III. PROGRAMME, BUDGETARY. FINANCIAL AND ADMINISTRATIVE MATTERS (cont'd)
III. QUESTIONS CONCERNANT LE PROGRAMME, LE BUDGET, LES FINANCES ET L'ADMINISTRATION (suite)
III. ASUNTOS DEL PROGRAMA Y ASUNTOS PRESUPUESTARIOS, FINANCIEROS Y ADMINISTRATIVOS (continuación)

In its review of the world commodity situation and outlook, the Committee noted with grave concern the large and protracted decline in the export prices of agricultural commodities. lt also noted that the continuing crisis in commodity markets had a devastating effect on the agricultural export earnings and hence on the economies of many countries. The Committee concluded its discussion of this subject by stressing the need for continued reform of the policies, rules and arrangements that affect international trade in agricultural products, emphasizing the important role of the Intergovernmental Commodity Groups.

The CCP is the parent body of these Intergovernmental Groups as well as the Consultative Sub-Committee on Surplus Disposal. Accordingly, it reviewed and endorsed the 16 reports before it, with the exception of the Sub-Group on Hides and Skins. The CCP decided that this Sub-Group could not be upgraded to a full Group until the results of an assessment of the work of all the Groups are considered by the CCP at its next session.

In reviewing developments regarding the Common Fund for Commodities, the CCP worked out an interim arrangement for the Intergovernmental Commodity Groups to act as supervisory bodies for projects endorsed by the Common Fund. The Committee expressed its disappointment over the slow progress with project acceptance by this Fund. Subsequently, the Common Fund did approve four more projects sponsored by our Intergovernmental Groups: on bananas, palm oil and palm kernel oil, coconut oil and coir. A fifth project on tea has been favourably considered but the Fund's contribution

of one-third of total project costs was made conditional on two-thirds being raised by co-financing.

The Committee reviewed the medium-term prospects for agricultural commodities and agreed in general with them, noting that if these projections materialized the outlook for agricultural commodity markets was gloomy, which would lead to significant adjustment problems for exporting countries.

An important new area of work was taken up by the Committee when it examined the linkages between trade, environment and sustainable agricultural development. The Committee agreed that if all countries introduced appropriate environmental policies, trade liberalization would generally lead to increased welfare in the sense that the sum of the costs of production and environmental protection could be minimized. The Committee set out a work programme on this subject for the next few years including commodity-by-commodity environmental studies to be undertaken by the Intergovernmental Groups. Plans for this work are under active preparation involving many technical units in the House. Contacts with other agencies involved have also been intensified.

The Committee undertook its regular review of protectionism in agriculture, noting that its level remained high although there were reasons for cautious optimism regarding the reduction of protection in future. In this connection the Committee reiterated its call for an early and successful outcome to the Uruguay Round and called for donor countries to support efforts by developing countries to cope with the challenges of the new agricultural trading environment that should result from the conclusion of the Uruguay Round.

Finally, I would like to report to the Council on an initiative to assist African countries in their commodity sectors. At the request of the Secretary-General of the United Nations, FAO prepared a study on the Need for and Feasibility of the Establishment of an African Diversification Fund. The approach outlined in our study has been included in an draft resolution being discussed in New York this week. It is to be hoped that this initiative will be taken up by donors so that commodity diversification is pursued energetically for the benefit of the developing countries in Africa.

Ricardo VELAZQUEZ HUERTA (México): Agradecemos el informe presentado por la Secretaría. La Delegación de México no hará otra cosa en esta ocasión más que endosar completamente el documento, toda vez que participamos de manera activa en las sesiones del Comité de Problemas de Productos Básicos. Sin embargo, deseamos hacer referencia a algunas cuestiones que a nuestro juicio destacan también en el documento, referidas principalmente a las relaciones que se dan entre los productos básicos y el comercio. Advertimos que en los documentos que la Secretaría nos presenta para análisis, siempre y desde hace ya algún tiempo predominan algunas constantes en el análisis de estos problemas: el descenso en los precios de las exportaciones, la crisis que existe en los mercados de los productos básicos, que va aparejada a un comercio internacional desigual, injusto en la mayoría de los casos, la necesidad de terminar de una vez por todas con las prácticas proteccionistas y, de ser posible, disminuir a su mínima expresión los niveles de subvenciones.

Vemos también, por otra parte, con satisfacción, que la FAO cumple con su tarea y con sus objetivos a llevar a los foros de sus órganos de trámite y de discusión estos problemas y que poco a poco, aunque lentamente, se avanza en algún sentido positivo.

La FAO trabaja y lo hace bien, y los Países Miembros colaboran y lo hacen bien. Tenemos una serie de cuestiones que nos alientan y que pensamos que marcan el camino para un análisis y una solución correcta de los problemas, aunque de todas maneras advertimos un panorama difícil de acometerse.

Por una parte estimamos que es indispensable y urgente que se tomen medidas para mejorar los precios de los productos básicos. Asimismo que los organismos internacionales que se alojan a estas cuestiones se coordinen de una mejor manera. Nos complace ver que se realizan o que hay la intención de hacer estudios más detallados sobre la posible fusión de grupos intergubernamentales en atención, principalmente a sus diferencias conceptuales entre cada uno de ellos de las repercusiones que pudiesen generarse en los aspectos administrativos, financieros y legales de la FAO.

En varias ocasiones, hemos señalado y está en el documento, lo cual nos complace, que algunos problemas que atañen a productos específicos, en este caso las cuestiones del grupo intergubernamental sobre el banano, que las decisiones adoptadas a veces por algunos organismos no representan medidas que sean congruentes con los principios y los objetivos de la Ronda Uruguay. Nos complace también ver que está en el documento muy bien detallado e indicado, que es urgente que la comunidad internacional venda su apoyo a los países en desarrollo para que éstos puedan importar volúmenes de productos en mayor medida, que tiendan a mejorar sus balanzas comerciales y por otra parte la nutrición de sus propios pueblos. Está reflejado en el documento también el llamamiento que mi Delegación hizo en el momento de la discusión en el grupo de trabajo respectivo en el sentido de instar a los países en desarrollo al cumplimiento de sus compromisos asumidos en la reunión de Punta del Este y aquellos que se deriven de la Ronda Uruguay.

En fin, señor Presidente, no queremos intervenir más en el asunto, endosamos el documento y esperamos que el Consejo lo apruebe para que sea remitido a la aprobación definitiva de la Conferencia.

Christodoulos CHRISTODOULOU (Cyprus): The marketing of agricultural products is as important as the production itself. For many developing countries the marketing and export of agricultural products have been the major source of foreign exchange earnings. It is therefore disappointing to note the large and extended decline in export prices for most agricultural commodities on which the economies of many very poor countries depend.

There are examples of large declines in the real price of many commodities between the years 1979, 1981 and 1992. I wish to highlight in particular and with great concern the drop of 70 percent in the prices of coffee and cocoa, the drop of 60 percent in the price of sugar and a drop of almost 50 percent in the price of other products such as cotton, natural rubber and sisal. Considering that all these products are major sources of income for many developing countries, a drop in price results in a considerable decline in the purchasing power of those countries.

It is equally disappointing to note that the projection for the future does not give optimism for an improvement in the situation. For these reasons we

consider the work of the Committee to be of great importance. The wide spectrum of activities covered by the Committee and the Intergovernmental Groups which report to it fulfil an essential role in providing authoritative assessments of longer-term prospects and structural developments in the markets for individual commodities.

With these observations I wish to state my delegation's support for the work of the Committee and to endorse its Report.

Before concluding my short intervention I wish to put on record my country's support for an early and successful outcome of the Uruguay Round of Multilateral Trade Negotiations, which should be global and balanced. The interest of the developing countries, particularly the net food-importing countries, should be taken fully into account.

LE PRESIDENT: Vous avez excellement résumé le document. Je vous remercie de votre intervention et je vous remercie de l'appui que vous donnez au Comité des produits.

