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I. INTRODUCTION - PROCEDURE OF THE SESSION
I. INTRODUCTION - QUESTIONS DE PROCEDURE
I. INTRODUCCION - CUESTIONES DE PROCEDIMIENTO

CHAIRMAN: Mr. Director-General, distinguished members of the Council and their associates, distinguished Observers, members of the Non-Governmental Organizations, officers of FAO, Ladies and Gentlemen: I wish to extend to you all a very warm welcome today. The weather also seems to extend this welcome with the bright sunshine which we see outside.

This Eighty-fourth Session of the Council is a very short one of three days, and we are happy this morning that the Director-General, Dr. Saouma, is with us. We realize he will be exceedingly busy these days in connexion with the preparation for the Conference, but we shall appreciate his presence whenever he can be here.

I would also like to mention that we have Mr. Henderson here who is also going to help as Assistant Secretary-General. As you may recall, last time it was Mr. Sole-Leris, and we welcome Mr. Henderson in this position.

There are no new members of this Council at this session. However, as members of the Council know, 17 members will vacate their seats at the end of the forthcoming Conference. I am also happy to inform the Council that in addition to Antigua and Barbuda and Belize, also Saint Christopher and Nevis and Vanuatu have applied for membership in the Organization, and these four applications will be voted on by the Conference next week.

Traditionally, of course, this particular session is a short one and essentially devoted to the preparation for the Conference. We shall meet for only 3 days, but as you will notice, our agenda is full, it is a rather heavy agenda, almost like our earlier ones for a two-week meeting. I there-fore seek your cooperation and your understanding in ensuring that we will be able to complete the work given each day in the Order of the Day; whatever we have anticipated, if we can complete it and go one step forward, it would be very helpful for the simple reason that we cannot extend our session on Friday, because the Friday before the Conference is reserved for the Nominations Committee, so we have to complete our work on Thursday, and if sessions go on, the only possibility is to have evening or night sessions if we want to complete the work. I would now like to go on to the Order of the Day which has been circulated, and before we take up the adoption of the Agenda and Timetable, I would like to give the floor to the Director-General to add his words of welcome on behalf of the Organization.

LE DIRECTEUR GENERAL: Je vous remercie, Monsieur le Président. Je voudrais à mon tour souhaiter la bienvenue à tous les participants et participantes à cette quatre-vingt-quatrième session du Conseil de la FAO. Comme vous venez de le dire, votre ordre du jour est très chargé, et vous ne disposez que de trois jours seulement. Vous noterez toutefois que certains sujets seront discutés à nouveau par la Conférence.

Je voudrais me permettre d'attirer votre attention sur certains points de l'ordre du jour, par exemple le point 9 qui est certainement le plus importanti il s'agit du Programme de travail et budget pour 1984-85. J'espère que le Conseil pourra sur ce point faire des recommandations claires et nettes à la Conférence puisque ce sujet a déjà été discuté par le Conseil en juin. Le Comité du programme s'est penché à deux reprises, dans deux sessions, sur ce sujet et maintenant le Conseil va pour la seconde fois aussi revoir la question à la lumière du rapport du Comité du Programme et du Comité des finances. Le point 10 Examen du Programme ordinaire sera également discuté de nouveau par la Conférence.

J'attire aussi votre attention sur le point 8 qui est un point important. Il sera également discuté par la Conférence, par la Commission II, mais nous serions très contents de recevoir vos commentaires

sur l'ensemble des propositions contenues dans le rapport du Directeur général sut les ressources phytogénétiques.

Pour le point 3.2 - Election du Comité des nominations, il s'agit surtout, pour ce comité, de proposer les noms des trois vice-présidents et également des membres du bureau de la Conférence et de les recommander à celle-ci. Comme vous le savez, le Conseil a déjà recommandé le nom d'une personnalité pour la présidence de la Conférence. Il s'agit du ministre de l'agriculture des Etats-Unis. Traditionnellement, les vice-présidents sont aussi des ministres de l'agriculture. Je voudrais attirer votre attention sur le fait que la Conférence dure trois semaines et qu'il faudra qu'à n'importe quel moment il y ait soit le président soit un vice-président pour assurer la présidence.


Vous comprenez très bien qu'il n'est pas possible, pour la personne que vous avez choisie comme président, de passer trois semaines sans discontinuer à Rome. Il devra être absent pendant une certaine période et c'est pour cela que je vous recommande instamment, et recommande au Comité des nominations, de s'assurer que parmi les trois vice-présidents il y en aura au moins un qui sera présent durant la seconde semaine de la Conférence.

Je dis cela parce qu'en 1979, à l'occasion de la Conférence mondiale sur la réforme agraire et le développement rural, le président a dû quitter la Conférence pour des raisons personnelles, c'était le président Caldera et nous nous sommes trouvés sans vice-président. Il avait dû quitter déjà la Conférence après la première semaine. J'espère que nous ne nous trouverons pas dans une situation semblable cette fois-ci et que les vice-présidents seront choisis de telle façon qu'au moins l'un des trois sera présent durant toute la seconde semaine de la Conférence.

De même pour la troisième semaine, le dernier jour en particulier, il faut qu'il y ait un vice-président présent au cas où le président devrait s'absenter.

Je n'ai plus rien à ajouter. Je vous souhaite plein succès dans vos travaux, mes collègues et moi-même restant à votre entière disposition.

1. Adoption of the Agenda and Timetable
1. Adoption de l'ordre du jour et du calendrier
1. Aprobación del programa y del calendario

CHAIRMAN: Thank you very much Mr. Director-General.

You have the Provisional Annotated Agenda, document CL 84/1, and the Provisional Timetable, CL 84/INF/1. I should however point out that we have to add two more items on the Agenda. First there will be a third sub-item 16.3 under item 16. There are only two sub-items now but we will add one more making three, and this is an information item and should read "Changes in Representation of Member Nations on the Programme and Finance Committees", document CL 84/INF/15.

Also under item 17, that is "Any Other Business" there will be one item 17.1. This relates to the amendments to Staff Regulations (Dependency Allowance). "Amendment to Staff Regulations (Dependency Allowance)" document CL 84/8.

You will also have noticed there are a number of Conference documents listed for us, and on behalf of the Secretariat I would like to request you to keep them for the forthcoming Conference in order to avoid a run on stocks available for distribution. The Provisional Annotated Agenda with the new sub-items 16.3 and 17.1 as well as the Provisional Timetable are now open for discussion and adoption.

Are there any comments on the Agenda and the Timetable? Well I hear no particular comments. Shall I take it we adopt the Agenda and the Timetable? Thank you very much. The Agenda and the Timetable are adopted.

2. Election of Three Vice-Chairmen, and Designation of Chairman and Members of Drafting Committee

2. Election de trois vice-présidents et nomination du président et des membres du Comité de rédaction

2. Elección de tres Vicepresidentes, y nombramiento del Presidente y los Miembros del Comité de Redacción

CHAIRMAN: First, we will go to the election of three Vice-Chairmen for this particular session of the Council.

J.R. LOPEZ PORTILLO ROMANO (México): El Grupo Latinoamericano y del Caribe se honra en presentar a la distinguida consideración de este Consejo la candidatura de Don Alfredo Pinoargote Cevallos, representante permanente del Ecuador ante la FAO, Embajador de su país ante el Gobierno italiano.

El Señor Embajador Pinoargote, como todos ustedes saben, ha participado intensamente en anteriores trabajos de este Consejo y de esta Organización, por lo cual tiene amplia experiencia y sin duda por su calidad profesional y por sus distinguidas cualidades será de enorme ayuda a usted, Señor Presidente, para conducir las labores de este Consejo.


TESSEMA NEGASH (Ethiopia): It gives me personally, and my delegation as well, great pleasure to endorse and second the nomination of the Ambassador of Ecuador as Vice-Chairman of the Council.

Y.A. HAMDI (Egypt) (original language Arabic): I have pleasure in seeing you here chairing our meeting, Mr Chairman, and we would like to second the proposal of Ecuador as Vice-Chairman. We are quite sure, Mr Chairman, that the personal qualifications of His Excellency the Ambassador of Ecuador will make it possible for this Session of the Council to be successful.

CHAIRMAN: Shall I take it that Mexico has proposed, and the delegates of Ethiopia and Egypt have seconded, the nomination of the Ambassador of Ecuador, His Excellency Alfredo Pinoargote Cevallos. I take it this has your approval. Thank you very much. You have the Ambassador of Ecuador as the Vice-Chairman. I now give the floor to the delegate of the United Kingdom.

P.S. McLEAN (United Kingdom): It is a great pleasure for my delegation to propose as the Second Vice-Chairman Ambassador Féquant, the Ambassador of France to FAO. France has always been a very active member of this Council and of its subsidiary bodies, and Ambassador Féquant has become very well known to us during his time here in Rome as Ambassador to the Organization. I believe the Council will share my view that he will very ably assist you, Mr Chairman, in the work of this short Council.

G. BULA HOYOS (Colombia): La Delegación de Colombia se complace muy sinceramente en apoyar la propuesta que ha hecho el distinguido representante del Reino Unido para que nuestro distinguido colega y amigo el Embajador Féquant, de Francia, sea uno de nuestros Vicepresidentes.

