Any reasonable interpretation of this mandate would direct us to an understanding of this Organization as an instrument of international cooperative development action. Decisions in this regard are derived from an appreciation that we live in a world of unequals: the haves and the have-nots, the weak and the strong, the developed and the underdeveloped. And further, that we all share the view that indigence, hunger, malnutrition and the concomitant social and economic deprivation wherever they exist pose serious threats to peace and stability of all societies. Our own enlightened self-interest, therefore, is best served only when we act in a cooperative and collaborative manner in defense of the welfare of all humanity.
Within the recent past two seminal, global events have provided a framework to further refine the focus, reappraise the plans and programmes and, where appropriate, to redirect the energies of FAO. I refer to the United Nations Conference on Environment and Development and the International Conference on Nutrition, both held in 1992. Searching questions have had to be asked and answered about the prospects for enhancing nutrition and food security globally, regionally, nationally and at household and individual levels and for improving the sustainability of agricultural and rural development ecologically, economically and socially. Other important conditioning aspects of the ever-changing environment within which food and agricultural issues must be treated are the increasing mobility of international finance and the globalization of production and trade. This latter phenomenon in so many ways mirrors developments in the international capital markets. It is also characterized by some disturbingly contradictory developments:
- I refer to the difficulties in finalizing the Uruguay Round of the GATT with the ultimate objective of promoting freer, and we hope fairer, trade.
- I also refer to the emergence of powerful regional trading blocs;
- the resurgence of protectionism in some developed countries;
- and the nakedness and extreme vulnerability of small island monocultures in an increasingly unforgiving international market-place.
These occurrences, together with the secular and accelerated deterioration in the terms of trade between the export primary agricultural commodities of the developing countries and the imported manufactured goods from the developed world, conspire to create an environment which is decidedly not propitious for the required growth and development of our developing agricultural economies. This trend appears likely to continue, indeed intensify, unless of course fairness, equity and morality as much as free and open markets form an integral part of the equations of international trade.
Continued concerted action on the part of the international community is an imperative with efforts dedicated singlemindedly to provide development support, where it is most critically needed, to effect the desired transformation of the agricultural and rural communities of our countries at an acceptable rate. I submit that the solution lies in a judicious combination of increased trade and increased technical and capital support.
But, as if to complicate matters even further, it has become increasingly apparent that the developing world is not homogeneous. Acceptance of the
concept that special and differential circumstances attend the condition of the developed and developing world apply with equal relevance, if not equal force, amongst developing countries. In this regard, I wish to draw specific attention to the concerns of the resource-poor and small island states generally, and of the Caribbean in particular.
The point at issue is that small island and resource-poor states require a special focus within the FAO. We are currently grappling with critical problems of food, nutrition, agricultural and rural development under resource-constrained conditions of land scarcity, inadequate funds for development and a hostile international trade and financial environment. The spectre of prolonged balance-of-payments problems continues to provide disturbing nightmares for our people even as we hope for a brighter tomorrow.
We are, most of us, in the throes of structural adjustment programmes with attendant macro and sectoral policy conditionalities. These call for reining in of government expenditures, especially for social programmes, mitigating consumer spending, eliminating barriers to trade, and so on. These developments threaten the social fabric if growth stagnates and unemployment rises. The FAO cannot but be mindful of these issues, and must seek to identify its own role in facing up to these specific challenges.
Mr Chairman, small island economies are very wary of the likely impact of global trade reform and of adjusting to the inevitable costs of meeting the requirements of sustainable agricultural and rural development. Mr Chairman, what constitutes an appropriate policy response to these issues? How is our Organization - the FAO - dedicated to poverty alleviation, eradication of hunger, and enhancement of agricultural development and rural welfare, poised to recognize our current dilemma and assist us with our agriculture, particularly in small island resource-poor developing countries?