Tri WIBOWO (Indonesia): Allow me to voice the appreciation of my delegation for the work of this Committee, and to the Deputy Director-General for his excellent introduction of the Report.

My delegation recognizes the continuing low price of agricultural commodities in the world market and the negative impact they have on the economic development of developing countries. This is then aggravated by the problem of debt servicing faced by many developing countries.

Paragraphs 14 to 18 of the Report contain actions to enable the Organization to respond to the situation. Thus we have possible solutions that can be taken in the near future, and accordingly we wish to support these actions. We underline the urgency for our countries to take all possible action to work towards an early successful result for the Uruguay Round of Multilateral Trade Negotiations, a result that will be both global and balanced.

With regard to the debt servicing problem, we support the proposal that external debts be recycled through new projects to boost agricultural production. We also took note of the unique role of the Intergovernmental Groups in providing a consultation forum among governments of producing and consuming countries for discussing the status and prospects for market development of agricultural commodities. We therefore support the Committee's recommendations as contained in paragraph 30 of the Report.

Carlos A. FERNANDEZ (Philippines): The Philippines endorses the report of the 59th Session of the Committee on Commodity Problems which details the world situation and prospects for food and agricultural commodities towards the end of the century. On behalf of my delegation, however, I wish to underscore a few issues.

The FAO projections indicate a decline in growth rates of food production, demand and trade in farm commodities. Aggregate world production will decline by only 0.1 percent compared to the performance in the 1980s. World demand for major commodities will grow by only 1.6 percent annually, which is below the 2 percent increase of the previous decade. This slowing down

of production, demand and trade will result in stiffer competition for markets and downward pressures on prices. Such a scenario does not augur well for developing countries like the Philippines, as the need for competitiveness will continue to strain our limited resources. We therefore strongly support the Committee's recommendation to tap the Common Fund for Commodities for the funding of projects to improve the demand and competitiveness of agricultural commodities relative to synthetic substitutes and develop international instruments to stabilize world commodity markets.

The subject of competitiveness brings me to another important issue, that of trade protectionism in agriculture. We are encouraged by the positive moves taken by some developed countries to reduce farm support and export subsidies. However, the reality is that access to markets of industrialized nations has not improved much. Tariff and non-tariff barriers, including quotas, variable levies, licensing requirements and voluntary export restraints continue to constrict trade volumes, distort trade patterns, raise consumer costs and worsen price instability. These artificial barriers to market access dampen exports of developing countries like the Philippines and block an important growth avenue for our countries. We believe that the quest for an even playing field must continue, as we believe in fair play. It is ironic to note, however, that many nations continue to provide farm support and export subsidies while, on the other hand, many developing countries are making sacrifices to liberalize their trade regimes. The reduction of protectionism in the future remains contingent on obtaining a global and balanced agreement in the ongoing and protracted Uruguay Round of Multilateral Trade Negotiations.

The Philippine delegation therefore fully endorses the repeated urgings of the Committee on Commodity Problems for a successful conclusion to the Round. We join our Cairns Group partners in urging that the Blair House Accord be multilateralized within the framework of the Uruguay Round negotiations in Geneva. We also reiterate our appeal to the developed nations to take the lead in finally bringing the Round to a successful conclusion by 15 December, with a satisfactory agreement on agriculture.

Alcir CARVALHO REBELLO (Brazil): First of all, let me congratulate the Secretariat for the elaboration on this comprehensive document and Mr Hjort for his clear presentation of it.

As you know, Brazil is a member of the CCP, and the Report that we are discussing has already been endorsed by the Brazilian delegation during the last meeting of the Committee in June. However, I should like to stress the importance of some points in the Report.

The decline in export prices of agricultural commodities, and especially of those produced by the developing countries, is a cause of great concern to my delegation. The declines were particularly severe for coffee, cocoa, sugar, cotton and natural fibres, but many other major commodities were affected, giving way, in the words of Mr Hjort, to a devastating effect on the agricultural export earnings and economies of the developing countries. Moreover, the product diversification policy followed by many countries in an attempt to protect their export earnings has proved to be highly insufficient in achieving that goal. One should note the fact that, while the producing countries get less and less for their exports, the consumers pay no less for the products they buy. The price of a cup of coffee or chocolate in New York, Paris or Tokyo did not go down by a cent in the last

decade, even though the price of those commodities went down by about 70 percent in the same period. This should be a matter for reflection.

Another crucial point, in my delegation's view, is the persistence of high levels of protectionism in agricultural markets, as well as the high level of subsidization of agricultural product exports, both at the expense of increased production, income and employment in a global perspective. Brazil, like many other developing countries, has taken serious steps towards liberalization, often at a very high social cost, and we are expecting similar steps from our industrialized partners. We consider that, in general, the developed countries continue in the path of extremely high expenditures on agricultural support and of strong protectionism. In this respect, Brazil attaches great importance to the prompt and successful. conclusion of the Uruguay Round, which we foresee will be a valuable instrument for achieving a global and balanced trade relationship among countries, including a differential treatment for the developing ones.

Regarding the activities of the Intergovernmental Commodity Groups, my delegation supports the idea of undertaking a special and very comprehensive study to re-assess their activities, with the objective that the work of the Intergovernmental Groups be streamlined and result-oriented. We look forward to examining this study in the next CCP.

With respect to the item of the Report regarding the Common Fund for Commodities, my delegation would like to have updated information from the Secretariat about the situation on projects approval. I must confess my dismay at the rather conflicting nature of the relationship established so far between FAO and the Common Fund, and my delegation would appreciate a better coordination and understanding between them.

Finally, my delegation supports the idea that environmental policies and trade are not opposed to each other. We believe that, if all countries introduced adequate environmental policies, trade liberalization would generally lead to increased welfare for all and across generations. On the other hand, we strongly condemn the use of environmental concerns - which are in themselves legitimate and desirable - as a device for trade restrictions and protectionism. In this sense, we shall highlight the importance of the work undertaken by the GATT Group on Environmental Measures and International Trade and by the Codex Alimentarius Commission.

LE PRESIDENT: Je vous remercie de votre intervention très pertinente. Je me permettrai de faire certains commentaires au sujet de votre intervention concernant le Fonds commun. Votre Président s'est permis de se rendre à Amsterdam et a visité le Fonds commun. Cette visite lui a permis de comprendre les difficultés de cette organisation. Nous avons eu l'occasion d'en parler au Comité du Programme où, au nom de la transparence, je m'étais permis de regretter que certains pays se soient retirés du Fonds commun avant qu'il n'ait pu prendre son envol. Cela a provoqué des réactions assez violentes et certains membres du Comité du Programme s'en souviendront très certainement.

Alors je crois que c'est un point important que la famille des Nations Unies et l'ensemble des organisations puissent se développer de manière harmonieuse et avec des moyens suffisants.

Juan Agustín FIGÜEROA YAVAR (Chile): Chile reitera su preocupación por la baja constante de los precios de los productos agrícolas básicos.

Respecto de una amplia gama de países en desarrollo esta situación vulnera gravemente sus expectativas de la balanza comercial equilibrada; pone en riesgo su capacidad de pago de la deuda externa; limita sus posibilidades de superar la pobreza y, muy en particular, la pobreza rural. Por esta precisa razón pone en gran riesgo el medio ambiente, toda vez que los ataques al medio ambiente son muchas veces provocados por situaciones de extrema pobreza rural.

Nuestro decidido apoyo por desmantelar los proteccionismos se ha manifestado en diferentes formas, y así entre las expresiones propiamente multilaterales, tenemos que citar nuestros esfuerzos dentro del grupo de Rio que recientemente en Santiago de Chile hizo un llamado angustioso para poner término a esta situación.

Señalo también en forma muy particular nuestra intervención en el grupo CAIRNS, que siempre hemos visto como un grupo de países cuya característica común es de ser netamente exportadores y que han pretendido obtener un espacio en las negociaciones del GATT para evitar que estas negociaciones se conviertan en bilaterales. Nosotros hemos pretendido la multilateralización de estas conversaciones y, en consecuencia, las beneficiosas derivaciones de esta situación.

