PRIME MINISTER 129/ 92
STATEMENT BY THE PRIME MINISTERI, THE HON P J KEATING, MP
URUGUAY ROUND BREAKTHROUGH
I warmly welcome today's announcement that the United States and theEuropean
~ inunit commission have resolvcd their outstanding differences over agriculture in
the UruguayjRound Negotiations.
Both sides arc to be congratulated on the flexibility and statcsnianship they have
demonstrated in reconciling a dispute which threatened not only to terminate the Round
but to substantially increase trade conflict.
This breakthrough rcprcscnts in my view the most important achievement sinec the round
commenced six years ago and is an historic step in bringing fair trade to agriculture.
Announcement of the agreement will have a significant favourable impact onl world
economic confidence at a time of slow growth and international pessimism.
I particularly applaud1 the work of President Bush and his administration in working
tirelessly to complete this agrcn-in bcforc thc cnd of the year. It is a fine parting gift to
the world from a President who has already contributed so much in international affairs,
The U. S. Administration kept the Australian Government wcll informed during the
negotiations and we accept the agrecments reached in agriculture as a sensible
compromise which will both assist low cost agricultural exporters like Australia and pave
the way for the settlement of all the remaining issues, icluding services and market
acces, in the Round.
Through its leadership of the Cairns Group agricultural fair traders Australia has played a
key role in insisting that ally ou~ tcome to the Round had to include reform in agricultural
trade.
The agreement calls for a 20 pcr cent reduction across the board in internal supports for
agriculture. Tt also provides for a 36 pcr cent reduction ovcr six years in the amount of
money spent to subsidise agriculture exports and a 21 per cent reduction in the volume of
subsidised exports.
The agreement will over time substantially inhibit subsidised agriculture exports by all
signatories, including the US and the European Community, increasing the
competitiveness of unsubsidised exporters such as Australia.
Now that the breakthrough in agriculture has been achieved the negotiations will be
brought back into the multilateral discussions in Geneva where all participating countries,
including Australia, will play their part in reaching a final agrcement on the draft Final
Act to the Round ( the so called Dunkel package which has been on the table in Geneva
since December' 1991) and the subsequent conclusion of negotiations of specific
commitments for market access liberal isation in industrial products, agriculture and
services. A successful Uruguay Round package bringing a liberalised trade outcome to industrial
tariffs, textiles, agriculture, services and more effective trade rules will bring enormous
benefit for the global economy as a whole and assist in leading the whole world into
stronger growth.
CAN BERRA
21 November, 1992.