AY
J AUSTRALIA
PRIME MINISTER
EMBARGOED UNTIL DELIVERY CHECWC AGAINST DELIVERY
SPEECH BY THE PRIME MINISTER
MINISTERIAL MEETING OF FAIR TRADERS IN AGRICULTURE
CAIRNS 25 AUGUST 1986
DISTINGUISHED GUESTS,
I EXTEND TO YOU MY WARMEST WELCOME TO AUSTRALIA AND TO THIS
HISTORIC MEETING OF AGRICULTURAL FAIR TRADERS. I HOPE THE
VENUE HERE AT CAIRNS WILL PROVIDE FOR YOU A CONGENIAL
ATMOSL; HERE FOR YOUR DISCUSSIONS OF A VITALLY IMPORTANT
AGENDA FOR ALL OUR COUNTRIES.
I THINK IT IS NO UNDERSTATEMENT TO SAY THAT THE GATT
MIN:: S ERIAL MEETING AT PUNTA DEL ESTE IN SEPTEMBER TO
CONSIDER THE LAUNCH OF A NEW ROUND OF HULTILATERAL TRADENEGOTXATIONS
WILL BE THE MAIN AND PROBABLY ONLY OPPORTUNITY
OVFA ?' HE NEXT DECADE FOR SETTING IN PLACE MULTILATERAL
MECHANISMS TO RESTORE SOME SANITY IN THE INTERNATIONAL
AGnl(: JLTURAL TRADING SYSTEM.
IT Tl. 7REFORE GIVES ME SPECIAL PLEASURE TO WELCOME TO CAIRNS
MINISTER IGLESIAS WHO WILL BE CHAIRING THE HINISTERIAL
MEETING IN PUNTA DEL ESTE. I HAVE DISCUSSED AGRICULTURAL
TRADING PROBLEMS BRIEFLY WITH MR IGLESIAS IN CANBERRA. I
WAS BOTH IMPRESSED AND HEARTENED BY HIS KEEN APPRECIATION
AS FORMER EXECUTIVE SECRETARY OF THE ECONOMIC COMMISSION FOR
LA': IN AMERICA AND NOW AS EXTERNAL AFFAIRS MINISTER IN AN
EFFICIENT AGRICULTURAL EXPORTING COUNTRY OF THE
FUNDAMENTAL IMPORTANCE OF SEEKING REMEDIES TO THE
AGRICULTURAL TRADE CRISIS THROUGH THE NEW MTN ROUND.
WE MIGHT ASK WHAT IT IS THAT CHARACTERISES THE POSITION OF
ALL COUNTRIES ASSEMBLED HERE. IT IS NO MORE NOR LESS THAN
THEIR DETERMINATION TO SEEK FOR THE EXPORTS OF THEIR
AGRICULTURAL INDUSTRIES THE SAME REGIME OF INTERNATIONAL
TRADING RULES AS THE MAJORS HAVE APPLIED FOR DECADES TO
TRADE IN INDUSTRIAL PRODUCTS.
THE TASK BEFORE THIS GROUP OF FAIR TRADERS IS TO DEVELOP
TACTICS FOR MAXIMISING ITS INFLUENCE IN PUTTING AN END TO
THE ECONOMIC MADNESS NOW PERVADING WORLD AGRICULTURAL TRADE.
THE DISTORTION OF THE WORLD AGRICULTURAL PRODUCTION AND
TRADING SYSTEM HAS REACHED LUDICROUS PROPORTIONS. EACH YEAR
THE EUROPEAN COMMUNITY CHANNELS INTO AGRICULTURE IN THE
ORDER OF $ US100 BILLION IN DIRECT SUBSIDIES AND CONSUMER
TRANSFERS. THIS MASSIVE SUBSIDY TO EUROPEAN FARMERS HAS
INDUCED THEM TO PRODUCE MUCH MORE THAN EUROPE ITSELF CAN
CONSU.'-" t7. THE HUGE SURPLUSES ARE BEING DUMPED ONTO WORLD
MARKETS, WITH THE AID OF LARGE EXPORT SUBSIDIES.
