Successful Doha Round a Vital Boost for Farming Industry

In a speech delivered at the opening of the 22nd Commonwealth Agricultural Conference in Calgary, Canada, on 13 July 2006, Mr McKinnon expressed hope of greater progress in the Doha Round of world trade talks following the massive gains already made through greater access to cheaper antiretroviral drugs; a deadline for the end of the worst European Union agricultural subsidies; and a commitment to end US cotton export subsidies.

He added that the poorest of poor countries are also getting almost unfettered access into the markets of developed countries, but more must be done to remove all barriers to trade.

The Secretary-General stressed that it was important to dismantle the current artificial trade and agricultural pricing structure which amounts to trade apartheid.

"How can the US spend more on subsidising its cotton farmers than the entire GDP of a country like Benin which produces mainly cotton? How can West African farmers sell their own tomatoes if surplus and subsidised Italian ones are being 'dumped' in local markets at a considerably lesser price?" asked Mr McKinnon.

He also questioned why Ghana is only able to export cocoa pods to Europe but not processed chocolate.

"Why should the EU's tariffs on meat coming from outside the Union stand at 300 per cent -- 100 times more than the 3 per cent charge on meat marketed within the EU? Do developing countries charge a 300 per cent tariff on European cars or washing machines?"

The Secretary-General said the Commonwealth has been advocating for a global and fair rules-based system under the World Trade Organisation. He urged developed countries to assist developing countries by helping to lift them out of poverty through trade.

This, he said, can be achieved through investments in physical and intellectual infrastructure that facilitates agriculture in developing countries, enabling small-scale producers to capitalise on market growth opportunities in the global food industry.

"Beyond physical infrastructure, we need to invest in intellectual capital, providing training and advice to help farmers reduce production costs, improve quality, store and process their goods. We call this 'Aid for Trade' where developing countries can actually make the best of new opportunities, and play to their own 'comparative advantage'.”

The full text of the speech is available here

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• Royal Agricultural Society of the Commonwealth