CHAIRMAN: The delegate of the United Kingdom has proposed and the delegate of Colombia has seconded Ambassador Féquant, Ambassador of France.

TESSEMA NEGASH (Ethiopia): In the spirit of good neighbourly relations I would like to support and second the nomination of the Ambassador of France, who is sitting next to me, for the position of Vice-Chairman of the Council.

CHAIRMAN: I take it this has the unanimous approval that we have Ambassador Féquant of France as the Second Vice-Chairman.

Now for the third position I am told there are still some discussions going on and we will take it up in the afternoon for the Third Vice-Chairman, so we have the First Vice-Chairman, the Ambassador of Ecuador, Alfredo Pinoargote Cevallos, and then we have Ambassador Féquant of France as Second Vice-Chairman. We will elect the third one this afternoon.

For the positions in the Drafting Committee we have so far received from the Group of 77 the following nominations: - Asia: India, Pakistan and Thailand; Africa: Congo and Ethiopia; Near East: Iraq and Egypt. Mexico and Cuba will represent Latin America. We need the names of two members from Europe.

New Zealand will represent the Southwest Pacific in the Drafting Committee and the United States of America will represent North America.

Let me read out again the names of the members of the Drafting Committee. Asia: India, Pakistan and Thailand. Africa: Congo and Ethiopia. Latin America: Mexico and Cuba. Near East: Iraq and Egypt. Southwest Pacific: New Zealand. North America: USA.

I hope the European group will give their names as soon as possible because the Drafting Committee will have to start work straight away; as you see, it is a three-day meeting and so they will have to start as soon as possible. The Chairman of the Drafting Committee will be elected by the members of the Drafting Committee.


A. PINOARGOTE CEVALLOS (Ecuador): Señor Presidente, solamente para agradecer esta honrosa designación a mis colegas del Consejo. El Ecuador es fundador de la FAO, un país de clarísima vocación agrícola, y esta designación evidentemente lo compromete a luchar con mas ahínco aun por la gran causa de la FAO: la erradicación del hambre.

CHAIRMAN: Thank you very much. On behalf of the members of the Council and myself I should like to add my congratulations to the two Vice-Chairmen. We are looking forward to their advice and
counsel in the work of this Session.

II. ACTIVITIES OF FAO
II. ACTIVITES DE LA FAO
II. ACTIVIDADES DE LA FAO

4. Report of the Fifty-fourth Session of the Committee on Commodity Problems (Rome, 3-7 October 1983)
4. Rapport de la cinquante-quatrième session du Comité des produits (Rome, 3-7 octobre 1983)
4. Informe del 54° período de sesiones del Comité de Problemas de Productos Básicos (Roma, 3-7 de octubre de 1983)

CHAIRMAN: May I request the Chairman of this Committee, Mr. Carandang of the Philippines, to come to the podium? As you have seen, Mr. Carandang succeeded Mr. de Freitas as Chairman of this Committee.

H. CARANDANG (Chairman, Committee on Commodity Problems): As Chairman of this Committee I have the honour to present to you the report of the Fifty-fourth Session of the Committee on Commodity Problems held from 3 to 7 October of this year. The meeting was attended by 72 governments, and four member nations of the Organization and the Holy See participated as observers. Twelve international organizations took part.

The Committee considered the complex problems facing the trade in agricultural commodities. It was not possible, of course, to reach consensus on the very urgent and difficult issues but I can assure you that there was a frank and free interchange of views and this has contributed to a better understanding of the concerns of various governments and has permitted the Committee on Commodity Problems to identify some of the areas of agreement and some types of action that could be taken by the Committee and those concerned. There are a number of matters that have to be brought to the attention of this Council by the Committee and they are contained in CL 84/6, I suppose it is on page (ii).

The Committee assessed the world commodity situation and pointed out that in 1981/82 there has been a distinct deterioration in the world economy, including trade in agricultural commodities. According to FAO estimates the value of world exports of agriculture, fisheries and forestries declined by about 8 percent following a smaller decline the preceding year. The Committee was particularly concerned that there was a steep fall in the developing countries' export trade and receipts from agricultural, fishery and forestry products. The returns had fallen for the second successive year in 1982 by 10 percent and hence had further aggravated their balance of payments problems. The Committee pointed out that these recent difficulties in world trade had been superimposed on the long-term trend witnessed in many agricultural commodities.

In this connexion the Committee identified three main issues, namely the slow growth in overall agricultural trade, the decline in many commodity prices in real terms and the relatively poor performance of the developing countries. The Committee agreed that the slow growth of agricultural trade had been aggravated by protectionist policies especially in many developed countries. The overall problem remained of how national policies including concern for food security could best be reconciled with international objectives in trade, particularly the aim of stimulating rapid growth of agricultural exports of developing countries.

The Committee agreed that in the light of these considerations the ultimate goal for improving the agricultural trade system continued to be a progressive and multilateral liberalization of markets with special emphasis on enhancing the purchasing power of developing countries.

In this connexion the Council may wish to note the specific suggestions that are indicated in paragraphs 19 and 23 on the possible lines of action. The Committee also reviewed the developments in protectionism in agricultural trade bearing in mind the recommendations of the Conference in resolution 2/79 on this subject. This is the second review of the Committee of this resolution. The Committee considered the policy developments during the last few years and also the action taken in the various fora.


The Committee expressed disappointment that progress had not been faster in liberalizing trade in agricultural products and in limiting the use of export subsidies and other export aids.

Concern was also expressed over the longstanding protectionist policies that were being continued but that there were some signs that new protectionist policies were being introduced and also some new restrictive measures. The Committee hoped that with the strengthening of the apparent economic recovery there would be progress in trade liberalization.

In this context it was agreed that special attention should be given to the possibilities of liberalizing trade in tropical products and stressed that intensified efforts should be made to reduce tariff escalation applied to semi-processed and processed products.

I should like also to point out that during the meeting the delegate of Thailand had proposed that FAO should convene a group of experts to develop guidelines on various protectionist measures such as national agricultural support, tariff and non-tariff barriers and export subsidies. This proposal was, supported by some delegates while some other delegates suggested that governments should consider the feasibility of developing such guidelines in the Committee on Trade in Agriculture. After some discussion the Committee agreed it would be appropriate for it to keep progress under review and if necessary to consider the Thai proposal at some future session.

The Committee decided to keep under regular review the developments in protectionism and asked the Secretariat to prepare for consideration at its next session a further review of the follow-up action to Conference resolution 2/79.

The CCP also considered the activities in its biennium of the subsidiary bodies, that is the various intergovernmental commodity groups, the nine commodity bodies and the Committee on Surplus Disposal which is based in Washington. This review is contained in sections V and VI of the report. It may be noted that the Intergovernmental Group on Oilseeds, Oils and Fats had a detailed discussion on the EEC Commission's proposal to impose a tax on domestic and imported oils of animal and vegetable origin except butter, to be effective on 1 January 1984. The Committee's report on this is contained in paragraphs 66-71. There you have the views of those who opposed the tax, the views of the EEC, and I should like to call your particular attention to the appeal made by the Committee as a whole regarding this, which is indicated in paragraph 71; and here, of course, as delegate of the Philippines, I would have given stronger emphasis to this but as the Chairman of the Committee I should merely like to draw attention to the agreement reached in the Committee.

The CCP also reviewed the outcome of UNCTAD VI held in June 1983 at Belgrade as well as other policy developments relating to agricultural trade issues since the Committee's Fifty-third Session in 1981. On the whole, the Committee recognized that while the results of UNCTAD VI were not fully satisfactory it was essential to continue the dialogue between developed and developing countries, especially in the field of commodities.

The Committee also expressed regret that there has been a long delay in bringing the common fund into operation and urged that governments which had not ratified the agreement do so at an early date so that it could come into operation by 1 January 1984.

The Committee also stressed the importance of ECDC and on this subject the Committee took note of the recommendations of the expert consultations on the ways to foster agricultural trade through ECDC which was convened by the Director-General in September 1983. The Committee expressed its hope that there would be an effective follow-up to this Committee's meeting.

The CCP generally supported the FAO commodities programme for 1984/85 including the proposed schedule of meetings and subsidiary bodies. It placed high priority on FAO's global commodity intelligence activities together with associated analytical work and stressed that FAO's intergovernmental commodity groups should continue to provide a valuable mechanism for intergovernmental consultation on the commodity situation and prospects as well as on policy matters to improve the conditions of trade. The Committee also underlined the practical usefulness of the assistance provided to the developing countries through the CPCL (Commodity Policy at the Country Level) programme, and agreed it should focus more on the needs of the least developed countries and on training. It noted with satisfaction that the Secretariat was able to complement and not duplicate on other organizations, although this matter has always to be kept under review.

In conclusion, the session of the Committee on Commodity Problems has provided a very good opportunity for member countries to consult with one another on the agricultural trade prospects and problems and to underline the areas where action is needed to overcome the present difficulties in agricultural trade, especially those faced by the developing countries.