Mr Chairman, it is not without some dismay that we have noted in recent years the alignment of potent forces within the FAO arrayed against programmes and activities geared to the assistance of those most in need. I refer specifically to programmes such as the Technical Cooperation Programme. We have observed, too, that there is a view which suggests that the Organization should serve merely as coordinator of technical networks, repository of conventions and agreements, collector and disseminator of information and other similar functions. These are all important roles which the FAO must and should continue to fulfil. Increasingly, however, the Organization must recapture the high ground of technical development support and forge ahead anew in the areas of policy and sectoral studies and assistance in policy analysis and formulation, thereby providing technical support and advice, particularly for those most in need. For in many of our small states, there is a dearth of capacity to develop the appropriate policy stances, to respond proactively to the dynamics of change which are characteristic of today's environment in which we are called upon to make decisions and to develop. FAO is the body within the United Nations especially charged with the responsibility of helping to shape the international and national policy contexts within which food, agriculture, forestry and fisheries may develop and flourish in our economies both to contribute to overall economic growth and development and as an essential part of the development process itself.
I would therefore exhort our new Director-General to give urgent consideration to these issues and so reorient the FAO to recognize these
challenges. This would entail also strenghtening the field programme and enhancing decentralization by re-examining the role and relevance of the regional offices vis-à-vis sub-regional offices. We of the small island states look forward to working hand in hand with our new Director-General in this most needed and exciting endeavour. Such support is crucial to our development.
Mr Chairman, as no doubt you yourself will appreciate, this is not a sterile intellectual appeal. At this very moment my country, Trinidad and Tobago, is addressing these issues. Even now we are attempting to formulate appropriate responses to policy prescriptions which require trade liberalization and reform in the name of modernizing our agricultural sector. Small economies are being asked to liberalize at a much faster rate than our major trading partners in the developed world. For even now the Uruguay Round of GATT cannot be completed. Even now protectionism pervades. These are the issues of the 90s. Success or failure of the FAO, success or failure of its mandate, will depend on how we address these matters.
Mr Chairman, my intervention is not intended to focus unduly on the differences within our Organization but rather to emphasize the scope for taking advantage of our diversity, the many-faceted interests amongst us in terms of resource management and access to resources, market strength and access to markets, being price setters and price takers - in a word, Mr Chairman, "developed" and "developing." Mr Chairman, we share a common planet with a common destiny. There is an essential humanity and humanness that bond us all. There is also a sense in which we understand that whatever happens to the least of us affects us all. It is in this spirit I appeal to all to rally around our new Director-General; and, in doing so, I trust that you resoundingly endorse a mandate for the FAO to treat urgently and importantly with the concerns which I have outlined. The mission of this Organization demands no less.
Abdullah AL-MUSAED (Saudi Arabia, Kingdom of) (Original language Arabic):Mr Chairman, distinguished Director-General, distinguished delegates: It's a pleasure for me, at the beginning of my statement, Mr President, to extend to you my congratulations on the trust vested in you by electing you Chairman of this session. I would like to affirm our support and cooperation in order to make this session a success and help attain its noble objectives. I would also like to welcome the Director-General Elect, who will receive our cooperation and support in order to carry out his functions, and we hope that he will develop the Organization so that it will bear its responsibility with confidence and determination and attain higher achievement and more objectives.
The delegation of the Kingdom is pleased to welcome the newly admitted members of the Organization, and we are sure that their contribution will increase the effectiveness of this Organization and its capacity to face the problems for which it is trying to find solutions.
Mr Chairman, Mr Director-General, although we are sure and we are hopeful for the future, however, the events following the end of the Cold War have begun to limit our aspirations for stability, welfare and international solidarity at the economic and political levels within the international community. We still see regional conflicts and civil wars prevailing in several areas of the world and cooperation facing obstacles. An outstanding evidence of this situation is the Uruguay Round negotiations for which no results can been seen in the near future.
The economic climate, as you all know, is still unstable, ,as the growth rates in the industrialized countries prove that the world economy has not come out of the recession that has hit it for several years. The reports of the World Bank show that the growth rate has not exceeded one and one half percent, a rate, albeit so low, yet its achievement depends on the success of a number of financial and monetary measures and policies.
