Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

New Zealand welcomes Cairns Group proposal


Office of Hon Jim Sutton (and Damien O'Connor)

New Zealand welcomes Cairns Group proposal

New Zealand backed a Cairns Group proposal to eliminate export subsidies, Trade Negotiations and Agriculture Minister Jim Sutton said today.

Mr Sutton welcomed the tabling of the Cairns Group’s export subsidy proposal in Geneva yesterday.

“The elimination of all export subsidies is a must for New Zealand in the agricultural negotiations. These subsidies directly hurt our farmers by undermining their competitive position and driving down international prices.

“It’s a travesty that European Union exporters receive a government cheque for more than US$1800 for every tonne of butter they sell on the world market. That’s in addition to the world price. Our own exporters receive only the world price of around US$1300 per tonne. The EU also subsidises the export of beef and many other products.

“And while the EU is the largest user of export subsidies it is not the only offender. Last Friday the US announced it was to put an additional 25,000 tonnes of subsidised skim milk powder onto the world market in direct competition with our own unsubsidised product. Between the EU and US almost US$ 4 billion is spent on export subsidies every year on beef and dairy products alone”, he said.

The Cairns Group proposal calls for: - the elimination of export subsidies in 3 years for developed countries and 6 years for developing countries; - the establishment of rules to ensure that subsidised export credits are prohibited; and - the establishment of rules to ensure food aid cannot be used as a means to circumvent export subsidy disciplines, while not affecting genuine food aid transactions.

The export subsidy proposal complements two earlier Cairns Group proposals presented to the agricultural negotiating group at the WTO - those on market access and domestic support.

By March 2003 WTO Members must establish so-called “modalities” or formulae for reducing tariffs and domestic subsidies - and the period over which export subsidies will be eliminated.

Mr Sutton said the elimination of export subsidies was also critical for developing countries.

“Domestic productive capacity in some developing countries has been devastated by developed country surpluses being dumped in their markets. That is why not only the majority of WTO Members, but also organisations such as Oxfam, are calling for export subsidies to be eliminated.

“Given New Zealand’s share of international markets for a number of products we are a major player in the agriculture negotiations. As well as being part of the Cairns Group export subsidy proposal we have also submitted a technical paper aimed at strengthening rules on domestic subsidies in Geneva this week”.


New Zealand backed a Cairns Group proposal to eliminate export subsidies, Trade Negotiations and Agriculture Minister Jim Sutton said today.

Mr Sutton welcomed the tabling of the Cairns Group’s export subsidy proposal in Geneva yesterday.

“The elimination of all export subsidies is a must for New Zealand in the agricultural negotiations. These subsidies directly hurt our farmers by undermining their competitive position and driving down international prices.

“It’s a travesty that European Union exporters receive a government cheque for more than US$1800 for every tonne of butter they sell on the world market. That’s in addition to the world price. Our own exporters receive only the world price of around US$1300 per tonne. The EU also subsidises the export of beef and many other products.

“And while the EU is the largest user of export subsidies it is not the only offender. Last Friday the US announced it was to put an additional 25,000 tonnes of subsidised skim milk powder onto the world market in direct competition with our own unsubsidised product. Between the EU and US almost US$ 4 billion is spent on export subsidies every year on beef and dairy products alone”, he said.

The Cairns Group proposal calls for: - the elimination of export subsidies in 3 years for developed countries and 6 years for developing countries; - the establishment of rules to ensure that subsidised export credits are prohibited; and - the establishment of rules to ensure food aid cannot be used as a means to circumvent export subsidy disciplines, while not affecting genuine food aid transactions.

The export subsidy proposal complements two earlier Cairns Group proposals presented to the agricultural negotiating group at the WTO - those on market access and domestic support.

By March 2003 WTO Members must establish so-called “modalities” or formulae for reducing tariffs and domestic subsidies - and the period over which export subsidies will be eliminated.

Mr Sutton said the elimination of export subsidies was also critical for developing countries.

“Domestic productive capacity in some developing countries has been devastated by developed country surpluses being dumped in their markets. That is why not only the majority of WTO Members, but also organisations such as Oxfam, are calling for export subsidies to be eliminated.

“Given New Zealand’s share of international markets for a number of products we are a major player in the agriculture negotiations. As well as being part of the Cairns Group export subsidy proposal we have also submitted a technical paper aimed at strengthening rules on domestic subsidies in Geneva this week”.


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election