The report of the CCP is before the Council and we hope that the Council will approve this report and endorse its decisions and recommendations.


CHAIRMAN: Thank you very much. The floor is now open.

A. A. MALEK (Liban) (langue originale arabe): A propos du point 4 de l'ordre du jour: Rapport de la cinquante-quatrième session du Comité des produits, je voudrais rendre hommage aux efforts déployés par ce Comité et par la FAO pour le suivi de toutes les questions auxquelles le monde doit faire face pour la production et le commerce des produits agricoles.

Bien entendu, la FAO, ainsi que le Conseil international du blé et le Conseil international du sucre, continuent à être les seules instances qui devraient traiter des problèmes des produits au niveau mondial. Nous voulons donc rendre hommage au Comité des produits pour les efforts qu'il déploie et pour l'excellent rapport qui nous est soumis et qui résume certaines des activités entreprises par ce Comité.

Je saisirai cette occasion pour formuler les commentaires de ma délégation sur ce rapport.

Nous constatons tout d'abord avec la plus grande préoccupation la détérioration des termes de l'échange en 1982, alors que la première moitié de 1983 a enregistré une certaine amélioration puisque la détérioration du prix de ces produits s'est quelque peu arrêtée.

En second lieu, nous sommes d'accord avec le Comité pour dire que la nouvelle notion de sécurité alimentaire, telle qu'elle a été adoptée par la FAO sur proposition du Directeur général, est étroitement liée aux questions traitées par le CPA, puisque tout ceci s'inscrit dans le domaine général de la sécurité alimentaire mondiale.

Ma délégation regrette les pratiques de protectionnisme exercées par certains pays développés face aux exportations des pays en développement, ce qui, bien sûr, n'améliore pas la situation des pays en développement. Nous lançons donc un appel aux pays développés pour qu'ils limitent ce protectionnisme qui n'a aucune justification et ce afin de promouvoir les échanges internationaux et d'augmenter les recettes d'exportation des pays en voie de développement.

J'espère que les pays développés, en assouplissant les barrières protectionnistes, ne le font pas dans un esprit de charité mais au contraire dans le respect du droit que les autres pays ont de vivre.

Nous formulons aussi l'espoir, conformément à ce qui a été dit par le Comité des produits, que le Fonds commun entre en exercice le plus tôt possible, et nous espérons que les pays qui n'ont pas ratifié cette convention le feront au plus tôt. Nous regrettons également que la CNUCED VI n'ait pas abouti aux résultats escomptés. Nous espérons néanmoins que le dialogue entre pays développés et pays en développement se poursuive surtout dans le domaine des produits et de la Convention mondiale du blé.

Enfin, ma délégation apprécie la coopération entre la FAO et les instances internationales qui s'occupent des produits de base; je citerai la CNUCED, le Conseil international du blé et le Conseil international du sucre. Nous espérons que cette collaboration se poursuive dans l'intérêt des parties concernées.

Sra. Da. E. HERAZO DE VITI (Panamá): Antes de iniciar nuestra intervención, deseamos reconocer el buen desempeño del Sr. Carandang como Presidente del Comité de Problemas de Productos Básicos. Con relación al tema 4, Informe del 54 Período de Sesiones del Comité de Problemas de Productos Básicos, la delegación de Panamá cree conveniente formular los siguientes comentarios. En la parte II del Informe relativo a la situación mundial y las perspectivas de los productos básicos, destacamos lo dicho en el Comité de Problemas de Productos Básicos, al reconocer con preocupación que, en esencia, los países en vías de desarrollo, no han registrado mejoramiento sustancial y sostenido en sus economías y comercio, así como que las perspectivas económicas, a corto plazo, de muchos de estos países, siguen estando ensombrecidas por el empeoramiento de las relaciones de intercambio y problemas persistentes de endeudamientos; unido todo esto, a restricciones constantes y severas al acceso a los mercados, y al desplazamiento de las exportaciones agrícolas de mercados tradicionales.

Así, tenemos que la relación de intercambio de los productos agrícolas se redujo en un 11% entre 1981 y final de 1982. Además de esta situación, quedó claro, en el recién pasado período de sesiones del CPPB, que el lento crecimiento agrícola se había visto agravado por políticas proteccionistas, especialmente en muchos países desarrollados, así como por la utilización de políticas de sostenimiento indeterminado, que a menudo, favorecían la colocación de la producción excedente en los mercados internacionales con la ayuda de subvenciones y otras ventajas para la exportación, reconociéndose claramente que la esencia del problema sigue siendo, por una parte, el de lograr la


conciliación del mejor modo posible, entre las políticas nacionales, incluyéndose aquí la preocupación sobre la seguridad alimentaria así como el cuestionado y negativo papel que juegan las empresas transnacionales en el comercio de productos alimentarios y agrícolas. Antecedentes ejemplares recientes sobre este aspecto, confirman esta aseveración, muy en particular, en cuanto se refiere al área geográfica al cual pertenece Panamá.

Con relación a la forma y modo en que la FAO puede contribuir a mejorar la atmosfera en que se desarrolla el comercio de productos agrícolas, esta delegación se ha pronunciado en anteriores oportunidades, y lo hace en esta, en el sentido de que los distintos grupos intergubernamentales tienen y deben jugar un rol cada vez más importante a este respecto, ya sea mediante el logro y establecimiento de acuerdos extraoficiales sobre productos, así como mediante el perfeccionamiento, actualización y aplicación de normas para la cooperación nacional e internacional, lo mismo que el redoblar esfuerzos tendientes al logro de convenios internacionales, que, como ocurre con los esfuerzos que a este respecto hacemos en el banano, se determina claramente la participación de los países, tanto exportadores como importadores, de modo que se garantice la mejor forma de ajustar la oferta a las necesidades de la demanda y mejorar, de manera estable, la situación de los precios; así como el de contemplar en un convenio de este tipo, disposiciones relativas a la liberalización del comercio, el desarrollo de nuevos mercados, el trato de proveedores, preferencias, la limitación de importaciones procedentes de países no miembros, el incentivo a la elaboración y la atención al importante aspecto que tiene que ver con la investigación y experimentación.

Por lo que concierne al proteccionismo de productos alimentarios y agrícolas, nuestra delegación considera que una simple paralización y establecimiento de las barreras comerciales por parte de los países desarrollados viene a resultar insuficiente para el logro del objetivo fijado en la Resolución 2/79 de la Conferencia.

Igualmente, creemos en la necesidad de intensificar esfuerzos que tiendan a reducir la progresivi-dad arancelaria aplicada a productos semielaborados y elaborados. Por otra parte, creemos en la importancia que debe tener, cada vez más, la cooperación económica entre países en desarrollo en la solución de estos problemas, en general y en particular, para que se logre compensar las limitacio-nes comerciales en los mercados.

Por todo lo que hemos expuesto es por lo que nos pronunciamos en el sentido de que el CPPB siga examinando regularmente los nuevos acontecimientos en materia de proteccionismo que afecten o puedan afectar las perspectivas comerciales de los productos agrícolas.

Sobre el importante aspecto que tiene que ver con los principales problemas del comercio del azúcar, así como la estabilización cL este producto, apoyamos la conclusión en el sentido de reconocer la necesidad de establecer políticas nacionales e internacionales coherentes en lo que respecta al azú-car y otros edulcorantes, y sostenemos que la forma más efectiva para alcanzar este objetivo, es la conservación de un convenio internacional del azúcar, convenio este sobre el cual, como ocurre con el del banano, Panamá tiene un particular interés.

A.F. MACHADO DE FREITAS (Brazil): In considering the document which contains the Report of the Committee on Commodity Problems my delegation wishes to draw the attention of the Council to a few topics which it believes are essential.

First I would like to refer to Part II of the Report, which deals with the present and future world commodity situation. The Committee clearly recognised a very disquieting picture of the world situation with regard to a number of problems which directly affect international trade of agricultural products of the developing countries, and among them the deterioration of the terms of trade of agricultural exports, a decline in prices of agricultural products, limited access to the markets of the industrialised countries and a consequent fall in export earnings.

My delegation fully endorses the agreement reached in the Committee that the key to improve the agricultural trading system is a progressive and multilateral liberalisation of markets, taking into account the special need to increase the purchasing power of the developing countries.

We need not recall at this moment that the world is living today in an unprecedented crisis with respect to foreign debt accumulated in the developing countries, particularly in Latin America. There is only one rational way of facing this problem. This is to create conditions for providing foreign exchange earnings through the lateral countries. The Committee unequivocally pointed to the right direction when it advocated greater access to the markets of the developed countries and at the same time an adequate price for the agricultural products of the developing nations. In this regard my delegation wishes to endorse again the important role reserved for FAO in the effort to improve the agricultural trade environment.

Brazil is convinced of the usefulness of the inter-governmental commodity groups and of the good results of the formal commodity arrangements and policy guidelines agreed by them.


The discussion of this part of the Report is closely connected to its next session, which refers specifically to protectionism in agricultural trade and the follow-up of Conference Resolution 2/79.