Quiero señalar también el esfuerzo que hemos hecho muy recientemente los ministros de agricultura de Latinoamérica al reunimos en Caracas señalando allí la oportunidad y necesidad de formar un grupo consultivo permanente de ministros sectoriales preocupados por estas cuestiones.

Además de en estos foros multilaterales hemos participado usando de mecanismos multilaterales, tales como la formación de planes en el GATT, específicamente el de las manzanas, y hemos recurrido a nuestras políticas bilaterales tratando de remover estos obstáculos a través de acuerdos de libre comercio, acuerdos de complementación económica y una ágil política, particularmente en nuestra intervención dentro de la Ronda de Uruguay del GATT. Sin embargo es necesario que se reconozca que no obstante los muchos esfuerzos empleados en esta materia por gran cantidad de países, estamos enfrentando expresiones de nuevo proteccionismo. Así vemos, por ejemplo, medidas que se han tomado respecto del tabaco de los Estados Unidos; respecto de las manzanas en la Comunidad Económica Europea y también algunas restricciones muy serias en relación con el banano.

Esto nos ha llevado a la convicción, señor Presidente, de que es indispensable un muy pronto desenlace en cuanto a la Ronda de Uruguay del GATT, y no tan sólo por el fast track de Estados Unidos que ha fijado como fecha límite el 15 diciembre, sino también por el constante quebrantamiento del statu-quo acordado al inicio de la Ronda de Uruguay. Nosotros creemos que aquella fecha del 15 de diciembre es efectivamente una fecha límite.

Pero aun cuando somos grandes partidarios del libre comercio, señor Presidente, es indispensable reconocer que características propias del subdesarrollo, yo diría características propias de economía en transición, hacen necesario que estos principios sean aplicados con realismo y con pragmatismo. Por eso, señor Presidente, nosotros aplaudimos los recientes esfuerzos del Grupo de los Tres en Latinoamérica (Colombia, Venezuela y México), que junto con el CARITCOM y Suriname han señalado en relación con

el banano sus diferencias en torno al libre comercio, que sus diferencias son perfectamente conciliables.

En igual sentido cito las declaraciones del CELA del 28 y 29 de octubre recién pasado.

También en relación con otro de los postulados que hoy día tanto oímos, como ventajas comparativas y ventajas competitivas, esto también hay que analizarlo con mucho cuidado, porque si bien es cierto que esto es una expresión muy inteligente la de la dirección del trabajo, no nos puede llevar a situaciones nuevamente de monoproducción.

Recojo en tal sentido las inteligentes expresiones de Monsieur Jacques Chirac recientemente manifestadas en el seno de la FAO.

Creo que nuestro Organismo debe jugar un papel muy esencial en cuanto a la defensa de los niveles de los productos básicos y estimamos que aunque éste no puede ser nunca un foro sustitutivo de acuerdos comerciales, ni mucho menos un lugar de enfrentamiento, sí debe ser una sede donde con recíproco respeto y reconociendo nuestra esencial igualdad jurídica, podamos sentar las bases esenciales para superar esta situación extremadamente peligrosa.

David DRAKE (Canada): The Canadian delegation supports the Report of the Fifty-ninth session of the Committee on Commodity Problems. We strongly support the commodity analysis programme of work, in particular that associated with trade. Canada itself has initiated a trade opportunity strategy whereby we hope greatly to increase the value of our agricultural trade exports. We particularly welcome the medium-term commodity projection work which is valuable to all commodity traders. As we have said on other occasions, we look forward to more work on value-added commodities to complement the existing work.

An item which we would particularly like to draw to your attention is paragraphs 30 and 31 where a study was launched by the FAO Secretariat on the efficacy of the IGGS which might define options such as the merging of certain IGGS and other methods of work. We would like to associate ourselves with the comments of Brazil. While participation in some IGGS has been very valuable to Canada, the private sector is growing and other international fora are also active in this area. Without wishing to prejudge the work of the Secretariat in this area, we look forward to the results of that study and are willing to share with the FAO Secretariat our views on how best to effect this change; we would encourage other countries to do the same.

Another area to which we attach particular importance is the rapid delivery of reports of all sorts. In the commodities area, speed is of the essence and we would encourage the FAO to do all it can to distribute documents, reports and statistical publications electronically. The rapid spread of electronic distribution will probably reduce costs to the FAO and provide more rapid service to member countries. We see great value in the FAO building on the successful distribution of PC-AGROSTAT and then devoting more resources to the sources and destinations data base.

We support the work of the Sub-Committee on surplus disposal and look forward to a strengthened role following the successful conclusion of the current GATT Round.

Hernando PALOMINO (Colombia): Quisiera resaltar, señor Presidente, la seriedad del trabajo presentado por el Comité de Problemas de Productos Básicos, pero expresar obviamente nuestra preocupación por el panorama desolador que sus proyecciones arrojan sobre las perspectivas del comercio de productos que son esenciales para la mayoría de las economías en desarrollo.

Paracería que frente a las realidades del comercio y la economía mundial, los grandes avances de la producción, la tecnología, la infraestructura productiva, la capacitación del recurso humano de los países en desarrollo, proceso dentro del cual la FAO ha jugado un papel tan esencial en su cerca de 50 años de existencia, se vinieran a pique como producto de las inequidades en la esfera del comercio internacional. Así lo señalan las caídas abruptas de precios a que hace referencia el documento y fenómenos recientes como el fracaso del Pacto Internacional del Café, o las restricciones al acceso del banano Latinoamericano a la Comunidad Económica Europea entre otros.

A este último respecto, si bien en el informe del Comité de Productos Básicos registramos el tema del banano, y sin pretender volver a traer a esta reunión el debate, quisiéramos señalar que interpreta mejor nuestra posición a ese respecto el informe final de la última reunión de este Consejo.

En cuanto a otros temas, la propuesta de apoyar los proyectos destinados a aumentar la demanda y la competitividad de los productos agrícolas, en relación con sus sintéticos, con el apoyo de la Segunda Cuenta del Fondo Común para los Productos Básicos es de resaltar. Lo mismo que la idea de desarrollar nuevos instrumentos de estabilización del mercado internacional de los productos básicos. Importante sería profundizar en los mecanismos a este respecto propuestos por el Banco Mundial, la UNCTAD y los ya en aplicación en algunos países en desarrollo, para precisar su viabilidad y generalización.

Compartimos plenamente el criterio del Comité de subrayar la importancia de la reducción del proteccionismo de los mercados agrícolas y el nivel de subvención a las exportaciones de productos agrícolas.

La dilación en la conclusión de la Ronda de Uruguay del GATT, y sus vacilantes perspectivas, son un inmenso desestímulo a los procesos de modernización e internacionalización de las economías subdesarrolladas y una mofa a las virtudes y bondades del libre comercio que se predican desde el mundo desarrollado, y se nos brindan como fórmula para el desarrollo.

La no conclusión de las negociaciones agrícolas del GATT tendrá un efecto negativo no sólo en los países en desarrollo, sino en general, en la reactivación económica mundial, y significarán tropiezos sustanciales en la política de preservación y defensa del medio ambiente, ligada estrechamente a la conservación de los recursos naturales de bosques y selvas de las naciones en desarrollo.

Saludamos igualmente en el documento la iniciativa de recomendar la realización de estudios sobre el fracaso, se señala falta de éxito, de los acuerdos internacionales vigentes sobre productos básicos y sobre otros temas afines. Tales estudios podrían dar luz sobre mecanismos alternativos más viables.

La suscripción de un acuerdo de retención entre productores de café, orientado a impedir, como ha ocurrido, que la caída de los precios beneficie no al consumidor final, sino al intermediario internacional y, a su vez, arruine o deteriore gravemente los ingresos de miles de familias en los países productores es un ejemplo de tales mecanismos alternativos que podrían ser evaluados por la FAO. El tema en particular de la diversificación de oferta agricola merece nuestra particular atención.

