AUSTRALIAN RESPONSE ON GLOBAL FOOD SECURITY AND

UNCLAS CANBERRA 000538 SENSITIVE SIPDIS STATE FOR FOR EEB/TPP/MTA - CHEVER VOLTMER, EEB/TPP/ABT - GARY A. CLEMENTS AND EEB/TPP - MIKAEL LURIE, AND FOR EAP/ANP E.O. 12958: N/A TAGS: ETRD EAGR EAID ECON TBIO AS SUBJECT: AUSTRALIAN RESPONSE ON GLOBAL FOOD SECURITY AND TRADE REF: STATE 52628 ¶1. (U) Post shared reftel demarche with Paul Morris, Executive Manager, Technical Market Access at Australia's Department of Agriculture, Fisheries and Forestry. In response, Morris provided the following paper laying out the GOA,s views. ¶2. (SBU) DAFF Comments on US Food Cable The Australian Government believes that we must act responsibly on higher world food prices with practical measures which provide relief to those most affected, increase investment and productivity in the agricultural sector and remove distortions from world agricultural markets. The minister for Foreign Affairs, Stephen Smith, announced on 01 May 2008 that the Government will provide A$30 million (embassy note: US$29 million) in emergency assistance to countries affected by steep rises in the prices of essential food supplies. This contribution is in response to the emergency appeal of the United Nations World Food Programme. -- The Government has also lifted engagement in international efforts to address the causes of food insecurity of developing countries by increasing development assistance. Comprehensive and far-reaching reform to global agricultural markets is needed to encourage improved agricultural productivity in the most efficient and cheapest producers of the world,s staple commodities - this will allow important rice exporters like Thailand to undertake the structural adjustment and investment needed to expand capacity more quickly and respond to higher global demand. We must conclude the Doha Round as soon as practical in order to lock-in cuts to farm subsidies and agricultural tariff barriers - this will be an important step in stabilizing global commodity markets. -- Agree that the current peak in the commodity price cycle provides an ideal political climate to commit to substantial agricultural reform. -- Note Australia has been working closely with the US on the crucial market access pillar in the agricultural negotiations and look forward to continuing this cooperation following the release of the revised agricultural negotiating text on 19 May 2008. Agree with the US that short-term policy measures that have been adopted by some developing countries in an attempt to stabilize internal prices (such as export restrictions) can exacerbate the prices pressures and stymie the market signals telling farmers to increase production. -- Of course, it is difficult to advocate to developing countries against the use of theses border measures when systemic distortions in agricultural markets are maintained by many developed countries - theses distortions have profound affects on the productivity of farmers in developing countries. -- Note Japan's recent proposal in the Doha Round seeking to impose tight disciplines on export restrictions - reflecting Japan's concerns about food security and maintaining access to reliable supplies of staple foods on world markets. Australia sees biotech agricultural products, such as GM crops, as one piece in the puzzle in addressing the current world food crisis and adaptation to changing climate. Australia is helping strengthen food security, particularly in developing countries through increased development assistance drawing on our expertise in agriculture, including semi-arid agriculture, constructive participation in multilateral processed and continued advocacy for Qmultilateral processed and continued advocacy for international trade policy reform. -- Australia agrees that regulatory decisions relating to trade in GM crops should be science-based and consistent with WTO obligations. End DAFF paper. MCCALLUM