Global Dairy Alliance supports WTO Agriculture developments
The six nation Global Dairy Alliance has welcomed European comments suggesting a willingness to move on export
subsidies.
The European developments were advised by EC Trade Commissioner Pascal Lamy and EC Agriculture Commissioner Franz
Fischler in a letter of 10 May 2004 and made public at last week's Ministerial meeting in Paris.
GDA Chairman, Osvaldo Cappellini, said "their readiness to move on export subsidies was an important contribution to
improving the prospects for reaching a framework agreement by July.
"While the EU has finally offered to move on export subsidies they have also stated that they would only do so 'if an
acceptable outcome emerges on market access and domestic support'," said Mr Cappellini who also took issue with the EU's
continuing support for a 'blended' approach to tariff reductions.
The Lamy/Fishler letter restates the EU's commitment to the 'blended' approach which seeks only limited cuts in tariffs
and very modest increases in Tariff Rate Quotas volumes.
Mr Cappellini noted that the GDA cannot support the blended formula approach. "It simply fails to deliver on the Doha
Declaration calling for 'substantial increase in market access'," he said. "The blended approach will only serve to
allow the EU, US and others to maintain ridiculously limited access for dairy products - with little or no progress
beyond the limited gains of the Uruguay Round. This would be totally unacceptable."
In commenting, Mr. Cappellini pointed out that, while rapid and total elimination of export subsidies must be at the
heart of a framework agreement in the WTO Doha Development Agenda, it must be balanced with progress on the other two
key issues of access and reduced domestic support.
Mr. Cappellini also noted that the EU proposal was unclear on how quickly subsidies would be eliminated and whether the
same timetable would apply for all commodities. "We want rapid elimination and we certainly don't want a different,
slower scale for dairy", he said.
The Global Dairy Alliance represents non-subsidised dairy exporting countries and focuses on advocating the benefits of
international free trade in dairy produce. Its members are Argentina, Australia, Brazil, Chile, New Zealand and Uruguay.