pursue effective disciplines asamatter ofurgency.WT/L/263
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Ministers viewed theimpact oftheAsian financial crisis withgreat concern. They agreed
thatthemaintenance ofliberal andopenworld markets would facilitate thequick recovery ofthose
countries affected.
Ministers agreed thattheCairns Group would nextmeetatministerial levelinMayattheWTO
Ministerial Meeting toconsider further group strategies andagain atMardelPlata, Argentina in1999.WT/L/263
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ANNEX 2
Cairns Group "Vision" fortheWTO Agriculture Negotiations
"Completing theTask"
TheCairns Group ofagricultural fairtraders reaffirms itscommitment toachieving afairand
market-oriented agricultural trading system assought bytheAgreement onAgriculture. Tothisend
theCairns Group isunited initsresolve toensure thatthenextWTO agriculture negotiations achieve
fundamental reform which willputtradeinagricultural goods onthesamebasisastradeinothergoods.
Alltrade distorting subsidies must beeliminated andmarket access must besubstantially improved
sothatagricultural trade canproceed onthebasis ofmarket forces.
TheUruguay Round provided arules-based framework foragricultural trade andtookan
important firststepinreducing agricultural support andprotection. Levels ofsupport inOECD
countries, however, remain atveryhighlevels, withUS$280 billion intotaltransfers toagriculture
in1997. Also, formany products major impediments continue toconstrain market access opportunities.
Thenegotiations, tocommence in1999, mustdeliver major improvements totherules, theelimination
ofsubsidies thatdistort prices, production andtrade, andsubstantial cutstoprotection levels.
Completing thetaskofliberalizing agricultural trade willbring important benefits interms
ofeconomic growth, improved welfare, foodsecurity andsustainable development.
Food security willbeenhanced through more diversified andreliable sources ofsupply, as
more farmers, including poorer farmers indeveloping countries, areabletorespond tomarket forces
andnewincome generating opportunities, without theburden ofcompetition fromheavily subsidized
products. Export restrictions mustnotbeallowed todisrupt thesupply offoodtoworld markets, in
particular tonet-food importing countries.
Inmany cases agricultural subsidies andaccess restrictions havestimulated farmpractices that
areharmful totheenvironment. Reform ofthese policies cancontribute tothedevelopment of
environmentally sustainable agriculture.
Theprinciple ofspecial anddifferential treatment fordeveloping countries, including least-
developed countries andsmall states, mustalsoremain anintegral partofthenextWTO agriculture
negotiations. Theframework forliberalization mustcontinue tosupport theeconomic development
needs, including technical assistance requirements, ofthese WTO Members.
Aspreparations fortheagriculture negotiations intensify, theCairns Group willpushfora
comprehensive framework which addresses allareas affecting agricultural trade. Acentral partof
thiswillbefurther, farreaching, andspecific commitments ineachofthethree reform areas.
Export Subsidies
Thereisnojustificationformaintainingexportsubsidies.Itisessentialthatthe1999negotiations
ensure theearly, totalelimination andprohibition ofallforms ofthesedistortive andinequitable policies.
There mustbeclearrulestoprevent allforms ofcircumvention ofexport subsidy commitments. Also
agricultural export credits mustbebrought under effective international discipline withaviewtoending
government subsidization ofsuchcredits.WT/L/263
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Market Access
Accessopportunitiesforagriculturalproductsshouldbeonthesameconditionsasthoseapplying
toother goods andshould becommercially viable. Tariffs mustbetheonlyformofprotection, tariff
escalation mustberemoved andtariffpeaks curtailed. The1999negotiations mustresult indeepcuts
toalltariffs, tariffpeaks andtariffescalation. They mustprovide amajor expansion ofmarket access
opportunities foragricultural products, including value-added products. Theremoval ofnon-tariff
barriers mustbecompleted without exception. Trade volumes under tariffratequotas mustbeincreased
substantially. Theadministration oftariff ratequotas mustnotdiminish thesizeandvalue ofmarket
access opportunities, particularly inproducts ofspecial interest todeveloping countries.
Domestic Support
Overall levels ofdomestic support foragriculture remain farinexcess ofsubsidies available
toother industries. The1999 negotiations must result inmajor reductions indomestic support for
allagricultural products. Alltrade distorting domestic subsidies must beeliminated withonlynon-
distorting forms ofsupport permitted. Close attention willbepaidtocompensation fortheshiftaway
frompricesupport andtheCairns Group willworktoensure thatincome aidsorother domestic support
measures aretargeted, transparent andfullydecoupled sothattheydonotdistort production andtrade.
TheWTO agriculture negotiations aremandated tobegin before theendof1999. TheCairns
Group willwork toensure thatthenecessary preparations havebeenundertaken sothatthenegotiations
begin ontime, andarecompleted assoonaspossible. Thereform process mustcontinue unabated
andtheoutcome must puttrade inagricultural goods onanequal footing withtrade inother goods.
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