ACTIVITIES OF FAO

Preparations for the Twenty–fifth Session of the FAO Conference 1

- Nomination of the Chairman of the Conference, and of the Chairmen of the Commissions of the Conference

7. In accordance with Rule VII-1 of the General Rules of the

Organization (GRO), the Council agreed to put the following nominations before the Conference:

- Election of the Nominations Committee

8. In accordance with Rule XXIV–5 (b) GRO, the Council elected the

following 11 Member Nations to the Nominations Committee:

- Sixteenth McDougall Memorial Lecture

9. The Council was informed that the Sixteenth McDougall Memorial Lecture would be delivered by His Excellency Giorgio Ruffolo, Minister for the Environment of Italy.

Report of the Fifty-seventh Session of the Committee on Commodity Problems (Rome, 12-16 June 1989)²

10. The Council endorsed the Report of the Fifty–seventh Session of the Committee on Commodity Problems (CCP). It commended the Committee and its subsidiary bodies for the valuable technical work that they were continuing to undertake.

11. The Council expressed concern that the agricultural commodity trade situation, particularly of developing countries, had remained difficult. It noted that the value of agricultural exports in real terms in 1987 had fallen by as much as 7 percent for the developing countries whereas for developed countries the real value of agricultural exports had risen by 5 percent. It noted further that for several commodities a better balance had been achieved since early–1988 between export availabilities and import demand, resulting in at least a partial recovery in prices for those commodities, but that for exporters of beverage crops which were important to developing countries, the situation had worsened considerably, particularly for coffee and cocoa. Prices of coffee had declined by almost 50 percent since the termination of the economic clauses of the International Agreement in June 1989. There had also been a drastic decline in cocoa prices. The Council was informed that coffee export earnings by developing countries were likely to decline by more than US $5 000 million during the present coffee year. Regret was expressed that the economic provisions of the International Coffee Agreement, which over the years had been remarkably successful in maintaining stability in the international coffee market, had not been renewed.

12. The Council endorsed the work of the Intergovernmental Commodity Groups (IGGs), and stressed their usefulness as fora for countries to consult together on the situation, prospects and issues facing the commodities concerned, and to identify measures to improve the conditions of trade. The Council noted with interest that the Intergovernmental Group on Rice, while expressing general support for the set of guidelines for national and international action, had decided to undertake a review of the guidelines to determine whether any revision was needed. The Council was informed of the concern of banana exporting countries regarding the possible impact of the introduction of a single European Community market by end–1992 on their banana exports and of their need to maintain their current access to their traditional markets. The Council noted the efforts being undertaken within the framework of the Intergovernmental Group on Tea to improve the quality of teas entering international markets. The Council reiterated its support of the decisions taken by a number of IGGs to encourage the Director-General of FAO to approach the Common Fund for Commodities to designate those IGGs as International Commodity Bodies (ICBs) for sponsoring and follow-up projects which might be financed under the Fund's Second Account.

13. The Council welcomed the actions taken by FAO to expand coverage of non-traditional products and the initiative taken to organize regional seminars on trade prospects for tropical horticultural products. It strongly endorsed continuing FAO activities in this sector which would assist developing countries in their endeavours to diversify into new export commodities. Such activities should include technical advice and assistance in establishing crop research and development priorities, commercial production and marketing practices, market intelligence, market outlook appraisal and trade promotion. It was stressed that complementary financial assistance and improved market access was also necessary.

14. The Council expressed appreciation regarding the analysis carried out by FAO pf the economic significance of tobacco and on its long-term world market prospects. It noted the need, in view of the complexities of the issues involved, to strengthen the collection of relevant information with a view to carrying out a comprehensive and objective cost/benefit analysis of the tobacco industry. It also urged FAO to assist interested countries, on request, in the identification of viable diversification opportunities.

15. The Council, while noting that changes in agricultural policies had begun to be introduced in a number of countries, considered that it was essential to continue and intensify the reform process in the interests of improving the conditions of world agricultural trade and of achieving greater market orientation. It was essential that this process should lead to improved access for agricultural products, in particular from developing countries. A number of members highlighted the policy changes which they had already introduced to achieve these aims, despite, in some cases, adverse consequences for the rural sector. The Council recognized that, in carrying out agricultural policy reforms, it was important to take account of possible negative short-term effects on food importing developing countries. Food aid could be useful in helping to overcome these difficulties. In this regard, the Council expressed regret that food aid volumes had been reduced last year and were expected to decline further.

16. The Council stressed that the Uruguay Round of Multilateral Trade Negotiations under the General Agreemen on Tariffs and Trade (GATT) was of critical importance for achieving a fair and market-oriented agricultural trading system. In this connection, it welcomed the agreements reached by the Trade Negotiations Committee (TNC) in April 1989 which enabled the Uruguay Round negotiations to be resumed. It noted with satisfaction that the approach agreed on agriculture included both long-term elements for the reform of agricultural policies and short-term elements as well as arrangements on sanitary and phytosanitary regulations. The Council stressed the need for early progress on the agreed agenda for the remaining period of the Uruguay Round in the key areas of agriculture and tropical products in order to provide for substantial and progressive reductions in support and protection, resulting in correcting and preventing restrictions and distortions in world agricultural markets,

17. The Council noted with appreciation the technical support of FAO to the GATT Secretariat in relation to the Uruguay Round and the assistance provided to interested developing countries, to facilitate their participation in the Round. The Council also considered that FAO's work concerning sanitary and phytosanitary regulations, particularly in relation to the Codex Alimentarius Commission and the International Plant Protection Convention, was of special importance. The Council urged that FAO support to the GATT Negotiating Groups on Agriculture, Tropical Products and Natural Resource-Based Products should continue and, where necessary, be intensified.

International Conference on Nutrition ³

18. The Council considered this subject on the basis of Conference document C 89/27. It was further informed that on the basis of a joint FAO/WHO paper the Administrative Committee on Coordination (ACC) at its October 1989 session unanimously welcomed the joint initiative of FAO and WHO to convene an International Conference on Nutrition. In the view of the ACC the International Conference on Nutrition would be an important step towards increasing public awareness and in obtaining national and international commitments for appropriate strategies and actions to ensure improved nutrition worldwide.

19. The Council recognized that nutrition problems were widespread in all parts of the world and in some areas they were even worsening. It therefore stressed the need for considering nutrition problems in all developmental activities. It emphasized the urgent need for greater attention to nutrition problems at the policy level and on actions to alleviate them.

20. Most members welcomed the FAO/WHO initiative to convene the International Conference on Nutrition in 1992 or 1993 and gave their full support to it. They stressed that such a Conference would be the first global intergovernmental meeting on nutrition. As such it would not only increase the awareness of nutrition problems but would also devise strategies, policies and actions to ameliorate the main nutrition problems and mobilize resources for improving the nutritional status of ail affected people. They expressed the hope that the FAO Conference would support the proposal to convene an International Conference on Nutrition jointly sponsored by FAO and WHO.

21. Some members expressed reservations on the convening of the Conference on Nutrition. In their view such a Conference on Nutrition would only discuss problems and issues which had already been or would be addressed in a number of other meetings on nutrition such as the one organized by the International Union of Nutritional Sciences in Seoul in 1989, or in other regional conferences. It was also mentioned that the preparations for the Conference on Nutrition, in parallel to those for the 1992 Conference on the Environment, would place a heavy strain on limited FAO resources.

¹ C 89/12; C 89/12-Corr.1 (English only); CL 96/PV/1; CL 96/PV/9

² CL 96/6; CL 96/PV/8; CL 96/PV/10.

³ C 89/27; CL 96/PV/8; CL 96/PV/10.