The three-day meeting of the Cairns Group that is a unique coalition of 19 developed and developing agricultural exporting countries with a commitment to achieve free trade in agriculture commenced here on Monday.
This is to discuss the long-running Doha Development Round of multilateral trade negotiations and also finalised a communiqué to be placed before the ministerial meeting on Tuesday.
As many as 130 delegates from 25 countries including 19 member states and special invitees from USA, European Union, China, Japan, Hong Kong, Singapore, Vietnam and WTO Secretariat are participating in the moot. Farm leaders from Argentina, Australia, Brazil, Canada, Chile, Columbia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Vietnam, Paraguay, Peru, Philippines, South Africa, Thailand, and Uruguay are participating.
Federal Minister for Commerce, Humayun Akhtar Khan has held side meetings with Japanese Agriculture Minister, T. Matsuoka who arrived here on special invitation and discussed various issues of Doha Round. In case of agriculture, the Japanese minister asked for Pakistan's support for less ambition in market access.
Similarly, Humayun Akhtar Khan while responding to Japanese Minister said that Pakistan being member of the Cairns Group and G-20 has to seek meaningful market access and deeper cuts in subsidies.
With regard to Pakistan's recent proposal on special products, Humayun explained that Pakistan supports the concept but would not favour this mechanism to impede south-south trade. Both ministers agreed to expand bilateral trade and also to keep close contact for early conclusion of the Doha Round. They also discussed initiatives of discussion on a possible Free Trade Agreement.
Federal Minister for Food, Agriculture and Livestock Sikandar Hayat Bosan also held meeting with his Japanese counterpart and exchanged views how bilateral trade in agriculture products could be expanded.
In particular, Bosan asked for market access for horticultural products including mangoes and other tropical products. Matsuoka promised to provide technical assistance for facilitating export of Pakistani products in the Japanese market.
T. Matsuoka told Humayun that though Japan is not a member of Cairns Group, yet it being an active member of G-10, could play an important and active role in bringing an end to agriculture related problems between the developed and the developing countries.
Humayun Akhtar also held a meeting with the Australian Trade Minister Warren Truss and discussed issues of multilateral nature especially the recent developments in the Doha Development Agenda. Later, the Australian minister said, "We are looking forward to the ministerial meeting". He said the current barriers especially the domestic subsidies were blocking the free trade in the world and hoped that the Cairns Group's efforts would provide a level playing field to both the developed and developing countries.
Humayun Akthar Khan said the economic reforms introduced by Pakistan particularly in the agriculture sector had been well recognised in the world. The high rate of duties and the domestic subsidies on agriculture in the western countries are creating problems for the developing countries.
He maintained that all the domestic subsidies on agriculture in the western world would be ended by the year 2013. Responding to a question, he said that end of domestic subsidies in the developed world would be of great benefit for the farming community of Pakistan.
This would lead to an increase in the prices of the agriculture products in the international market, helping the Pakistani farmers to get better price. He further revealed that our exports have surpassed the level of $12 billion and are likely to meet the target.
Meanwhile, briefing the newsmen, Pakistan WTO ambassador at Geneva, Dr Manzoor Ahmad said that Cairns Group meeting was aimed at bringing an end to subsidy that is being provided by the European Union, America and Japan to enable the less developed and developing countries to compete in the international market.
Japanese minister was apprised that Pakistan was facing problems in mango exports and stressed the need for early completion of process for permitting import of Pakistani mango. Moreover, the Japanese government has introduced strict measures for mango import, and now any market share for Pakistan is only possible, if Japan extends technical assistance in this regard.
Pakistan also wants Japan to reduce tariff on rice import and help Pakistan in enhancing water use efficiency. Presently, Pakistan's water use efficiency is about 45 percent, which can be doubled if Japan extends technical assistance, the ambassador maintained.
He further said that Japan, the European Union and America are providing $15-16 billion subsidy and if subsidy is slashed to reasonable level, it could help 2 million Pakistanis to get out of poverty.
The enhancement of exports from Pakistani industrial goods, particularly, textile clothing also came under discussion with the Japanese minister, said Dr Manzoor adding that Canada besides providing subsidy is also adopting a policy of protectionism for dairy products.