NOT ONLY IS THIS DEVASTATING FARMING COMMUNITIES IN OUR
COUNTRIES, IT IS HURTING THE EUROPEANS THEMSELVES. BECAUSE
OF THE DISTORTION OF THEIR DOMESTIC ECONOMIES, AND IN
PARTICULAR, BECAUSE EUROPEAN CONSUMERS HAVE TO PAY
ARTIFICXALLY HIGH PRICES FOR THEIR FOOD, UNEMPLOYMENT LEVELS
ARE MUCH HIGHER AND ECONOMIC GROWTH RATES ARE LOWER TrHAN
THEY OTHIERWISE WOULD BE. IT IS ESTIMATED THAT THE COMMON
AGRICULTURAL POLICY HAS PUSHED UP TO ONE MILLION P~ EOPLE ONTO
THE UWNflPLOYDIENT QUEUES IN EUROPE.
NOW THE' AMERICANS ARE RETALIATING AGAINST THE EUROPEANS ON A
MASSIVE SCALE.
AMERICAN TAXPAYERS ARE BEING CALLED ON TO SUBSIDISE THEIR
FARMERS TO THlE TUNE OF $ US35 BILLION A YEAR. THIS DOES NOT
INCLUDE THlE TRANSFERS TO FARMERS FROM AMERICAN CONSUMERS
WHICH RESULTS FROM THEIR HAVING TO PAY INFLATED PRICES FOR
AGRICUL~ TURAL PRODUCTS. AND LIKE THE EUROPEANS, THE
AMERICANS ARE HEAVILY SUBSIDISING AGRICULTURAL EXPORTS IN
ORDER T'O RUN DOWN THEIR DOMESTIC AGRICULTURAL SURPLUSES.
EFFIC ENT AGRICULTURAL EXPORTING COUNTRIES ARE THE INNOCENT
VICTIIS OF THIS TRANS-ATLANTIC TRADE WAR. WE ARE ALSO BEING
DANAGED BY THE SUBSIPISING AND RESTRICTIVE MARKET ACCESS
POLICIES OF OTHER MAJOR WESTERN INDUSTRIALISED COUNTRIES.
ANOTHER RECENT CASUALTY OF THAT WAR HAS BEEN US INTEGRITY.'
IN THE PAST THE US HAS LED THE CAMPAIGN TO RESTRICT BENEFITS
TO THE SOVIET UNION, SO AS TO DISCOURAGE THE DIVERSION OF
RESOURCES FROM PEACEFUL INTO NON-PEACEFUL USES. THE RECENT
DECISION TO EXTEND WHEAT SUBSIDIES TO THE SOVIET UNION FLIES
IN THE FACE OF THIS POLICY STANCE.
THE US-LED CAMPAIGN AGAINST SUBSIDISING THE SOVIET UNION HAS
BEEN FOUNDED ON PRINCIPLES OF PROTECTING WESTERN IDEALS OF
LIBERTY LIBERTY IN M4ARKETS AS IN THE FUNDAMENTAL REALM OF
POLITICS. THE UNITED STATES HAS COMPROMISED THOSE
PRINCIPLES FOR SHORT-TERM POLITICAL GAIN. SUCH ARE THE
TERMS ON WHICH THIS RIDICULOUS AGRICULTURAL TRADE WAR IS
BEING CONDUCTED.
AMONG THE FOURTEEN NATIONS REPRESENTED HERE AGRICULTURE
CONSTITUTES, ON AVERAGE, 14 PER CENT OF OUR GDP AND 50 PER
CENT OF OUR EXPORTS. COLLECTIVELY WE ACCOUNT FOR NEARLY
ONE-QUARTER OF WORLD AGRICULTURAL EXPORTS, AND FOR THE
OVERWHELMING MAJORITY OF NON-US AND NON-EC FOOD EXPORTS.
IT FOLLOWS THAT WE ARE ESPECIALLY VULNERABLE TO THE
CORRUPTION OF WORLD AGRICULTURAL MARKETS BY AGRICULTURAL
SUBSIDIES AND RISING AGRICULTURAL PROTECTIONISM.
AND SUFFER O1E HAVE.
STUDIES FOR THE WORLJD BANK INDICATE THAT WORLD-WIDE LOSSES
FROM DISTORr2IONS IN GRAINS, LIVESTOCK AND SUGAR MARKETS HAVE
AMOUNTED TO PBOUT $ US36 BILLION A YEAR ( IN 1980 PRICES).
