RESTRICTEDWORLD TRADE
ORGANIZATIONG/AG/NG/W/2
4 April 2000
(00-1363)
Committee on Agriculture
Special SessionOriginal:  English
FIRST SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
23-24 MARCH 2000
Statement by Australia
I will not go into questions related to chairing of the Special Sessions as this has been
discussed elsewhere and we have made our views known.  Those views being on the record, Australia
is pleased to see this Special Session get underway.
Before commenting on the procedural and work programme issues, I think we should reflect
upon how Australia and our Cairns Group colleagues see the purpose of the mandated agriculture
negotiations.
In this regard we should recall the origins of Article 20 and its heading – "Continuation of the
Reform Process" – and the two key words are:  "continuation" and "reform".
The commitment – to continue reform – reflects the fact that agriculture was tackled seriously
in the Uruguay Round for the first time after forty years of neglect, but the first reform plan fell far
short of expectations of the vast majority of Members, in both extent and quality.
Part of the Uruguay Round deal was therefore the promise of continuation of reform; this was
not contingent in any way on other negotiations – it was a free standing treaty commitment.
That is the starting point for these negotiations – for Australia and the Cairns Group.  But
since the failure of Seattle there has also been much talk about the need to build confidence in the
WTO.
The membership's attitude and approach to the mandated agriculture negotiations therefore
has a wider significance.  The way in which the negotiations are approached will either build or
undermine support for moving forward with a broader future work programme for the WTO.
The Cairns Group recognizes this and has been approaching the preparation for these
negotiations very much in a constructive spirit, and w ith a willingness to work with others to take the
negotiations forward.  That is why we believe it is imperative for this meeting to result in a clear and
ambitious work plan for the negotiations over the next twelve months.
Need for Further Reform
The need for further reform is self-evident under all three pillars of the WTO Agreement on
Agriculture:G/AG/NG/W/2
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- while world price increases have allowed most to meet export subsidy commitments,
the capacity to subsidize exports is still very high given inflated base periods and
minimal Uruguay Round cuts;
- domestic support entitlements are still huge – with total producer support having
returned to almost 1987 levels – and market signals are still not reaching producers;
- agricultural tariffs remain some five times higher on average than for other goods,
with peaks as high as 500 per cent (even some in-quota rates of 200 per cent or
more);  tariff quotas proliferate and are not being administered fairly (on average,
they are only two-third filled).
The extent of distortion and protection in the agriculture sector is damaging countries who
have low support and protection;  in particular, it is preventing developing countries from reaping a
fair share of the benefits of the global economy – indeed, it is actively hindering their sustainable
development.
Together with the situation in world markets, th is underlines the need for this Special Session
to adopt a timely and efficient work programme.
What the Cairns Group seeks for a work programme
In pre-meeting consultations we have made clear our preference to see a target for detailed
negotiating proposals of October/November, with a view to discussing them and preparing a matrix
which sets the scope for the negotiations, by the end of the year.
We have heard, however, that some delegations have difficulties with this and will need more
time;  of course we are ready to be flexible about this and live with a later target date.
There are several points, however, we would like to register:- it would need to be open for delegations to lodge proposals prior to the target date
and have them discussed during this year's sessions;
- we are happy with Special Session meetings, back-to-back with the Committee on
Agriculture, in June, September and Nove mber, although we believe the Chair should
have the flexibility to determine the length  of those sessions, dependent on the work
before us, and also the flexibility to propose additional meetings, if necessary;
- if the target for lodging submissions is later than we prefer – some have called for
December – we will need an additional meeting early in 2001 to have those lodged in
December elaborated and discussed, and to begin a stock take of all proposals;
- if there are still later proposals, we need also to look at a meeting – say, in March – to
allow for their disucssion, and then to update the stock take of the totality of
proposals;
- while we recognize that delegations may want to lodge papers on a range of issues
they see related to the negotiations (and provision should be made for this), thereshould be a standing agenda item for proposals, per se , which address the key
chapters of the Uruguay Round Agreement on Agriculture:  market access, domestic
support, export competition and related rules.G/AG/NG/W/2
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Our capacity to prepare proposals will be assisted by the extensive experience we have had
over the past five years in reviewing and examining Members' implementation of their commitments
in the regular work of the Committee on Agriculture.
We have all benefited from the extensive process of analysis and information exchange
carried out by the Committee on Agriculture and we should use the negotiations to build on, but notrepeat, the AIE process.
We are fully committed to ensuring that these negotiations deliver real reform, while also
taking into account the issues specified in Article 20 of the Agreement.  But the issues to be taken into
account cannot adequately be addressed unless they are considered in the context of a serious
discussion of concrete proposals for substantial reductions in support and protection.
Cairns Group objectives for the negotiations have been spelt out in great detail over the
previous two years and I do not intend to repeat them here today.
Our task in these negotiations is to develop detailed negotiating proposals, which will deliver
our objectives, and to work with all other Members in finding a way forward.  We underline again, thecommitment of the Cairns Group to ensuring that the needs of developing countries and of net food-
importing developing countries are given concrete and particular effect in the results of these
negotiations.
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