Group including N.Z. stands up to France

Press, 19 September 1986, Page 6

Group including N.Z. stands up to France

NZPA-Reuter Punta del Este A group of main agricultural nations had hardened its stance on insisting that Governments world-wide cease to subsidise farmers, delegates to the Ministerial meeting on the General Agreement on Tariffs and Trade said. Delegates saw that as widening the rift between the group of 14 agricultural nations, as it is known, and France, which insists that farm subsidies should not be on the agenda at the upcoming G.A.T.T. talks on world trade. The group of 14, which includes Australia, New Zealand, Canada, Brazil, and Argentina, argues

that countries that subsidise their farmers are able to export agricultural produce cheaply, giving them an unfair advantage in the world market. In a move that delegates saw as a deliberate rebuff of France’s position, the group called yesterday for a commitment by G.A.T.T. members to phase out all subsidies on farm production and exports.

On Wednesday the French delegation leader, Michel Noir, had said that proposals for discussions on agricultural subsidies contained in a preliminary discussion paper were unacceptable.

The leader of the group of 14, the Australian Trade Minister, Mr John Dajyson, confirmed new

proposals that toughened up the wording of the original paper, but would give no further details. Other delegates confirmed the demand to phase out subsidies, saying that it had been issued in direct response to the inflexible attitude adopted by France. “The French have gone one way and we have gone the other,” said one delegate.

There was no breakthrough on the question of services, the other main stumbling block to agreeing on an agenda for the next round of talks.

Brazil and India showed no weakening in their refusal to accept including trade in services, which includes banking, insurance, and shipping, within the QA.T.T. framework?