Deseamos enfatizar que frente a temas como el fracaso de los acuerdos internacionales que involucran productos básicos, no existe remedio mejor que una liberalización y una mayor transparencia de los mercados mundiales, si bien no se desdeñan medidas compensatorias de otra índole tales como liberalización y transparencia que juegan un papel fundamental. Como lo dijera el Presidente de Colombia en las Naciones Unidas, los países en desarrollo no pedimos más medidas asistenciales, sino comercio libre y transparente.

El desarrollo sostenible, otro tema de vital importancia en la agenda del desarrollo mundial, está intimamente ligado a las posibilidades de desarrollo en general de los países, algo que tiene que ver con los temas anteriores. Plantear el tema del desarrollo sostenible ajeno al problema de las condiciones generales de acceso a los mercados, de precios adecuados para los países que basan su economía en la producción de bienes básicos, no pasa de ser una declaración de buena voluntad.

Finalmente compartimos la apreciación del Comité en el sentido de la importante función de los grupos intergubernamentales como foro de consulta entre los países productores y consumidores en relación con la evolución y perspectivas del mercado y de las políticas internacionales y nacionales sobre productos básicos.

También respaldamos la idea del Comité de adelantar un estudio que permita mejorar la eficacia de tales grupos.

Kiyeshi SAWADA (Japan) : Firstly, my delegation would like to thank Mr Hjort for his very clear and concise explanation. I should like to make a brief comment on this Agenda item.

My country, as a big food importer, has a strong interest in the world agricultural commodity situation, and we positively participated in the Committee with other member countries.

Since the economy of most developing countries largely depends on earnings from agricultural commodity exports, the long-term decline in market prices of commodities has seriously damaged the economic condition of these countries. To contribute towards seeking the right direction in which to solve such a situation, let me say that my government proposed at the Tokyo Summit held last July a review on current commodity international cooperation systems and a study of new cooperation systems which would be based on a realistic and effective market principle. My country plans to report the result of this study on an appropriate occasion next year.

Among the items discussed at the Committee, that of trade, environment and sustainable agricultural development is so important that it should be discussed further in FAO's fora, as adopted in the Committee.

With regard to this subject, I should like to point out the positive impact agriculture has on environmental conservation. This can be exemplified by the paddy fields which are predominant in the Asian monsoon heavy-rain area as water reservoirs to prevent soil erosion and as a medium for the fixation of the nitrogen applied as a fertilizer, thus preventing groundwater contamination.

Paul Neville ROSS (Australia): Australia had the opportunity to participate in the 59th Session of the Committee on Commodity Problems and we are pleased to endorse the report of the Committee as an accurate reflection of the discussion at the meeting.

We do not therefore propose to comment in detail on the Report and would not wish to reopen debate on any of the matters in the Report. We would also note that there will be an opportunity in the forthcoming Conference to further discuss some issues covered in the Report.

I will confine my brief comments to emphasizing two aspects of the Report.

Firstly, Australia fully endorses the sentiments expressed in para 15 and expressed by many others here urging a swift conclusion of the Uruguay Round to provide a global and balanced result including special and differential treatment for developing countries. There cannot be a conclusion to the Uruguay Round without a successful outcome on agriculture and that outcome on agriculture must incorporate special and differential treatment for developing countries.

We also particularly endorse the contents of para 80. It has been a central position of the Cairns Group that the needs and interests of developing countries, and the net food importing countries in particular, be taken into account in the Round outcome. It will be important that the provisions set out in the agriculture text for handling the possible negative effects on net food importing countries be followed up.

Secondly and finally Mr Chairman, we fully support the views expressed by the Committee in para 58 cautioning against countries using environmental concerns as a disguised restriction on trade.

E. Wayne DENNEY (United States of America): The United States participated in the Fifty-ninth CCP and endorses its report. We value most of the intergovernmental group meetings and generally send a technical expert from Washington to attend. Nevertheless, we support the committee's decision to study the functioning of the IGG meetings, in an effort to enhance efficiency. The United States has regularly advocated convening fewer meetings, making them shorter, and holding them less frequently. We are willing informally to explore options with other members and with the Secretariat prior to the next CCP, but we are looking to find ways of spending less time at meetings.

We agree with the comments made earlier by Brazil and Canada on this matter.

FAO's medium-term prospects for agricultural commodities provoked considerable discussion during the meeting. We were among the countries which found the supply and demand projections more pessimistic than we

believe will be the case. New projections may be necessary if, or should I say when, a Uruguay Round conclusion is reached.

We continue to believe that the subcommittee on surplus disposal performs a valuable role in CCP deliberations and that this subcommittee will take on greater importance in the post Uruguay Round environment by ensuring that food aid is not used to circumvent export subsidy commitments.

Finally, we are pleased to hear that FAO is undertaking an number of environment-related studies which were suggested during the CCP.

KWANG WOOK AN (Korea) : First of all, on behalf of the Korean delegation, I would like to congratulate Mr Hjort on his excellent presentation of the report of the 59th Session of the Committee on Commodity Problems.

My delegation notes in the findings of the Committee that it reviewed the World Commodity Situation and Outlook and that the continuing crisis in the world commodity market is having an adverse effect on the export earnings and economies of many developing countries.

In this connection, I fully support the suggestion in para. 14 that attention should be given to the development of new instruments for international commodity market stabilization, such as those put forward by the World Bank and UNCTAD.

Also, as pointed out in para. 18, I am of the opinion that in the future reviews of the commodity situation and outlook greater emphasis should be given to the wider effects of changes in commodity markets on the national economies.

Regarding the review of activities of the Intergovernmental Commodity Groups, I support their efforts to fulfil an essential role in improving market transparency and encouraging them to continue their monitoring and reporting on short-term market developments, particularly in areas where global intelligence systems would otherwise be lacking and for commodities of concern to developing countries.

In closing, I would like to point out that, while many developed countries are undertaking great cost to support and protect their agricultural sector, developing countries cannot but make great leaps toward free trade at great sacrifices of and damages to their agricultural sector. Therefore, we stress that it is important for us to reach a successful conclusion of the Uruguay Round of Multilateral Negotiations and that, during the negotiating process, the vital concerns of developing countries, particularly of the food-importing countries, must be taken into full consideration.

Ulrich Dietmar KNUEPPEL (EEC): May I thank Mr Hjort for his useful introduction.

The European Community and its Member States are satisfied with the very useful work carried out by the Committee and its subsidiary bodies and therefore recommends the approval of the Report. In this context, we may add the following observations.

The decline in export prices, particularly as regards the exports from developing countries, is a matter of serious concern. This even more so if the results of FAO's review of prospects for agricultural commodities to the year 2000 were to materialize and the net trade situation of the developing countries deteriorates. Such a trend would further increase the vulnerability of low-income food-deficit countries in terms of their food security.

It is, therefore, imperative that the Uruguay Round of multilateral trade negotiations be brought to a successful conclusion in order to provide the basis for improved world market conditions and to facilitate the adjustment process which is underway in many countries. Policy reform in all countries and in all areas, including agriculture, is essential in order to improve the prospects of developing countries and to avoid increased dependence of these countries on imports for their vital food needs. Developing countries will have to improve and diversify their agricultural production basis. Furthermore, as policy reforms will lead to lower global food stocks, common approaches will have to be developed which will help to minimize the risk of there being inadequate supplies in emergency situations.

Regarding the future work of the intergovernmental groups, the Community and its Member States welcome and endorse the recommendation by the Committee that, to enhance efficiency, a special study should be undertaken for consideration at the next session of CCP and we agree with the outline of the study as suggested in the Report.

Regarding FAO's cooperation with the Common Fund for Commodities, we recognize the considerable work by FAO in the preparation of projects and welcome the progress made so far in the cooperation between FAO and the Fund. We hope that existing difficulties can be overcome by enhanced coordination, the establishment of priorities and clear indications regarding the financial possibilities and the selection criteria to be applied. As regards the effective supervision of projects endorsed for financing and the budgeting of costs arising from supervisory functions, we note the proposals made by the Committee and would be grateful for information on the Fund's reactions to these proposals.

