Council

 

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Table of Contents

INTRODUCTION

REVIEW OF WORLD COMMODITY SITUATION AND OUTLOOK, INCLUDING FOLLOW-UP TO CONFERENCE RESOLUTION 2/79

ACTIVITIES OF SUBSIDIARY BODIES

a) (i)-(ix) Recommendations of the Intergovernmental Commodity Groups

a) (x)Review of the Consultative Subcommittee on Surplus Disposal (CSSD)

b) Mandate and operational procedures of the Intergovernmental Commodity Groups

c) Location and Operating Procedures of the Consultative Subcommittee on Surplus Disposal

TRADE POLICY QUESTIONS

a) Assessment of the impact of the Uruguay Round on agricultural markets

b) Commodity projections to 2005 including alternative scenarios

c) Report on technical assistance related to the Uruguay Round

d) Report on technical subjects (Environment and trade, biotechnology and impact of SPS measures)

ACTIVITIES OF OTHER BODIES

a) Common Fund for Commodities

b) Others

FAO Strategic Framework 2000-2015

Arrangements for the 63^rd session

Any other business

APPENDIX A - LIST OF DELEGATES AND OBSERVERS

APPENDIX B - DIRECTOR-GENERAL'S STATEMENT TO THE 62^ND SESSION OF THE COMMITTEE ON COMMODITY PROBLEMS

APPENDIX C - AGENDA

APPENDIX D - TERMS OF REFERENCE OF THE INTERGOVERNMENTAL GROUP ON BANANAS AND ON TROPICAL FRUITS

APPENDIX E - LIST OF DOCUMENTS

APPENDIX F - MEMBERSHIP OF THE COMMITTEE ON COMMODITY PROBLEMS

INTRODUCTION

1. The Committee on Commodity Problems held its 62^nd Session from 12 to 15 January 1999 at FAO Headquarters, Rome. Of the 107 member countries of the Committee for the biennium 1998-99, 79 were represented at the session. Three Member Nations of the Organization, one United Nations Member State, the Holy See and five international organizations participated as observers. The list of participants, including observers, is given in Appendix A.

2. The Committee elected Mr J. R. Alegrett (Venezuela) as Chairperson, Ms H. W�gerbauer (Austria) as First Vice-Chairperson and Ms N. Gangadharan (India) as Second Vice-Chairperson.

3. The statement of the Director-General, Mr. Jacques Diouf, was delivered on his behalf by the Deputy Director-General, Mr. David A. Harcharik. The statement of the Director-General is reproduced in Appendix B.

4. The Committee was assisted during the session by a Drafting Group composed of Belgium, Canada, Costa Rica, Germany, India, Indonesia, Japan, Kenya, Madagascar, Mexico, New Zealand, Nigeria and the Republic of Korea. The Drafting Group was chaired by Mr. H. Streichert (Germany).

5. The Committee adopted the agenda reproduced in Appendix C.

REVIEW OF WORLD COMMODITY SITUATION AND OUTLOOK, INCLUDING FOLLOW-UP TO CONFERENCE RESOLUTION 2/79

6. The Committee reviewed the world commodity market situation and outlook and recent developments concerning follow-up to Conference Resolution 2/79 on Commodity Trade, Protectionism and Agricultural Adjustment, on the basis of documents CCP 99/8 and CCP 99/CRS.1, supplemented with more recent information provided by the Secretariat. The Committee generally agreed with the assessment presented in the documents, although several delegates regretted that the analysis of the commodity market situation was not more closely linked with the discussion of the impact of the Uruguay Round Agreements in Agenda Item 5, CCP 99/12. The Committee also reviewed issues of concern to Small Island Developing States on the basis of document CCP 99/20.

7. The Committee emphasized the dampening effect of the slow-down in economic growth on commodity prices and agricultural export earnings. The decline in agricultural export earnings in 1998 was estimated to be about 7 percent in aggregate, with earnings of developing countries falling by 5 percent and of developed countries by 9 percent. In this connection, some delegates noted that although the decline in prices of basic foods except rice was steeper than expected it was the normal consequence of the cyclical behaviour of many commodity markets, and expressed the view that the markets appeared to have reached the bottom of the cycle. The view was also expressed by some delegates that the trade policy actions of certain exporters, specifically the use of export subsidies, credit subsidies and food aid had had a depressing effect on grains prices in 1998.

8. Several delegates noted that external debt problems in a number of developing countries, particularly in Africa, were an important factor in the current situation of weak demand for many commodities, and requested that this issue be given more attention in future reports. They also expressed the need for future reports to give greater attention to the special problems, especially the food security issues of the countries covered by the Marrakesh Decision on Measures Concerning the Possible Negative Effects of the Reform Programme on Least-Developed and Net-Food Importing Developing Countries. Some delegates noted that, depending on the period of reference, commodity prices appeared to fall or to rise and requested the Secretariat to examine different periods for price comparisons in future reports. In this connection, the view was also expressed that the Secretariat should examine other studies and data sources available at the WTO and UNCTAD.

9. With regard to follow-up on Conference Resolution 2/79, the Committee was informed that levels of protectionism and support, while declining, remained high in many countries. The trend towards de-coupled support was welcomed, however it was pointed out that price supports still accounted for the major part of transfers to farmers in many OECD countries. It was also noted that statistical measures of protectionism were imperfect. Some delegates expressed the view that the trade liberalization process needed to take into consideration the multifunctional character of agriculture which, according to them, included food security. Other delegates observed that the concept of multifunctionality should not be used as a reason for disguised trade protection. The Secretariat was requested to produce more precise indicators of the levels of protectionism in non-OECD countries drawing on existing sources. There were also suggestions that FAO could draw upon all available sources for presenting the data on protectionism to the CCP in future.

10. Several delegates called for more information to be included in future reports on non-tariff barriers to trade, including SPS and TBT measures. Several delegates noted that many developing countries were facing difficulties with the liberalization of agriculture in the current market situation and encouraged FAO to strengthen its technical assistance to developing countries, especially the least developed and net food-importing developing countries. They emphasized that the Secretariat should facilitate co-ordination among developing countries for the next round of multilateral trade negotiations. The Committee noted that Conference Resolution 2/79 had been passed twenty years ago. In this connection, the Secretariat was asked to review its reporting activities on this Resolution in light of the UR Agreements and other developments since 1979.

11. Document CCP/20 Trade Issues Facing Small Island Developing States was welcomed as a useful contribution to the assessment of the consequences of the Uruguay Round Agreement on Agriculture for the trade of Small Island and Low-lying Developing States (SIDS). It was recognized that the short duration of the Special Ministerial Conference might not permit a thorough analysis of the trade issues of concern to SIDS. The Committee noted that SIDS faced, in addition to the general problems of developing countries, specific difficulties arising from the interplay of factors such as smallness, remoteness, geographical dispersion, vulnerability to natural disasters and a limited internal market. The Committee agreed that the international community had a role to play in assisting SIDS in adjusting to the emerging trade environment. In this connection, FAO was asked to continue its assistance to this group of countries, in particular as regards strengthening their institutional and analytical capacity to reap the most benefit from the UR Agreements and any future multilateral agreements on agriculture.

