Friday, March 18 2005 14:53 Hrs (IST) - World Time -

New Delhi: Highlighting the need to arrive at a "balanced package" at the forthcoming Hong Kong Ministerial, the group of 20 leading economies of the world (G-20) today (Mar 18, 2005) asked the developed countries to put an end to all trade distorting policies in agriculture and sought phasing out of export subsidies in five years.

Reaffirming their commitment to advance the Doha round of trade negotiations, the G-20 Ministers said, "In export competition pillar, a key decision to be taken is date of elimination of all forms of export subsidies. Countries that apply such instrument are to arrive at an early decision on the matter contemplating their elimination in a period no longer than five years."

According to the draft Ministerial statement, to be discussed at the two-day meeting, the G-20 members said that substantial reductions in trade distorting domestic support negotiations, should determine the base periods and initial and final numbers for the overall trade distorting domestic support.

They cautioned against any attempt to reduce the "de minimis" support in developing nations, saying that it would negatively affect the programmes benefiting subsistence and resource poor farmers there.

Cautioning against any circumvention of market access commitments by developed countries through "inappropriate conversion methodology", they said stressed on the need to finally bind all non-ad valorem duties in their ad valorem equivalents, as it would impact the tariff reduction formula.

"Tariff reduction formula is the main component of the market access pillar and should be negotiated before addressing the issue of flexibilities", the G-20 Minister said.

The position is in keeping with G-20's position progressivity, advocating deeper cuts to higher bound tariffs, proportionality developing countries making lesser reduction, besides flexibility to take into account sensitive nature of some products.

Ministers emphasised that concepts of special products and special safeguard mechanism were integral elements of Special and Differential Treatment (S&DT) for developing countries.

They said that S&DT constituted an integral part of all commitments with a view to preserve food security and livelihood concerns of people in developing nations.

Stressing that negotiating process should take place in Geneva, the Ministers said that participation by all members in phases of negotiations should be made mandatory. "This is an essential element for securing a legitimate outcome to these negotiations to the benefit of the whole membership", they added.

Recognising the special needs of the least developing Countries, Ministers said that the concerns of small and vulnerable economies and net food-importing developing countries must also be effectively addressed.