Moore sees stand-off at G.A.T.T. farm talks

Press, 24 March 1988, Page 52

Moore sees stand-off at G.A.T.T. farm talks

By

PETER HALLWRIGHT

NZPA London H j Key players at the G.A.T.T. talks on liberalising world farm trade have reached a "bit-of a stand off,” said the Minister of Overseas Trade and Marketing, Mr Moore. [ [[Speaking from Lake Constance, West [ Germany, after attending an [informal meeting of 30 world Trade Ministers, Mr Moore said there was no dramatic change to point to! [ [[“The dramatic change was in Punta del Este 18 (months ago when for.the [first time agriculture was [in the round. '-1 ‘‘Nobody’s giving anything away, but it wouldn’t be true to say that we’re deadlocked. It would be true [to say that there’s a bit of a stand off,” he said.[ I The main agricultural exporters, including the 14-nation Cairns Group of which New Zealand is a vocal member, have .widely differing views on

what form farm trade liberalisation should take. The | European | Community (with Japan and to a lesser extent Korea on side) argues that subsidies can only be phased out as a long-term goal and wants the right to raise or lower market access as necessary. The' E.C. has so far been reluctant to support farmers rather than farm production to fight surpluses. I 11 . i : The United [ States, which likej the E.C. still heavily subsidises j the farm sector, nevertheless proposes that all subsidies should disappear oven the next 10 years and markets should be open, i .» I “We’d be rapt with that,” 1 Mr! Moore said. “We’d be farming Cows on Mount Eden and sheep on Mount Victoria.” | J “But essentially ! we don’t believe that is going to happen.’] Instead,! I the Cairns Group position lies somewhere between the itwo, although closer to the I U.S. It wants a I standstill on all

subsidies now and a reduction over 10 years, j With the proposals on the table, however, progress has been slow. “We’ve inched i on,” Mr Moore said. “We take various positions; publicly and keep talking Privately. I . 'l' : ' “So 1 officials I are at work. But it is true to say that people are saying;we cannot go further, we cannot keep talking. But there is still room jfor negotiation. It’s: too important to J shrug our shoulders and say it’s not worth it.” H . The next I opportunity for some evidence of pro- ! gress is the G.AjT.T. Ministerial meeting! at Mon- , treal in early December. ; . “At issue how is short- | term relief — down pay- h ment towards a long term system of lowering subsidies,” Mr Moore said. “I cannot say, that we’ll. get there in December. I can be pretty j confident that we’ll get , there in 1990, which was: the origi-; nal date.”, f I ;i i ■ ; . The Cairns Group ;will

meet before December, as will 'thel informal group, I “After each of those meetings I’ll probably say what I’ve said now. But jin December we come to the moment of truth — 1 tin we get a down payment or will the payment procedrire begin, in 1990?”! 11 Ttie would want a‘clear signal from the Montreal meeting in the pin-up Ito the draft ng of the next farm bill, Mr Moore said. i “They’ve' lost 50 per cent| of their world trade in agriculture. They have retired from active production a i greater land mass than the total ‘area bf Germany. r ll' | “Sjooner or later, unless there’s movement in Agriculture, that land will | go back into p. oduction. That is the big (Card. .ij . |T ! "It’s ! a question of, giving people! space to negotiate.” !l I ||Hll I Meanwhile, the negotiators keep plugging on J I “I think, we’re closer, but there’s a hell of a long way to go,” Mr Moore saidLp j 1 i :