10 February 2008

Building the Doha Momentum

New texts issued in Geneva

I welcome the release of revised negotiating ("modalities") texts on agriculture and non-agricultural market access (NAMA) by the Chairs of the relevant Doha Round negotiating groups. This represents an important step forward in the Doha negotiations and builds on the political momentum established recently in Davos.

Every effort must now be made to translate that political momentum into a successful conclusion to the Round this year. In the last five years world trade has been growing twice the rate of world output. The message is clear: particularly at this time of economic uncertainty every effort must be made to address the major distortions that remain in world trade to provide a much-needed confidence boost to the global economy.

Agriculture

The text on agriculture now provides a comprehensive basis to move forward on all outstanding issues. Australia and the Cairns Group are looking for substantial and effective cuts to farm support by the major subsidisers, the elimination of all forms of export subsidies, and substantial improvements in market access for our agriculture exports through tariff reductions and through significant expansion of quotas for so-called Sensitive Products. We need further clarity on market access and other areas of the text to allow us to judge the quality of the outcomes for our exporters. We are studying the text carefully together with our Cairns Group colleagues to share our views and to identify the further work required.

Non-Agricultural Market Access

We will also be closely examining the text on non-agricultural market access (NAMA). We are prepared to push for ambition in this area but we are not prepared to do so without equivalent effort from others. We will push not only to lock in the tariff cuts that have been made by some of the major economies but also to generate new market access. We will need to see appropriate balance in the overall outcome for NAMA, including the contribution from developing countries.

Services

We will insist on the critical importance of an ambitious outcome on services as part of the final Doha package. In addition to progress on agriculture and NAMA it is essential we also establish the necessary clarity on the shape of the outcomes in services. Australia will continue to press for commercially meaningful improvements for our services exports and will also support an early ‘signalling exercise’ of liberalisation commitments.

Next Steps

We will be contributing our efforts in Geneva to the work of the various negotiating groups to prepare for a broader negotiation across all topics. Our objective must be to finalise the texts over the next couple of months if we are to conclude the negotiations this year.

In the immediate future I will also be consulting with my Cairns Group colleagues on their views on the texts and on next steps. I will be speaking to other key players in the negotiations as well.

Given the vital importance of the Doha Round, I am determined to do all I can to help secure an outcome to the Doha Round this year.

Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555