ACTIVITIES OF SUBSIDIARY BODIES

a) (i)-(ix) Recommendations of the Intergovernmental Commodity Groups

12. The Committee endorsed the reports and recommendations of the seven IGGs and two Sub-Groups which had met since its 61^st Session¹. In endorsing these reports, the Committee took note of positive innovations in the arrangements and conduct of some IGG sessions, particularly of the IGG and Meat, its Sub-Group on Hides and Skins, and of the IGG on Tea, which had led to more intensive and productive technical deliberations, including through the active participation of private sector experts. The Committee agreed that efforts should be pursued to extend this positive approach also to other IGG sessions. The Committee was informed of the concerns of members of IGGs for which joint meetings had been already or might be organized in the future. It agreed that for the next joint meeting of the Intergovernmental Group on Jute, Kenaf and Allied Fibres and the Intergovernmental Group on Hard Fibres there was a need to ensure that separate time was given for the discussion of individual commodity issues, and that the time allocated to joint meetings should be slightly extended beyond three days to allow fuller benefits to participating countries. It was proposed that the Groups should assume a more active role in the evaluation and prioritization of commodity development programmes and in the mobilization of resources to support them. While appreciating the work undertaken to analyze trade and food security issues in certain commodity groups, some delegates considered that such issues extended beyond individual IGGs. The Committee suggested that the linkages between food security and trade could be a matter for its future consideration.

a) (x)Review of the Consultative Subcommittee on Surplus Disposal (CSSD)

13. The Committee endorsed the report of the Consultative Subcommittee on Surplus Disposal, presented by the CSSD Chairman, and noted the continuing role of CSSD in monitoring food aid transactions and in ensuring that such transactions would not be disruptive to established trade patterns nor harmful to domestic agricultural production.

14. The Committee welcomed the new and heightened activities of Brazil, Italy and Spain in providing commodity assistance during the period under discussion. Some delegates provided the Committee with information about their national programmes.

15. The Committee expressed concern over the general decline in the volume of food aid transactions throughout the 1990s. It was however noted that there has been slight reversal of this decline in recent months. Some delegates encouraged the CSSD to monitor closely this trend to ensure that the recent large-scale transactions were handled in an efficient manner.

16. The reported rise in the proportion of food aid channelled to recipients through Private Voluntary Organizations (PVOs) was noted by several delegates. The Committee asked the CSSD to report on the increased role of PVOs in large-scale food aid transactions for the next CCP session.

17. The CSSD was also requested by several delegates to maintain, as part of its monitoring process, close contact with food aid institutions in order to better understand the decline in the proportion of food aid transactions that were formally notified through the CSSD.

b) Mandate and operational procedures of the
Intergovernmental Commodity Groups

18. In line with the recommendations of its 61^st Session and taking into account the conclusions and guidelines of the Council and Conference regarding the review of all statutory bodies, the Committee examined the role and functioning of its IGG system. Document CCP 99/10 was provided to assist the Committee in this task.

19. As called for by the 29^th Conference, the Committee abolished its statutory bodies listed in Annex B of Conference Resolution 97/13 (as specified in paragraphs 53 and 54 of document CCP 99/10).

20. In reviewing the mandate and operational procedures of the IGGs, the Committee generally agreed that the IGGs fulfilled a useful role in a flexible and cost effective manner, particularly in recent years following the implementation of measures to enhance efficiency and reduce costs. Many delegations underlined that the work programmes of the IGGs should be developed taking full account of the World Food Summit Plan of Action, giving priority to economic and trade issues, policy advice as well as measures aimed at poverty alleviation, enhancing productivity, encouraging sustainable use of technology and promoting food security. Some delegates expressed reservations about whether the system of IGGs was the most effective mechanism for undertaking the current functions of the Groups as they had evolved over time, and stressed that a more analytical review was needed to determine their value under changing international trading conditions and disciplines.

21. The Committee noted that the IGGs covered commodities which accounted for a large proportion of the value of world agricultural trade, but that the share had slightly decreased over the past decades. With a view to enhancing the relevance of IGG activities, many delegates supported the extension of the mandate of selected IGGs to include important related commodities, value-added products as well as commodities of importance for food security considerations in the case where no other international forum existed to deal with these items. As regards specific commodities for which coverage was considered desirable, particular mention was made of the importance for food security and poverty alleviation such that cassava, yams and sweet potatoes could constitute a Sub-Group and plantains could be attached to the Sub-Group on Bananas. Reference was also made to the importance in international trade of dairy products. The Committee considered that any suggestions made by individual IGGs for the extension of their mandates would be considered, in accordance with normal procedures by the CCP, along with information regarding any resource implications of such actions. One delegate further opposed any proposals to extend the mandate of the IGGs until such a review was carried out.

22. The Committee noted the request of the Common Fund for Commodities (CFC) that a number of "orphan" commodities, including dairy products, cut flowers and cashewnuts, be adopted by the IGGs to the degree possible in order to allow commodity development work to be undertaken in accordance with the Fund's procedures. The Committee requested its IGGs to examine this request taking into account certain criteria. These include trade value and/or the contribution of these commodities to food security particularly for least developed countries as well as their relationship to the other commodities covered by the Group. The IGGs were requested to report the next session of the CCP on this matter. The question of the role of the CCP as a possible International Commodity Body (ICB) was raised, but the Committee considered that more background work was required before this issue could be considered. The Committee was informed that the Sub-Group on Tropical Fruits had been given ICB status by the CFC.

23. In reviewing possible overlap of the IGGs with the work of other organizations, the Committee expressed satisfaction that little or no duplication existed, even in the case where parallell commodity bodies existed, for example in the case of the IGG on Grains and of the IGG on Rice. The Committee stressed the need to continue to rationalize arrangements to deal with commodity issues in the light of evolving institutional conditions.

24. In considering the functions of the IGGs, various suggestions were made to enhance this work through direct and closer collaboration with member countries, which could include meetings away from headquarters on a selective basis and strengthening the participation of the private sector. The Committee endorsed the convening of joint meetings of related IGGs to deal with thematic issues of common concern. It also requested that efforts be made to organize on a trial basis one or more ad hoc conferences dealing with related commodities of importance in world agricultural production and trade, bearing in mind that such conferences would be in lieu of the regular IGG sessions scheduled for a biennium.

25. The Committee expressed its satisfaction at the savings which had been achieved in the budgets of IGG sessions and requested that operational procedures which had led to these savings be maintained. With a view to achieving further economies, the Committee endorsed the proposals contained in paragraphs 60 to 64 of document CCP 99/10.

26. The Committee agreed to review at its next session the functioning of its IGGs, including the adaptation of their work programmes to the World Food Summit Plan of Action, their role under changing international trading conditions and disciplines, and modifications in their operational procedures and commodity coverage.

27. The Committee adopted the Terms of Reference of the IGG on Bananas and on Tropical Fruits as contained in document CCP 99/22 with some amendments. (Annex D). The Committee expressed appreciation of the offer of the Government of Australia to host the First Session of the Intergovernmental Group in cooperation with the Australian Banana Growers' Council in May 1999.

c) Location and Operating Procedures of the
Consultative Subcommittee on Surplus Disposal

28. Regarding CSSD operating procedures, the Committee appreciated the streamlining efforts made since the last meeting of CCP. It urged the CSSD to investigate means by which to further streamline operations through the increased use of electronic communications.

29. Regarding the location of the CSSD, several countries favoured a move to Rome. They were critical of the financial comparison of CSSD operating costs in Washington and in Rome, and requested an analysis of these costs based on operations in Rome and in Washington both with and without the use of full interpretation and translation services. These countries also cited the advantage of the geographic consolidation of all food aid related bodies in Rome, deeming that there was a more knowledgeable body of agricultural expertise among the representatives that could participate effectively in CSSD meetings.

30. However, a majority of delegates favoured the status quo location of CSSD in Washington and would favour this position even if the costs were equal. They also cited CSSD's specialized role and mandate, and noted that it was not a forum for the general discussion of food aid. They highlighted the consultative role of CSSD between both exporting and recipient countries and among exporters themselves, which in their view was now being well served. They considered that the CSSD was operating effectively and efficiently in its current location. They also noted that the number of FAO members with representation in Washington was greater than in Rome.