The situation in developing countries is not any better, as their economies still face several problems; namely, the external debt, inflation, and budget deficit in addition to a chronic shortage in hard currency and lack of necessary commodities. We are all aware of the effects of such problems on the economic and social lives of these countries and, particularly, in the field of agricultural production.
Mr Chairman, the demand on raw materials and agricultural products has decreased, and their prices have fallen and are no longer rewarding for producers in developing countries. This is due to recession and the adoption by several countries of certain protective measures such as tariff barriers and quotas for exports of developing countries in addition to other economic factors which usually limit the demand on commodities and services in developed countries such as unemployment and low income. Since developing countries are unable to subsidize their exports, this not only resulted in a decline of new investments, but even some of the productive capacities available for them have become completely paralyzed.
On the basis of the above we do feel the need to revitalize the new economic order and the north-south dialogue which have been overshadowed by the events following the end of the Cold War and relegated to bottom of the list of priorities and hence no longer benefit from the deliberations in the international fora or the focus of the media. The problems facing both the industrialized and developing countries, though at varying intensity can only be tackled within a global framework which takes into account the interests of all countries and ensures justice as well as economic and social equilibrium.
Mr Chairman, in spite of the well appreciated international efforts and those exerted by the governments of most developing countries in order to combat hunger, poverty and malnutrition, yet a large number of countries still face these problems. We have already invited our friends in developing countries to adopt national policies which aim at developing the agricultural sector, enhancing its resources, provide agricultural inputs, improve agricultural production infrastructure and organize marketing channels. We have also appealed to the developed countries to extend their assistance to developing countries to help them attain those objectives.
The delegation of the Kingdom of Saudi Arabia is sure that our colleagues in the developing countries realize that the responsibility for the development lies on the shoulders of their citizens and that the officials of these countries know the aspirations of their people and their capacities endurance and sense of sacrifice. Indeed, it is on the light of this that they work out their development plans.
Mr Chairman, the projections of FAO show an important increase in world production of cereals for 1993-94. Although the production for 1993 may not meet the needs for consumption and it may even register a decrease of one and a half percent compared to last year, it is expected to reach about 1 925 million tonnes. The decrease in production may lead to a rise in prices, which will affect a number of food-deficit developing countries.
Moreover, this decrease may affect the capacity of certain donor countries which provide food aid, especially emergency food aid.
I would avail myself of this opportunity to modestly point out the achievements of the agricultural sector in Saudi Arabia, which has recorded growth rates of 1991-92 of seven percent. This growth is supposed to continue at the same rate up to the end of our Development Plan in 1995. I am also pleased to review some of the characteristics of our experience and its positive aspects with our colleagues from the developing countries who are trying to increase their food production and fill the gap in their balance of payments.
The Government of the Kingdom of Saudi Arabia has worked hard and with strong determination to adopt a number of plans and policies aiming at the development of the agricultural sector. This has enabled the sector to change the country from an importer of most of its food commodities into an exporter of a large number of such commodities as wheat, vegetables, fruit and other crops. This achievement is due to the efforts of the private sector in the Kingdom, supported by the government, which provides the necessary incentives to the development of agriculture together with other sectors.
The agricultural sector will continue to play its vital role in order to ensure the national food security within the framework of a responsible policy that has for objectives the development of available resources through their optimum and rational use, especially our water and environment resources.
Policies have been developed to ensure the preservation of water resources and their economic use through the adoption of modern irrigation techniques such as drip and sprinkle irrigation. Measures have also been taken to increase our water resources through the building of dams to feed the groundwater reservoirs, purification of sewage water, and increasing the production capacity of dissemination stations.
Programmes and objectives have also been elaborated to preserve the environment in several ways such as reforestation, preservation of the vegetable cover, increasing wild animals and desertification control.