On the subject of trade, environment and sustainable agricultural and rural development (SARD), we thank the Secretariat once more for the very useful document which it had submitted to the Committee on this subject and which allowed for extremely productive discussions. We agree with the Committee's recommendation that the intergovernmental groups should undertake, commodity by commodity, studies which would include (1) technical environmental review, (2) economic assessment of the costs of reducing the environmental damage and of adopting SARD/environmental policies and (3) the national and international policy support to countries to adopt appropriate SARD/environmental policies. We look forward to the outcome of this work and to the Secretariat's Report to the next Session of CCP which would include reference to the wider issues of agriculture within the economy and links between environment, trade, industry, development and food self-sufficiency. In this context, we also welcome the recognition of the importance of close collaboration with other agencies doing similar work in order to maximize overall effectiveness and avoid duplication of efforts.

As regards the report on follow-up action to Conference Resolution 2/79 on commodity trade, protectionism and agricultural adjustment, three updates on EC policies may be of interest.

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Firstly, the substantial reform of the Common Agricultural Policy decided in 1992 and applied for the first time in 1993 already produces significant results. The cereal harvest is below last year's level, which was considerably reduced by bad weather conditions and remained itself about 113 million tons below the 1991 level. The oilseed harvest is also around 10 percent less than in 1992.

Secondly, the Community's new banana regime applies since 1 July 1993 and the Community market is in the process of adjusting to the new conditions. While prices in northern Community Member States have increased to levels which prevailed before the import rush of 1992, prices in Member States where imports were previously limited by national quotas have decreased. In these latter countries consumption is, therefore, increasing. As foreseen in the rules of the new market organization, the question of an increase of the tariff quota will be examined this month.

Regarding GATT procedures, you will know that, for the reasons indicated in the CCP report, the Community and the ACP countries have so far not been able to accept the Panel report on the previous import regimes which ended on 30 June 1993. The Panel on the new import regime has, however, been established and it has already achieved part of its work. In the meantime, the EC Council has also authorized the Commission to enter into negotiations and consultations under Article XXVIII of GATT with contracting parties which, in GATT terms, have initial negotiating rights, have a principal supplying interest or have a substantial interest in the Community's GATT concession on bananas.

Thirdly, the EC Council has approved the agreement reached with the United States on oilseeds. The main aspects of the agreement are the creation of a separate base area for oilseeds which in 1994 will total 5 499 000 hectares and 5 128 000 hectares in subsequent years and of a minimun set-aside of 10% in relation to these base areas.

In addition, the negotiations with other contracting parties on the Community's oilseed concessions have also been concluded, and the results are now before the Council for approval.

In conclusion, Mr Chairman, we very much appreciate the work carried out by the Committee on Commodity Problems and its intergovernmental groups and look forward to further close cooperation.

A.J. BADILLO ROJAS (Venezuela): Nuestra delegación desea expresar su reconocimiento a los esfuerzos de la Secretaría por tratar de lograr en este informe una buena proporción de proposiciones instrumentales en materia de asistencia y orientación para el desarrollo de la producción y el comercio de productos básicos en los países en desarrollo, evitándose la profusión de mensajes sin destinatario o de descripciones casuísticas que no ayudan mucho para llegar a conclusiones y recomendaciones útiles para los Estados Miembros. Así, observamos con satisfacción que en el documento de la Secretaría que estamos analizando, en algunas secciones se llega a recomendaciones claras y concretas para los países en desarrollo y para el trabajo de la propia Organización. A manera de ejemplo, en el párrafo 8 del documento, donde se dice lo siguiente: "El Comité también tomó nota de que la expansión de las exportaciones de productos agrícolas distintos de los principales productos básicos había contribuido parcialmente al aumento global del valor de las exportaciones agrícolas. A este respecto, varios delegados subrayaron la importancia de la diversificación de productos

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agrícolas en los países en desarrollo para reducir el riesgo de las caídas de los precios e incrementar las ganancias debidas a las exportaciones y los ingresos agrícolas. Se pidió a la Secretaría que ayudara a los países que lo desearan a ejecutar programas de este tipo".

A nuestro juicio, esta manera de presentar las conclusiones es excelente. Hay aquí una secuencia de razonamientos, que van desde la presentación de la situación general observada, pasando por la proposición de una política agrícola concreta, hasta llegar a una recomendación sobre como la FAO podría ayudar a su puesta en práctica. Sólo restaría a este Consejo recomendar la más pronta instrumentación del trabajo de la FAO en este aspecto. Como podemos ver, este tipo de conclusiones y recomendaciones contribuye a hacer más productivo el esfuerzo de todos los que participamos en el trabajo de la FAO.

Con igual satisfacción, leímos conclusiones como las de los párrafos 17 y 18. Allí se recomienda la realización de varios estudios, cuyo inicio consideramos debe acometerse también cuanto antes. Nuestra delegación piensa que, en el caso concreto de América Latina y el Caribe, los estudios propuestos en el párrafo 17 pueden dar pie a una organización del trabajo regional de la FAO destinada a formular recomendaciones de política agrícola y alimentaria de alcance regional y nacional. El espíritu de integración y cooperación que actualmente reina entre los países de la Región, tal como lo demuestra la reciente reunión cumbre de presidentes del Grupo de Rio el pasado mes de octubre en Santiago de Chile y la reunión del Consejo Consultivo de Ministros de Agricultura y Cría de América Latina o declaración de Caracas, como lo ha señalado el ministro de Agricultura de Chile, realizada el pasado mes de octubre, brinda una excelente oportunidad para que la Secretaría y la Oficina Regional de la FAO tomen nota de esta proposición, para poner en práctica, a la brevedad posible, las recomendaciones de los párrafos 17 y 18 del Informe en discusión.

En este sentido, la Delegación venezolana quisiera recomendar que a comienzos de 1994 se lleve a cabo en la Región una reunión preparatoria para la instrumentación de la propuesta contenida en los párrafos señalados.

En relación al comercio agrícola de productos básicos, deseamos reiterar la necesidad de que hagamos un esfuerzo en la FAO por recomendar la puesta en práctica de políticas económicas sanas para estimular el comercio agrícola internacional y rechazar aquéllas que puedan conducir a su anarquización.

Los Presidentes de los países latinoamericanos en su reciente reunión de octubre en Santiago de Chile, han ratificado su voluntad de seguir contribuyendo a la liberalización del comercio y al establecimiento de un sistema multilateral, transparente, libre de proteccionismo y de un bilateralismo y esperan que los países industrializados asuman con igual voluntad sus responsabilidades.

Chadli LAROUSSI (Tunisie) (Langue originale arabe): M. le Président, la délégation de mon pays voudrait remercier M. Hjort pour nous avoir présenté d'une manière admirable ce rapport. Je voudrais également remercier le Secrétariat pour ce rapport complet qui a passé en revue d'une manière exhaustive la situation mondiale des produits et ses perspectives ainsi que les activités des groupes intergouvernementaux sur les produits. Ce rapport a également passé en revue les événements fondamentaux, comme la relation organique entre le commerce et l'environnement et le développement durable.

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Toutes ces questions auront une importance vitale et primordiale au cours des prochaines années.

Nous exprimons notre inquiétude pour deux questions graves: premièrement, la réduction de la production mondiale des produits agricoles. Et l'un des délégués a mentionné avant moi que cette réduction s'est élevée à peu près à 2 pour cent de la production agricole par rapport à la décennie précédente, alors que la population mondiale est en augmentation constante et que la Conférence sur la nutrition a mentionné que plus de 800 millions de personnes souffraient de la faim et de la malnutrition.

Deuxièmement : au moment où nous constatons une réduction des produits agricoles, nous constatons également une réduction des prix des produits agricoles, ce qui est contraire aux règles du marché.