31. The debate on the future location of the CSSD continued under "other business", based on document CCP 99/CRS.3 providing cost estimates for alternative locations with and without language services. It was agreed that the question of the language services required needed separate consideration. However there was no consensus on the change in the location of the CSSD, and the matter remained open for further examination.

TRADE POLICY QUESTIONS

a) Assessment of the impact of the Uruguay Round on agricultural markets

32. The Committee assessed the impact of the Uruguay Round on agricultural markets on the basis of the document CCP 99/14. It appreciated the analysis, noting that this was the first time that such an assessment had been made. The Committee agreed that it was a difficult subject technically particularly in view of there only being four years of experience with the implementation of the Uruguay Round, and also due to the number of weather and macroeconomic-related events that had affected agricultural commodity markets in this period.

33. The Committee noted the main conclusions reached in the Secretariat's assessment: that with the exception of some commodities, there was little evidence of the impact of the Uruguay Round on the volume of trade and level of prices on the world market in a majority of cases; that part of the increased food import bills of the Least Developed and Net Food Importing Developing Countries could be attributed directly or indirectly to Uruguay Round-related policy changes; and that there was little evidence of much change in world price instability. While most delegates agreed that these findings were in part due to the gradual phasing-in of country commitments under the Uruguay Round, some delegates disagreed with this conclusion. It was also noted the difficulties in isolating the effects of the Uruguay Round from other developments, with just over three years of information. Some delegates considered that the methodology used to make this assessment was also inappropriate.

34. Many suggestions were made for improving the analytical techniques employed in future assessments. Thus, given the nature of the subject, quantitative assessments could be supplemented with more qualitative information, such as the extent to which country commitments were actually implemented, including those on market access and tariff rate quotas, and export subsidies and trends in trade flows. Some delegates suggested that the use of more sophisticated quantitative tools would improve the possibility of isolating the effects of the Uruguay Round from other developments. At the same time, the Committee also considered that the assessment of the impact at the regional/sub-regional levels and on specific commodities would be useful.

35. Regarding the substance of future assessments, many delegates stressed the need for a further analysis of the food security implications. In this connection, they suggested that the Secretariat should calculate the seven indicators of food security used in the assessment of the world food security situation by FAO's Committee on World Food Security. Other suggestions made in the area of food security included: highlighting quantitatively the relationship between market access/export earnings and food import bills as one of the indicators of food security at the national level; assessing the impact of the reform measures on the ability to sustain domestic food production, taking account of underlying constraints faced by developing countries; analysing national level distributional effects of the Uruguay Round, in particular among producers and consumers. The ability of countries to compete in world markets would also have to be considered in the light of imbalances in productivity and technology relative to those in more advanced agricultural systems. Several delegates emphasized the importance of covering non trade concerns, including food security, and the multifunctionality of agriculture. Other delegates noted that remaining high barriers and other trade distortions had to date prevented the multilateral trading system from demonstrating the contribution it could make to food security.

36. The Committee requested the Secretariat to undertake additional analysis on the impact of the Uruguay Round, particularly on food security, prior to the beginning of the next round of multilateral trade negotiations. Some delegates requested the study to focus on the possible negative effects of the Uruguay Round on food security in developing countries and policy measures to contain them. Where available, the analysis could include concrete examples of the impact on some countries/commodities. The Committee also requested the Secretariat to prepare a revised study, taking into account various suggestions made, for the next meeting of the Committee, by when more than five years of experience would be available on the implementation of the Uruguay Round. Several delegates requested FAO to play a vigorous advocacy role in the coming WTO multilateral trade negotiations in the context of food security issues.

b) Commodity projections to 2005 including alternative scenarios

37. The Committee reviewed the results of the FAO projections of supply, demand, trade and prices to the year 2005 on the basis of the Secretariat document CCP 99/13 and additional information provided by the Secretariat. This represented a summary of the latest medium-term projections that FAO regularly undertakes for all major agricultural commodities, the full results to be published later in 1999.

38. The Committee agreed, in general, with the overall approach, methodologies and conclusions of the study, noting that many uncertainties surrounded these projections. It welcomed the continuing close collaboration between FAO and other international organizations involved in studies on the medium-term outlook. The Committee requested that the study should be updated more frequently, with the inclusion of more commodities, alternative scenarios and more on the food security implications. Some delegates regretted that the study did not focus enough on effects of critical policy issues and did not present enough information on the underlying assumptions on expected technological developments. Proposals were also made to provide easier access to the detailed projection results through their placement on the Internet.

39. The Committee noted the major findings of the study which showed that the projection period was expected to be characterized by aggregate growth rates for production and demand of food and agricultural commodities slightly higher than during the previous decade and above the projected rate of population increase.

40. The Committee also noted that the slowdown in the growth of world trade in agricultural commodities, already identified in previous studies, was still foreseen up to the year 2005 despite the policy reforms.

41. The Committee observed that the net trade situation of the developing countries was projected to deteriorate significantly, especially in Africa. If the projected results were to materialize, the developing countries as a group could be net importers of agricultural products by the year 2005. In this connection, several delegates emphasized that the projected rise in imports should not be considered completely negative, since this trend was generally associated with growth in real incomes.

42. The Committee noted the findings of the study on the possible effects of production shortfalls on price fluctuations. Some delegates were of the view that weather anomalies were on the increase which could lead to increased production variations and price fluctuations. In their view this emphasized the need for sustainable food production particularly in the developing countries. In the view of some other delegates, prices would not be more unstable in the future.

43. The Committee noted with concern that the net cereal import gap of the developing countries was expected to increase by the year 2005. Of particular concern was the increase foreseen even at constant prices in the net food import bill of the Low-Income Food-Deficit Countries (LIFDCs). The Committee emphasized that if this result materialized the LIFDCs would become more vulnerable in terms of their food security.

44. Several delegates noted an apparent inconsistency between the FAO study which projected increases in the real prices of certain commodities by 2005 in relation to their 1993-95 levels, compared to less favourable prospects indicated by other projection studies. The Secretariat explained that the discrepancies were relatively minor and could in part be explained by the utilization of different reference years. The Secretariat also informed the Committee that periodic meetings with other organizations were held to compare results as well as methods used to make projections.

c) Report on technical assistance related to the Uruguay Round

45. The Committee reviewed FAO's technical assistance activities related to the Uruguay Round on the basis of the document CCP 99/14. Several delegates from developed countries provided information on their own ongoing and upcoming technical and financial assistance programmes, often organized in collaboration with FAO and other organizations. The Committee concurred with the Secretariat's assessment that some developing countries were experiencing difficulties in implementing the Uruguay Round Agreements; moreover, there was an urgency to assess the many new issues that are being raised for possible inclusion in the agenda of the next round of multilateral trade negotiations. Overall, the Committee appreciated the Secretariat's activities in this area and endorsed these as a high priority activity for FAO. The Committee stressed the importance of close collaboration with other organizations in its technical assistance activities.

46. For the future, the Committee stressed the importance of the Secretariat's technical assistance on preparing developing countries for the forthcoming multilateral trade negotiations; on agricultural policy advice and on developing SPS/TBT standards as well as assisting developing countries in adapting to these standards. In this connection, the Committee also welcomed the new training programme being organized by FAO.

47. Several suggestions were made as regards the focus of the technical assistance programme to developing countries, which included: capacity building in trade-related analytical work; studies on non-trade concerns, including food security; preparation of formal and informal papers on issues of their concern within the Analysis and Information Exchange (AIE) process; and strengthening institutional capability on data collection and analysis for trade negotiations and developing an inventory of technical assistance requirements by country. Several delegates who had participated in regional workshops organized by FAO appreciated their value and encouraged the holding of further workshops in other regions.

d) Report on technical subjects
(Environment and trade, biotechnology and impact of SPS measures)

48. The Committee reviewed the follow-up activities of the Secretariat related to trade and environment, biotechnology and SPS/TBT measures on the basis of Document CCP 99/15, noting the importance of the topics covered for member countries. Many delegates expressed their support for the activities recommended in paragraph 20 for monitoring global developments affecting competitiveness of agricultural-based products. They emphasised the need for a balanced and objective treatment of these subjects and for co-operation with other appropriate institutions when carrying them out. However, several other delegates referred to the complexity of the issues involved, especially with respect to their implications for other matters not related to commodity and trade. They expressed the view that these wider issues should be considered when undertaking the review of the IGG System at the Committee's next session.