My delegation supports the view that very little progress has been obtained in liberalizing trade in agricultural products. My government sees continuing and severe restrictions on market access and it associates itself with those who expressed concern over the limited results agreed in GATT in such a fundamental matter to the developing countries, especially if account is taken of their urgent need to increase their foreign currency earnings in order not only to meet urgent obligations towards the international financial community, but also to import the goods and services required by their development needs.

My delegation is particularly worried by the fact that semi-processed and processed agricultural products of developing nations are the object of increasing restrictions in the markets of richer countries. Tariff escalations on those products have an extremely negative effect on export receipts and on the expansion of domestic industries in developing countries. My delegation pleads for that greater effort in the direction of reduced tariffs on semi-processed and processed agricultural products from developing countries.

Finally, my delegation wishes to reiterate that the promotion of agricultural trade among developing countries is an adequate field to be covered by ECDC. While recognising that much has already been accomplished in this area in the last decade, we believe that the developing countries can still achieve much better results in the years to come. In this respect I wish to thank the Director-General for the successful meeting of the export consultation on this matter that he recently convened in Rome. My delegation is convinced that such efforts are bound to produce beneficial effects on the foreign trade of the developing countries and thinks that it should be encouraged.

In conclusion, my delegation wishes to associate itself with the expression of appreciation for the work of Mr. A.G. Leeks, who is leaving our company. My delegation regrets his early departure. As a former Chairman of this Committee, and a member of the different inter-governmental bodies, I can witness to the dedication and efficiency of Mr. Leeks. My delegation wishes a happy future to him.

G. BULA HOYOS (Colombia): Al referirnos a la labor del Comité de Problemas de Productos Básicos, la delegación de Colombia desea reconocer la importante y valiosa tarea cumplida al frente de la presidencia de ese organismo en el período pasado, por nuestro colega y amigo el Sr. A.F.M. de Freitas, del Brasil, cuya reciente declaración demuestra la competencia con que el participa en estas actividades. Estamos igualmente reconocidos al Sr. Carandang, de Filipinas, por la forma dinámica y eficaz como presidió el Comité en sus reuniones pasadas y por la excelente presentación que ha hecho esta mañana.

Como ya lo dijo la distinguida Embajadora de Panamá al estudiar este Informe, sin duda resalta el hecho de que la situación y las perspectivas de los productos básicos son inciertas; el panorama es negativo, oscuro y está afectado por hechos conocidos, como son las barreras proteccionistas, las limitaciones arancelarias o no arancelarias, los cupos a las exportaciones, las exigencias de calidades, las subvenciones y todas las formas de ayuda que han afectado artificialmente el comercio de productos básicos. Esos hechos conocidos se agravan ahora como lo dice el párrafo 16 por "las recientes dificultades del comercio mundial".

Creemos que este Consejo debe registrar en su informe con pesar el lento crecimiento del comercio agrícola que se ha agravado por las políticas proteccionistas de muchos países desarrollados, como se dice en el párrafo 17, y en esto estuvo de acuerdo todo el Comité. Esto nos lleva a la sección III del documento, para proponer también que el Consejo señale con preocupación la lentitud en la liberalización del comercio. Creemos que éste es uno de los factores negativos que influyen con mayor incidencia a la situación a que nos referimos. El párrafo 27 habla de las restricciones constantes y severas a que está sometido el acceso a los mercados de los productos de exportaciones de los países en desarrollo y el desplazamiento que han sufrido las exportaciones agrícolas de nuestros países con grave deterioro de nuestras economías.

Estamos de acuerdo con el colega de Brasil en que es necesario liberalizar mercados, facilitar el acceso de nuestros productos a esos importantes mercados para garantizar a los países en desarrollo productores de alimentos, cupos de exportación con volúmenes estables y precios remunerativos que les permitan planificar su producción.

Queremos apoyar, también, lo que dice el colega y amigo del Líbano, sobre la importancia de que la FAO continúe intensificando su cooperación con la UNCTAD, el GATT y todos los organismos que igualmente están dedicados a los estudios de los problemas de productos básicos, como lo demuestra el párrafo 124, la FAO en esas actividades no duplica las tareas que se llevan a cabo por otras organizaciones, sino que las complementa; de manera que merecen nuestro pleno apoyo.


La delegación de Colombia considera que es importante que el Consejo señale también la decepción de los países en desarrollo sobre los resultados de la UNCTAD VI, que tuvo lugar en Belgrado; en la declaración de Buenos Aires habíamos cifrado muchas esperanzas, que desafortunadamente vimos desaparecer.

Sobre el programa de la FAO en materia de productos básicos, la delegación de Colombia desea reiterar el apoyo a la manera como la Dirección de Productos Básicos y Comercio de la FAO viene realizando sus labores. Hemos registrado con complacencia una creciente efectividad en estas labores, tal como lo habíamos venido solicitando en el pasado; ahora las labores de la FAO no se limitan a análisis fríos y pasivos, sino que tratan de identificar las causas de los problemas y también de indicar las posibles soluciones de esos problemas; y esto nos parece muy adecuado en una organización como la nuestra. El Comité del Programa ya apoyó el programa de la FAO en materia de productos básicos.

Y queremos reiterar, como lo ha dicho nuestro colega del Brasil, el apoyo y el aprecio positivo que la delegación de Colombia siente por la labor de los distinos grupos intergubernamentales. Creemos que la FAO debe continuar e intensificar su labor en el campo de los productos básicos. En el párrafo 120 se destaca la utilidad práctica de la asistencia que viene ofreciendo la FAO a los países en desarrollo para formular y ejecutar sus políticas nacionales en materia de productos básicos. Deseamos, una vez más, confirmar nuestro apoyo, como lo hicimos en el Comité, a las propuestas prácticas y efectivas hechas por la delegación de Tailandia y consideramos que la FAO debe seguir presentando a las futuras reuniones del Comité nuevos análisis acerca de cómo se está cumpliendo la Resolución 2/79 de la Conferencia.

Como algunos de nuestros colegas recordarán, la delegación de Colombia ha dado siempre notable importancia a la actitud de la Comunidad Económica Europea en el campo del comercio de los productos básicos. Hemos asumido esta actitud por la importancia que ese destacado organismo tiene para nuestros países y el Gobierno de Colombia se complace en reconocer que algunos pasos en buena dirección está dando la Comunidad Económica Europea. Particularmente, en diciembre de este año, se va a firmar en Bogotá, en la capital de Colombia, un acuerdo entre la CEE y los cinco países que integran el Grupo Andino, uno de ellos es Colombia. Esperamos que los beneficios de ese acuerdo se extiendan pronto a otros países en desarrollo, no sólo en nuestra área, sino también de otras regiones del Tercer Mundo. Ojalá que otros países desarrollados, importantes también, que ahora son nuestros aliados coyunturales en la lucha contra el proteccionismo, aliados coyunturales como les llamamos en el Comité, sigan el buen ejemplo de la CEE y permitan la reivindicación de los países en desarrollo en el campo del comercio de productos básicos.

Queremos sumar nuestra voz a la del colega del Brasil para manifestar que la delegación de Colombia piensa que el Consejo debe recoger con viva simpatía el párrafo 126 del Informe del Comité, en el cual se hace un reconocimiento y se expresa la gratitud merecida al Sr. Leeks quien por treinta y un años ha servido a nuestra Organización y que se va a retirar a finales de 1983. Todos los que le conocemos apreciamos su labor positiva, particularmente en las actividades del Comité de Problemas de Productos Básicos.

K.C.S. ACHARYA (India): We have gone through this Report with much interest. It has covered a number of important issues in the commodities sector, namely, it has reviewed the outlook for world commodities situation, protectionism in agricultural trade, selected commodity issues, viz., competition from synthetic substitutes, sugar trade, etc., and international action relating to agricultural commodities including developments in UNCTAD and GATT.

One of the disturbing developments in the world commodity economy has been the total collapse of commodity prices. This price fall has been of major proportions, driving down many prices to their lowest levels in real terms for half a century. Prices of primary commodities fell on an average by 16 percent during 1980 and 1981, and by a further 17 percent between the first three quarters of 1981 and the corresponding period in 1982. The collapse of commodity prices has left a severe impact on the earnings of the developing countries, and consequently the development of these countries and the loss in their export earnings has been very significant. It has been estimated that there was an $8 billion decline, from 74 billion in 1980 to 66 in 1981. While the prices of commodity exports from developing countries have fallen steeply, there has been a sharp upward movement in the prices of essential imports into these countries from the developed economies with the results that the terms of trade have gone against the developing countries. The commodity terms of trade of non-oil-exporting developing countries, which worsened marginally from the 1960s to 1978, had deteriorated substantially since then, between 1978 and 1980, and by a further 12 percent in 1981.

The short-term commodity outlook is characterized by the slow industrial growth in the developed market economies and the associated stock levels. The long-term outlook is characterized by the trend towards greater self-sufficiency in foods in certain developed market economies as a result of high levels of support to domestic farm prices. There is also the trend of increasing substitution of industrial materials, a process that may well continue in the coming years. The


prognosis is that the 1980s may well be a period of considerable commodity price fluctuations, since the current period of abnormally low real prices will inevitably have adverse consequences for production capabilities in the world's primary commodity sector.

