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