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10<br />

FEBRUARY 1, <strong>2020</strong><br />

Homelink<br />

Cairns Group advocates cut in<br />

agricultural subsidies at Davos<br />

A<br />

Trade and Export Growth Minister David Park (RNZ Picture by Dom Thomas)<br />

proposal to cut “trade and<br />

production-distorting subsidies”<br />

in the agricultural<br />

sector by 2030 has set out<br />

important measures to ensure a<br />

fair agricultural trading system.<br />

Speaking after attending meetings<br />

<strong>of</strong> Trade Ministers in Davos,<br />

Switzerland, Minister for Trade<br />

and Export Growth David Parker<br />

welcomed the joint proposal from<br />

the 19-member “Cairns Group”<br />

<strong>of</strong> agricultural exporting nations,<br />

which includes New Zealand.<br />

The following is his Statement:<br />

These subsidies are harmful<br />

to the environment and prevent<br />

countries like New Zealand and<br />

many developing countries from<br />

competing fairly on the world<br />

market.<br />

All countries rely on a functioning<br />

sustainable, affordable and<br />

effective global food system.<br />

For those <strong>of</strong> us who have built<br />

exporting agricultural sectors it<br />

is particularly important that we<br />

continue the work to update the<br />

WTO rules on agriculture.<br />

The Cairns Group<br />

The Cairns Group members<br />

account for more than 25% <strong>of</strong><br />

world agricultural exports.<br />

We also welcome renewed<br />

efforts to address trade-distorting<br />

subsidies on industrial goods.<br />

This should form part <strong>of</strong> a<br />

package <strong>of</strong> measures that also<br />

address the long-standing concerns<br />

in agriculture trade.<br />

I am very pleased that<br />

Switzerland had been included as<br />

a negotiating partner to the Agreement<br />

on Climate Change, Trade and<br />

Sustainability (ACCTS) initiative,<br />

joining New Zealand, Costa Rica,<br />

Fiji, Norway and Iceland.<br />

A joint statement by ACCTS<br />

partners reaffirms the importance<br />

<strong>of</strong> developing international trade<br />

rules that support and advance<br />

climate and broader sustainable<br />

development objectives.<br />

Trade policy can, and must play<br />

a role in addressing the climate<br />

change challenge, and our six<br />

countries are ready to act now.<br />

Negotiations are expected to<br />

begin in March <strong>2020</strong>.<br />

During his visit to the <strong>2020</strong><br />

World Economic Forum in Davos,<br />

Mr Parker took part in a range <strong>of</strong><br />

sessions and met counterparts from<br />

key WTO member countries.<br />

Advancing trade agenda<br />

Mr Parker said: “The meetings<br />

were an opportunity to advance<br />

New Zealand’s trade agenda before<br />

the 12th WTO Ministerial Conference<br />

to be held in Nur Sultan,<br />

Kazakhstan, in June.<br />

New Zealand will be pressing<br />

hard for delivery at the Nur<br />

Sultan meeting on world leaders’<br />

commitment to eliminate harmful<br />

fish subsidies by <strong>2020</strong>. Both the<br />

Cairns Group proposal and ACCTS<br />

developments represent progress<br />

in advancing our strategic trade<br />

interests at a time when there is<br />

considerable threat to the rules that<br />

underpin the trading system.<br />

“New Zealand is a leading voice<br />

in global efforts to embed sustainable<br />

trade practises, and we are at<br />

the forefront <strong>of</strong> new multilateral<br />

initiatives to shape an enduring and<br />

enforceable rules-based trading system,<br />

that creates a fair, level playing<br />

field for all exporting nations.”<br />

David Parker is Trade and Export<br />

Growth Minister. He represented<br />

New Zealand at the 50th Annual<br />

Meeting <strong>of</strong> the World Economic<br />

Forum held at Davos, Switzerland<br />

from January 21 to 24, <strong>2020</strong>.<br />

Digital trade deal with Singapore, Chile agreed<br />

A<br />

new trade agreement<br />

signed by the New Zealand<br />

governments with the<br />

governments <strong>of</strong> Singapore<br />

and Chile will help exporters and<br />

consumers take advantage <strong>of</strong><br />

opportunities <strong>of</strong>fered by digital<br />

trade.<br />

Trade and Export Growth<br />

Minister David Parker, Chile Vice<br />

Trade Minister Rodrigo Yanez and<br />

Singapore Trade and Industry Minister<br />

Chan Chun Sing announced<br />

that talks on a Digital Economy<br />

Partnership Agreement (DEPA)<br />

have been conclusive.<br />

Keeping up with technology<br />

Mr Parker said that New Zealand<br />

has played a key role in this new<br />

initiative to support digital trade<br />

and that it is an important step in<br />

making sure that trade rules reflect<br />

the digital era.<br />

“We have moved quickly since<br />

launching negotiations in May<br />

last year to bring this Agreement<br />

together because we recognise that<br />

international trade rules have not<br />

kept up with the unprecedented<br />

growth <strong>of</strong> digital trade. We believe<br />

that small countries, not just large<br />

ones, should help shape the new<br />

rules,” he said.<br />

Mr Parker said that DEPA will<br />

make it easier for New Zealand<br />

businesses and consumers to take<br />

advantage <strong>of</strong> digital trade opportunities,<br />

while protecting public and<br />

private interests.<br />

Pathfinder Agreement<br />

“We think that this will be a<br />

pathfinder agreement that will<br />

apply initially to those countries<br />

but will expand over time. We have<br />

ensured that issues <strong>of</strong> importance<br />

to New Zealanders such as the<br />

Treaty <strong>of</strong> Waitangi, personal<br />

Trade and Export Minister David Parker (INL File Photo)<br />

privacy, consumer protection,<br />

data management, transparency<br />

and openness are appropriately<br />

protected,” he said.<br />

Digital technologies can help<br />

small and medium-sized enterprises<br />

overcome the challenges <strong>of</strong> scale<br />

and distance, support greater<br />

participation by women, Maori and<br />

rural communities, to help spread<br />

the benefits <strong>of</strong> trade widely, which<br />

is a key aim <strong>of</strong> our Trade for All<br />

policy, Mr Parker added.<br />

Complementing WTO<br />

“Digital trade is constantly<br />

evolving. We may not know what<br />

new technologies will emerge, but<br />

we know it is valuable to have open<br />

channels <strong>of</strong> communication with<br />

close partners to discuss issues this<br />

change can bring,” Mr Parker said.<br />

According to him, DEPA complements<br />

the ongoing WTO-based<br />

negotiations on e-commerce, as well<br />

as work within APEC and the OECD.<br />

“It is consistent with our support<br />

for multilateral rules, the DEPA is<br />

an ‘open plurilateral’ agreement,<br />

meaning it is open to other WTO<br />

members who can meet its high<br />

quality standards,” Mr Parker said.

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