The world's commodity situation is quite gloomy and it will have implications for us. We must devise international policy measures to deal effectively with the prices in the world commodity economy. Already programme and mechanisms, such as integrated programme for commodities and the Common Fund for commodities, have been thought of and are being pursued in UNCTAD. We are giving full support to the innovative programme and mechanisms to restructure the world commodity economy.

The international community adopted the integrated programme of commodities of UNCTAD IV in 1976. This is a programme of global action to make the market structure in international trade and commodities of interest to developing countries on the basis of mutual advantage and equitable benefits, taking into account the interests of all States, particularly those of the developing countries. Under these programmes, there will be a Common Fund which will be the key and an integrated element and it serves to contribute to the financing of international stocking measures for stabilizing prices as well as to finance the commodity development measures such as research and development. Our interest lies mainly in commodity development measures. Unfortunately, the Common Fund has not come into force because it has not been ratified by the required number of countries. India has signed the agreement, and we have accepted it. Our contribution to the Fund would be of the order of $2.4 million. We have also made a commitment to UNCTAD for making a voluntary contribution of $5 million. India's interest is to give a push at such fora like the FAO by pursuading the countries which have not so far ratified the Common Fund Agreement to do so quickly so that this Fund becomes operational without delay. Similarly, we have to think of stabilization mechanisms on a global basis.

We are also disappointed at the outcome of UNCTAD VI. We would plead for an expeditious conclusion of these international commodity agreements. Our agricultural exports occupy a significant place in our total exports, as indeed they do in the case of all developing countries. My delegation would like to place particular emphasis on increasing interdependence of developing and developed countries. The incipient process of economic recovery in some of the developed countries can only be sustained and strengthened through increase in the commodity trade of the developing countries through a process of trade liberalization and lowering of the tariffs and non-tariff barriers.

Finally, permit me to express my felicitations to the Chairman of the Committee as well as to Mr. Leeks, Director of the Commodities Division, for the excellent work produced in the Report, with which we associate ourselves wholeheartedly.

R.B. RYANGA (Kenya): I will come straight to the point. Document CL 84/6 is an extremely useful document and the CCP should be commended upon it. We also thank the CCP Chairman Dr. Carandang for his very lucid introduction. We support the major thrust of the document, and our comments are only intended to elaborate on this support.

The commodity situation as outlined in the first 15 paragraphs reflects the position which in any case has been prevailing for some time. Both groups, developed and developing, are in trouble, but the developing countries more so. It is quite obvious that urgent action is necessary, first of all to get the world economy out of the mess in which it is, but secondly, to ensure that the distortions that characterize international trade today are eliminated. Protectionist policies encourage production where it is not really advantageous to do so, and it prevents the shift of production to those places where it is more suited and also where it would do more good to more people.

Paragraph 17 argues that the slow growth in agricultural trade stems in part from already relatively high per caput consumption levels of certain commodities, such as beverages, coupled with a low or even negative population growth, that is, in the developed countries. My delegation finds this argument very interesting, primarily because one often hears about countries being exhorted to devalue their currencies in order to boost exports of the same products which consumption has already reached the saturation point.

Now, obviously there might be some other reasons, and even we can name a few, but it is equally obvious that sometimes this advice and some other advice that has been quoted in the document has not been entirely useful. It seems to us that the benefits of narrow national interest are preventing countries from looking at the picture in toto. In our view, nations must see themselves as operating within a total global framework. The thrust of paragraph 19 is generally correct, but surely multilateral liberation of markets will include the trade of all countries and not merely the developing countries. These arguments which seek to imply that a favour is being done to developing countries must be rejected. In the long run, it is to the benefit of all countries and sometimes perhaps more so to the developed countries.


This delegation sympathizes with the scepticism of those who doubt the usefulness of the informal commodity arrangements or policy guidelines that some intergovernmental groups have established, but our view is that all this must be left open and that all avenues must be explored in our search for an equitable trade pattern.

Therefore, we support the informal arrangements because they might work. Moreover, paragraphs 81 and 85 indicate that at least some of these arrangements have been found useful.

It would appear from the document that protectionism is the main culprit as it distorts trade and prevents the free flow of such trends. Developed countries would appear to be too much on the defensive in our view. They should come out more freely to discuss and explore what could be useful proposals for the community as a whole. The interdependence referred to in paragraph 25, and which my colleague from India has also emphasized, in fact has been going on for some time but it is only in recent years that it has been stressed.

Now, Mr. Chairman, I cannot accept such dangerous arguments like the one in paragraph 26 that the state regulation of trade by socialist developed countries imposes a more severe limitation on agricultural imports than the tariffs applied by developed market economy countries. The fact is we do not want a protectionism period; it does not matter who does it. For this reason we would not be interested in the debate between EEC and the USA in paragraph 30 and 31 because protectionism, whoever does it, in our view is wrong.

The argument in paragraph 28 about the need to secure adequate livelihoods for farm families is understandable, but it must be remembered that in the developed countries the proportion of farmers is rather small, and therefore the benefit in this kind of activity actually goes to people who are not directly concerned with famine, at the expense of those who are concerned with famine in the developing countries. Moreover, the very same people who put this argument are the very people who argue that the removal of government control in agriculture in developing countries will give rise to higher incomes for farmers in those countries. Mr. Chairman, I think that we should stop paying more lip service to equitable international trade, and address ourselves to the main issues involved and make the sacrifices that are necessary.

Now look at paragraph 35. Do we really need an acceptable definition for tropical products ? Really ? And yet it is a condition before an agreement can be reached. I think this is red tape.

Mr Chairman, regarding paragraph 36 developing countries must have free access to all markets for all their products in the form in which they decide to export them. There can be no question about this. It is the only way in which these countries will be able to earn rewards commensurate with their endeavours. This is the only way that these countries are going to be able to finance their own development on a reliable and continuing basis, on the basis of their own efforts, on which they can plan.

Therefore such partial agreements, like, for example, the Lomé series and such other agreements, must be understood in their true colours as merely interim measures, not the final solution. We will not accept that.

Now it is quite clear that everybody agrees that there is protectionism, and in fact, in paragraph 41, there is no attempt there to even justify it. It merely reports it and talks about efforts to in fact monitor and analyse, so it is there. But in order to tackle the issue, we must break the barrier of fear on the part of developed countries, because they fear if they relax even a little then they will be swamped by hordes from the developing countries and swept from the face of the earth. That is why they are clinging so tenaciously to the status quo which is, of course, advantageous to them.

We are not at all happy at the results of UNCTAD VI. I must admit that I find sentence 3 of paragraph 58 somewhat amusing. When we were negotiating the abortive agreement a few years ago, the importers being referred to in this document were the exporters at that agreement, and their views regarding who should finance the holding of stocks were quite different from the ones being explained in the document. So it looks that we are merely concerned about narrow, national interests.

It is quite obvious that all nations depend on one another for eventual survival, and the current advantage enjoyed by some countries should not blind those countries from grasping this basic fact, that we all depend on each other. the developed countries with their technology are not going to be able to consume all of their production indefinitely. They cannot. They need the developing countries which are a substantial market. Therefore it is not enough merely to implicate these countries in these negotiations and in trade. These countries must be fully involved; it is not the same, they must be fully involved, and in the long run it means that barriers must go.

Mr Chairman, we also believe that the Common Fund should be brought into operation at once, and the suggestion made by the Director-General in paragraph 107 should be considered seriously because it is a useful one.


We also believe that international trade agreements seem to be the best way to ensure equitable trade at this time in spite of the invisible hand of Adam Smith. We also support that developed countries should continue to increase the trade that they have among and between themselves, and finally, Mr Chairman, we support the CCP programme for 1984/85, especially the importance being attached to this in paragraph 119.

D.R. TOUSSAINT (United States of America): Mr Chairman, the delegation of the United States would like to commend the members of the staff and the very able Chairman of the Committee on Commodity Problems for their workmanlike review of the world commodity situation and its outlook. We find ourselves in general agreement with the thrust of the report, and specifically fully join in the appreciation, tribute and best wishes for the future extended to Mr Leeks.

As many delegates know, the proposal made by the European Economic Community to impose a tax on fats and oils other than butter was the subject of considerable debate during the last meeting of the CCP. Indeed in our view it was one of the most important current commodity issues dealt with by that medium. The report before us reflects in paragraphs 66 through 71 the widespread and deep concerns raised by this proposal, concerns which have been alluded to again this morning.

The United States joins others in the Committee in expressing its concern. We continue to believe the matter is of such importance that it should come before the Conference for review and discussion there, and the United States will explain our concerns at greater length at that time.

J. BELGRAVE (New Zealand): First I would just like to place on record the appreciation of my delegation to the Chairman of the Committee on Commodity Problems for the clear and enlightening explanation he gave us this morning of the work of the Committee.

We feel that the report of the Committee is a good one. It reflects the depth of preparation by the FAO Secretariat and also the hard work which members of the Committee put into producing the document in front of us. New Zealand maintains the view that the work of the CCP remains of considerable importance, focusing as it does on what are fundamental issues and problems which face trade in agricultural products today.