The delegation of the Kingdom of Saudi Arabia have reviewed the documents of the Conference and especially the Programme of Work and Budget for 1994-95. We support the ideas and the proposals herein and we hope they will be implemented very carefully in coordination with the organizations concerned within the UN system and the other international organizations. We also hope they will receive the evaluation necessary during their implementation in order to be adjusted if so required.
Mr Chairman, I would also like to extend our thanks to the Director-General, Dr Saouma, for the efforts he has exerted in the service of this organization during his term of office. We do appreciate his contributions towards enabling FAO to attain its objectives.
May I also reiterate my congratulations to the new Director-General, Mr Jacques Diouf. I wish him well and I hope that the Organization will continue its march to face the future challenges; not the least of which is the provision of food and clothing to the ever-increasing population seeking decent living.
Allow me also to thank on your behalf, all the organizations that have made the necessary preparations for this Conference and commend the efforts made to facilitate our work and help us to fulfil our message.
Finally, I thank you for your attention and hope that our deliberations will be crowned with success and that our decisions will live up to the aspirations of our people, particularly the needy groups who suffer from hardships and malnutrition.
May God's peace and blessings be upon you.
George I. BRIZAN (Grenada): Mr Chairman, distinguished Director-General, heads of delegations, observers all: on behalf of Grenada's delegation, I would like to put on record its deep appreciation for the work of Dr Edouard Saouma in the development process over the years and his contribution to FAO and to its members, particularly its weaker, poorer and most vulnerable members. His re-election for successive six-year terms is testimony to the confidence of members in his leadership, his diplomatic finesse and his management skills. We wish him well in all his future endeavours.
At the same time, my delegation wishes to congratulate our new Director-General, Dr Diouf of Senegal, and wishes him a productive and rewarding term in office. We in the Caribbean and Latin America group assure him of our full support and cooperation.
Mr Chairman, let me also congratulate you on your election to the chair and your performance; it has been exemplary.
Mr Chairman, the problems of agriculture in small developing island states like Grenada are many, while the prospects for improvement remain few and in many cases depressing and bleak.
On this occasion and before this august world body, I would like to focus attention on one issue which my delegation consider to be at the heart of the problems in the vast majority of developing countries; that issue is the problem of the current prolonged crisis in commodity prices. I am also fully cognizant of the fact that this issue is one of the priority areas for FAO in the medium term. In fact the Report of the Twelfth Session of the Committee on Agriculture (26th April - 4th May, 1993) states:
"The Committee stressed the importance of improving agricultural trade as one of the priority areas for FAO. The Committee noted that Agricultural Commodity Markets were facing problems of declining terms of trade, slow growth and instability."
The ACP/EEC Ministerial Council, itself a group of 82 countries, accepts the gravity of this problem.
In a resolution at its Ministerial Meeting in May 1993, it said:
"It noted with concern the disastrous effects that the depressed prices of cocoa and coffee have been having on the economies of producing countries in the absence of international agreements. The consequences include aggravation of indebtedness of ACP countries concerned, which have been forced to drastically curtail their level of economic activities including
investment and imports to such an extent that the entire development process had been virtually halted"
Mr Chairman, the most recent research on commodities has indicated the following four major conclusions:
- in the case of the 70 African, Caribbean and Pacific states, commodities account for 90 percent of the exports;
- the index of real prices of commodity exports of developing countries declined by 40 percent during the period 1979-81 and 1991-92;
- between 1980 and 1982 the decline in real prices for ACP commodity exports was 60 percent;
- this decline represents a loss of earnings of approximately us$225 billion and has led to an increase in indebtedness of African, Caribbean and Pacific States of some US$76 billion during that selfsame period. Our loss is the developed countries gain.
Mr Chairman, let's take the case of the Côte d'Ivoire, one African country. Earnings from cocoa and coffee exports have dropped from ECU 6.3 billion in the 1985/86 year on average, to ECU 2.0 billion presently (1992-93). This represents a drop of purchasing power of 75 percent and corresponds to an accumulated deficit of ECU 23 billion for that country. Interestingly, this sum represents the actual total amount of resources of the third and fourth Lomé Convention. In reference to this, the distinguished President of Lebanon in the 18th McDougall Lecture, said: "International trade in areas of vital interest to the South, particularly agricultural exporting countries has in fact been a barrier to development. The fall in market prices, e.g., has caused far greater losses in revenues to developing countries than what they hope to gain from aid."
