WORLD TRADE
ORGANIZATIONG/AG/NG/W/132
21 February 2001
(01-0855)
Committee on Agriculture
Special SessionOriginal:  English
FIFTH SPECIAL SESSION OF THE COMMITTEE ON AGRICULTURE
5-7 FEBRUARY 2001
Statement by Hungary
G/AG/NG/W/91  (Proposal by Japan)
First of all let me thank Japan for reminding Members on the desirability of the agricultural
negotiations to be conducted and concluded in a single undertaking as part of a sufficiently broad-
based new round.  We too think that efforts should be intensified in order to launch such a round
during the next phase of the agricultural negotiations  so that when it comes to the "real" negotiations
Members would be able to do them with trade-o ffs in other sectors in mind.  This, we sincerely
believe, would not only speed up the negotiating process but also lead to more substantial results
therein.
Here let me react to critical remarks this approach did receive yesterday and today, which
seem to suggest some misunderstandings.  We have not heard anybody to assert that there is a linkage
in the strict legal sense of the word between the agricultural negotiations and a new round.  Neither do
we remember any suggestion that the agricultural reform can only continue if a round is launched.
The point that is being emphasized by several Members, including Hungary, is something dictated by
common sense: the depth of agricultural reform is  highly dependent on the extent of cross-sectoral
trade-offs which can be offered only by a sufficiently broad round.  This is a very simple fact, whether
one likes it or not, whether one ignores it or not.
I would like to highlight another point in the Japanese proposal which reminds us of a very
important condition which is necessary to arrive at a fair and equitable result at the end of the
negotiations.  This is that the diversity of the agricultural sector across the membership should find its
reflection in the new disciplines and reduction commitments much better than is the case at present.This is not to mean that we suggest the fragmentation of the rules which we certainly would like to
avoid.  What we are saying is that the other extreme approach should also be avoided, that is when the
rules are tailored to the needs of just a relatively small part and not the entirety of the membership.
G/AG/NG/W/92  (Proposal by Canada)
We share the concerns of others with regard to the first element of the Canadian proposal.  It
appears to be a significant departure from the approach enshrined in the AoA since it implies a
limitation of Green Box support, that is of support  measures with no or at most minimal trade-
distorting effect for which we fail to see any reason.  We believe that the concept of distinguishingbetween trade distorting support and support without such effect should be fully preserved.
As to the proposed non-countervailability of  Green Box programmes we agree, but our
approach as indicated yesterday is broader.  We would like to see the peace clause extended in its
entirety since it has played an important role in  terms of providing legal security for agricultural
policy reforms.G/AG/NG/W/132
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G/AG/NG/W/93  (Proposal by the Cairns Group)
We fully understand the concerns of certain importing countries regarding the certainty of
supply from the world market.  Hungary has an open  mind as to the review of Article 12 during the
negotiations and as to possible improvements in the disciplines on export restrictions and taxes shouldit turn out to be necessary.  However we would like to stress that this exercise should not be one-sided
and ignore the responsibility of governments of exporting countries for ensuring food security for
their own population.
G/AG/NG/W/94  (Proposal by Switzerland)
We fully agree with Switzerland that the undisputable diversity of country situations calls for
a certain degree of flexibility in the multilateral disciplines.  A one-size-fits-all approach would
necessarily be detrimental to the majority of the me mbership whatever this size would be.  In  this
light we would like to warmly welcome the fact that Switzerland is ready to take into account the
specific interests of economies in transition in the current negotiations and that this position is
reflected in its proposal.
We can support several of the ideas and propos als put forward by Switzerland.  We can not
but agree that disciplines are necessary in order to ensure that measures taken for the purpose of
achieving various, non-trade related societal objectives do not harm the interests of other countries.
We too see a de facto  link between the market access negotiations and the issue of geographical
indications.  To ignore this link would be rather unwise and have consequences I am sure we all want
to avoid.  Here we need a very pragmatic approach.