Nous craignons donc que cela n'aboutisse à la détérioration de la situation alimentaire d'un grand nombre de pays en voie de développement. Dans ce contexte, nous appuyons l'initiative mentionnée par M. Hjort, à savoir la création d'un fonds africain pour la diversification, et cela dans le cadre de l'Organisation des Nations Unies. Cette initiative demeurera limitée dans ses résultats car, à notre point de vue, il n'est pas possible dé relancer le secteur agricole, surtout dans le continent africain qui souffre plus que tout autre des problèmes de l'alimentation; il n'est donc pas possible de relancer le secteur agricole dans ces pays sans trouver une solution au problème de l'endettement. Comment ce secteur agricole pourra-t-il se développer alors qu'il souffre d'une véritable hémorragie de ressources financières? Les investissements passent maintenant du secteur agricole aux autres secteurs comme si ce secteur malade fournissait une aide aux autres secteurs et les finançait. Cela aurait certainement des effets désastreux si des initiatives courageuses n'étaient pas prises pour régler le problème de l'endettement. A cet effet, nous réitérons notre proposition, comme nous l'avions déjà mentionnée à plusieurs reprises, soulignant la nécessité de recycler les dettes dans des projets agricoles susceptibles de développer l'agriculture et de jeter les bases d'un développement durable qui profitera à tous les peuples et constituera la meilleure garantie pour la paix et la stabilité dans le monde.

Tout en rendant hommage au rôle de la FAO pour jeter les bases d'un commerce sain entre les pays membres et pour liquider toutes les barrières tarifaires utilisées à des fins protectionnistes, nous espérons la réussite des négociations de l'Uruguay Round tout en soulignant la nécessité de tenir compte de la situation des pays en voie de développement, afin que la libération du commerce ne porte pas atteinte aux intérêts nationaux de ces pays qui consistent à réaliser l'autosuffisance alimentaire pour leurs peuples. Nous ne devons pas oublier cette réalité primordiale: l'alimentation est un droit fondamental de l'homme. Et c'est le premier des droits de l'homme que nous devons garantir. Notre Organisation doit jouer un rôle pionnier en soutenant les Etats Membres et en consolidant la solidarité mondiale dans ce domaine.

Adel CORTAS (Lebanon) : Unfortunately, I did not have the opportunity to attend the 59th Session of the CCP meeting in June, but I read very carefully the speech of the Director-General which was delivered by Mr Hjort, as I did the introduction made by Mr Hjort, today. I really commend the efforts made by FAO in the area of commodities, commodity studies, projections, etc., and I would endorse all the recommendations made in this report to be taken and approved by the Council.

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Mr Chairman, if you will allow me I will make some observations and remarks relating to the different paragraphs of this report. First of all, on the decline of prices for the different commodities, especially in the LDCs, we would look at this with much concern because it would lead to more deterioration in terms of trade of the developing countries. It would lead also to more poverty situations in these countries.

My second remark relates to the Intergovernmental Commodity Groups, ICGs. I read very carefully the different paragraphs relating to this, and I endorse the recommendations relating to the study which will be made in future concerning ICGs.

May I recommend that this paragraph related to the groupings of the different ICGs be taken into consideration. If I remember rightly, in paragraph 31 delegates suggested that some of the ICGs should be grouped like the Intergovernmental Groups on Grains, Rice and possibly Oilseeds and will be taken together as well as citrus and bananas.

I recommend also that less frequent meetings should be undertaken for the different ICGs. May I recommend that especially through its Commodities Division, the FAO will undertake the task of having more information provided electronically to the different member countries, as suggested by some delegates today.

My third remark is related to the Common Fund for Commodities. Really, to tell the truth and to be wholly honest with you, I am really lost in this area. May I ask Mr Hjort and Mr Perkins to give more clarification on what was achieved in this area? Can they update the information regarding the different projects related to the Common Fund for Commodities?

My fourth remark relates to the Study, AT 2000. Here we have to commend the efforts made by the Economic and Social Policy Department and the valuable work being done by FAO.

Finally, I look forward to the findings of the Uruguay Round and endorse what has been said in paragraph 15.

Musa Mohamed MUSA (Sudan) (Original language Arabic) : First of all, I would like to say that we are very preoccupied with the evolution that we observe in developing countries underlined by the succinct Report of the CCP, which is very clear and complete.

My delegation wishes to draw the attention of this meeting to the developments which we are facing and which were highlighted by the Report of the CCP in a most detailed and clearcut way. We draw attention to the important and difficult situation facing the developing countries insofar as trade and marketing are concerned.

We are facing a formidable problem brought about by the decline in our income from hard currency earned from staple crops such as cotton and grains which used to accrue large income and helped to ensure debt servicing. The role of FAO as well as other organizations calls for more reinforcement of support, and stresses the importance of integrating efforts in the field of facilitating the flow of commodities. In this respect, my delegation is of the view that the available resources of the Commodity Fund were not up to our expectations.

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We see that the continuing decline in the price of commodities would lead to a recession in international trade, and some countries will lose their comparative advantage resulting from economic and scientific development, as is the case in countries with large plantations which depend on one basic crop.

We would reiterate the importance of the agricultural plans for change that could yield good results in the future. We should avoid the plans which could have dangerous environmental effects in the future. We are of the view that the way we are treating these issues does not cope with their magnitude and urgency and we should accord them the importance they deserve.

Pinit KORSIEPORN (Thailand): My delegation also participated in the Committee on Commodity Problems at its 15th Session. Therefore, I shall be very brief. I would like to highlight only two points.

First of all I refer to paragraph 28. May I take this opportunity to inform all distinguished delegates that my country will host the forthcoming session of the FAO Intergovernmental Group on Rice in Bangkok from 28 November to 2 December 1994. My delegation will be most honoured if the authorities concerned as well as the private sector can participate in this meeting.

Secondly, my delegation refers to paragraph 31 of the Report. We believe that tropical and subtropical countries are now paying more attention to tropical fruits, since these are one of the main sources of income for the developing countries. Therefore, we urge the Committee on Commodity Problems to" include issues concerning tropical fruits in its intergovernmental groups.

We fully endorse the Report to be considered by the Conference.

Juan NUIRY SANCHEZ (Cuba): Dos cuestiones como introducción: Primero, en nombre de mi delegación reconocer y agradecer la presentación brindada por el Sr. Hjort, clara, sobria y objetiva como nos tiene acostumbrados; y, segundo, tal como lo habíamos manifestado en el pasado mes de junio, aprobamos este informe, razón por la cual sólo haremos referencia a manera de información sobre un importante acontecimiento que incide tanto en el tema como en nuestro trabajo que por su importancia es necesario destacar.

Aunque la mayor parte de los medios informativos, señor Presidente, fundamentalmente en los grandes países no brindaron poco o nada el espacio requerido por su importancia, creo necesario destacar que en el pasado y reciente mes de julio se efectuó en Salvador de Bahia (Brasil) la Tercera Cumbre Iberoamericana, reunión que agrupó a todos los Jefes de Estado y de Gobiernos de los países latinoamericanos, Portugal y España, evento que constituyó entre sus fines un foro de análisis y cooperación como piedra angular de un diálogo con características propias y con un marcado acento para el desarrollo. En su declaración final, firmada por todos los mandatarios se refleja el nivel de entendimiento político especialmente frente a una estructura cada vez más densa de mecanismo de cooperación como instrumento para el desarrollo estableciéndola en un ámbito más amplio.

Prácticamente en la introducción del documento se planteó, cito: "En este marco reiteramos los principios de soberanía, no intervención, integridad

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territorial y reconocemos el derecho de cada pueblo a constituir libremente la paz, estabilidad y justicia su sistema político y sus instituciones.