For the small states in the Caribbean, like Grenada, our sugar quota is uncertain, earnings from our spices have been slashed by 75 percent in the last three years, the price of our cocoa in 1992 was the lowest in twenty years, and the bananas produced by our small farmers, under conditions of perfect competition, are now under assault, not by farmers in Latin America but by a banana oligopoly which dominates the industry in Central and South America and even elsewhere.
Mr Chairman, to this loss of US$225 billion referred to above, must be added the further loss of value-added (sometimes many times the value of the commodity raw materials), since most of the processing and other intermediate activities associated with most commodity exports occur in the developed economies.
Additionally, one must consider the further loss of earnings for these countries through deteriorating terms of trade which declined by an average of 25 percent during the six years 1986-91 and much more in the 1981-91 decade.
This is substantiated strongly by the research of FAO itself when it showed that the net barter, single factorial and income terms of trade for major commodities like coffee, cocoa, sugar, tea, rice, maize deteriorated between 45-60 percent between 1979-81 and 1989-91.
Mr Chairman, added to all of this, agriculture in developing countries now has to contend with the GATT. There is no doubt that trade liberalization contributes to increases in total global welfare and the removal of trade barriers contributes to economic growth. At the same time free trade creates winners and losers. But the case of the losers is not being seriously addressed, neither in literature nor in international policy.
Mr Chairman, the World Bank in its recent study on the subject predicts that a 50 percent reduction in tariff barriers in the EEC, the USA, and Japan will- lead to a 50 billion dollar increase in exports to developing countries.
However, it is important to note that 50 percent of this increase will go mainly to seven countries in Southeast Asia, 20 percent to Latin America, mostly Mexico, Brazil, Chile and Argentina, while 4 percent will go to sub-sanaran countries. This figure even omits the export gains of GSP countries' agricultural trade to ACP countries.
The fundamental question then as put by Jean-Jacques Pesquet in Courrier of October 1993 is, "Is it fair in the interests of trade liberalization to disrupt or eliminate African or ACP commodity sectors which are uncompetitive because of different systems of reward for labour?"
The author concludes by saying, "It seems incredible that the international community should not realize how great a disaster unqualified trade liberalization could cause by helping some countries at the expense of others."
The sustained decline in real prices, despite increases in volume, the continued loss of value-added, deteriorating terms of trade since 1980, have resulted in massive loss of income, loss of foreign exchange, export of employment, growing unemployment, loss of government revenues, growing fiscal deficits, in almost every African, Caribbean and Pacific state and in many Latin American countries.
Worst of all, much of the meagre export earnings actually earned went towards interest payments on external debt, profit remittances, and the purchase of debt liquidating instruments, thereby leaving little to nothing to finance imports.
The foregoing supports three hypotheses for Grenada, the Caribbean, and other developing FAO members :
- poverty in these regions is a direct result of this massive negative transfer of wealth, income and employment;
- the need for Structural Adjustment Programmes has arisen to a large extent as a result of this; and the failure of the vast majority of such programmes is due to the continuation, unabatedly, of such massive negative transfers;
- this has contributed to increased indebtedness of developing countries and our growing inability to service such debts. The result it that most of these countries are now virtually hostages of the International Monetary Fund.
A successful resolution of the commodity crisis will lead to solutions to many other problems, which are not fundamental in themselves, but which are
mere manifestations of this deep-seated malaise of the prolonged crisis in commodity prices.
What then is to be done to resolve the crisis in commodities and give developing countries a chance to breathe? My delegation submits to Conference the following recommendations:
- Since part of the debt problem is due to commodity crisis, and since developed countries are the main beneficiaries in this crisis, then developed countries should agree to an immediate 50 percent write off of all foreign debt of commodity exporting countries. This will enhance the ability of these countries to finance imports for development. Similarly the OECD countries should devote much more resources to FAO to help it address a long term solution to the problem.
