USA Rice WTO Ministerial Delegation Looks Beyond Limited Gains in Hong Kong

WASHINGTON, December 21, 2005 — USA Rice Federation officials returning from the World Trade Organization (WTO) ministerial meeting in Hong Kong remained hopeful today that future talks will yield market access for U.S. rice despite their disappointment with the limited results achieved during the meeting.

“The results of last week’s WTO ministerial meeting offer no immediate benefits to U.S. rice producers and processors,” said Carl Brothers, chairman of the USA Rice Federation’s International Trade Policy Committee and senior VP, Riceland Foods, Inc. “These negotiations were very, very difficult, and we would all be remiss in not recognizing the leadership and valuable work done by U.S. Trade Representative Rob Portman and U.S. Department of Agriculture Secretary Mike Johanns.”

Brothers attended the WTO ministerial meeting with California rice producer Michael Rue, chairman of the USA Rice Asia Trade Policy Subcommittee and Bob Cummings, USA Rice VP for international policy.

“Ministers agreed to a broad outline for continuing talks on multilateral trade liberalization into next year, which is positive, but there are many details that still to be negotiated before our members can assess any final agreement,” Brothers said.

Trade ministers from nearly 150 countries concluded the Sixth WTO ministerial meeting in Hong Kong on December 18. Unlike the past two ministerial meetings, ministers were able to agree on a formal text with which to guide negotiators toward a comprehensive agreement on global trade liberalization. However, the European Union’s refusal to improve on its market access offer and one-sided demands by some developing countries left ministers with limited areas of consensus.

“Unfortunately for U.S. rice and U.S. agriculture, no progress was made on commitments to expand market access,” Rue said. “However, we look forward to achieving broader market access in the next phase of the talks running through April 30 as the condition for a successful agriculture agreement,” Rue concluded.

In Hong Kong, ministers did agree to:

· Eliminate all export subsidies by 2013

· Provide least developed countries improved duty free and quota free access for agricultural exports

· A general framework on negotiating disciplines on global food aid

· Set April 30, 2006, as the new deadline for negotiating the “modalities” or framework of disciplines on the three major areas of the agricultural trade talks: market access; trade distorting domestic supports and export competition.

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Contact: Bob Cummings, (703) 236-1473, rcummings@usarice.com

USA Rice Federation is the national advocate for all segments of the rice industry, conducting activities to influence government programs, developing and initiating programs to increase worldwide demand for U.S. rice, and providing other services to increase profitability for all industry segments.