WORLD TRADE
ORGANIZATIONG/AG/NG/W/115
13 February 2001
(01-0669)
Committee on Agriculture
Special SessionOriginal:  English
FIFTH SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
5-7 FEBRUARY 2001
Statement by Indonesia
G/AG/NG/W/90 (Proposal by the EC)
My delegation welcomes the EC's comprehensive negotiating proposal. In our view, it
represents significant contribution to the negotiating process.  My delegation appreciates the EC's
position that recognizes the importance of S&D treatment to developing countries.  Indonesia
welcomes EC's proposal in this regard.
Before making further comments, I would like to flag that all of the concerns over the EC's
proposals expressed by Malaysia earlier in its intervention are shared by Indonesia.  My delegation
fully supports Malaysia's views.  For the inte rest of time, I am not going to repeat it.
On market access, like previous speakers we support EC's proposal to use the formula
adopted in the Uruguay Round with regard to the tariff reduction.
We also agree with the EC that we need to set rules and disciplines in order to increase
transparency, reliability and security of the management of the TRQs.
While considering some of the EC's proposals in the area of market access are positive, my
delegation is disappointed that the EC's proposal does not mention the need to address the problems of
tariff peaks and tariff escalation in the developed countries, area, in which most of developing
countries encounter barriers entering some developed countries' markets.  My delegation strongly
proposes that the EC and other developed countries will seriously take these problems into account
during the negotiations.
My delegation would also like to express its appreciation to the EC's proposal that the
developed countries should provide significant trade preferences to developing and least developed
countries in order to increase market access products originating from these countries.  However,
Indonesia is strongly of the position that the developed preference-giving countries should not imposeany conditionality in implementing the trade preferences.
In domestic support, my delegation supports the suggestion by the EC that measures taken by
developing countries to promote rural areas, food security and poverty alleviation to be exempted
from any reduction commitments.
Last but not least, while we fully agree with the EC that duty-free access should be given to
essentially all products from the least developed countries, including agricultural products, my
delegation urges the EC to consider positively the ASEAN proposal on S&D for developing countries
contained in document G/AG/NG/W/55.G/AG/NG/W/115
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G/AG/NG/W/91 (Proposal by Japan)
Indonesia welcomes the submission by Japan incorporating its negotiating proposals in
various areas in trade in agriculture, sector to which both developed and developing countries attach
very great interest.
Allow me to comment on some issues of particular interest to my delegation.  First on food
security, Indonesia is of the view that the proposal by Japan that a wide range of flexibilities should be
given to developing countries in order to ensure their food security is quite positive.  Such
flexibilities, in our view, should include the exemption of all domestic support measures taken by
developing countries for food security purposes from any reduction commitments.  In other words, the
existing green box should be expanded to cover these kinds of measures.  We believe this is in linewith the proposal of the Cairns Group and others including the EC.
While noting that Japan's proposal contains positive elements in favour of developing
countries as far as border measures are concerned, we regret that Japan did not come up with proposal
aiming at greater improvement of opportunities a nd terms of access for agricultural products exported
by developing countries.  As proposed by the Ca irns Group, the agreement in trade in agriculture
should provide provisions of effective market access to assist their economic growth, appropriate
tools to help them to adapt to change and cushion the impact of reform process, especially on small
and subsistence farmers.  In our view, developed countries should be prepared to further open their
markets by reducing or eliminating non-tariff barriers and tariff barriers including tariff peaks andtariff escalation for products of interests to developing countries.
On export tax, while Indonesia recognizes the need to discipline export restrictions and export
taxes, we do not agree with Japan that all exports taxes to be bound.  We also have some problems
with Japan's proposal to establish quotas in which a certain amount of exports will be exempted fromthe export tax.
In some cases Indonesia invoked export taxes on certain agricultural products due to critical
food shortages or preservation of natural resources.  In our view, the existing Article 12 of the AoA
has fully served our needs and any modification to this article should not undermine the S&D
treatment provided therein.  As proposed by the Cairns Group, the existing S&D treatment should be
strengthened instead, and my delegation fully associates itself with the proposal.
On multi-functionality, Indonesia shares the opinion that by nature agriculture carries various
functions.  However, Indonesia believes the WTO rules should prevent non-legitimate claims of
multi-functionality from being used by certain countries as a disguised protectionist policy.
On food safety and biotechnology, Indonesia shares the view that the advent of
biotechnology, particularly in agricultural sector could bring about some positive impacts in various
fields, such as yield increase, crop resistance to diseases, etc.  However, while biotechnology
promises solution to food production especially in developing countries, it also poses some risks
generally not recognized by the public.  The existing WTO rules already require WTO members tobase their rules on science, and distinguish between legitimate health and safety concerns based on
science and consumer concerns.  My delegation is of the view that the public is entitled to know what
they are consuming, while reserving their right to choose and decide.  Indonesia is of the position that
labeling requirements for this purpose should not be restricted by the WTO rules.
On linkage with "new  round", Indonesia has serious problem with the suggestion by some
Members, including Japan, that the agricultural negotiation should be conducted and concluded in a
single undertaking as part of a new round.  Indonesia is of the position that as a mandated negotiation,
agriculture is a stand-alone negotiation that should be carried out whether or not there would be a new
round.G/AG/NG/W/115
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G/AG/NG/W/102 (Statement by India)
First of all, I would like to thank the distinguished Indian delegation for its very
comprehensive proposals.  Indonesia shares many ideas in the Indian proposals which, in our view,
are not only similar to the position of the Cairns Group but also provide concrete and operationalS&D treatment to developing countries.
Turning to specific comments, I would like to brie fly refer to some issues raised in the Indian
proposals :
In the area of food security, to which Indonesia attaches great importance, we agree with India
that :
- subsidized imports can jeopardize the livelihood of farmers in large agrarian economies such
as India and Indonesia, because the subsistence farmers in developing countries cannot stand
up against these kinds of imports;
- a minimum level of self-reliance is needed in order to ensure physical access to food in
developing countries. Indonesia has expressed similar position at the previous meeting of the
Special Session on Agriculture in November last year.
Given the importance of the issues of food security for developing countries, Indonesia
strongly supports the Indian proposal to establish a "food security box" for developing countries.  In
this regard Indonesia specifically shares most of the elements of such proposal as incorporated in
paragraph 13 of the Proposal on Food Security  of document G/AG/NG/W/102.  For example, on
domestic support, my delegation  endorses the Indian proposal that product specific support to low-
income resource poor farmers should be excluded from the AMS calculations.  Furthermore,Indonesia supports the proposal by India that al l domestic support measures taken by developing
countries for poverty alleviation, rural development and employment as well as diversification of
agriculture should be exempted from any reduction commitments.
With regard to market access, my delegation is very happy to recognize the Indian proposal
which is quite similar with the Cairns Group proposal, namely pertaining to substantial reduction of
tariff peaks and tariff escalation in developed countries.  On safeguard mechanism, my delegationshares the position of India that a separate safeguard mechanism should be made available to all
developing countries irrespective of tariffication, in the event of a surge in imports or a decline in
prices.  Such special  provision will safeguard the developing countries' domestic production in order
to secure domestic food needs and the livelihood of small and poor farmers.
Finally, my delegation is looking forward to cooperating with the Indian and other
delegations in our objectives to achieve a more level playing field in trade in agriculture through
improving the ability of developing countries to part icipate fully in the international trade area as well
as advancing their development objectives.
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