- The developed countries should cooperate with producers more and conclude agreements in the International Cocoa Organization (ICCO) and ICA that will ensure a fairer price to producers.
- In reference to Caribbean and Central American countries, the USA should upgrade CBI 1 and 11 into a treaty similar to Lomé if it is to show a serious commitment to partnership in development with her Caribbean and Central American neighbours.
- The EEC must strengthen its Stabex and Sysmin Compensatory Schemes and ensure that at least 2/3 of earnings shortfalls are compensated for rather than the present 2/5. Other OECD countries should either strengthen this facility or set up a similar scheme, possibly within the FAO system, and the Structural Adjustment facility under Lomé IV, one of the tools for short-term solution, needs to be enhanced urgently.
- The FAO must restore its fertilizer programme to assist farmers in countries hard hit by commodity crises of one sort or another.
- The G7 countries must ensure that the IMF is more flexible in designing and monitoring Structural Adjustment Programmes by taking into consideration the impact of depressed world prices on a country's ability to sustain its programme, and at the same time provide extended support for addressing the social costs of such adjustment.
- Similarly the G7 countries should see to it that the Compensatory and Contingency Financing Facility of the IMF is extended to give greater consideration to the commodity exporting countries that suffer from price decline and give more support to food and commodities.
- Buffer Stock Financing Facility must be resuscitated to ensure fairer prices. We know that there has been no drawing on the Facility since 1985.
- The Fund for Commodities must be made to operate as its performance, since its inauguration in 1981, has been nothing short of scandalous.
- There is a case for special treatment for agriculture, particularly in small island states, in the GATT, and trade liberalization should be made compatible with fair trade. I repeat, more trade liberalization should be made compatible with fair trade.
- The PMDT Programme of Lomé is excelent in concept but .non-existent in practice. ACP/EEC must ensure that it works effectively and this should be a major consideration for the upcoming mid-term review of Lomé IV.
- And lastly the OECD countries and developed members of the Commonwealth must encourage and facilitate joint ventures by their entrepreneurs and businesses with partners in ACP, and other developing countries, and so ensure that a greater share of value added accrue to these producers in international production.
Finding a long term solution to the commodity crisis is no easy or small task, but we need to address this problem from all angles. It is in the light of this major challenge that my delegation commends these recommendations to Conference. Finally, my delegation would like to put on record its deep appreciation for the work of FAO and the assistance provided to Grenada over the years, particularly TCP. We remain deeply committed to FAO and will do all that is possible to ensure its growth and dynamism now and in the years to come. Thank you very much, Mr Chairman.
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Costas PETRIDES (Cyprus): Mr Chairman, on behalf of the Delegation of the Republic of Cyprus, I would like to congratulate you for your election to chair the present session of the Conference. I would also like to extend my congratulations to the elected Vice-chairmen. You have, no doubt, a difficult task before you but I am certain that with your well-known abilities you will guide this Conference to a fruitful final outcome.
Mr Chairman, excellencies, distingued delegates, ladies and gentlemen, the world continues to be experiencing monumental and contradictory events. We witness with dismay the tragic consequences of the revival of nationalistic and religious excesses in the former Yugoslavia and Soviet Union. Fellow human beings are being killed, exposed to starvation and forced out of their ancestral homes. The arrival of harsh winter conditions render the efforts for finding a peaceful and negotiated solution most urgent if a large scale famine is to be avoided. Yet, at the same time, a serious effort at times yielding positive results is under way for long-lasting conflicts. I wish in this context to mention in particular and welcome the accords signed between Israel and the Palestinians on September 13, 1993. We hope that these accords will be prelude for a just comprehensive settlement of the Middle East situation bringing peace, stability and development to this volatile region. The steps for the democratization of South Africa and the abolition of apartheid is another most welcome event.