49. Some delegates emphasized the potential harmful impact to health of humans, animals and plants and to the natural eco-system by trading of genetically-modified agricultural products. They stressed the need for an international framework for appropriate biosafety measures to minimize the possible transborder adverse effects.

ACTIVITIES OF OTHER BODIES

a) Common Fund for Commodities

50. The Committee reviewed developments in FAO's cooperation with the CFC with the help of document CCP 99/16. It welcomed the strengthening of ties between the now eleven ICBs serviced by FAO and the Fund having generated US$ 60 million for the benefit of member states and, in particular, the commodity sectors of developing countries. The Committee commended its ICBs for having adopted flexible and effective intersessional machinery enabling the discharge of two of its major CFC-related tasks: first, the sponsoring and advancing of projects towards speedy acceptance by the Common Fund in the intervals between formal sessions and, second, the supervision of ongoing projects in these periods. ICBs were encouraged to continue their adoption of flexible solutions where needed. Given the frequently lengthy intervals between sessions, it was suggested that members of ICBs should be informed of major developments in regard to project work where they occurred.

51. Many delegates expressed serious concern over the Common Fund's envisaged shift from predominantly grant-financed to more loan-financed projects or loan/grant mixes and the implications for FAO's ICBs. They emphasized that not only had the number of FAO sponsored projects endorsed annually been rather small in the past, but the need for finding governments or other institutions guaranteeing the servicing and repayment of loans would introduce an additional constraining factor to the formulation of projects by the ICBs and their acceptance by the Fund. They also felt that this shift towards loan-funding could put in question the original objective of the Common Fund, which aimed at commodity development for the benefit of a larger number of countries and, in particular, of the least developed countries. They therefore urged the Fund to continue to provide grant-based assistance. Other delegates pointed out that the financial principles of the CFC laid down by its governing bodies and the related draw-down of financial resources which could be devoted to grant projects, made an adjustment of the ICBs' policies to the shift towards loan-funded projects inevitable.

52. The Committee agreed that, in light of the recent developments regarding the Fund's financing concepts, it had become paramount that ICBs should prioritize projects where several projects were sponsored at the same time. Also, the need to find co-financing, together with efforts to mobilize additional financial resources for commodity development work within and outside the context of CFC projects, became crucial. Further, member countries would benefit from advice by the Secretariat as to the best ways to make optimal use of CFC resources in the changing circumstances. Finally, while some delegates advocated that all ICBs be granted access to the CFC's new Project Preparation Facility (PPF) in light of the more complicated formulation process for loan vis-�-vis grant projects, other delegates felt that less well-endowed ICBs outside the FAO domain deserved priority treatment in being allocated PPF funds.

b) Others

53. The observer of OECD informed the Committee on ongoing and planned activities of his organization which are of interest to the CCP. In particular, he reported about a new work programme related to the next round of multilateral trade negotiations, where work would concentrate on evaluating and strengthening the process of agricultural trade liberalization; investigating issues at the interface of domestic and trade policies; and analyzing trade aspects of competition and market structure. The programme envisaged collaboration with other organizations including FAO.

54. The suggestion was made that, in future, observers from organizations such as WTO, The World Bank , UNCTAD or, alternatively, the Secretariat should inform the Committee about on-going activities, programmes and studies related to agricultural trade in other fora.

FAO STRATEGIC FRAMEWORK 2000-2015

55. The Committee addressed Version 1.0 of the Strategic Framework, focussing more particularly on the trade-related aspects, in line with its terms of reference. It recognised that the membership had already addressed more general aspects, as the document had been considered by the Programme and Finance Committees and the Council at their last sessions. It was informed that, in view of the timing, it had not been possible to submit to it Version 2.0, which would be available to the forthcoming sessions of the Committees on Agriculture, Fisheries and Forestry.

56. The Committee recalled that reactions to Version 1.0 had been sought from a broad range of external partners, and made some further suggestions on the need to associate specific important partner organizations, particularly those active on trade and commodity matters.

57. The Committee observed that Version 1.0 could only reflect a synthesis of the supportive analytical work carried out throughout the Organization in order to limit the size of the document to manageable proportions. In this light, it recognised that some of the trends indicated, such as globalisation and trade liberalisation, were fully pertinent, but that the brief formulations in the document could not capture the complexities of underlying issues and the differing perceptions of various regions and countries. It was in any case noted that the analytical material was provided for the information of Members, and that the Council had already suggested that it be deleted from the body of the text.

58. Keeping in mind that further refinement of the Strategic Framework was expected to continue, until a definitive text could be approved by the next Conference, according to the agreed time-table, the Committee stressed that account should be taken of the entire scope of discussions in Technical Committees, and not solely of interventions under the specific agenda items dealing with the Strategic Framework.

59. The Committee also recalled that, besides the Strategic Framework, the Organization's revised programme-budget process as approved by the Conference would also comprise revamped Medium-Term Plan and Programme of Work and Budget documents where time-bound and outcome oriented activities would be submitted to the membership.

60. In considering Part II, Corporate Strategies and Objectives, the Committee considered that corporate strategy B and the related two strategic objectives, B1 and B2, well captured the expectations of the membership as regards the future trade-related activities of FAO.

61. In addition to making a number of specific suggestions for developing the strategies of FAO in this area, the Committee reiterated the importance of the analytical and information dissemination roles of FAO, and underlined the extensive policy assistance requirements of members in the context of preparations for, and eventual follow-up to the next WTO round of multilateral trade negotiations. The Committee stressed that FAO should seek to meet these requirements, in full co-operation with its partners. It was observed that FAO should see and publicise its role not solely in terms of primarily assisting developing countries to adjust to changing trade regimes, but also of sensitising the whole membership to the special concerns of developing countries including on food security. It was also suggested that FAO should give adequate attention to inter-relationships among commodities in its analytical activities.

ARRANGEMENTS FOR THE 63^RD SESSION

62. The Committee requested the Director-General to set the date of the next session in consultation with the Chairman. In doing so a balance should be kept between scheduling the CCP after a sufficient number of Intergovernmental Groups had met, yet also taking into consideration the schedule for other FAO meetings and avoiding the very early part of the year as well as the Ramadan period.

ANY OTHER BUSINESS

63. One member pointed out that in order to allow LDCs to share fully the benefits arising from trade liberalization, access to financial hedging instruments was essential. Therefore, FAO should consider how best to assist developing countries in this respect.

