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GATT3_6.TXT
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1994-01-11
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DECISION ON MEASURES CONCERNING
THE POSSIBLE NEGATIVE EFFECTS OF THE
REFORM PROGRAMME ON LEAST-DEVELOPED AND
NET FOOD-IMPORTING DEVELOPING COUNTRIES
1. Ministers recognize that the progressive implementation of the results
of the Uruguay Round as a whole will generate increasing opportunities for
trade expansion and economic growth to the benefit of all participants.
2. Ministers recognize that during the reform programme leading to
greater liberalization of trade in agriculture least developed and net
food-importing developing countries may experience negative effects in terms
of the availability of adequate supplies of basic foodstuffs from external
sources on reasonable terms and conditions, including short-term
difficulties in financing normal levels of commercial imports of basic
foodstuffs.
3. Ministers accordingly agree to establish appropriate mechanisms to
ensure that the implementation of the results of the Uruguay Round on trade
in agriculture does not adversely affect the availability of food aid at a
level which is sufficient to continue to provide assistance in meeting the
food needs of developing countries, especially least developed and net
food-importing developing countries. To this end Ministers agree:
(i) to review the level of food aid established periodically by the
Committee on Food Aid under the Food Aid Convention and to
initiate negotiations in the appropriate forum to establish a
level of food aid commitments sufficient to meet the legitimate
needs of developing countries during the reform programme;
(ii) to adopt guidelines to ensure that an increasing proportion of
basic foodstuffs is provided to least developed and net
food-importing developing countries in fully grant form and/or on
appropriate concessional terms in line with Article IV of the
Food Aid Convention;
(iii)to give full consideration in the context of their aid programmes
to requests for the provision of technical and financial
assistance to least developed and net food-importing developing
countries to improve their agricultural productivity and
infrastructure.
4. Ministers further agree to ensure that any agreement relating to
agricultural export credits makes appropriate provision for differential
treatment in favour of least developed and net food-importing developing
countries.
5. Ministers recognize that as a result of the Uruguay Round certain
developing countries may experience short-term difficulties in financing
normal levels of commercial imports and that these countries may be eligible
to draw on the resources of international financial institutions under
existing facilities, or such facilities as may be established, in the
context of adjustment programmes, in order to address such financing
difficulties. In this regard Ministers take note of paragraph 37 of the
report of the Director-General of the GATT (MTN.GNG/NG14/W/35) on his
consultations with the Managing Director of the International Monetary Fund
and the President of the World Bank.
6. The provisions of this Decision will be subject to regular review by
the Ministerial Conference, and the follow-up to this Decision shall be
monitored, as appropriate, by the Committee on Agriculture.