JOB/AG/151  
 
3 December  2018 
(18-7635) Page: 1/3 
Committee on Agriculture  
Special Session  Original: English  
 
NEXT STEPS TOWARD RE FORM  
CIRCULATED ON BEHALF  OF THE FOLLOWING CA IRNS GROUP MEMBERS: AUSTRALIA, 
ARGENTINA, BRAZIL, C ANADA, CHILE, COLOMB IA, COSTA RICA, GUAT EMALA,  
NEW ZEALAND, PARAGUA Y, PERU, URUGUAY AND  VIET NAM  
The following submission, dated 30 November 2018, is being circulated  as the request of the 
aforementioned Cairns Group Members . 
 
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1.   The Cairns Group remains committed to fundamental reform to agriculture that removes current 
distortions to global markets . We will continue to pursue this vision and contribute positively toward 
negotiations in the WTO with this in mind.  
 
2.   In light of the discussions undertaken on agriculture since MC11, the Cairns Group offers the 
following observations and comments with the  aim of furthering our negotiations and scoping the 
potential outcomes for MC12 and beyond.  
 
Domestic Support  
3.   Since the 10th Ministerial Conference the vast majority of WTO Members have demonstrated a 
strong interest in pursuing reform in the pillar of dom estic support. The Cairns Group shares this 
interest, and views the limitation and reduction of support which is production and trade distorting  
as an important next step in the reform process mandated by Article 20 of the Agreement on 
Agriculture  (AoA) .  
 
4.   In submissions in 2018 Cairns Group Members demonstrated that global trade -distorting support 
remains persistently high. While support declined significantly in some Members between 2001 and 
2010 following domestic reforms, there is evidence that these re forms may have stagnated, and 
levels of support are again increasing. Additionally , the significant reductions in support provided by 
some major M embers since 2001 has been replaced by increasing levels of support provided by 
other major Members.   
 
5.   Support is also concentrated amongst few  Members. In particular the top ten providers of trade -
distorting support represent  around 90 % of all trade -distorting support notified by all Members under 
Article 6 of the AoA. It is clear also that a large group o f Members – including those from the Cairns 
Group – are particularly concerned about the impact of product -specific support on agricultural 
markets. To that end, some Cairns Group members have recently circulated  an in-depth analysis on 
product specific su pport using notified data. Product specific support continues to account for the 
majority of notified trade and production distorting support and therefore remains a priority issue 
for Members to address.  
 
6.   A number of observations can be drawn from discus sions this year on domestic support. Firstly, 
in order to achieve an outcome, it is necessary for all major providers of trade -distorting support to 
make a contribution to a negotiated outcome. There is no prospect of a deal if major providers of 
trade -distorting support are exempt from commitments. This requires a cross -cutting approach to 
addressing global trade -distorting support; we cannot attack the entitlements to trade -distorting JOB/AG/151  
 
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  support of one set of Members whilst leaving the entitlements enjoyed b y another group of Members 
completely free from commitment.  
 
7.   Product -specific support should also remain a focus for current discussions. It is a major part of 
unfinished Uruguay Round business. Our discussions should cover product specific support in all its 
forms. Other forms of trade -distorting support also require further attention. This includes non -
product specific support, as well as those forms of support which are currently exempted from any 
reduction or limitation in the AoA.  
 
8.   Finally , we cannot allow Members to rest on the laurels of past reforms. While reform is not to 
be discounted, the presence of water in the entitlements of Members remains a risk to agricultural 
markets. Reducing this water is in every Member 's interests.  
 
Market Access  
9.   Since MC11 work on Market Access has continued to attract attention from Members. From 
analysis presented in 2018 it remains clear that tariffs in agriculture remain significantly higher than 
those in other sectors. Many Members also continue to ret ain high bound tariffs whilst their applied 
tariffs are much lower, whereas other Members may apply tariffs at a high level or impose restrictive 
quota arrangements. Members have raised options for further discussion including cuts to bound 
and/or applied tariffs, improvements in transparency and tariff simplification, and addressing tariff 
rate quotas, tariff peaks, tariff escalation and special safeguards.   
 
10.   We should continue to pursue discussions on market access with an open mind toward possible 
outco mes. The Cairns Group supports further work to improve market access to provide a fairer and 
more open trading system.  
 
Export Competition  
11.   Members have reaffirmed their interest in addressing the unfinished business in the export 
competition pillar, includ ing progressing discussions on export financing, state trading enterprises, 
and international food aid. Members must remain vigilant in ensuring the full and timely 
implementation of the agreement to eliminate export subsidies at MC10 in Nairobi, including  
ensuring that the application of export subsidies or measures with equivalent effect are not 
circumventing this historic outcome. This includes more universal participation by Members in the 
annual review process, in particular by responding to the relate d Secretariat questionnaire. The 
Cairns Group supports work to strengthen disciplines in the export competition pillar to provide a 
fairer and more open trading system.  
 
Cotton  
12.   Cotton is a particular area where progress is regrettably lacking in agricultu ral negotiations. 
Very little has been achieved, despite the repeated, unfulfilled mandates to address cotton 
"ambitiously, expeditiously, and specifically ". Cairns Group Members are willing to pursue 
incremental steps to address the current distortions af fecting cotton global markets, with realism 
and taking into account the proportional responsibilities of WTO Members. There is work to be done 
also in terms of enhancing the quality and comprehensiveness of data on the cotton sector, by timely 
and complete  notifications as well as by the technical support of the WTO Secretariat and 
international agencies.  
 
Data and Transparency  
13.   Greater efforts need to be made to comply with the notification requirements of the A oA and 
relevant Ministerial Decisions across a ll three pillars. The submission and circulation of this data will 
tangibly contribute toward our negotiations. We urge all Members to redouble their efforts and 
strengthen notification compliance.  
 
14.   We further suggest that the Secretariat continue to provi de updated, readily accessible data 
across the three pillars for the Membership to use in its consideration of possible options for further 
reform. In particular the provision of a searchable database of all notified domestic support would 
be particularly beneficial for Members to understand current trends in domestic support and to JOB/AG/151  
 
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  assess the impacts upon individual Members. Improvements to enhance the accessibility of notified 
market access and export competition data should also be considered.  
 
Special and Differential Treatment  
15.   The Cairns Group reaffirms that the principle of special and differential treatment for developing 
Members, particularly least developed countries, continues to be integral to all negotiations. The 
framework for trade reforms mus t continue to support the economic development needs, including 
technical assistance requirements, of these WTO Members.   
 
Process for Negotiations  
16.   The Cairns Group supports the efforts of the CoA  Special Session  Chair and suggest s that to 
continue to mak e progress he should pursue a balanced workload. Informal, open -ended meetings 
of the CoA  Special Session  should be scheduled on a regular basis in the lead up to 2020, but not 
so often as to limit the time available for engagement between Members. The top ics for discussion 
should be scheduled in accordance with the interests of the Membership, and reflective of the 
submissions made.   
 
17.   We suggest that the process should be inclusive and transparent and the Chair use 
consultations and smaller group meetings  to enhance and support the broader CoA  Special Session  
process. These meetings could focus on individual issues and be used to help the Chair frame areas 
for continued work.  
 
 
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