APPENDIX A - LIST OF DELEGATES AND OBSERVERS

MEMBERS OF THE COMMITTEE - MEMBRES DU COMIT� - MIEMBROS DEL COMIT�

ALGERIA - ALGERIE - ARGELIA

D�l�gu�
H. YAHI-CHERIF Rome
Conseiller
Repr�sentant permanent aupr�s de la FAO

 

ANGOLA

D�l�gu�
K.K. MATEVA Rome
Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

Suppl�ant
C. AMRAL Rome
Conseiller
Repr�sentant permanent suppl�ant aupr�s de la FAO

 

ARGENTINA - ARGENTINE

Delegado
A. FERNANDEZ Roma
Secretario, Encargado de negocios, a.i.
Representante Permanent Alterno ante la FAO

 

AUSTRALIA - AUSTRALIE

Delegate
P. ROSS Rome
Counsellor (Agriculture)
Alternate Permanent Representative to FAO

 

AUSTRIA - AUTRICHE

Delegate
H. W�GERBAUER Vienna
Head, Division for FAO, OECD, ECE and CAA
Federal Ministry of Forestry and Agriculture

Alternate
E. ZIMMERL Rome
Permanent Representative to FAO

 

BANGLADESH

Delegate
Md.L.R. CHOWDHURY Dhaka
Joint Secretary, Ministry of Jute

Alternates
M. MEJBAHUDDIN Rome
Economic Counsellor
Alternate Permanent Representative to FAO

KHALED RAB Brussels
Director, Bangladesh Jute Mills Corporation
Ministry of Jute

 

BELGIUM - BELGIQUE - BELGICA

D�l�gu�
L. BINARD Brussels
Ing�nieur agronome
Minist�re de l'agriculture et classes moyennes

Suppl�ants
J. Gentile Rome
Secr�taire
Repr�sentation permanent aupr�s de la FAO

M. PEETERMANS Bruxelles
Premier secr�taire
Minist�re des Affaires �trang�res

 

BRAZIL - BRESIL - BRASIL

Delegate
M.G. VALENTE DA COSTA Rome
Counsellor
Alternate Permanent Representative to FAO

Alternate
J.M. CABRAL DE MELLO Rome
Second Secretary
Alternate Permanent Representative to FAO

 

BURKINA FASO

D�l�gu�
A. YAMEOGO Rome
Conseiller �conomique
Repr�sentant permanent adjoint aupr�s de la FAO

 

CAMEROON - CAMEROUN - CAMERUN

D�l�gu�
T.N. MOKAKE Rome
Deuxi�me Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

 

CANADA

Delegate
R. Rose Rome
Counsellor
Deputy Permanent Representative to FAO

Alternates
M. CLUFF Ottawa
Associate Director
Agriculture and Agri-Food Canada

 

CAPE VERDE - CAP-VERT - CABO VERDE

D�l�gu�
E.J. Lima Barros Silva
Secr�taire
Repr�sentation permanent aupr�s de la FAO

 

CHILE - CHILI

Delegado
V.M. REBOLLEDO GONZALEZ Roma
Embajador ante la FAO
Representante permanente ante la FAO

Suplente
H. MOLINA REYES Roma
Segundo Secretario
Representante Permanente Alterno ante la FAO

 

CHINA - CHINE

Delegate
NI HONGXING Beijing
Deputy Director, Ministry of Agriculture

Alternates
TANG SHENGYAO Rome
Second Secretary
Alternate Permanent Representative to FAO

SUN SHENGZHI Rome
Third Secretary
Alternate Permanent Representative to FAO

LI ZHENPING Beijing
Programme Officer, Ministry of Agriculture

 

COLOMBIA - COLOMBIE

Delegado
B.G. ZULUAGA BOTERO Roma
Primer Secretario, Encargado de negocios a.i.
Representante Permanente Alterno ante la FAO

 

COSTA RICA

Delegado
V. GUARDIA DE HERNANDEZ Roma
Embajador ante la FAO
Representante Permanente ante la FAO

Suplentes
S. MONGE FALLAS San Jos�
Director Ejecutivo
Secretar�a Ejecutiva de Planificaci�n Sectorial Agropecuaria

M. SU�OL PREGO Roma
Consejero
Representante Permanente Alterno ante la FAO

 

CUBA

Delegado
J. NUIRY SANCHEZ Roma
Embajador ante la FAO
Representante Permanente ante la FAO

 

CYPRUS - CHYPRE - CHIPRE

Delegate
A. ROUSHIAS Rome
Agricultural Attach�
Alternate Permanent Representative to FAO

 

CZECH REPUBLIC - REPUBLIQUE TCHEQUE REPUBLICA CHECA

Delegate
M. VRLOV� Prague
Director, Ministry of Agriculture

Alternate
J. NOV�K Rome
Counsellor
Permanent Representative to FAO

 

DENMARK - DANEMARK - DINAMARCA

Delegate
B. M�LLER CHRISTENSEN Rome
Minister Counsellor (Agriculture)
Deputy Permanent Representative to FAO

 

EL SALVADOR

Delegado
M.E. JIMENEZ Roma
Ministro Consejero, Encargado de Negocios a.i.
Representante Permanente Adjunto ante la FAO

 

ERITREA - ERYTHREE

Delegate
Y. TENSUE Rome
First Secretary
Alternate Permanent Representative to FAO

 

EUROPEAN COMMUNITY - COMMUNAUTE EUROPEENNE -

COMUNIDAD EUROPEA

(Member organization/Organisation membre/Organizaci�n miembro)

D�l�gu�
M. IGLESIA GOMEZ Bruxelles
Administrateur
Direction g�n�rale de l'agriculture

Suppl�ants
U. BRAUN Bruxelles
Administrateur
Direction g�n�rale de l'agriculture

S. GUALANDI Rome
Deuxi�me secr�taire
D�l�gation de la Commission des Communaut�s europ�ennes aupr�s de la FAO

 

FINLAND - FINLANDE - FINLANDIA

Delegate
A. KAUPPILA Helsinki
Forestry Advisor
Ministry of Agriculture and Forestry

Alternate
K. N�RHINEN Helsinki
Senior Advisor
Ministry of Agriculture and Forestry

 

FRANCE - FRANCIA

D�l�gu�
D. BERTHERY Rome
Conseiller scientifique
Repr�sentant permanent suppl�ant aupr�s de l'OAA

 

GABON

D�l�gu�
I.A. DIAS DA GRA�A Rome
Deuxi�me Conseiller
Repr�sentant permanent suppl�ant aupr�s de la FAO

 

GERMANY - ALLEMAGNE - ALEMANIA

Delegate
C.J. WEIERS Rome
First Councellor
Permanent Representation of Germany to FAO

Alternates
R.R.H. STREICHERT Bonn
Deputy Head of Sector
Federal Ministry for Food, Agriculture and Forestry

H. HOLSTEIN Brussels
Administrator, EU Council Secretariat

E. CHIANALE Brussels
Official, EU Council Secretariat

 

GHANA

Delegate
M.I. SEIDU Rome
Minister Counsellor
Alternate Permanent Representative to FAO

 

GREECE - GRECE - GRECIA

Delegate
D.A. KYVETOS Rome
Second Counsellor
Deputy Permanent Representative to FAO

 

HAITI

D�l�gu�
S. PERCY Rome
Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

 

HUNGARY - HONGRIE - HUNGRIA

Delegate
G. P�TER Budapest
Vice President, Ministry of Agriculture

Alternate
M. KOV�CS Rome
Counsellor, Permanent Representative to FAO

 

INDIA - INDE

Delegate
N. GANGADHARAN Rome
Minister (Agriculture)
Alternate Permanent Representative to FAO

 

INDONESIA - INDONESIE

Delegate
H. BADJURI Rome
Minister Counsellor
Alternate Permanent Representative to FAO

Alternates
A.T. YUDHASWARI Rome
Third Secretary
Alternate Permanent Representative to FAO

I.N. ARDHA Rome
Agriculture Attach�
Alternate Permanent Representative to FAO

 

ISLAMIC REPUBLIC OF IRAN
REPUBLIQUE ISLAMIQUE D'IRAN
REPUBLICA ISLAMICA DEL IRAN

Delegate
S. NOURI-NAEENI Rome
Ambassador
Permanent Representative to FAO

Alternates
M. EBRAHIMI Rome
Alternate Permanent Representative to FAO

M. JAFARI Rome
Alternate Permanent Representative to FAO

 