We want implementation of Doha Development Round without further delay and if it is scheduled by the end of this year, all major decisions regarding elimination of export subsidies, domestic support and market access have to be taken till June this year.
To a question, the WTO minister said that elimination of subsidy in the European Union, America, and Japan, Pakistan would be more competitive in the international market. Abolition of subsidy would not leave any negative impact on Pakistani agriculture exports because cushion in tariff is there to meet the WTO requirements, he maintained.
As a result of subsidy given by the developed countries, our products have become expensive in the international market while Pakistan can get better price of its rice and its export can be doubled from the current $1.2 billion in the next couple of years.
Chief Executive Farmers Association Pakistan Afaq Tiwana and President National Farmers' Federation, David Crombie also briefed the newsmen and said that a communiqué had been finalised which would be placed before the ministerial meeting on Tuesday.
According to the communiqué, the farm leaders' remain disappointed that the negotiations have not yet been successfully concluded and are looking for strong political leadership to bring the Doha Round to a timely and successful conclusion that benefits the world's agricultural producers.
Independent analysts from leading global institutions such as the World Bank, the United Nations Food and Agriculture Organisation and the Organisation for Economic Cooperation and Development has shown there are substantial gains from removing barriers to agricultural trade.
All major countries - both developing and developed - stand to gain from the comprehensive, across-the-board bold reductions in tariffs, domestic subsidies, export subsidies and the expansion of tariff-rate quotas. Most of the benefits come from removing barriers to trade at the border.
Accordingly, we reiterate the imperative that the Doha Round must be promptly and successfully concluded in a manner that delivers on the Doha mandate namely through:
1.Substantial improvements in market access by cutting tariffs deeply, with the highest tariffs being cut more deeply, and by expanding tariff rate quotas based on a domestic consumption formula to ensure commercially meaningful gains in market access;
2.Early elimination of all forms of export subsidies on all products by 31 December 2013 (agreed at the Hong Kong Ministerial Conference) with workable disciplines to. ensure that food aid, government export credits and state trading enterprises do not circumvent gains from elimination; and;
3.Real cuts to current expenditure on trade-distorting domestic production subsidies (not merely changes to accounting procedures) and the implementation of special initiatives.
Noting the spirit of the July 2004 Framework Agreement and the December 2005, Hong Kong Declaration, farm leaders urge Cairns Group Ministers to ensure the potential gains of any Doha agreement are not jeopardised by broad exceptions for 'sensitive' agricultural products, 'special' agricultural products or new 'safeguard mechanisms' and other devices such as the misuse of SPS rules that could allow commitments to be watered down.
This would be unacceptable to Cairns Group farmers. Trade reform, particularly in the area of agricultural market access, remains our top priority because it is a realistic and substantial way of addressing global poverty and allowing efficient farmers to realise their full and deserved economic potential. Reductions in trade distorting domestic support are also a key issue in these negotiations.
Cairns Group Ministers have an obligation to the farmers they represent to focus their discussions on concrete ways to conclude the Doha negotiations in the shortest possible timeframe. To this end, farm leaders believe the Lahore meeting of the Cairns Group offers an ideal and important opportunity for Ministers to demonstrate leadership on issues such as 'sensitive' and 'special' products and other technical issues.
Agriculture remains the key to the Doha Round, and we believe all WTO members must now focus on finding flexibility to bring these talks to a successful conclusion. In particular, farm leaders' believe developed economies must bring more to the table on market access and domestic support.
In parallel, the United States must show leadership on the Farm Bill. The European Union must also be bolder on offering more on market access. Leading developing economies must also make a contribution particularly by being fair and reasonable on issues like 'special products' and 'safeguard mechanisms'.
This will benefit the growing south-south trade. Farm leaders note that the biggest losers from exceptions are urban and rural poor - who are net-purchasers of staple foods. Recognising the diversity and different levels of development among WTO members, farm leaders support continuing technical assistance. A limited agreement will not be acceptable or sufficient for the world's farmers.
In concluding, we again underline and repeat our long-standing position that this Round will be judged by its success in levelling the playing field and creating real new commercial trade opportunities. We urge our Cairns Group Ministers, who seek a truly liberalising outcome, not to weaken in their resolve. Farm leaders continue to stand ready to support you fully and we wish you well for your work over the coming days.
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