WORLD TRADE
ORGANIZATIONWT/MIN(03)/14
9 September 2003
(03-4785)
MINISTERIAL CONFERENCE
Fifth Session
Cancún, 10 - 14 September 2003Original:  English
MINISTERS' COMMUNIQUÉ
ALLIANCE FOR STRATEGIC PRODUCTS AND SPECIAL SAFEGUARD MECHANISM
9 September 2003, Cancún Mexico
Communication from Indonesia
The following communication, dated 9 September 2003, has been received by the Chairman
of the Ministerial Conference from the Minister of Industry and Trade of Indonesia on behalf of the
countries forming the Strategic Products and Special Safeguard Mechanism Alliance.
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I have the honor to inform you that 22 developing countries, which form the Strategic
Products (SP) and Special Safeguard Mechanism (SSM) Alliance, have met on the eve of the Fifth
Ministerial Meeting in Cancún, to discuss the current development of the agriculture negotiations.  On
their behalf, I have further the honor to transmit to you a Ministers' Communiqué, which outlines ourposition on the issue of SP and SSM.
In pursuant to the above, we appeal to you that our position, as referred to in the Commuiqué,
be fully taken into account and reflected in any outcome of the Cancún process.  We would also like
that this Communiqué be circulated as part of the Ministerial Conference official document.
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Ministers' Communiqué
Alliance for Strategic Products and Special Safeguard Mechanism
9 September 2003, Cancún Mexico
The Ministers from developing countries that form the Strategic Products (SP) and Special
Safeguard Mechanism (SSM) Alliance1 welcome the opportunity to meet in Cancún, Mexico, on the
eve of the WTO Fifth Ministerial Conference. The Alliance represents the interests of a majority of
the world's small vulnerable resource-poor farmers from developing countries across the continents.
Having discussed, evaluated, and coordinated their positions on the current developments
concerning the agricultural negotiations in the WTO, Ministers reiterated their call for the recognition
and inclusion of an SP and SSM mechanism into the new Agreement on Agriculture currently under
negotiation as part of the Doha Development Round of Negotiations.  Ministers stressed that their
agricultural sectors, and in particular their ability to support their basic legitimate development goals,such as food and livelihood security, and rural development, have been affected by the inequalities
inherent to the current Agreement.
Indeed, the current Agreement on Agriculture has effectively enabled trade-distorting
measures that are detrimental to the developing c ountries' trade and development interests on both the
domestic and international markets.  Ministers said that, since the Uruguay Round, their farmers have
had to compete in their domestic markets with foreign competitors who are supported by both trade-
distorting export competition and by domestic support measures.
Ministers pointed out therefore that, due to the fact that rural and agricultural populations
typically predominate in the societies and economies of developing countries, the latter's agricultural
systems and economies suffer from undue stress imposed by the existing inequalities of the
international trading environment.  Although developing countries each have their own limited areas
of competitiveness, trade distortions as well as other types of barriers have either prevented the
exploitation of market access benefits or shut developing countries out of the competition altogether.
Furthermore, the problem is compounded by the fact that even on their own markets, the producers in
developing countries are facing increasingly difficult circumstances and impoverishment.
Thus, Ministers reiterated the need for a fundamental reform of world agricultural trade,
which is seen as key to addressing the current imbalance as well as to achieving the development
objectives set out in the Doha Development Agenda.  For developing countries, these reforms must
comprise reductions of, with a view to phasing out all forms of export subsidies, substantialreductions in trade-distorting domestic support, and substantial improvements in market access for
products of particular interest to developing countries.  Ministers stressed that for any reform to be
viable, special and differential treatment for developing countries must be an integral part of all
elements of the negotiations in order to be operable and to enable them to effectively take account of
their development needs, amongst them food and livelihood security, as well as rural development.
Ministers emphasized that such legitimate non-trade objectives of developing countries as
food and livelihood security as well as rural development must not be seen as a smokescreen for
protectionist policies.  To continue to perceive such objectives as protectionist will merely perpetuate
poverty, hunger, and environmental degradation.
                                                     
1 Members of the SP and SSM Alliance:  Barbados, Botswana, Cuba, Dominican Republic, Honduras,
Indonesia, Jamaica, Kenya, Mongolia, Nicaragua, Nigeria, Pakistan, Panama, Peru, the Philippines, Tanzania,Trinidad and Tobago, Turkey, Uganda, Venezuela, Zambia, and Zimbabwe.WT/MIN(03)/14
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Ministers welcome the initial step taken by the Director-General and the Chair of the General
Council designed to reflect some of the developing  countries' concerns with regard to food security
and rural development in their proposed draft framework for establishing modalities in agriculture.
However, Ministers emphasized that the special and differential treatment proposed in this draft
framework still falls far short of adequately addressing developing countries' food and livelihoodsecurity and rural development problems, as well as ensuring the survival of the small vulnerable
resourced poor farmers.  In this connection, Ministers stressed that the Alliance's proposal for an
SP and SSM mechanism, must constitute an integral part of any special and differential treatment for
developing countries.  Ministers outline the Alliance proposal as follows:
1. Developing countries shall have the flexibility to self-designate a [ ] per cent of tariff
lines as Special Products (SP) which shall not be subject to tariff reductions, and nonew commitment regarding Tariff Rate Quota (TRQ).
2. A Special Safeguard Mechanism (SSM) shall be established for use by developing
countries.
3. Products designated as SP, shall also have access to a special agricultural
safeguard (SSM).
Ministers reaffirmed their commitment and read iness to engage constructively in the Cancún
Ministerial Conference.  They urge all Members, and especially the developed countries, to help eachother deliver this outcome through meaningful engagement and dialogue in order to flush out the
appropriate viable modalities in these elements.
Ministers conveyed their gratitude to the Government of Mexico for hosting the WTO Fifth
Ministerial Conference, and to the people of Cancún for the hospitality shown thus far.  They agreed
to coordinate further during this Ministerial Conference and to continue to work in close collaboration
to ensure that the needs and concerns of the majority of the world's small vulnerable resourced poor
farmers receive the attention and treatment they deserve in the current agricultural negotiations and
their outcome.
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