ITALY - ITALIE - ITALIA

D�l�gu�
L. FONTANA-GIUSTI Rome
Ambassadeur
Repr�sentant permanent aupr�s de la FAO

Suppl�ants
G. GRANATO Rome
Minist�re pour les politiques agricoles

P. LA STELLA Rome
Minist�re pour les politiques agricoles

P. MARIN Rome
Minist�re pour les politiques agricoles

G. Starage Rome
Minist�re pour les politiques agricoles

A. MILANO Rome
Minist�re pour les politiques agricoles

 

JAPAN - JAPON

Delegate
H. KUGITA Tokyo
Ministry of Agriculture, Forestry and Fisheries

Alternates
M. KAWAGUCHI Tokyo
Ministry of Agriculture, Forestry and Fisheries

K. MACHIDA Tokyo
Ministry of Agriculture, Forestry and Fisheries

T. SEKIGUCHI Tokyo
Ministry of Foreign Affairs

 

JORDAN - JORDANIE

Delegate
S. MASARWEH Rome
Ambassador, Permanent Representative to FAO

 

KENYA

Delegate
P.K. CHEPKWONY Rome
Counsellor (Agriculture)
Alternate Permanent Representative to FAO

Alternate
A.N. SHANI Rome
Commercial Attach
Permanent Representation to FAO

 

KOREA, REPUBLIC OF - COR�E, REPUBLIQUE DE - COREA, REPUBLICA DE

Delegate
RHO KYEONG-SANG Rome
Agricultural Attach�
Deputy Permanent Representative to FAO

Alternates
CHO IL-HO Kyunggi
Deputy Director
Ministry of Agriculture and Forestry

KWON JAE-HAN Rome
Third Secretary
Alternate Permanent Representative to FAO

 

LESOTHO

Delegate
M.T. KHALEMA Rome
Counsellor
Alternate Permanent Representative to FAO

Alternate
I.M. RANOOE Rome
First Secretary
Alternate Permanent Representative to FAO

 

LIBYA - LIBYE - LIBIA

Delegate
M.M SEGHAYER Rome
Counsellor
Alternate Permanent Representative to FAO

 

LITHUANIA - LITUANIE - LITUANIA

Delegate
A. ZEMAITIS Rome
Ambassador
Permanent Representative to FAO

 

MADAGASCAR

D�l�gu�
G. RUPHIN Rome
Ambassadeur
Repr�sentant permanent aupr�s de la FAO

Suppl�ant
MONJA Rome
Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

MALAYSIA - MALAISIE - MALASIA

Delegate
R. VENGADESAN Rome
Ambassador
Permanent Representative to FAO

Alternate
K. Md. TAHIR Rome
Agricultural Attach�
Alternate Permanent Representative to FAO

MALTA - MALTE

Delegate
F. MONTANARO MIFSUD Rome
Ambassador
Permanent Representative to FAO

 

MAURITANIA - MAURITANIE

D�l�gu�
H. OULD SIDI ABDALLAH Rome
Deuxi�me Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

MAURITIUS - MAURICE - MAURICIO

Delegate
D. CANGY Port Louis
Alternate Delegate
Ministry of Foreign Affairs

MEXICO - MEXIQUE

Delegado
J. ROBLES AGUILAR Roma
Consejero
Representante Permanente Adjunto ante la FAO

MOROCCO - MAROC - MARRUECOS

D�l�gu�
A. AFAILAL Rome
Ministre pl�nipotentiaire
Repr�sentant permanent adjoint aupr�s de la FAO

MYANMAR

Delegate
U KYI WIN Rome
Third Secretary
Alternate Permanent Representative to FAO

NAMIBIA - NAMIBIE

Delegate
T. VAN DER MERWE Windhoek
Deputy Director
Ministry of Agriculture, Water and
Rural Development

Alternates
M. MUPOTOLA-SIBONGO Windhoek
Chief Agricultural Economist
Ministry of Agriculture, Water and
Rural Development

A.L. DU PISANI Windhoek
Senior Agriculture Researcher
Ministry of Agriculture, Water and
Rural Development

NETHERLANDS - PAYS-BAS - PAISES BAJOS

Delegate
D.P.D. VAN RAPPARD The Hague
Policy Advisor
Ministry of Agriculture, Nature
Management and Fisheries

NEW ZEALAND - NOUVELLE-ZELANDE -

NUEVA ZELANDIA

Delegate

P. FERGUSON Rome
First Secretary
Alternate Permanent Representative to FAO

NIGERIA

Delegate
O. EDACHE Abuja
Director of Agriculture
Ministry of Agriculture

Alternate
O.E. ONWUKEME Rome
Senior Counsellor
Alternate Permanent Representative to FAO

NORWAY - NORVEGE - NORUEGA

Delegate
D. BRISEID Rome
Minister Counsellor
Permanent Representative to FAO

PANAMA

Delegado
I. BERNAL MAURE Roma
Embajador
Representante Permanente ante la FAO

Suplente
H. MALTEZ Roma
Ministro Consejero
Representante permanente Adjunto ante la FAO

PAKISTAN - PAKIST�N

Delegate
A. Bashir Khan
Alternate Permanent Representative to FAO

PERU - PEROU

Delegado
A.M. DEUSTUA CARAVEDO Roma
Embajador
Representante Permanente ante la FAO

Suplente
P. PAREDES PORTELLA Roma
Ministro
Representante Permanente Adjunto ante la FAO

PHILIPPINES - FILIPINAS

Delegate
J.M. TEOTICO Manila
Executive Director
Fibre Industry Development Authority
Ministry of Agriculture

POLAND - POLOGNE - POLONIA

Delegate
M. GRELA Rome
Minister Plenipotentiary
Permanent Representative to FAO

ROMANIA - ROUMANIE - RUMANIA

D�l�gu�
I. PAVEL Rome
Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

SAUDI ARABIA

KINGDOM OF ARABIE SAOUDITE, ROYAUME D'ARABIA SAUDITA, REINO DE

Delegate
A. SULEIMAN AL-AQUIL Rome
Minister Plenipotentiary
Permanent Representative to FAO

SENEGAL

D�l�gu�

M.B. LY Rome
Ministre Conseiller
Repr�sentant permanent adjoint aupr�s de la FAO

SLOVAKIA - SLOVAQUIE - ESLOVAQUIA

Delegate
M. PAKSI Bratislava
Head, Dept. of Foreign Trade Relations
Ministry of Agriculture

Alternate
L. MICEK Rome
First Secretary
Permanent Representative to FAO

SLOVENIA - SLOVENIE - ESLOVENIA

Delegate
D. BELOGLAVEC Rome
Minister Plenipotentiary
Permanent Representative to FAO

SOUTH AFRICA - AFRIQUE DU SUD - SUDAFRICA

Delegate
G. VAN DIJK Pretoria
Director, International Trade
National Department of Agriculture

Alternates
J.A. THOMAS Rome
Agricultural Counsellor
Alternate Permanent Representative to FAO

SPAIN - ESPAGNE - ESPA�A

Delegado

I. TRUEBA JAINAGA Roma
Consejero
Representante Permanente ante la FAO

Suplente
J. PIERNAVIEJA NIEMBRO Roma
Agregado de Agricultura, Pesca y Alimentaci�n
Representante Permanente Adjunto ante la FAO

SRI LANKA

Counsellor
D. KULATILLEKE Rome
First Secretary
Alternate Permanent Representative to FAO

SUDAN - SOUDAN

Delegate
A. MOHAMED Khartoum
Director General
Ministry of Foreign Trade

Alternate
Y.A. KARIM MOHAMED Khartoum
Deputy Secretary
Ministry of Foreign Trade

SWEDEN - SUEDE - SUECIA

Delegate
R. AKESSON Stockholm
Ministry of Agriculture

SYRIA - SYRIE - SIRIA

Delegate
M. KHAZMA Damascus
Director
Ministry of Agriculture

TANZANIA - TANZANIE

Delegate
A. ASMANI Rome
Minister Plenipotentiary
Permanent Representative to FAO

Alternate
P.M.S. HINGI Rome
Agricultural Attach�
Alternate Permanent Representative to FAO

