Smith Reports Cairns Group In "Good Heart"

International Trade Minister Lockwood Smith says the Cairns Group of agricultural fair trading nations is in "very good heart" as it continues to push for trade liberalisation.

Speaking after the 17th Cairns Group meeting in Rio de Janeiro late last week, Dr Smith said he was impressed by the resoluteness of Cairns members to position the group for the start of the next round of agricultural negotiations in 1999.

"We have a lot of work ahead of us before we get to 1999. At Rio we agreed to intensify the work of the group in undertaking the necessary preparation of the positions that the Cairns Group will carry into the next round. We want to leave no stone unturned.

"I proposed a strategy to ensure that the negotiations are effectively prepared and launched in 1999. New Zealand's proposals found widespread support within the group.

"With the end of the Uruguay Round, some may have wondered whether the Cairns Group still had a role to play in further agricultural reform. This meeting showed that the Cairns Group remains the major force in pressing the case for liberalisation.

"Other countries are taking notice of what we are doing and what we can offer.

Paraguay was admitted as the 15th member of the group, while South Africa formally requested membership. Bolivia attended the Rio meeting as an observer for the first time.

"I welcomed the expansion of the group. More and more, countries are recognising the damage done by trade distorting subsidies and market access barriers.

"Our goal, which was reaffirmed in Rio, is to seek far-reaching and ambitious trade reforms in agriculture. The Cairns Group won't rest until agriculture is placed on the same basis as other areas of world trade.

"That outcome is vitally important for New Zealand. We're now well on the way."