G-20 MINISTERIAL COMMUNIQUÉ

12 June 2004

"Ministers from the G-20 met in São Paulo on 12 June, on the occasion of UNCTAD XI. Delegations from the following countries attended the meeting, which was hosted by Brazil: Argentina, Bolivia, Chile, China, Cuba, Egypt, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Tanzania, Thailand, Venezuela and Zimbabwe.

2.World Trade Organization Director-General, Dr. Supachai Panitchpakdi, and Ambassador Tim Groser, Chairman of the Special Session of the Committee on Agriculture, took part in the meeting as special guests. Ministers also interacted with the Minister of Cooperation and Trade of Guyana, and coordinator of the G-90, Clement Rohee, who reciprocated the participation of Minister Amorim in the Georgetown Ministerial Conference of the G-90, held on 3 June 2004. At that occasion, recalling the common interests of both groups, Minister Amorim called upon the G-90 to cooperate closely and act together with the G-20 in order to translate the Doha Development Agenda into reality.

3.The meeting took place at a crucial moment in the Doha Round, as WTO Members seek to reach agreement on a framework for agriculture negotiations by the end of July.

4.Ministers assessed the current stage of the Doha Round discussions, with special emphasis on agriculture, and considered the next steps in the negotiation. Ministers reiterated that maintaining the level of ambition of the Doha mandate remains the guiding principle of the negotiations. In this context, any framework text must be fully consistent with the Doha mandate and lead to the establishment of modalities capable of ensuring substantial reductions in trade-distorting domestic support, substantial increase in market access, phasing-out with a view to elimination of all forms of export subsidies and operational and effective special and differential treatment, that takes into account food and livelihood security and rural development needs.

5.Ministers recalled that since Cancun the G-20 has been carrying out intensive work on the three pillars of the agriculture negotiations. Consultations were also held with a large number of WTO groups and individual Members. Ministers welcomed the fact that the constructive engagement of the G-20 has contributed, in recent weeks, to a greater convergence in the negotiations.

6.Ministers reiterated the importance they attach to the WTO and to the multilateral rules-based trading system. Negotiations on agriculture are central to move the Doha Round to a successful and timely conclusion. Trade in agricultural products continues to be hindered by all sorts of barriers and distortions. True liberalization in agricultural trade must include reforms to address these barriers and distortions. This would be a major contribution to the development objectives of the Round.

7.Ministers recalled that the interests and concerns of developing Members are paramount in the Doha Development Agenda and in the negotiations. Special and differential treatment for developing Members must be fully reflected in the outcome of the negotiations. The concerns of least-developed, small and vulnerable economies, net food importing developing countries and recently acceded Members must be effectively addressed. The issue of preference erosion must also be fully taken care of in the negotiations.

8.Ministers welcomed the progress in the negotiations of a credible end-date for the phasing out of all forms of export subsidies, as called for by the Doha mandate. To achieve this, a precise, effective and workable definition regarding timeframes and disciplines will be needed so as to ensure that we eliminate direct export subsidies, as well as all forms of subsidies in export credits, food aid operations and state-trading enterprises activities.

9.Ministers stressed that a number of important and sensitive issues remain to be tackled with regard to domestic support. With a view to fulfilling the Doha mandate in this pillar, substantial reductions in support, stronger disciplines and effective monitoring are essential. For achieving substantial reduction of domestic subsidies, there must be deep cuts in the sum of overall trade-distorting support, which calls for, inter alia, clarity regarding the point of departure for reduction commitments in the Blue Box. Improved disciplines in distorting domestic support are required to avoid product and box shifting. The importance of accepting product-specific disciplines in the Amber and in the Blue Box was highlighted. Enhanced monitoring mechanisms are essential to provide confidence that commitments by Members will be fulfilled.

10.As far as the Green Box is concerned, Ministers stressed the importance of ensuring its non-trading distorting nature, and, therefore, the need to clarify its criteria, while ensuring transparency and accountability in its utilization.

11.Ministers noted that the membership of the G-20 reflects a range of different interests. Based on the principles of transparency and inclusiveness, the Group has been successful in its efforts to take into account the concerns of other Members outside the G-20 in its proposals, especially of other developing countries and least developed countries. Accordingly, after comprehensive consultations with other groups and intense technical work, the G-20 circulated a proposal on the main market access elements for a framework on 28 May. The proposal identifies the elements of a possible tariff reduction formula, as well as all other issues related to market access, including effective S&D provisions, such as a special safeguard mechanism and special products for developing counties, as a necessary step towards the establishment of a framework.

12.Ministers welcomed the fact that the G-20 document has prompted renewed substantive discussions on the market access pillar and allowed for a better understanding of each Members` positions and of the real issues which have to be resolved.

13.Ministers reaffirmed their solidarity with West and Central African cotton producers and called for a solution to the problem of cotton on a priority basis in the interest of all cotton-producing developing countries.

14.Ministers highlighted the importance of addressing in the negotiations the strengthening of the disciplines on export prohibitions and export restrictions in Article 12 of the Agreement on Agriculture.

15.Ministers recalled their commitment to the negotiations and pledged to continue to contribute to the Doha Round. They also stressed that the successful conclusion of the negotiations is a common responsibility of all WTO members, but noted the special responsibility of those that account for the main distortions in agricultural trade.

16.As they met on the eve of the inauguration of UNCTAD XI, Ministers took note, with satisfaction, that after 40 years, UNCTAD´s mandate retains its validity and stressed that it should continue to contribute to a better understanding of issues in the area of trade and development and to consensus building on possible solutions to those questions.

17.Ministers expressed their common belief that the intensification of South-South trade should receive priority consideration by all members of the Group. Increased trade flows among developing countries would be a major contribution to enhance their integration into international trade as a whole. In this context, they stressed the importance of launching a Third Round of Negotiations under the Global System of Trade Preferences among developing countries during UNCTAD XI. They also recalled the idea put forward by President Lula of the possible launching of a free trade area among G-20 members.

18.Ministers agreed to meet again whenever necessary to consider progress in the agriculture negotiations and pledged to maintain a high level of coordination of G-20 positions as well as a constant dialogue with other interested groups and Members, so as to ensure a positive outcome of the negotiations.

São Paulo, 12 June 2004"