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Food Chemical News | June 18, 2001 | Volume 43, Number 18 | Mark Thornton

Food and agricultural policy will be the key issue on the agenda for a new round of World Trade Organization talks scheduled for Qatar in November.

Trade ministers from Asia Pacific Economic Cooperation countries meeting in China June 7 agreed to use their clout to push for the new round of trade negotiations, which they say are essential in light of the failure of the talks in Seattle two years ago.

Without APEC, a new round is by no means assured given the continuing differences among WTO members on key issues such as agriculture and food security.

Australian Trade Minister Mark Vaile, who attended the meeting of APEC trade ministers in Shanghai, said APEC's backing of the WTO talks would ensure the organization focuses on trade barriers, particularly high agriculture tariffs.

During the last 12 months, WTO members have submitted 44 proposals for changes to the WTO Agreement on Agriculture. The Cairns Group has submitted four proposals covering market access, export competition, domestic support and export restrictions and taxes.

A report by the Australian government found that average tariff levels among APEC countries declined by one-third over the last five years, from 12% in 1995 to 8% in 2000. The report shows that more than two-thirds of the goods imported by APEC nations enter at tariff levels of less than 5%.

Peru reduced the surcharge on 56 meat products from 10% to 5% and agreed to harmonize its sanitary measures with international standards. Russia reduced tariffs on juice concentrates (from 15% to 5%) and on poultry meat (30% to 25%). Korea eliminated all quota items, except rice, on Jan. 1. Japan abolished its state monopoly on the importation of ethyl alcohol and has made its food labeling standards consistent with international ones.

Reducing trade barriers like these has created 195 million jobs over the past 10 years and has reduced poverty by one-third, Vaile said.

"The Shanghai meeting provided an opportunity for APEC to stress the fundamental importance of the multilateral trading system," he said, noting that many APEC countries, such as Korea, Malaysia and Mexico, continue to cut agricultural tariffs. "Many are also implementing a range of administrative reforms to open up important trade and investment opportunities," he said.

APEC includes Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, the Russian Federation, Singapore, Chinese Taipei, Thailand, the United States and Vietnam.

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