THAILAND - THA�LANDE - TAILANDIA

Delegate
C. TIANTONG Rome
Minister (Agriculture)
Permanent Representative to FAO

Advisor
S. OORAIKUL Bangkok
Specialist on Agricultural Economics, Production and Marketing
Ministry of Agriculture and Cooperatives

Alternates
K. PRASUTSANGCHAN Rome
First Secretary (Agriculture)
Alternate Permanent Representative to FAO

P. ANUPUNT Bangkok
Director of Horticulture Research Institute
Ministry of Agriculture and Cooperatives

TURKEY - TURQUIE - TURQUIA

Delegate
A. SAYLAM Rome
Agricultural Counsellor
Alternate Permanent Representative to FAO

UGANDA - OUGANDA

Delegate
F. TUMOHEIRWE Kampala
Assistant Commissioner
Ministry of Finance

UNITED KINGDOM - ROYAUME-UNI - REINO UNIDO

Delegate
S.E. BROWN London
Head of Trade Policy and Tropical Foods Division
Ministry of Agriculture, Fisheries and Food

Alternates
G.A. BEATTIE Rome
Minister
Permanent Representative to FAO

T.J. KELLY Rome
Deputy Permanent Representative to FAO

UNITED STATES OF AMERICA - ETATS-UNIS D'AMERIQUE

ESTADOS UNIDOS DE AMERICA

Delegate
R. HELM Washington, DC
Director, International Organization Affairs Division
Department of Agriculture

Alternates
K. ROBERTS Geneva
Agricultural Minister Counsellor
Department of Agriculture

F.J. VACCA Rome
Agricultural Attach�
Alternate Permanent Representative to FAO

V. DELAWIE Rome
First Secretary
Alternate Permanent Representative to FAO

URUGUAY

Delegado
J. PIRIZ JORGE Roma
Ministro
Representante Permanente Adjunto ante la FAO

Suplente
L. GALARZA
Agregado Civil

VENEZUELA

Delegado
J.R. ALEGRETT Roma
Representante Permanente Alterno ante la FAO

Suplente
M. CAMPO ALFONZO Roma
Consejero
Representante Permanente Adjunto ante la FAO

ZIMBABWE

Delegate
S. NYAMUDEZA Rome
First Secretary
Alternate Permanent Representative to FAO

OBSERVERS FROM MEMBER NATIONS NOT MEMBERS OF THE COMMITTEE
OBSERVATEURS DES ETATS MEMBRES QUI NE SONT PAS MEMBRES DU COMITE
OBSERVADORES DE LOS ESTADOS MIEMBROS QUE NO SON MIEMBROS DEL COMITE

OBSERVERS FROM UNITED NATIONS MEMBER STATES
OBSERVATEURS D'ETATS MEMBRES DES NATIONS UNIES
OBSERVADORES DE LOS ESTADOS MIEMBROS DE LAS NACIONES UNIDAS

RUSSIAN FEDERATION - FEDERATION DE RUSSIE - FEDERACION DE RUSIA

PERMANENT OBSERVER TO FAO
OBSERVATEUR PERMANENT AUPRES DE LA FAO
OBSERVADOR PERMANENTE ANTE LA FAO

HOLY SEE - SAINT-SIEGE - SANTA SEDE
Delegate
Most Rev. A. WAGNER Vatican City
Permanent Observer to FAO

Alternates
V. BUONOMO Vatican City
Alternate Observer to FAO

L. BERNARDI Vatican City
Agricultural adviser

S. PETRILLO Vatican City
Adviser

UNITED NATIONS AND SPECIALIZED AGENCIES
NATIONS-UNIES ET INSTITUTIONS SPECIALISEES
NACIONES UNIDAS Y ORGANISMOS ESPECIALIZADOS

COMMON FUND FOR COMMODITIES
FONDS COMMUN POUR LES PRODUITS DE BASE
FONDO COMUN PARA LOS PRODUCTOS BASICOS
M. CONSTABLE
Chief Operations Officer Amsterdam

WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACION MUNDIAL DEL COMERCIO
T. FRIEDHEIM
Economic Affairs Officer Geneva

OBSERVERS FROM INTERGOVERNMENTAL ORGANIZATIONS

OBSERVATEURS DES ORGANISATIONS INTERGOUVERNEMENTALES

OBSERVADORES DE LAS ORGANIZACIONES INTERGUBERNAMENTALES

ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
ORGANISATION DE COOPERATION ET DEVELOPPEMENT ECONOMIQUES
ORGANIZACION PARA LA COOPERACION Y EL DESARROLLO ECONOMICOS
L. BOONEKAMP
Head, Agricultural Trade and Markets Division
Food, Agriculture and Fisheries Directorate Paris

OBSERVERS FROM INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS

OBSERVATEURS DES ORGANISATIONS INTERNATIONALES NON GOUVERNEMENTALES

OBSERVADORES DE LAS ORGANIZACIONES INTERNACIONALES NO GUBERNAMENTALES

WORLD FEDERATION OF TRADE UNIONS
FEDERATION SYNDICALE MONDIALE
FEDERACION SINDICAL MUNDIAL
A.L. CASADEI
Repr�sentant permanent aupr�s de la FAO Rome

WORLD CONDFEDERATION OF LABOUR
CONFEDERATION MONDIAL DU TRAVAIL
CONFEDERACION MUNDIAL DEL TRABAJO
S. ROVITO
Fonctionnaire Rome

APPENDIX B

DIRECTOR-GENERAL'S STATEMENT TO THE 62^ND SESSION
OF THE COMMITTEE ON COMMODITY PROBLEMS

Mr. Chairman, Distinguished Delegates,

It is my pleasure on behalf of the Director-General to welcome you to this Sixty-second Session of the Committee on Commodity Problems.

You meet at a difficult moment for agricultural commodity markets. After a period of four years of relatively high real international agricultural prices, 1998 saw a significant fall across a wide range of prices and export earnings. This was partly due to the slowdown in world economic growth and partly to the generally good supplies available from 1997 harvests. But one of the features of the world agricultural commodity situation that bears noting is that not all prices fell, and some markets like vegetable oils and rice have in fact been on the rise. Under your agenda item that deals with the review of the world commodity situation and outlook, you will have the opportunity to discuss these different trends, as well as related issues. For example, the relatively gloomy overall agricultural commodity situation calls attention to the issue of the continuing high level of protection and trade distorting support that is still provided in a number of countries, despite their compliance with the disciplines imposed under the Uruguay Round Agreement on Agriculture.

Also during your review of the world commodity situation, you will be the first Council Committee to examine the issues facing the Small Island Developing States in preparation for the Ministerial Meeting on this matter in March. Your Committee has been provided with a brief summary of the paper on trade for that Ministerial Session. In particular, we look forward to getting your views on the trade issues faced by this group of countries. As you know, many small island states rely heavily on trade for their livelihood and, because of their size and dependence on only a few export commodities and markets, they may be particularly vulnerable to changes arising from the international trading system.

This week you also have some important decisions to take on the CCP's subsidiary bodies. The Conference has requested your Committee to review the status of a number of subsidiary bodies. In addition, following your request at the last meeting, wider questions on the mandate and operational procedures of the Intergovernmental Commodity Groups are also to be examined at this session. The Secretariat has put together a detailed report on all these matters for your attention and decision. At your last session, you also asked the Secretariat to prepare a report on the location and operational procedures of the Consultative Sub-Committee on Surplus Disposal. This Sub-Committee has met in Washington since its founding in 1954 as an instrument to protect commercial trade and production from surplus disposal activities. The report provides information on the budgetary implications of locating the CSSD in Washington or Rome.

