Fonterra applauds WTO ‘historic breakthrough’ in banning agricultural export subsidies

A deal struck among World Trade Organisation members to eliminate agricultural export subsidies is a significant development for New Zealand, Trade Minister Todd McClay says.

She said the negotiations are still in progress and there is no plan to extend the discussions beyond Friday, the last day of the summit.

Over 50 World Trade Organization (WTO) members have reached agreement on phasing out tariffs on imports of 201 information technology products.

Member countries agreed to abolish agricultural export subsidies and also approved the accession of Liberia and Afghanistan into the WTO.

It is understood that the deal is being seen as a good deal for the Irish dairy sector with a more level playing field to export to developing African markets.

They have also agreed to conditions that will ensure worldwide food aid does not damage global trade or production in aid recipient countries.

“This is worth billions to New Zealand, potentially”.

It means developed countries have committed to remove export subsidies immediately, except for a handful of agriculture products, and developing countries will phase them out by 2018.

The biggest winners from a global trade deal would be the world’s least-developed countries, most of whom are excluded from regional trade talks going on elsewhere, such as the United States-led Trans-Pacific Partnership.

The Ministerial Declaration which circulated today reflects the division amongst the WTO Membership on the issue of the reaffirmation of the Doha mandate.

“The WTO’s actions in this area will put an end to some of the most trade distorting subsidies in existence and demonstrates what is possible when the multilateral trading system comes together to solve a problem”, he said.

India is keeping its “fingers crossed” as the uncertainty continues over the fate of the WTO ministerial meeting, with developed countries taking a hard line on issues of public stockholding and a special safeguard mechanism.

“Ministers acknowledged that members “have different views” on how to address the future of the Doha Round negotiations but noted the “strong commitment of all Members to advance negotiations on the remaining Doha issues”, said the statement.