In the areas of tariff quota allocation methods, the special safeguard clause, export
competition, the peace clause, the review of th e Green Box, our approach is rather similar.
Let me also briefly comment on the issue of the precautionary principle. In light of recent
developments and measures taken in response by various Members, the time might have come to
examine the modalities governing the application and scope of the precautionary principle.  But we
have to be prepared for an exercise similar to that of navigating between Scylla and Charybdis, the
two notorious figures of Greek mythology.  On one side we will have the dangers to food safety, on
the other the high temptation to misuse this principle for protectionist purposes. Therefore we have tobe very careful not to fall victim to either of these monsters.
G/AG/NG/W/95  (Proposal by Swaziland)
We would like to sincerely thank Swaziland for submitting this proposal, arguing rather
convincingly for special treatment of small develo ping countries.  Hungary is glad to see Members
coming forward with a description of their particular concerns and concrete proposals on how to
address them.  We hope that all these proposals will be adequately taken into account as the
negotiations proceed since this is the only way to ensure that the interests of the entire membership
will be taken into account in the final outcome of the negotiations.
G/AG/NG/W/96  (Proposal by Mauritius)
Hungary shares the view that the reform process in agriculture should continue in a way
which acknowledges the diversity of agricultural situations worldwide and that this diversity shouldbe reflected in the new disciplines more strongly than is the case currently.
We are also in full agreement with the point made by Mauritius that the shift to those types of
support which are defined as minimally trade-distorti ng, is not always just a question of will but very
often that of financial resources available, since they are very often simply more costly.  Therefore,G/AG/NG/W/132
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we consider that for moving away from more trade- distorting measures future rules should ensure that
every Member has feasible options at its disposal.
We also believe that although in a legal sense the agricultural negotiations are stand alone
negotiations, it is important to realize that negotiations are not going on in isolation and thatdevelopments in other areas, like the protection of geographical indications, will have a significant
impact on their outcome.
G/AG/NG/W/97  (Proposal by SIDS)
We welcome this proposal since it calls the attention to an issue which economies in
transition have already raised at previous meetings of the Committee.  Hungary shares the view thatcountries having gone through extensive unilateral deregulation and liberalization of their agricultural
sector in the last decade and which exhibit a high degree of openness to the world market, should
receive credit for it when the new commitments are going to be established.
G/AG/NG/W/98  (Proposal by Korea)
We would like to express support for Korea's call for a flexible and gradual approach in the
agricultural reform process and for the need to ha ve the diversity of country conditions adequately
reflected in the new disciplines. In this context we agree that the scope and criteria of the Green Box
should be revised as well as the question of inflationary adjustment of domestic support commitmentsbe adequately dealt with.
G/AG/NG/W/100  (Proposal by CARICOM)
We have read the proposal submitted by CARICOM with great sympathy.  We agree that the
benefits from the expansion of world trade as a result of the reform process should be shared among
all countries and not limited to a very few.  Many countries, including small developing countries
need a major restructuring of the agricultural sector in order to be able to make use of their
competitive advantages and to compete successfully on the world market.  But restructuring does not
happen from one day to another, therefore countries, like small developing economies should benefit
from sufficient transition periods.
Proposal by India (G/AG/NG/W/102)
We consider that the proposal submitted by India provides a good illustration of the fact that
the sole reliance on market forces in agriculture is not always feasible.  There are instances like that
described by India where food security in a country is dependent on subsistence farming which couldeasily be destroyed by import surges unless governments take appropriate actions.  There are other
instances like that in economies in transition where ma rket forces are insufficient to bring about the
recovery of agricultural production and the adjustments that are required for being in the position to
benefit from their competitive advantages.  Therefore we believe that the agricultural reform process
can only claim to be fair, if every Member will have the opportunity to use measures which arenecessary for the development and structural adjustment of their agricultural sector.  It goes without
saying that these measures should be the least trade distorting possible but not in an abstract sense,
since the question of availability and feasibility of appropriate measures should also be taken into
account.
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