I would like, Sir, to highlight one or two matters in the Committee's report which New Zealand feels need particular mention. First, the deterioration in the world economy and the state of international trade in 1981/82, including particularly the state of trade in agricultural commodities, is of considerable concern. This development, Mr Chairman, has been one of the principal factors contributing to the balance of payment problems of developing countries, and also to other countries like New Zealand which also depend on the export of a narrow range of agricultural products. We note, and this has been mentioned by earlier speakers this morning, we note with concern, that the decline in prices of agricultural commodities has been a particular factor in contributing to this fall in value of agricultural trade and its effects on the balance of payments on countries dependent on exports of commodities of this nature.

We take some heart from trends towards recent improvements in commodity prices but this does not really detract from the magnitude of the problem facing us.

The report also addresses in some depth the problems caused by agricultural protectionism. In New Zealand, a significant agricultural trader faced with an array of agricultural barriers to trade shares the concern of many countries in this room, particularly the developing countries, of the effects of agricultural protectionism. We welcome the fact that the CCP will continue to review developments aimed at a lessening of protectionism.

We hope, Sir, the world economic recovery might provide a basis for some realization of the general objectives of a liberalization of the barriers to trade in agricultural products.

New Zealand is right behind the work being done in other organizations, for example in the GATT through the Committee on Trade in Agriculture. We would certainly like to see it achieve a little more than was achieved at the GATT meeting about this time last year and we note the CCP's report at paragraph 33 in this context.

Also we note that one of the most important matters considered by the CCP was the adoption of the report of the Consultative Sub-Committee on Surplus Disposal, the CSD. The CSD is an important vehicle in these times of surplus production and the market destabilizing effects of disposal of these surpluses on world markets. The consultative procedures and mechanisms inherent in the CSD provide the opportunity to lessen the effects of such disposals and it provides also, of course, an important forum for a necessary dialogue on this matter. As was said at the meeting of the CCP, New Zealand is concerned at the number of disposal transactions which were notified to the Committee in the period under review. We feel it shows that the basic problem of the production of surpluses is not being addressed in the countries concerned.


New Zealand gave its endorsement to the report of the CSD which was a compromise agreed to in Washington and we again confirm the CSD report, as a member of the Committee on Commodity Problems. There remain, however, many issues within the CSD which need further attention and we hope the Committee will continue to address these matters.

For our part, New Zealand will certainly continue to maintain its active participation in the CSD.

The CCP also addressed the work of the commodity groups of FAO and we should like to record the importance we attach to the work of these intergovernmental commodity groups. They provide an excellent forum for discussion of the problems for each commodity and of course enable each participant to exchange information of immediate value to them.

Therefore, to conclude, the New Zealand delegation supports the report in front of us. We continue to attach great importance to the work of the Committee on Commodity Problems and we look forward to the results of the further work programme which was agreed at its meeting. The Committee will continue to have New Zealand's full support. And finally, my delegation would just like to record our appreciation of the work of Mr Leeks and is sorry to see him go and would like to wish him well in the future.

E. SCHRODER (Germany, Federal Republic of): In view of the short time which is still available for this agenda item I will be very brief. The report of the 54th session of the CCP before us is an objective description of the work of the Committee on Commodity Problems as given at its last meeting. The report expresses the interests of member countries and the importance they attach to commodity policy problems. Like other delegations we are still of the opinion that FAO plays a central role in the field of commodities and has a central function in international cooperation. Dealing with partly different problems linked with the individual commodities, requires a maximum of knowledge and expertise as they are available in FAO.

We welcome the activities and tasks for the Secretariat as contained in the report. We support the Secretariat in its endeavours to improve international cooperation and to solve specific commodity problems. We consider the activities in the intergovernmental commodity group of special importance; they are not always as spectacular as the activities in the bodies of international commodity agreements but they are by no means less important or less effective. We advocate close cooperation with other international commodity bodies and institutions, but duplication should be avoided in this respect. We are, therefore, of the opinion, as already expressed by the EEC at the last meeting of the CCP, that FAO should not initiate any activities in the agricultural trade sector that go beyond the present framework.

In this connexion it is necessary, first, to implement the work programme of GATT as adopted by the ministerial meeting in November 1982 which finds our full support. We can agree without reservation to the adoption of the report.

P. GOSSELIN (Canada): Recently at the CCP we had a very useful discussion of the well known problems of commodity trade and protectionism. We in that committee all recognized the many problems of the past few years such as the economic fall-out on us from the recent recession, the slow-down in world trade, the sharp decline in commodity prices, reduced export earnings and the frightening debt burden facing certain developing countries. My country is a trading nation and depends to a very large extent on its commodity exports for its economic well-being. Thus, the recent performance of the commodity markets has had serious implications for certain sectors in Canada, particularly in agriculture, forestry and mining. Even apart from these short-term developments there are chronic problems in excess capacity in many sectors, high cost of production and the difficulty for governments to encourage the necessary adjustments. Support for the farming community is long-established, based on numerous economic, social, regional and political considerations. Government: intervention stems from the volatility of commodity markets and the difficulties faced by individual farm operators in making investment and production decisions for the domestic and also the world market. We probably need a two-pronged approach to these problems: first, a ceiling on government guarantees for supply management; and second, measures to improve the conditions of agricultural trade.

As to the first, governments are beginning to limit the volume of production benefitting from price support but they also need to let market signals get through to the farmer. Liberalization of agricultural trade will remain difficult as long as unwanted surpluses depress the market and as long as governments offer blanket price guarantee.


Turning to agricultural trade, the shock value of the recession, market tensions and growing industrial protectionism have let us all take a sober assessment of the situation facing us in the 1980s. Canada welcomes the outcome of the GATT ministerial meeting in November of last year. The ministers agreed on a far-reaching programme which takes the GATT well beyond tariffs into further refinements of the codes and into the difficult sectors such as agriculture.

The new Committee on Trade in Agriculture has a wide mandate to consider all measures affecting trade, market access and competition and supply in agricultural products including subsidies and other forms of assistance. We believe that we in this Council should offer encouragement and support for this work.

At the UNCTAD VI which met in June, we had a wide-ranging review of commodity problems and the UNCTAD Programme is designed to help remedy the situation. We now have had seven years' experience with the integrated programme for commodities.

The international commodity agreement with economic provisions has proven difficult to negotiate or to operate. This is understandable given the conflicting interests of exporters and importers and the intrinsic problems of trying to stablize normally volatile markets.

Further, the ICA are designed only to deal with the consequences of supplies and prices in the world markets; they are not designed to deal with the real problems of structural surpluses, high-cost producers and government support policies. Implementation of the Common Fund places further delays as the September 30 deadline passed without a sufficient number of ratifications.

Canada has ratified this Common Fund and we expect a meeting of ratifying States to be held in the new year to consider how to move the work further. Export earnings stabilization remains the focus of debate, particularly in UNCTAD. As we know, a group of experts will be organized by the Secretary-General to consider the need for an additional complementary facility. It is the Canadian view that a non-discriminatory export earning stabilization facility based on balance-of-payments requirements such as the IMF Compensatory Financing facility provides the best means of dealing with fluctuations in export earnings of primary producers. We hold that schemes linked to individual commodities can be detrimental in that they counteract market signals, distort investment patterns and can delay needed adjustments.

Finally, we wish to express our support and appreciation for the FAO work programme in commodities and trade. This is of direct benefit to the full FAO membership, both of developed and developing countries. We were pleased to endorse the planned activities for the next biennium. Those of us who attended the CCP, as was noted by my American colleague, witnessed quite a long and extensive debate on the question of the proposed EEC tax on oils and fats. We should like to add our voice to those who have already spoken and encourage members of the Community to reflect on the imposition of that tax which would be detrimental and which would have an impact more on the exports of those oils and fats to the Community than on the internal production. We believe that since the problem arises because of internal EEC pricing policies, that is where a solution should be looked for.

Ms M.L. GAVINO (Philippines): The Philippine delegation would like to call the attention of the Council to one of the commodity problems which has been of great concern to the Philippines. I am referring to the proposal of the EEC to impose tax on oils and fats to be effective 1st of January 1984. In spite of the assurances of the EEC Commission to the contrary, we believe that the net effect of the so-called discriminatory consumption tax on oils and fats other than butter would be to transfer 30 million ECUs from the potential earnings of the Philippine exports of coconut oil to the EEC subsidy fund. Since this tax would be levied at the port of entry according to draft rules, it would not be added to consumer prices but under general market conditions would be discounted by the traders from the CIF price, just like the shipping charges, insurance premiums and the existing tariffs. The tax would be discriminatory because the EEC has low self-sufficiency in oils and fats and hence the tax would fall mainly on imports. The tax would not be levied on butter and hence favour butter against margarines and other oils and fats. The specific tax would penalize the lower priced oils and would have lower incidence on the more expensive oils, particularly olive oil produced in the Community. The non-discriminatory consumption tax which would, according to the rules, be levied at the point of entry would not be added to consumer prices but discounted to exporters. It would be a dangerous precedent and could be used to raise the present level proposed once the principle is established. The reason in effect for the tax is to restore balance between olive oil produced within the Community and other oils on the one hand and the balance between butter and other oils and fats on the other. This means additional tax could be imposed on the basis of the foreseen surplus of all the oil with the enlargement of the EEC to include Spain and Portugal. Even if it were possible for the EEC to find legalistic justification for the tax under GATT, it was still morally incorrect to transfer the burden of butter subsidies to third parties, many of which were developing countries. I would like to reiterate the appeal of the


Committee, with the exception of the EEC member countries, to both the EEC Council and those individual member countries, to take full account of the feelings of deep concern and worry which had been expressed and to reject the Commission's proposal to impose a tax on oil and fats other than butter.