Todo ello constituye los objetivos básicos de la Comunidad de naciones aquí reunidas y factores integrantes de cualquier política de cooperación. En este sentido reiteramos plenamente todo lo dispuesto en la Declaración de Guadalajara de 19 de julio de 1991, y en el documento de conclusiones de Madrid del 24 de julio de 1992, que constituye un conjunto de normas que deben guiar nuestras relaciones"

Esto refleja las ideas vertidas al más alto nivel de una Región reafirmada en plena soberanía y de identidad de raíces que reclama la solución de sus problemas para el desarrollo la máxima prioridad.

Es importante destacar que este documento, fiel reflejo de un amplio intercambio de ideas, entre muchos aspectos le confirió lugar destacado a la Conferencia de Rio sobre los riesgos del Medio Ambiente, así como su preocupación por la interminable conclusión de las negociaciones de la Ronda Uruguay, acuerdo general de los aranceles del GATT.

Podríamos preguntarnos, en el orden personal ¿Quién va a asumir el costo político y económico sobre esta insólita situación de lo que ocurre en la Ronda Uruguay?

Volviendo a la Declaración, ésta también se refirió a las resoluciones recientes en foros internacionales, sobre la necesidad de eliminar la aplicación unilateral por cualquier estado con fines políticos de medidas de carácter económico y comercial contra otro estado. El documento, entre sus argumentados 73 párrafos, entre otros aspectos resaltó la importancia del desarrollo y expansión de la agricultura para la superación del hambre y la pobreza, principales obstáculos al desarrollo sostenible en los países latinoamericanos.

En este sentido destacó la apremiante necesidad de intensificar la cooperación internacional en el campo agrícola por medio de programas que incluyan recursos financieros adicionales, transferencias de tecnologías y medidas de liberación del comercio de productos agrícolas.

MA GENG-OU (China) (Original language Chinese): Mr Chairman, I am glad to see you chairing the Council once again. We commend the introduction given by Mr Hjort on this subject. As you know, the Chinese Government joined the Committee on Commodity Problems for the first time last June and attended the 59th Session. Like other delegations, we are very much concerned about the decline in prices of agricultural commodities. China is now trying its best to restore its status in GATT. Its domestic situation will link its economy more closely with international economies. Therefore we are willing to participate more fully in the CCP activities and reinforce our cooperation with other member countries in order to establish a just international trade system and make our contribution in this respect.

LE PRESIDENT: Nous arrivons à la fin de la liste des orateurs membres du Conseil. Je vais maintenant donner la parole aux observateurs.

Getachew GEBRE-MEDHIN (Observer for Common Fund for Commodities) : Mr Chairman, thank you for giving me this opportunity to brief you and the

Council on developments regarding the Common Fund for Commodities, which is the subject of Chapter IV of the Report of the 59th Session of the Committee on Commodity Problems, contained in document CL 104/2.

I am pleased to inform the Council that the operational activities of the Fund have now taken off and a number of projects have been approved for financing since the Council's last session. Some of the projects have been under implementation for some time now. Among these are six projects sponsored by FAO-based international commodity bodies. These include the banana improvement project, improving small-scale extraction of coconut oil, improving small-scale extraction of palm oil, first phase, improving the drying and dyeing, etc. of coir, which is a project for improving the chemical applications in coir manufacturing, the market and product development-of coir and the promotion of tea on the basis of human health research results.

The project agreement to finance one of these projects, the banana improvement project, at a total cost of more than US$11 million', was signed on 28 October between the World Bank, as project executing agency, and the Common Fund for Commodities. It is anticipated that FAO will in the near future sign this same project agreement and grant agreement on behalf of the Intergovernmental Group on Bananas. We are also hoping that in the near future FAO will sign other projects and grant agreements concerning five project proposals which I have mentioned above

The approved projects from FAO are the few fully developed project proposals on which work has been going on for some time now. Most of the projects discussed in the last two years were in the form of project profiles and project ideas. Only a couple of these project proposals which are fully developed remain in the pipeline. Consequently, for the immediate future, little could be expected unless new project proposals are formulated and/or project profiles are developed into fully-fledged project proposals.

The Common Fund for Commodities did not have the opportunity to participate in the meeting of the CCP. It is regrettable that therefore the present report on the Committee's meeting does not reflect adequately the balanced situation concerning the cooperation between the ICBs in FAO and the Common Fund for Commodities. It is less than objective and complete. I dare say, in fact, it is one-sided and ascribes blame to the Common Fund for Commodities. This has become a routine practice now in meetings of the FAO intergovernmental groups, and, unfortunately, in the report to the CCP, as well as to the Council. There is much more to it than is depicted in the report presented to the Council and to the CCP. There is a need to improve mutual understanding and quality of projects produced in the FAO-based ICBs. As you know, resources are scarce these days. International development institutions are required to justify more than ever before that value for money is achieved. This is even more so for new financial institutions such as the Common Fund for Commodities which bear more the burden of proof than do well established institutions. The Common Fund for Commodities therefore prefers to use its scarce seed resources for projects which would have maximum impact on its beneficiaries and result in tangible and quantifiable results. It is also keenly interested to finance projects in collaboration with other financial and development institutions. This policy of the Common Fund for Commodities has been stated on different occasions in FAO and elsewhere. The Fund will continue to pursue this policy line. The Fund's limited resources would otherwise not have significant impact on beneficiaries.

At present we have a worthwhile relationship with the World Bank, the Consultative Group on International Agricultural Research and bilateral donors. We will expand similar collaborative efforts to regional organizations and to other international institutions in the forthcoming years.

With regard to price stabilization mechanisms, which are mentioned in the report, the Common Fund for Commodities is studying various measures, including those which have been adopted by recently concluded international commodity agreements, and will institute those which the Fund will find practicable and relevant.

Since the meeting of the CCP, the Executive Board of the Common Fund for Commodities"has responded positively to the request of the Committee for an interim solution to outstanding problems for project management and supervision. The response of the Board has been duly communicated to the FAO Secretariat. The proposed recommendations of the CCP have been more or less endorsed by the Board on an interim basis. It is hoped, however, that longer-term solutions will be found to sustain collaboration between the Fund and the intergovernmental groups in FAO. The FAO-based ICBs should take their work on projects much more seriously and identify and develop projects which would have tangible and measurable outputs. It is important that such projects are designed in the most cost-effective way possible. They have to be in tune with international situations. Donors are in no mood to provide funds where resources are loosely managed. The CFC hopes that the Council in its wisdom will impress this upon the IGGs. The Common Fund for Commodities, for its part, will make every effort to familiarize its clients with its policies and priorities.

I should bring to your attention that in June of last year, in collaboration with, and with the generous assistance of, the Belgian Government, a seminar was held in Brussels for international commodity organizations and international development institutions concerned with commodities for exchanging views on the operations of the Common Fund's Second Account and the opportunities that it opens for commodity development measures.

The Common Fund for Commodities has also issued a project preparation and management manual which, we hope, will help to clarify some of the difficulties of understanding the Common Fund's requirements. We shall continue to make our endeavours in this regard. We hope this effort will be matched by an effort to improve the situation in the FAO-based ICBs.

I humbly request that the contents of my intervention be fairly reflected in the Report of the Council.

LE PRESIDENT: Je profite de l'intervention de l'observateur du Fonds commun pour les produits de base pour signaler que, dans la dernière partie du document C 93/9-Sup.1 - Faits nouveaux survenus dans le Système des Nations Unies intéressant la FAO - aux paragraphes 39 et 40, on fait le point des questions relatives au commerce et aux produits. Ce document est donc intéressant pour la préparation des travaux de la Conférence.

Giuseppe VASTA (Observateur de l'Organisation de coopération et de développement économique): Monsieur le Président, je vous promets d'être

très bref en considération de l'heure tardive. Je félicite M. Hjort de son intéressante introduction à ce rapport très clair et complet.