Probably the most significant part of your agenda covers trade policy questions, and there are several important issues to discuss at this session. First, there is the assessment of the impact of the Uruguay Round provisions as they are being implemented in practice on agricultural commodity markets. For this discussion, the Secretariat has prepared an analysis of estimated effects of the Uruguay Round in the period 1995-97 and part of 1998. Discussion of trade policy is not an easy task, but it is one which this Committee is uniquely able to tackle; I look forward to following your discussion of this timely and important subject. A related item is our first assessment of what some of the key agricultural commodity markets might look like in the year 2005 when the Uruguay Round commitments should be fully implemented. Here I draw your special attention to our expectation of a continuing slowdown in the growth of these markets at real prices close to those prevailing in 1993-95. The Committee's evaluation of global market trends over the medium term can provide a significant contribution to trade policy discussions.

The Secretariat has provided two reports on activities under way in response to earlier recommendations of the Committee. The first is on our technical assistance related to the Uruguay Round. It covers our expanding flow of information available on the FAO Web Site and our technical assistance activities related to sanitary and phytosanitary matters, as well as on agricultural policy. We also summarize some of the issues that have surfaced through our technical assistance activities aimed at preparing member countries, especially the developing ones, for the further negotiations on agriculture which are to be initiated later this year.

We have also prepared a short report on a cluster of more technical subjects linking agricultural trade to environment, biotechnology and sanitary/phytosanitary measures. These technical subjects are widely seen to have a growing influence on agricultural trade and one that is expected to expand further in the years ahead. We look forward to getting your guidance on the types of activities to be included in the Secretariat's work on these subjects.

Finally, the CCP is the first technical committee of the Council to be giving its detailed comments on the FAO Strategic Framework 2000-2015. In November of last year, Council examined the first version of this document, which you also received. The report of Council has been tabled for your consideration. Given the mandate of the Committee, we look forward in particular to your comments on the trade-related aspects of this strategy.

Mr. Chairman, the Committee has a very full and interesting agenda before it. I look forward to following your discussions. In closing, I should like to assure you and all members of the Committee that we value your work and we will use the report that you prepare to help guide the Organization's future work on commodities.

On behalf of the Director-General and myself, I wish you a successful meeting.

Thank you.

APPENDIX C - AGENDA

1. Organizational matters:
1. Election of Chairman and Vice-Chairmen
2. Adoption of Agenda and Timetable
2. Statement by the Director-General
   
3. Review of the World Commodity Situation and Outlook, including follow-up to Conference Resolution 2/79 on Commodity Trade, Protectionism and Agricultural Adjustment
   
4. Activities of Subsidiary Bodies
1. Recommendations of the Intergovernmental Commodity Groups including CSSD:
1. Bananas
2. Tea
3. Oilseeds, Oils and Fats
4. Jute, Kenaf and Allied Fibres
5. Sub-Group on Tropical Fruits
6. Citrus Fruit
7. Hard Fibres
8. Meat
9. Sub-Group on Hides and Skins
10. Consultative Sub-Committee on Surplus Disposal (CSSD)
2. Mandate and operational procedures of the Intergovernmental Commodity Groups
3. Location and operational procedures of the Consultative Sub-Committee on Surplus Disposal
5. Trade policy questions
1. Assessment of the impact of the Uruguay Round on agricultural markets
2. Commodity projections to 2005 including alternative scenarios
3. Report on technical assistance related to the Uruguay Round
4. Report on technical subjects
   (Environment and Trade, Biotechnology and Impact of SPS measures)
6. Activities of other bodies
1. Common Fund for Commodities
2. Others
7. FAO Strategic Framework 2000-2015
8. Arrangements for Sixty-third Session
9. Any other business
10. Adoption of Report

APPENDIX D

TERMS OF REFERENCE OF THE INTERGOVERNMENTAL GROUP ON BANANAS AND ON TROPICAL FRUITS

1. The Group shall provide a forum for consultations on and studies of the economic and technical aspects of production, marketing, trade and consumption of bananas and tropical fruits.

2.The field of competence of the Group shall include:

a) Improvement of statistical services and provision of information regarding the supply and demand position both in the short and long term;

b) Studies on the economic aspects of consumption, with special reference to the relations between consumption and prices, population, income, market access, trade barriers, and studies of the possibilities of increasing world consumption;

c) Studies of the efficiency and social aspects of the banana and tropical fruit industries with particular reference to the improvement of living standards of those engaged in the banana and tropical fruit industries;

d) Studies of economic problems of production, processing, transportation, marketing and distribution of bananas and tropical fruits, including those of improvement of quality, with a view to developing recommendations for promoting the marketing of high quality bananas and tropical fruits at prices that are fair to both producers and consumers.

3.The Group shall consider how best to deal with any special difficulties which may exist or may be expected to arise and shall submit reports and/or recommendations on the subject.

4.Membership in the Group shall be open to all Member Nations and Associate Members of the Organization that are substantially interested in the production or consumption of and trade in bananas and/or tropical fruits. So far as participation of dependent territories is concerned, the provisions of Article 69 of the Havana Charter shall apply. In order to be considered as a member of the Group, eligible Member Nations or Associate Members shall communicate to the Director-General a formal expression of intention. Interested non-Member States of the Organization that are members of the United Nations, any of its Specialized Agencies or the International Atomic Energy Agency may be admitted by the Council of the Organization to membership in the Group.

5. Attendance by non-Member States of the Organization at sessions of the Group shall be governed by the principles relating to the granting of observer status to nations adopted by the Conference.

6. In order to ensure the effective discharge of the functions of the Group, governments shall, as far as practicable, furnish all the information required for the work of the Group.

7.The Group shall report to the Committee on Commodity Problems, it being understood that copies of its reports and/or copies of reports of the Sub-Groups on Bananas and on Tropical Fruits, including any conclusions, will be circulated to interested governments and international organizations for their information as soon as they become available.

8.The Group shall make arrangements for close liaison in its activities with other organizations especially interested in bananas and/or tropical fruits and shall avoid duplication of work being undertaken by such other organizations.

9.The Director-General shall keep the United Nations Conference on Trade and Development and the Economic and Social Council informed of the activities of the Group.

10.The Group, in consultation with the Director-General, shall determine the dates and places of its sessions, keeping in mind the character and importance of the subjects under review, the large number of governments interested in bananas and tropical fruits, and the need for economy in the cost of meetings and travel.

11..The Group may adopt and amend its own rules of procedure, which shall be approved by the Committee on Commodity Problems and shall be consistent with the rules of the Committee.

APPENDIX E - LIST OF DOCUMENTS

APPENDIX F

MEMBERSHIP OF THE COMMITTEE ON COMMODITY PROBLEMS

Biennium 1998-99

(as at 15 January 1999)

1 Bananas, 15^th Session, May 1997 (CCP 99/2); Tea, 12^th Session, July 1997 (CCP 99/3; Jute, Kenaf and Allied Fibres, 31^st Session, November 1997 (CCP 99/4); Oilseeds, Oils and Fats, 28^th Session, December 1997 (CCP 99/5); Sub-Group on Tropical Fruits, 1^st Session, May 1998 (CCP 99/6); Citrus Fruit, 12^th Session, September 1998 (CCP 99/7); IGG on Meat, 17^th Session, and Sub-Group on Hides and Skins, 6^th Session, November 1998 (CCP 99/17 and CCP 99/17 Supp 1); IGG on Hard Fibres and Jute, Kenaf and Allied Fibres, Joint Meeting, December 1998 (CCP 99/18).