THE DIRECT COST TO FARMERS IN DEVE~ LOPING COUNTRIES H4AS BEEN
ABOUT $ Us28 BILLION A YEAR. THIS HAS DIRECT~ LY INTENSIFIED
THE RURAL POVERTY AND HUMAN MISERY IN POOR COUNTRIES. BUT
IT HAS DONE IORE THAN THIS. IT HAS SERIOUSLY UNDERN~ INED THE
CAPACITY OF THOSE COUNTRIES TO SERICE. THEIR EXTERNAL DEBT,
AND THEREFOtVS HAS ENSURED CONTINUING POVERTY, CONTINUING
MISERY, WELL INTO THE FUTURE.
POOR RICE FARMERS IN THAILAND AflE BEING DEVASTATED BY THE US
DUMPING OF SURPLUS RICE. ARGENTINE GRAIN FARMERS HAVE FACED
PRICE CUTS OF' 20 PER CENT. AS MANY AS ONE IN FIVE WESTERN
CANADIAN WHEAT FARMERS MAY BE FORCED OUT OF BUSINESS. AND
IN AUSTPALliS CASE, THE COMMON AGRICULTURAL POLICY HAS BEEN
COSTING US BILLION A YEAR IN RECENT YEARS. THE UNITED
STATES EXPORT~ ENHANCEMENT PROGRAM WILL COST AUSTRALIAN WHEAT
FARMERS ALONZ WELL OVER $ A600 MILLION IN THE COxiING YEAR.
REFORM OF WJORLD AGRICULTURlAL TRADE IS A LONG HAUL. IT IS A
PROCESS WHIC71 REQUIRES A DEDICATED AND CONCERTED EFFORT DY
ALL COUNTFR! ZS COMMITTED TO THE LIBERALISATION OF
AGRICULTURAL TRADE. AND IT IS A PROCESS REQUIRING A SERIES
OF DELIBERArE, CAREFULLY CONSIDERED STEPS.
THIS CAIRNS HEETYNG 73 A FURTHE{, AlND IRPORTART, STEP IN
THAT PnOCUSS. IT FOLLOWS A SERIES OF EARLIER INITIATIVES
TAKEN BY COUNTRIES WITHIN THIS GROUP.
AT AUSTRALIA'S INSTIGATION AN APPROACH TO TRADE AMONG
COUNTRIES ' CVl THE WESTERN PACIFIC REGION, BASED UPON THEIR
COMMON REGIONAL INTERESTS AND ASPIRATIONS, HAS BEEN
ESTABLISHED. THIS GROUP OF COUNTRIES HAS BEEN MEETING
REGULARLY OVER THE PAST THREE YEARS IN PREPARATION FOR THE
NEW ROUND. THE GROUP MET AGAIN JUST A FEW WEEKS AGO IN
MANILA. I CAN REPORT AN IMPORTANT STRENGTHENING OF THE
SENSE OF COMMON PURPOSE AMONG THOSE COUNTRIES.
A COUPLE OF MONTHS AGO THE MAJOR WHEAT EXPORTERS MET IN
VANCOUVER. URUGUAY HAS HOSTED A MEETING OF' SOUTHERN HEMISPHERE
EXPORTERS OF TEMPERATE AGRICULTURE PRODUCE.
AND IN JULY, THAILAND HOSTED AN IMPORTANT MEETING OF
OFFICIALS TO CONSIDER REMEDIES TO THE PROBLEMS OF WORLD
AGRICULTJRAL TRADE AND TO LAY THE FOUNDATIONS FOR THIS
WEEK'S MEETING.
THERE IS SIGNIFICANCE AND COHERENCE IN THIS PATTERN OF
CONSULTA'IO0N. IT EXPRESSES THE COMMON APPRECIATION AMONG
MANY DIFFERENT COUNTRIES AND GROUPS OF COUNTRIES OF THE
DEPTH OF THE CRISIS IN AGRICULTURAL TRADE. AND IT EXPRESSES
THEIR DETE'RMINATION TO SEE THE PROBLEM ADDRESSED BY THOSE
NATIONS AND BLOCS CORRUPTING WORLD AGRICULTURAL TRADE.
THE MEETING OF FAIR TRADERS COMES AT THE CRUCIAL STAGE
BETWEEN COMPLETION OF THC PREPARATORY WORK ! N GENEVA
LAST MONTH AND THE GATT MINISTERIAL ! IFETING NEXT MONTHT.
I AM DELIGHTED AND HEARTENED BY THE ATTENDANCE HERlE AT
CAIRNS. YOU HAVE COME HERE AS FRIENDS AND I HOPE TRAT OUR
FRIENDSHIP WILL BE BROADENED AND STRENGTHENED OVER THE NEXT
COUPLE OF DAYS.
