WORLD TRADE
ORGANIZATIONG/AG/NG/W/29
11 July 2000
(00-2825)
Committee on Agriculture
Special SessionOriginal:  English
SECOND SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
29-30 JUNE 2000
Statement by New Zealand
Cairns Group Proposal on Export Competition (G/AG/NG/W/11)
New Zealand is delighted to be one of the proponents of this Cairns Group proposal on export
competition.  It is the first of a number of proposals which will be forthcoming from the Cairns Groupover the coming months.  These proposals will al so cover domestic support, market access and other
issues such as export prohibitions and restrictions .
For New Zealand , the elimination of export subsidies is a key objective in the negotiations.
The payment of export subsidies on agricultural products cannot be justified.  The use of them iscurrently the preserve of a handful of rich countries who use export subsidies to export the problems
created by their domestic support policies to the rest of the world.  We all suffer as a result.
Under WTO rules, export subsidies are not allowed for industrial products.  It is high time for
them to be outlawed for agricultural products too.
The Cairns Group's proposal will achieve the rapid elimination of export subsidies.  It will
also ensure that the rules are tight so that the ban on export subsidies cannot be circumvented by
dodgy schemes or other export competition measures, such as export credits.  As such it would be an
important step towards fulfilling the mandate in Article 20 of the Agreement on Agriculture.
We look forward to further discussions of the Cairns Group's proposal later in this meeting
and over the coming months.
Canada's Market Access Proposal (G/AG/NG/W/12)
As Members are aware, the Cairns Group Vision for these negotiations calls for trade in
agricultural products to be placed on the same basis as trade in other products.
Market access is a key component of this.  We are all aware of the current difficulties facing
us in obtaining access to many markets: tariff barriers, tariff peaks, tariff escalation, tariff quota
restrictions and special safeguards.  These problems require a comprehensive approach.
This paper from Canada contains some ideas on how some of these issues might be taken up
in the negotiations and sets some markers such as the need to expand all tariff quotas and address
tariff escalation.  We also note it raises the important issue of export prohibitions and restrictions.
Such measures can impact on the food security of net food importing nations, particularly developing
countries.  We believe, disciplines in this area may increase certainty of supply for such countries andG/AG/NG/W/29
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thereby assist in the achievement of the overall objective of delivering further substantial
liberalization of agricultural trade.
We look forward to further exchanges on market access issues once further proposals have
been submitted which address all the elements contained in the Cairns Group Vision.
Developing Country Proposal on Special and Differential Treatment and a Development Box
(G/AG/NG/W/13)
New Zealand thanks Cuba, the Dominican Republic, Honduras, Pakistan, Haiti, Nicaragua,
Kenya, Uganda, Zimbabwe, Sri Lanka and El Salvador for this paper (W/13) and its proposal on
Green Box/Annex 2 Subsidies (W/14).  We would like to take both of these proposals together.
We think the proposal  usefully highlights the difficulties facing developing countries
confronted  with production and trade distorting polices, such as export subsidies, market access
barriers and high and increasing  levels of domestic support in some of the richer countries of the
world.
We support some elements of the proposal  - for example drastic reductions in tariffs to
address tariff peaks and tariff escalation, and the call for the end of the special safeguard as proposed
for developed country Members.
We also appreciate the analysis that has gone into the authors' call for  the immediate
elimination of export subsidies.  In our view it is  highly significant - but not altogether surprising -
that 30 WTO Members have, in writing, called for the elimination of export subsidies on the first day
that proposals are discussed in the Special Session.
Other aspects of the proposal, will require more thorough examination.  We look forward to
further discussions over the course of the negotiations on the best means to address the important
special and differential treatment issues.  New Zealand will continue to work with other members of
the Cairns Group in this light.
Developing Country Proposal on Gree n Box/Annex 2 Subsidies (G/AG/NG/W/14)
We also thank the countries concerned for producing this paper, which contains some helpful
analysis on Green Box measures.  As with accompanying paper W/13, we will need further time to
examine the issues raised in the paper and we look forward to further discussion on them
US Comprehensive Negotiatin g Proposal (G/AG/NG/W/15)
US Paper on Domestic Support Reform (G/AG/NG/W/16)
We welcome this early contribution of a comprehensive negotiating proposal from the United
States, which adds to the momentum which is building in these negotiations.
We believe the proposal makes a significant contribution to the mandate set out in Article 20 -
that is - substantial progressive reductions in support and protection resulting in fundamental reform.
On a first read of the proposal, there are a number of key elements that we particularly
endorse.  These include, substantial increases in tariff quota quantities, substantial reductions of all
tariffs, the elimination of special safeguards  and disciplining the use of export restrictions in the
context of food security .G/AG/NG/W/29
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And, of course, the US call for the elimination of all Scheduled export subsidies is consistent
and supportive of the Cairns Group proposal discussed earlier today .
There are also some interesting and positive ideas in other areas of the proposal which we
intend to take into account in the formulation of Cairns Group proposals on domestic support andmarket access.  We look forward to discussing them further along with consideration of the US paper
on Domestic Support Reform (W/16).
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