G 20

Ministers of the G-20 met today in Cancun in preparation to the upcoming WTO Ministerial Meeting. They expressed their commitment to a successful outcome of the V Ministerial Conference and reiterated that agriculture is the centerpiece of the Doha Round.

The G-20 is an informal group of developing countries that came into being in Geneva during the final stages of the preparation for Cancun. The Group represents a cross-section of the WTO membership and comprises a substantial share of the world agricultural population, production and trade: 63 % of all farmers live in the 20 members of the Group and 51% of the world population. It is also responsible for around 20% of the world agricultural production, 26% of total agricultural exports and 17% of all world imports of agricultural products.

There is an undeniable link between agriculture and development. Most of the poor people in developing countries live in rural areas. In order to translate the Doha Development Agenda into reality, agriculture should be fully incorporated into the rules of the multilateral trading system with a view to eliminating the distortions prevailing in agricultural trade and production. This would also be critical to making international farm trade fairer and more equitable.

Being a key stakeholder in the agriculture negotiations, the Group decided to table a framework proposal (document WT/MIN(03)/W/6) with a view to making the negotiating process more inclusive and balanced, having in mind the need to respect fully the level of ambition of the Doha Mandate.

The Chairman´s draft is a text submitted to Ministers, under the responsibility of the Chairman of the General Council, together with other contributions, and, in particular, the G20´s. It does not reflect the level of ambition of the Doha mandate, for it fails to deliver substantial cuts on trade distorting domestic support, substantial increase in market access and elimination of export subsidies.

With a view to correcting these imbalances and in line with all those countries and groups of countries that share the overall objective of fundamental reform of agricultural trade, the G-20 proposes an approach requiring a substantial contribution from developed countries. Since they are fundamentally accountable for existing distortions in agricultural production and trade, major developed countries bear a special responsibility in this negotiation.

In domestic support, the proposed cuts are complemented by tighter rules and disciplines. This will ensure that the reform process will be effective and will not degenerate into box and product-shifting. Furthermore, the proposal is also targeted to avoiding the abuse of domestic support not submitted to reduction commitments. Our proposal will not permit that the total level of support to commodities reach outrageous proportions, which have generated, for example, grave problems for cotton producers in Central and West Africa. This situation prompted an important sectoral initiative presented by the President of Burkina Faso, on behalf of other countries of the region.

Export subsidies must be eliminated. Economic, political, technical and ethical reasons add up to make their continuation an aberration. Concurrently, tighter rules shall be established on export credits and food aid. These forms of circumvention of export subsidies commitments cannot continue to distort export competition.

As to market access, the G-20 proposes substantial improvements through deeper tariff cuts and elimination of the special safeguard for developed countries. Moreover, TRQ expansion, as well as improved rules for their administration, are suggested. With respect to developing countries, a differentiated formula is proposed in keeping with the capacity of these countries to contribute to the process. The Group thereby responds to the requirements contained in the Doha Declaration to the effect that special and differential treatment should be "operationally effective and [to] enable developing countries to effectively take account of their development needs, including food security and rural development". Moreover, the Group reiterates the fact that the concerns of recently acceded members shall be addressed.

The Group will act in close coordination throughout he Ministerial Conference. The Group reaffirms that its proposal is on the table and invites WTO Members to support it, in particular those who share the commitments to the two central goals of the Doha Round: development and agricultural reform.

Since the Group´s proposal fully reflects the integrity and level of ambition of the Doha Mandate, it is and shall remain at the center of the agriculture negotiations.

Cancun, 9 September 2003.