The Philippine delegation would also like to express its support for the proposal of Thailand that FAO convene a group of experts to develop guidelines and various protectionist methods. We believe this would help the work of the Committee in its review of Conference Resolution 2/79.

The Philippine, delegation would like to express its disappointment over the delay in bringing the Common Fund into operation.

Finally, the Philippine delegation would like to express its appreciation for the work of Mr. Leeks as the Director of the FAO Commodities Division. The words of appreciation we have heard this morning on the work of the CCP and on the inter-governmental groups is in part at least due to Mr. Leeks' work.

J.R. LOPEZ PORTILLO ROMANO (México): Hemos tenido aquí una discusión exhaustiva y concluyente sobre la problemática actual de los productos básicos que nos lleva a esta delegación a apoyar sin reservas el Informe del CPPB; sin embargo, Sr. Presidente, queremos recoger aquí someramente algunos de los puntos que hemos reiteradamente expuesto en dicho Comité. El tratamiento de la comercialización a nivel mundial de productos básicos resulta tema obligado. Los documentos del Comité no lo contienen con suficiencia, incluirlo con profundidad permitiría no sólo dar cuenta de los efectos, sino también de la mecánica del proteccionismo, los castigos financieros, los problemas de balanzas de pagos, la inestabilidad deliberada de precios, la manipulación de la demanda, la concentración de capital, el monopolio de la tecnología, las prácticas dumping y la inversión extranjera.

Nunca será suficiente insistir en la importancia de racionalizar las relaciones económicas internacionales en favor de todos los pueblos bajo un nuevo Orden Económico Internacional como única condición para lograr la paz, que la entendemos no sólo como la ausencia de guerra, sino como desarrollo justo y efectivo. México reitera su apoyo a toda actividad que favorezca la concertación de convenios internacionales que contengan mecanismos económicos para la estabilización dinámica de precios internacionales de materias primas. Esto a través de la constitución de reservas internacionales según expresas Resoluciones de la UNCTAD, la 93 iv) y la 123 v). Con ello se favorecerá el reforzamiento del mercado internacional de productos básicos y se estimularán las exportaciones de los países subdesarrollados. Destacamos en particular la necesidad de un nuevo convenio internacional del azúcar.

Resulta indispensable identificar a las corporaciones agroindustriales transnacionales por el grado de control que ejercen sobre el mercado internacional. El primer paso sería señalar sus volúmenes de ventas, sus países de origen, el número de filiales y sucursales y sus actividades en países huéspedes, su diversificación económica, la composición y destino geográfico de sus inversiones, los aspectos tecnológicos de sus sistemas de producción y comercialización, la diferenciación y diversifica-ción de sus productos, las características de la competencia entre corporaciones, las diversas formas en que operan en regiones y países, el comercio intrafirma e interfirma, sus formas de financiamiento y las utilidades encubiertas, principalmente bajo la forma de pagos por regalías y derechos de marca y asistencia técnica. Mucha de esta información se encuentra ya a disposición del Sistema de las Naciones Unidas, y ha sido sin duda materia de estudio exhaustivo por parte de los países desarrollados. Esperamos que sirvan también para tener un fondo, un zócalo para basar mejor nuestras discusiones sobre los problemas de comercio, financiamiento, etc.

Hemos insistido sobre la necesidad de establecer un mecanismo de colaboración entre países desarrollados y en vías de desarrollo para impulsar la investigación y el desarrollo de los productos básicos utilizando la tecnología que permita diversificar sus usos. Debemos incorporar un mayor valor agregado a las materias primas que exportamos y buscar nuevos mercados para los nuevos productos. Por ejemplo, el henequén-sisal, como el abacá están siendo probados como material para recubrimientos térmicos en sustitución de asbestos o en centrales nucloeléctricas. El sisal se usa en Brasil para hacer celulosa. Esos son los caminos que debe seguir la FAO, los países productores, los países consumidores y las empresas involucradas con el propósito de que aquellos que cuentan con la tecnología y el capital, y nosotros, que no hemos alcanzado el nivel superior de desarrollo, podamos hacer negocios justos que favorezcan a todos.

La referencia anteriormente hecha vale también para las actividades de procesamiento de productos básicos, pues la mayoría de los países en desarrollo siguen dependiendo de la exportación de productos primarios. Por ello, sería deseable favorecer la diversificación de sus exportaciones hacia productos elaborados y la apertura de mercados respectivos que han mostrado tener precios más estables.


El Comité de Problemas de Productos Básicos ha ido paulatinamente, así lo sentimos; ha ido paulatinamente perdiendo algunas de'sus funciones principales y se le ha inhabilitado a veces aun para analizar o eventualmente aconsejar los trabajos de otras organizaciones relacionadas con los temas que trata. Por eso solicitamos que la FAO haga una evaluación de las funciones que actualmente desempeña el CPPB a fin de optimizar su utilidad y su capacidad de cumplimiento con las metas que tiene señaladas.

Además de las mencionadas en los puntos anteriores, esta delegación propone vincular este Comité más estrechamente con el de Seguridad Alimentaria Mundial, que podría así apoyar más el diseño de la política y estrategia de la producción de productos básicos y analizar su contexto y su desarrollo mientras que el CPPB se podría concentrar más en los aspectos relativos a la técnica y a aquellos operativos. Asimismo, consideramos que los Grupos íntergubernamentales deben fortalecerse a fin de convertirlos en un foro efectivo de negociación delineamientos trazado por el Comité de Seguridad Alimentaria Mundial y el propio de Productos Básicos.

No quiero terminar, Sr. Presidente, sin manifestar en nombre del Grupo Latinoamericano y el Caribe su reconocimiento y agradecimiento por la labor efectiva, imparcial y progresista que el Sr. Leeks durante tantos años entregó en beneficio de la humanidad.

Sra. Doña G. SOTO CARRERO (Cuba): Nuestra delegación participó activamente en el 54° período de sesiones del Comité de Problemas de Productos Básicos y, por consiguiente, estuvo de acuerdo con el Informe que se presenta, al cual reiteramos nuestro apoyo. Sin embargo, quisiera hacer una breve intervención para reafirmar algunos planteamientos que se hacen en el informe que analizamos.

Con relación a las principales cuestiones relativas a la situación y perspectivas de los productos básicos, reafirmamos la opinión de que esta situación tiene raíces muy profundas y que está vinculada directamente con los problemas de la seguridad alimentaria mundial, tema en que la FAO despliega ingentes esfuerzos. Para lograr esos objetivos, como bien expresa el documento CL 84/6 y y como también han expresado otros delegados, es necesario que todos los países hagan esfuerzos para no aplicar políticas proteccionistas y utilización de sus subvenciones ilimitadas a las exportaciones que perjudican a todos los países y en especial a los países en desarrollo, lo cual debe incluir poner coto a la acción de las empresas transnacionales. Necesario es, pues, también la puesta en vigor de convenios internacionales de determinados productos como es el caso del azúcar, entre otros, de los cuales se tengan en cuenta los intereses de todos los grupos de países y en especial de aquellos que dependen económicamente de la exportación de esos productos.

En el párrafo 62 del documento analizado, se explica muy claramente los objetivos de política general que deben tenerse en cuenta.

Por ultimo, quisiéramos expresar que nuestra delegación considera que el Comité de Problemas de Productos Básicos de la FAO y sus Grupos Intergubernamentales, es un órgano idóneo con mandato expreso para analizar los problemas que afectan grandemente el comercio de productos tan importantes para nuestros países y que directamente incluyen la garantía de la seguridad alimentaria mundial. En este sentido el papel que juega la FAO conjuntamente con la UNCTAD, GATT y otros órganos que se ocupan del problema, es digna de nuestro elogio y decidido apoyo de este Consejo.

F. RAZZAQUE (Bangladesh): This is an excellent work which brings out several serious issues, having given them close attention. Our delegation therefore wishes to thank FAO, the members of the Committee and Mr. Carandang. We support this good work. Already several delegations have spoken and echoed our sentiments. I shall not therefore repeat these.

However, the collapse of the agricultural commodity prices has affected all countries, but the least developed countries the most, most of whom generally depend on one or two major items of export. In this connection, therefore, the commitment of the international community made in the Paris Conference on the LDC's for special measures is recalled, and action to be taken in this regard to promote trade of the LDC's is also underlined by our delegation.

