Brussels, 10/02/2005 (Agence Europe) - In a press communication of Wednesday 9 February, the “Cairns Group”, which comprises 17 developed and “emerging” countries (Australia, New Zealand; Canada, Brazil, Argentina, Chile, Bolivia, Colombia, Costa Rica, Guatemala, Paraguay, Uruguay, South Africa, Indonesia, the Philippines, Malaysia and Thailand), has declared itself “extremely disappointed” at the decision taken recently by the EU to re-introduce refunds on exports of soft wheat to certain third countries (EUROPE of 22 January). The EU's “reversal” on export refunds sends a bad signal at a time when most members of the WTO are trying to advance the Doha round of trade negotiations, say these countries; who recall their fierce opposition to export subsidies which, they insist, have negative effects on the future of farmers, particularly in developing countries.
In the Cairns Group's view, the decision taken by WTO members to eliminate export subsidies and reduce domestic support which distorts trade must be implemented rapidly. These countries say that the EU's support measures artificially encourage over-production. The EU and other countries which subsidise their production should use the opportunity of the Doha negotiations to refrain from pushing the costs of their domestic and export support programmes into the rest of the world, says the Cairns Group, underlining the fact that producers in poorer countries cannot afford to compete in “farm subsidy wars”. In conclusion; the Cairns Group hopes that the EU decision on wheat export refunds does not suggest a weakening of Europe's commitment to reform of the Common Agricultural Policy and to the elimination of export subsidies.