The fact that it has been made possible to reach agreement on these two long lasting and seemingly unsolvable conflicts is due to the vision, wisdom, courage, political will and determination of political leaders.
There are, however, still many regional and international problems to be resolved and many unacceptable situations to be corrected. Such is the situation in Cyprus where, for almost 20 years, foreign troops continue to occupy almost 40 percent of the territory of my country, and nearly 200,000 people are not allowed to return to their homes and to work on their lands and properties.
With reference to the international economic situation, I -would like to refer in particular to the far from satisfactory world trade situation.
High levels of protectionism in agricultural commodity markets still persist, mainly because of the trends towards regionalism and bilateralism. Trade distortions are directly affecting food availability and security, induce rising costs, distort and destabilize world prices and trade, lead to misallocation of resources, contribute to great imbalances in global agricultural production, reduce local incentives for production in developing countries, and lead to inefficient income transfers and skewed redistribution of benefits. They are, thus, a cause of great discontent as they continue at a time when many developing countries have engaged in major trade policy reforms as part of their structural adjustment programmes. Subsidized products from industrialized countries continue to create enormous problems to developing countries, whilst depressed agricultural prices result in reduced foreign exchange earnings for most of them. In the case of food deficit countries, food security of their people is also put in jeopardy. In this context, trade talks need to be reoriented to enhance the developing nations' export prospects; food exporters must be enabled to compete on a equal basis in international markets, and importers should be assured of a regular and steady flow of supplies.
Liberalization of the world agricultural trade can only have a positive impact, as it would stimulate world trade and benefit developing countries, but it needs to be pursued together with structural changes in national economies in order to be sustainable and have smaller short-term costs, otherwise it may prove to be counterproductive. In the same sense, greater efforts and assistance are required to improve the living and working conditions of the small farmers and the rural poor who constitute the backbone of the agricultural economies of developing countries. Their productivity should be carefully nurtured through improved access to land and services, inputs and delivery systems, appropriate thechnology, education and training.
Let me now, Mr Chairman, briefly refer to the agricultural sector of Cyprus as well as to the major challenges we are facing.
Agriculture has always been one of the most important sectors of the economy of Cyprus, but its importance in terms of employment and GDP contribution has declined recently, due to the rapid expansion of other sectors of the economy such as tourism and services, and also particularly because of the continued occupation of 70 percent of our agricultural resources.
Cyprus agriculture can best be described as depending on small-scale farming, carried out by part-time farmers, producing predominantly for the market and it is heavily export-oriented. Historically, raw and processed agricultural exports accounted for as much as 34-38 percent of total domestic exports, of which 75 percent are destined for the European Community markets. For a whole list of major agricultural products including potatoes, table grapes, citrus, wines etc., production exceeds local demand and local markets cannot provide an outlet for the rising volume of produce. Therefore, Cyprus seeks alternative market outlets in foreign markets. Indeed, Cyprus has been a traditional supplier of fruits and vegetables to the UK market, where Cyprus produce enjoys a high reputation.
Given the critical importance of European markets for the .agricultural economy of Cyprus, an Association Agreement between Cyprus and the European Community was put into effect in 1973. The Agreement entered its final stage of implementation in 1988 which will lead to the establishment of a full Customs Union by the year 2000. The overall objective of the Agreement is to facilitate and further enhance trade between the contracting parties, mainly by way of abolishing existing customs duties, tarif quotas and other barriers to trade.
Before the final stage of the Customs Union was fully under wasy, Cyprus filed, on July 4, 1990, an application to accede to the European Communities, seeking its full economic and political alignment with them.
In the process of fulfilling the Customs Union for accession to the Community, it was realized that Cyprus agriculture would need to undergo a substantial process of modernization and alignment with that of the Community.
Despite the various developmental shortcomings and bottle-necks which currently plague Cyprus agriculture, the sector is endowed with numerous comparative advantages and dynamic elements, which, if exploited wisely and prudently, could lead our agricultural sector into a new era of prosperity.