On the report we draw attention to Section V and in particular paragraphs 79 and 80 and agree that decisions on how best to support and complement the work of the International Jute Organization can be taken only after the resources available for implementing the organization's functions are better known. We underline here the basic intention given out in the report for support.

Before I conclude, my delegation would like to join the Committee in paying our tribute to Mr. Leeks.


T. AHMAD (Pakistan): The Pakistan delegation wishes to record its appreciation of the Report of the Committee on Commodity Problems, which we think is an excellent report which highlights the problems of commodity trade in the world and particularly the problems being faced by the developing countries.

We feel that paragraphs 8 to 15 of the report do factually bring out the situation of developing countries, where there is a steep fall in the export and trade receipts from agriculture, there is further deterioration in terms of trade of agriculture, particularly in 1982, there is piling up of the already huge deficits of the developing countries, and we feel concerned that the situation is aggravated by protectionist measures as brought out in paragraph 17.

We also share the disappointment expressed in paragraph 25 that not only has there been no progress in this regard, but on the other hand some of the longstanding protectionist policies have continued and there has been the introduction of new restrictive measures. We wish to express our strong concern at this situation and we strongly urge that this situation be rectified as soon as possible.

In this connection we wish to highlight only two aspects very briefly. One is the linkage between world food security and the commodity trade problems, particularly within the framework of broader and revised concepts of world food security as adopted by the Committee on World Food Security and endorsed by this Council. This has been highlighted in paragraph 15 and we wish this to be further highlighted in the future work of the CCP.

The second aspect we wish the CCP to address itself to in more detail in future is the one brought out in paragraph 19, technical and economic cooperation among developing countries and intra-trade between developing countries in the commodity region.

Before concluding, the Pakistan delegation wishes to commend the work being done by the CCP and the Commodities Division of FAO and in this connection we particularly wish to record our appreciation of the work done by Mr. Leeks and we wish him success and happiness.

V. ISARANKURA (Thailand): My delegation fully endorses the Report of the Fifty-fourth Session of the Committee on Commodity Problems. However, I would like to draw the attention of this Council to paragraph 38 of this report concerning the proposal made by our delegation at the Committee meeting. It was suggested that governments should consider the feasibility of developing such guidelines in the GATT Committee on Trade in Agriculture and recommended that the Committee on Commodity Problems should consider our proposal at a future session.

In this connection, I would like to recall that besides a group of experts meeting as proposed by us, at our coming Conference we are going to consider the revision and updating of guidelines and targets for international agricultural adjustments. There is one guideline which has stated that all countries, particularly developed countries, should display the necessary political will by refraining from imposing any new tariff or non-tariff barriers on the imports of agricultural and agro-based products, particularly those from developing countries. In my opinion if the Conference unanimously adopts the revision and updating of guidelines and targets for international agricultural adjustments it will provide some hope to developing countries.

Before I close, permit me to join the previous speakers to express our appreciation and thanks to Mr. Leeks for everything he has done for us for more than thirty years and to wish him good prosperity and happiness in the future.

M. BENNIS (Maroc): Ma délégation voudrait formuler un bref commentaire sur la dégradation de l'économie mondiale enregistrée en 1981 et 1982 qui bien entendu a entraîné une chute brutale du commerce et des recettes d'exportation des produits de l'agriculture, des pêches et des forêts, notamment dans les pays en voie de développement, et même si la tendance à la reprise dans les pays industrialisés est encore timide, nous enregistrons malheureusement que les pays en voie de développement demeurent plongés dans le marasme. Or, l'économie de la quasi-totalité de ces derniers repose essentiellement sur l'agriculture. C'est dire combien le rôle de la FAO est déterminant dans la recherche de solutions à ce problème. Nous croyons fermement que les racines du mal résident dans les termes mêmes des échanges tels qu'ils sont encore appliqués. Le protectionnisme rigide et souvent inflexible d'une part, la détermination des prix qui ne répond pas toujours aux seules lois classiques du marché d'autre part sont les handicaps majeurs que rencontrent les pays en voie de développement dans l'expansion de leur commerce, et par voie de conséquence de leur production et de leur développment en général.

Bien entendu, des accords bilatéraux soulagent quelque peu certains pays, mais c'est beaucoup sur le plan international qu'il convient, à notre sens, de chercher des mesures équitables. L'adoption d'un nouvel ordre économique devient donc de plus en plus indispensable et urgente.


Il s'agit d'asseoir l'économie mondiale sur une notion de solidarité, et d'instaurer des règles morales dans les échanges internationaux. Ces règles, nous en sommes convaincus, finiront par être profitables aussi bien aux pays industrialisés qu'aux pays en voie de développement.

C'est un appel de notre Organisation que nous voudrions voir lancé en vue de l'adoption rapide du nouvel ordre économique dont l'impérative nécessité se fait de plus en plus sentir.

DATO SERI RADIN SOENARNO (Malaysia): In accepting this excellent Report of the Committee on Commodity Problems, my delegation would like to reiterate our position, as already expressed in the CCP proceedings, on the protective measures proposed by the EEC on vegetable oils and fats. We would like this Council to take note of the highlights of the debate on this issue and support the Committee's views as expressed in paragraph 71. We share the views already expressed by earlier speakers on this issue and urge the EEC Council to give serious consideration on the sentiments of developing countries.

In conclusion, we would like to express our appreciation for the good works and services rendered by Mr. Leeks and wish him all the best for the future.

A. PINOARGOTE CEVALLOS (Ecuador): La delegación del Ecuador quiere expresamente llamar la atención del Consejo sobre la parte relacionada con el banano, página 14, literal g), numerales 88 y 89.

Como es de todos conocido, el Ecuador mantiene desde hace muchos años el liderazgo mundial en la producción y exportación de bananos, sitial que solo se ha visto afectado este año por la incidencia del fenomeno de "El Niño". En todo caso, considerando la constante invariable en el mercado bananero de una creciente oferta y una lenta demanda, teniendo ademas en cuenta que los esfuerzos para establecer un convenio internacional del banano se halla en vías de desarrollo pero sin alcanzar a concretarse, el Ecuador puso énfasis especial en la Octava Reunion del Grupo Intergubernamental de la FAO sobre el banano en que se deben mantener las superficies de cultivo existentes a fin de equilibrar el mercado. El Ecuador, en demostración fehaciente de su cabal comprensión del problema, en los últimos diez años ha reducido las áreas de cultivo de 80 000 hectáreas a 60 000, manteniéndose en ese nivel desde 1979.

Queremos resaltar esta actitud positiva de nuestra parte.

Finalmente, la delegación ecuatoriana enfatiza la impostergable necesidad de liberar el mercado de obstáculos proteccionistas, que entorpecen una recuperación auténtica de la economía mundial, la cual se enfrenta a una de sus crisis más graves. De la crisis sólo se podrá salir con un esquema claro de responsabilidades equitativamente compartidas, dada la indisoluble realidad de una economía mundial estrechamente interdependiente.

Por consiguiente, apoyamos todas las iniciativas y esfuerzos de la FAO dirigidos a sensibilizar la comunidad internacional respecto a este tema trascendental de los problemas de los productos básicos, especialmente intensificando su dinámica relación con otros organismos internacionales, pues así se contribuye eficazmente a crear una conciencia internacional mucho más responsable.

A. A. KHALIL (Sudan) (original language Arabic): My delegation would like to pay tribute to the Committee on Commodity Problems and to FAO which plays an important part in the search for solutions to commodity problems and for the development of international trade. In this connexion, my delegation gives its support to the proposal concerning the links between commodity trade and food security problems and we feel that it will help to solve all these problems. As we all know, Sudan has to rely for its exports income on cotton and oilseeds, and therefore Sudan, like many Arab countries and other developing countries, feels concerned because of the proposal regarding a tax on oils and oilseeds in the EEC which is one of the most important markets for the Sudan and the Arab countries. There can be no doubt that this tax would have an influence not only on the exports of Sudan but also on the agricultural and industrial products imported from the Common Market countries, so we ask for the revision of this decision.

At the same time, Sudan is concerned about the different protectionist measures which hamper agricultural commodity trade, both with regard to meat and to fruit. We shall raise all these problems in detail in the course of the Twenty-second Session.

In conclusion, we would like to give our general support to the Report and to pay tribute to the Chairman for his introduction.


Y. A. HAMDI (Egypt) (original language Arabic): My delegation wishes to give its support to the contents of the Report and would like to congratulate the Secretariat and Mr. Carandang on the excellent work done which is reflected in this Report, We wish to express our concern concerning the application of the protectionist criteria and the customs barriers which hamper commodity trade and have a direct influence on the developing countries, especially those countries which have to count on agricultural commodities in order to cover their currency requirements. Our delegation would like the necessary measures to be taken in order to put an end to the application of this criteria.

We reaffirm the lead and important role which FAO is playing in the settling of commodity problems, and here we would like to give our support to the programme proposed for 1984-85.

In conclusion, we pay tribute to the praiseworthy efforts which have been made by Mr. Leeks in the Commodity Committee and wish him a very happy and successful future.

The meeting rose at 12.30 hours.
La seance est
levée à 12 h 30.
Se levanta la sesión a las 12.30 horas.


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