G 20

The G-20 Ministerial Meeting was held in Brasília on 11 and 12 December in order to exchange views and coordinate positions on how to proceed with agricultural negotiations and on how to achieve progress in the Doha Round. Delegations from the following countries attended the meeting hosted by Brazil: Argentina, Bolivia, Chile, China, Cuba, Egypt, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Tanzania, Venezuela and Zimbabwe. A list of participants is attached. A representative from Ecuador also attended the meeting. CARICOM was also represented in the meeting.

WTO Director-General Supachai Panitchpakdi and European Union’s Trade Commissioner Pascal Lamy met with the G-20 Ministers, as special guests.

The G-20 engaged in a constructive dialogue with the WTO Director-General Supachai on how to move forward the negotiations in the light of the discussions in Geneva and that the DG has maintained with several major players. The G-20 also had a positive and open dialogue with Trade Commissioner Pascal Lamy, of the European Union, on the respective positions on agriculture with a view to consider new possible approaches to make progress in the negotiations.

Ministers reiterated the importance they attach to the WTO and to the multilateral rules-based trading system. In particular, they reaffirmed their commitment to the successful and timely completion of the Doha Development Agenda based on the fulfillment of the mandate agreed to during the IV WTO Ministerial Conference. A successful conclusion of the negotiations will promote growth in world trade and a more positive integration of developing countries in the multilateral trading system.

G-20 Ministers called on all WTO Members to approach upcoming negotiations with an open spirit and readiness to reach consensus that will pave the way for an effective liberalization of agricultural trade capable of reflecting the needs and sensitivities of developing countries and the interests of the international community as a whole.

The negotiations on agriculture are central to move the Doha Round to a successful and timely conclusion. Trade in agricultural products continues to be hindered by all sorts of barriers and distortions. True liberalization in agricultural trade and reform that address these barriers and distortions would be a major contribution to the development objectives of the Round. Furthermore, this will assist in dealing with the deterioration of commodity prices. The elimination of barriers and distortions in agricultural trade could also contribute to the economic transformation, reduction of poverty and the promotion of social and political stability in developing countries.

Ministers highlighted that, by bringing together developing countries from Africa, the Americas and Asia, with different agricultural structures and orientations within a common negotiating platform, the G-20 has substantially contributed to making the WTO process more inclusive. The G-20 is prepared to continue to play an important role in that respect and to extend its cooperation with other groups. The Ministers also called on WTO members to give effective and substantive consideration to the concerns of LDCs – as expressed before and since Cancún.

Ministers recognized the situation faced by countries dependent on preferences and, under conditions to be determined in the negotiation, are open to consider approaches to deal with this matter.

Ministers took note of the Cairo Declaration adopted at the Mini-Ministerial Meeting of African countries which recognizes the large areas of convergence between the African Group and the G-20. They felt that closer cooperation between the two groups should be pursued. Ministers underlined the economic, social and political importance of cotton for a large number of African countries. They called upon WTO members to think in innovative ways to address this problem within the Doha mandate.

The G-20 is a coalition of countries, which has been formed to address the concerns of its members that are also common to most developing countries relating to:

– the elimination of practices that distort agricultural trade and production;
– the search for substantial improvement in market access; and
– the rural development, food security and/or livelihood security needs.

Note was taken of the Chairman of the General Council’s consultations in line with the Ministerial Conference instructions. The prospect for an agreement, however, continues to elude WTO members. In agriculture, in particular, Ministers underlined that the only way for a successful outcome of the discussions is to achieve a fair basis for the negotiations, which neither pre-determines their outcome, nor implies a reduction in the level of ambition of the Doha mandate.

Ministers reiterated the need to preserve the integrity of the Doha Development Agenda and emphasized that any reinterpretation or dilution of the mandate would affect the delicate balance among the various negotiating fronts and would jeopardize the development focus of the work programme.

The G-20 took note that the text contained in document Job (03)/150/Rev. 2 was the subject of extensive consultations and concerns expressed by many delegations, especially from this Group. The G-20 insists that, in the process of reaching agreement on a final set of modalities, the level of ambition of the Doha mandate remains the guiding principle of the negotiations. In such a process, any framework in order to be viable should be consistent with the Doha mandate, and lead to the establishment of modalities capable of ensuring that negotiations in agriculture would result in substantial reductions in domestic support, substantial increase in market access, phasing-out of all forms of export subsidies and operational and effective special and differential treatment that takes into account rural development and food security concerns of developing countries. Moreover, the particular concerns of recently acceded Members should also be effectively addressed in this context.

The G-20 is ready to contribute to the success of the Doha Round in general and, in the area of agriculture, in particular. The biggest trading countries, which are responsible for the main distortions in agricultural trade, should set the example, as to permit further strides in the attainment of the long-term objective of a fair and market-oriented agricultural trading system.

Reaffirming their engagement in the trade negotiations and pledging their support to the efforts undertaken by the Chairman of the General Council and by the WTO Director General, Ministers emphasized their willingness to contribute to the prompt resumption of the talks in the negotiating bodies so as to permit progress to be achieved during 2004, with a view to completing the Round within its original timeframe, as any delay will come to the detriment of developing countries, LDCs and all WTO membership. It is the view of the Group that this will require intensification of the negotiations as of early 2004.

Ministers instructed their representatives in Geneva to develop a work programme for the Group based on the discussions held in Brasília and on this communiqué.

Ministers agreed to meet again whenever necessary to consider progress in the agriculture negotiations and to coordinate the G-20 positions. They considered that the next meeting could be held on the occasion of UNCTAD XI in June 2004, or at an earlier date, should progress in the negotiations so warranted.

Brasília, 12 December, 2003.