Cyprus maintains a comparatively small but efficient agricultural economy which can adjust to the requirements of Community markets and utilize their vast potential. Cyprus agriculture is a dynamic and progressive sector which can easily cope with changing market environments. It is endowed with mild climatic conditions which allow for the production and placing on the market out-of-season high quality produce before the Community harvest begins. It has limited natural resources and production capacity, which nonetheless have been significantly expanded, mainly as a result of irrigation development. Finally, the public sector is equipped with the necessary know-how and experience which provides the impetus for the harmonization of agricultural policies in line with European requirements and standards.
Therefore, Cyprus association and possible accession to the Community can bear a critical influence on the future outlook of Cyprus agriculture. The status of the free movement of goods increases export opportunities for a lot of Cyprus traditional crops, such as early fruits and vegetables, thereby broadening the current market saturation encountered for the expansion of these crops. What is more important is that the Community prospect provides an opportunity for the restructuring and adjustment of our agriculture, for the adoption of new strategies and objectives and mainly for improvement and modernization across the broad agricultural sector.
Mr Chairman, last Monday we elected our new Director-General. I wish to welcome and congratulate Mr Jacques Diouf for his election and assure him of our close and unconditional cooperation. FAO, being one of the most important organizations in the UN family, has a major role to play in international affairs and I am certain that our new Director-General will work hard to maintain FAO as the leading agency on matters of food and agriculture.
Whilst welcoming our new Director-General, I would also like to pay tribute to Mr Edouard Saouma, that dynamic personality who has led FAO for 18 years. Mr Saouma has repeatedly and consistently proven his care and
interest for all regions of our globe and has distributed .the resources of our Organization equally and wisely to serve the most needy. During his stewardship as Director-General Mr Saouma introduced numerous changes in the programmes and generally in the way FAO is operating. From all the programmes that Mr Saouma has introduced I wish to single out the Technical Cooperation Programme. This particular programme has proven to be beneficial to many developing countries and has enabled our Organization to respond quickly to urgent needs, but it has also proved to be catalytic in generating larger and longer-term assistance for the development of agriculture. On behalf of the delegation of the Republic of Cyprus, I wish to Mr Saouma a healthy, prosperous and productive life in his future endeavours. He still has a lot to offer to the international community as a result of his vast experience and I strongly urge him to continue to assist us in our efforts for a better life for the world's underprivileged.
CEREMONY OF THE OATH OF OFFICE OF THE DIRECTOR-GENERAL ELECT
CEREMONIE DE PRESTATION DE SERMENT PAR LE DIRECTEUR GENERAL ELU
CEREMONIA DE JURAMENTO DEL CARGO DEL DIRECTOR GENERAL ELECTO
CHAIRMAN: Distinguished delegates, ladies and gentlemen, our agenda for this morning at 10.30 hours lists the ceremony of the oath of office of the Director-General elect. I should like to request the permission of the Conference to have that ceremony at this time.
As there is no objection, I would ask that we all stand while Mr Diouf takes his oath. I give the floor to Mr Diouf.
Jacques DIOUF (Directeur general élu): Moi, Jacques Diouf, jure solennellement d'exercer en toute loyauté, discrétion et conscience les fonctions qui m'ont été confiées en qualité de fonctionnaire international de l'Organisation des Nations Unies pour l'alimentation et l'agriculture, de m'acquitter de ces fonctions et de régler ma conduite en ayant exclusivement en vue les intérêts de l'Organisation sans solliciter ni accepter d'instructions d'aucun gouvernement ou autorité extérieure à l'Organisation en ce qui concerne l'accomplissement de mes devoirs.
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CHAIRMAN: Distinguished delegates, ladies and gentlemen, this takes us to the end of a simple ceremony of extraordinary significance. On your behalf I should like to wish Mr Diouf every success as he undertakes his important task as Director-General of this major institution as of 1 January 1994.
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Aplausos
The meeting rose at 10.45 hours.
La séance est levée à 10 h 45.
Se levanta la sesión a las 10.45 horas.