Faisant suite à la déclaration du représentant de l'OCDE à la cinquante-neuvième session du Comité des produits, en juin dernier, j'estime avoir le devoir de confirmer qu'il faudra un certain temps avant que les mesures adoptées pour réduire le niveau des indicateurs de protection puissent produire leur effet. Les consommateurs et les contribuables des pays industrialisés ont transféré vers le secteur agricole environ 354 milliards de dollars. Cette somme représente deux fois et demi le montant total des recettes que les pays en développement tirent de leurs exportations de produits agricoles, halieutiques et forestiers. En effet, le soutien agricole mesuré selon l'équivalent des subventions nettes à la production des pays de l'OCDE a légèrement augmenté pour atteindre 179 milliards de dollars. Je dois confirmer, toutefois, qu'il ne faut pas accorder une importance exagérée aux différentes méthodes utilisées pour mesurer le niveau de protection car elles font appel à des facteurs variés. Ce qui, aujourd'hui, peut être considéré comme des petits pas, pourra, je l'espère, dans un délai raisonnable, donner les résultats souhaités par tout le monde.

Enfin, j'ai le plaisir de vous confirmer que l'examen conduit par l'OCDE sur les marches et les politiques nationales en matière de produits agricoles en 1992 a permis de préciser que les transferts dans les pays de l'OCDE se sont élevés à 354 milliards de dollars, qui représentent 7 pour cent de plus qu'en 1991. Cet examen a été élargi aux pays d'Europe centrale et orientale et à l'ex-URSS. Les projections pour les principaux marchés de produits agricoles à l'horizon 1997-98 ont été établies avec plus de précision.

Le programme de travail des groupes de produits de l'OCDE prévoit ausi la participation de la FAO, ce qui confirme la sympathie et la collaboration qui existent entre les deux organisations.

LE PRESIDENT: Je remercie M. Vasta de son intervention, ainsi que de l'esprit de collaboration qui existe entre l'Organisation de coopération et de développement économique et notre Organisation.

Je crois qu'il ne faudrait pas entamer un débat en ce qui concerne le Fonds commun pour les produits agricoles. Je voudrais quand même dire que le Fonds commun connaît de très grosses difficultés financières. J'ai eu l'occasion de l'évoquer au Comité du Programme. J'ai même regretté que certains pays, au moment où le Fonds commun démarre, aient annoncé leur retrait de cette Organisation. J'ai suivi les longs débats qui ont pris plus de dix ans, qui ont mené à Genève à la création du Fonds commun. Il est regrettable qu'au moment où une organisation commence à démarrer, certains de ses membres se retirent de cette organisation. Par souci de transparence, j'avais communiqué ce sentiment au Comité du Programme. Cela a provoqué un certain nombre de réactions. Je n'en dirai pas plus.

Je donne maintenant la parole à M. Hjort.

DEPUTY DIRECTOR-GENERAL: I will be very brief. I simply want to express my appreciation for all the positive comments which were made about the work of the Committee and its intergovernmental groups.

Secondly, I want to confirm that I intend to sign the Project with the Common Fund on Bananas tomorrow morning.

I would also make one comment with respect to the co-financing requirement. This is difficult for FAO. We are not a financing Organization and we do need, therefore, to seek co-financing when that is a condition of Common Fund support.

This can present a problem. Reference has been made to the World Bank. It is a co-financing organization. The problem is that many financing organizations tend to forget that they are financing organizations and start to get into technical matters for which, at times, they have limited capability.

I would appreciate it if Mr Perkins had the opportunity now to respond further to any questions or comments that were raised.

R.J. PERKINS (Director, Commodities and Trade Division): There is just one further point on the Common Fund relationship. I did note that the European Economic Community specifically requested information on what the Common Fund for Commodities had done, how it had reacted to the proposals made by the CCP at its last session. Essentially, there were two proposals and both of them have received satisfactory responses from the Common Fund's Executive Board.

As the representative of the Common Fund himself said, the first of these concerned the supervision of approved projects. The Fund has agreed with the CCP's interim arrangement to provide supervision through the intergovernmental groups themselves, pending decisions by the Committee on Commodity Problems at its forthcoming session in 1995, on a more permanent arrangement for ensuring more satisfactory project supervision.

The second part of the CCP's request to the Common Fund concerns whether or not the Common Fund might be able to provide financing for project supervision as part of the project budget. I believe this is in paragraph 3 7 or 3 8 of the CCP's report.

The Executive Board of the Common Fund has responded positively to this decision on a case-by-case basis to provide limited resources for project supervision purposes up to a certain limit per project per year. Of course, we have had consultations with the representatives of the Common Fund on this matter. I should like to assure the Council that we shall exercise all due economy in the use of those resources.

I would just say that the Report of the CCP on the Common Fund, as on all other matters, and the reports and decisions of the intergovernmental groups are, of course, the decisions, recommendations and conclusions of governments and not of the Secretariat.

However, turning to other matters, we took note with gratitude of the declaration of the Government of Thailand to host the forthcoming session of the intergovernmental Group on Rice in Bangkok towards the end of next year. I should perhaps say that there is a great deal of interest being displayed by member countries in hosting sessions of the various groups. Last month, for example, the Intergovernmental Group on Citrus Fruit was hosted by the Government of Portugal. I believe the next one is likely to be in Latin America, hosted by Brazil, but that is looking ahead two years. An offer to host the next session of the Intergovernmental Group on Bananas

has been received from Jamaica; on tea, from the Government of Morocco. There are also probable offers to be made concerning the Hard Fibres meeting and the Jute meeting next year - again by important producing countries. Finally, the next session of the Intergovernmental Group on Wine and Vine Products has received an offer from the Government of Chile to host this particular session.

The other side of the coin is that we do not seem to receive many offers to host meetings of the Temperate Zone Commodity Groups such as oilseeds, grains and meat.

Turning to the last point I wish to cover, several delegates referred to the great need for faster electronic transmission of information where possible to" speed up information flows, possibly as a way of reducing the need for meetings. Of course, the Secretariat agrees wholeheartedly with that, but I think it is important to remember that delays in information transmission all too frequently occur because we are bound to transmit information more or less simultaneously in more than one language, - three, four or five languages. This does, indeed, hold up the process of distribution, irrespective of whether we use the mail, fax machines, electronic communication or other methods.

However, we shall be trying to do this. I should like to note that the Commodity Review and Outlook which we produce annually on the commodity situation and outlook is one of the reports which is being used in the first phase of developing electronic dissemination by FAO's WAICENT through the FAO information system. We hope that will be on line fairly soon now.

I hope I have covered the main points.

LE PRESIDENT: Nous concluons en souhaitant que les liens qui se sont noués entre le Fonds commun et la FAO puissent se développer, compte tenu des spécificités des deux organisations. J'ai eu personnellement l'occasion de rencontrer M. Budi Hartantyo, Managing Director de cette organisation du Fonds commun. Je crois que les procédures doivent pouvoir être confrontées de façon à arriver à plus de flexibilité de part et d'autre, compte tenu des spécificités de ces organisations. Le Fonds commun a un rôle très important à jouer et il est important que des moyens financiers plus considérables puissent être mis à sa disposition dans un avenir relativement proche, parce que j'ai lu bien des documents de la FAO où l'on mettait beaucoup d'espérance dans le Fonds commun. Je me suis rendu compte que ces espérances devaient être déçues, vu le manque total de moyens financiers de cette organisation. Je crois que les contacts doivent être maintenus. La FAO n'est pas une organisation de financement, mais elle doit s'efforcer de trouver des financements. Les organismes financiers internationaux devraient pouvoir intervenir davantage. En ce qui concerne la mise au point des projets, je crois que c'est par une coopération entre les deux organisations qu'on y parviendra.

Nous avons eu un intéressant débat, avec plus de 20 pays membres qui sont intervenus au cours de ce débat; deux observateurs sont intervenus également.

Je crois que nous ne pouvons que transmettre à la Conférence le rapport du Comité des produits qui est un rapport particulièrement intéressant et bien fait. Il n'y a pas de décisions particulières à prendre si ce n'est

d'émettre le voeu que les différentes espérances qui ont été soulevées au cours de ce débat puissent être réalisées dans un avenir proche.

Je déclare le point 4 de notre ordre du jour clôturé.