Historical archive

Devastating to Norway’s agriculture

Historical archive

Published under: Bondevik's 2nd Government

Publisher: Ministry of Agriculture

The drastic cuts in tariffs and domestic support proposed by Chairman Stuart Harbinson will effectively wipe out Norwegian agriculture, with devastating effects on our rural communities, agricultural landscapes and bio-diversity, as well as the ability to feed our people in a crisis situation, says Lars Sponheim, Norway’s Minister of agriculture. (14.02.03)

Press release

No.:

5

Date:

14.02.2003

Contact:

Sverre Kvakkestad, Deputy Director General, phone ++ 47 22 24 92 04
Jostein Lindland, Senior Adviser, phone ++ 47 47 40 06 32

Norwegian Minister og Agriculture on Chairman Harbinson’s agriculture paper:

Devastating to Norway’s agriculture

- The drastic cuts in tariffs and domestic support proposed by Chairman Stuart Harbinson will effectively wipe out Norwegian agriculture, with devastating effects on our rural communities, agricultural landscapes and bio-diversity, as well as the ability to feed our people in a crisis situation. Harbinson’s first proposal for a solution of the WTO agriculture negotiations will therefore not enable WTO Members with difficult production conditions to address their non-trade concerns, as foreseen in the Doha negotiation mandate, says Lars Sponheim, Norway’s Minister of agriculture.

- We need an agreement that allows every Member, according to mutually agreed rules, to foster domestic agricultural production necessary to address their non-trade concerns, based on its production conditions and policy objectives. Consequently, provisions to secure the coexistence of various types of agriculture, across countries and regions, including in areas with disadvantaged production conditions, need to be an integral part of the outcome.

- A successful outcome of the negotiations will only be reached if it is acknowledged that all Members have legitimate interests that need to be taken duly into account in the negotiations. This implies that the interests of exporting countries are no more important than the interests of importing countries, and vice versa. The challenge lies in designing compromises that are sufficiently balanced to attract the support of all, says the Norwegian agriculture minister.

Norway has proposed tariff cuts based on the formula used in the Uruguay Round, with average tariff reduction of 36% and a minimum tariff reduction of 10% for each tariff line. Trade-distorting domestic support should be differentiated according to export orientation. Support to products for the home market should be subject to a reduction of 20%, while the export oriented AMS should be subject to a reduction of 60%, based on available production and export statistics of a given year. Support that have no or lesser impact on trade, such as so-called green and blue support should be continued uncapped. As to export competition measures, Norway agrees to an average reduction of the budgetary outlays of export subsidies of 60%, provided that flexibility is given in dealing with the different products. All forms of export competition measures should be subject to the same degree of discipline. – This is our basis for further negotiations, says Mr. Sponheim.