IN PLANNING OUR NEXT STEPS WE NEED TO CONSIDER WHAT WE MIGHT
EXPECT TO GET OUT OF THE MEETING AT CAIRNS AND IN
PARTICULAR, OUR SPECIFIC OBJECTIVES FOR PUNTA DEL ESTE AND
BEYOND. THERE IS NO DOUBT THlAT THE EFFECTIVENESS OF THE
COUNTRIES REPRESENTED HERE WILL BE œ IAXII4ISED IF VIE BEHAVE AS
A STRONG COALITION OF LIiKE-riINDED AG-RICULTURAL EXPORTING
COUNTRIES. WE KNOW THAT AGRICULTURE HAS ALWAYS BEEN TREATED AS A
" SPECIAL CASE" IN THE GATT, WITH THE RESULT THAT THE GATT
RULES ON AGRICULTURAL TRADE PROTECTIONISM ARE FAR LESS
EFFECTXV' 7U THAN THOSE FOR M~ ANUFACTURES.
I BELIEVE THAT OUR GROUP MUST WOEN' WITH DETER14INATION AND
TOTAL CONNITMENT TOWARDS SECURING MORE EFFECTIVE GATT RULES
FOR AGRI'"' JLTURE.. TO THIS END, VIE SHOULD SEEN AT THE PUNTA
DEL ESTE M4EETING A LAUNCH OF A NEW MTN ROUND GIVING HIGH
PRIORITY TO AGRICULTURE. TIE SHOULD SET OUR SIGHTS HIGH FOR
THE PROMINENCE TO BE GIVEN TO AGRICULTURE IN THE TEXT OF THE
MINISTERZAL DECLARATION COMING OUT OF THE MlEETING.
THE DISCUSSIONS I HAVE HAD ON THIS ISSUE WITH WORLD LEADERS,
INCLUDING PRESIDENT REAGAN, MR NAKASONE, MR MULRONEY AND
PRESIDENT ALFONSIN GIVE ME GROUNDS FOR BELIEVING THAT WE
HAVE SOME PROSPECT OF ACHIEVING OUR OBJECTIVES FOR
AGRICULTURE IN THE MTN ROUND. BUT IN ORDER TO ENHANCE THAT
PROSPECT, TO MAKE IT A REALITY, IT IS IMPORTANT THAT THE
GROUP OF FAIR TRADERS GATHERED HERE ADOPT A STRONG, UNIFIED
APPROACH ZN THE LEAD-UP TO AND BEYOND THE GATT MINISTERIAL
MEETING. THE DRAFT DECLARATION NEGOTIATED BY THE MAJOR PARTIES IN
GENEVA ( THE SO-CALLED SWISS-COLOMBIAN TEXT) GOES SOME WAY IN
ADDRESSING THE PROBLEM OF AGRICULTURE, BUT FALLS SHORT OF
OUR HIGHER ASPIRATIONS. MOREOVER, WE CANNOT RULE OUT THE
POSSIBILITY AT PUNTA DEL ESTE OF PRESSURE BY SOME COUNTRIES
TO DILUTE THE TEXT DEALING WITH AGRICULTURE.
THE DURATION OF THE PUNTA DEL ESTE MEETING IS QUITE SHORT.
IT IS THEREFORE MOST IMPORTANT THAT IN THE FEW REMAINING
WEEKS BEFORE THAT MEETING, THIS GROUP OF FAIR TRADERS SEEK
TO ENLIST THE SUPPORT OF OTHER COUNTRIES IN GIVING HIGH
PRIORITY TO AGRICULTURE IN THE DECLARATION AND IN SUBSEQUENT
NEGOTIATIONS. WHILE WE MUS 2 WORK TOGETHER FOR THE LASTING REFORM OF WORLD
AGRICULTURAL TRADE, WE MUST ALSO REALISE THAT A NEW ROUND OF
MULTILATERAL TRADE NEGOTIATIONS WOULD TAKE SEVERAL YEARS TO
CONCLUDE. IT IS THEREFORE IN OUR INTERESTS ALSO TO WIORK
TOWARDS SHORTER-TERM REMEDIES, WHILE DISCUSSIONS ARE TAKING
PLACE IN TH2 GATT.
THERE IS SCOPE FOR OUR COUNTRIES TO MAKE FORCEFUL JOINT
REPRESENTATIONS TO THE EC AND THE US IN PARTICULAR, WITH A
VIEW TO MINIMISING THE IMPACT OF THEIR EXISTING AGRICULTURAL
POLICIES ON NON-SUBSIDISING EXPORTERS, AND WITH THE AIM OF
ACHIEVING LEGISLATIVE CHANGES TO THOSE POLICIES.
THE SIHULTANEOUS REPRESENTATIONS BY SOME OF US TO THE US
DURING TH!: IP RECENT DELIBERATIONS ON THE EXTENSION OF THE
EEP IS A GOOD EXAMPLE OF THIS. OUR EFFORTS WERE INFLUENTIAL
IN THE FINVAL DECISION TO RESTRICT THE EXTENSION OF THE EEP.
THIS MEETING PROVIDES AN OPPORTUNITY FOR ALL OUR COUNTRIES
TO PREPARI, kETTER FOR FUTURE SIMILAR CONTINGENCIES IN BOTH
THE US AND THE EC.
THERE IS NMO DOUBT THAT INTERNAT* IONAL AGRICULTURE III
CRISIS. EjUj. THE MOST DISPIRITING, THE MOST DESPAIRING,
FEATURE 0F THIS CRISIS IS THAT IS HAS NOT BEEN CAUSED BY ANY
LACK OF EVFICIENCY, DEDICATION OR SHEER HARD WORK BY THE MEN
AND WOMEN ON THE LAND IN OUR COUNTRIES. THE TRAGEDY OF THIS
CRISIS HAS BEEN M4ADE ALL THE MORE POIGNANT BY THE ENOAMOUS
COURAGE LUND COMMITMENT OF OUR FARMERS IN EVER BOOSTING THEIR
EFFICIENCY IN THE FACE OF FALLING WORLD AGRICULTURAL PRICES
PRECIPITATED BY THE SUBSIDISERS.
OUR TRUE HOPE AND ULTIMATELY, OUR MAIN CHANCE OF LIBERA-IING
GLOBAL AGRICULTURAL TRADE FROM THE CORRUPTION OF THE
SUBSIDISERS, IS TO BRING HOME TO THEM THE FACT THAT OUR
INTERESTS IN AGRICULTURAL TRADE REFORM COINCIDE TOTALLY WITH
THEIR OWN NATIONAL INTEREST. THE PRICE WE, AS EFFICIENT
TRADERS, PAY FOR THIS CORRUPTION IS AT ONCE STARK AND
MASSIVE : N ITS HUMAN DIMENSIONS. THE PR. ICE THE SUBSIDISERS
PAY IS NO LESS MASSIVE, NO LESS HUMAN, BUT IT IS FAR LESS
OBVIOUS. THE PRICE FOR THOSE COUNTRIES IS EXACTED NOT SO
MUCH IN RURAL POVERTY BUT IN THE UNNECESSARILY REDUCED
LIVING STANDARDS OF CITY DWELLERS AND IN THE JOBLESSNESS OF
MORE THAI1 A MILLION PEOPLE.
THE GROUP ASSEMBLED HERE HAS A MOST FORMIDABLE AND
RESPONSIBLE3 TASK AHEAD OF IT. BUT I AM CONFIDENT THAT IN
TIME, BY WORKING TOGETHER, WE WILL BE ABLE TO ACHIEVE OUR
COMMON GOAL.
4$
6.
FINALLY, 2 WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK MY
TRADE MINISTXER, JOHN DAWKINS, FOR TAKING THE INITIATIVE TO
CONVENE THIS MEETING. ITS TIMING IS IMPECCABLE. JOHN
DAWKINS AND JOHN KERIN HAVE BEEN UNTIRING IN THEIR PURSUIT
OF AGRICULTURAL TRADE REFORM. YOU WILL BE HEARING F4ROM THEM
TOMORROW MOaNING AS THEY PRESENT IN MORE DETAIL AUSTRALIA'S
THOUGHTS ON TACTICS AND OBJECTIVES FOR THE SEPTEMBER MEETING
AND FOR THE NEW ROUND.
I WISH YOU ALL WELL
DAYS AND I HOPE YOU
THE HOSPITALITY AND FOR YOUR DELIBERATIONS OVER THE NEXT TWO
CAN FIND TIM4E OUT TO ENJOY AUSTRALIAN
SUNSHINE HERE AT CAIRNS.