Cairns group

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The Cairns group (or in full Cairns Group of Fair Trading Nations) is an international organization composed mainly of countries that profit from the export of agricultural products. It is currently composed of the following nineteen members scattered across five continents : Argentina, Australia, Brazil, Canada, Chile, Colombia, Costa Rica, Guatemala, Indonesia, Malaysia, New Zealand, Pakistan, Paraguay, Peru, the Philippines, South Africa, Thailand, Uruguay, and Vietnam [1]. It is said that the members of the organization possess over 25 percent of the global export market for agricultural goods. The coalition's main goal is to liberalize trade as much as possible, primarily in the agricultural sphere. Several reforms proposed by the Cairn group aim to encourage countries to take a less nationalistic approach to trade, making it free and fair[2]. Through these reforms, they strive for unity despite cultural, linguistic and geographical differences.

Historical background

The Cairn group was founded in Australia in 1986, just before the World Trade Organization Uruguay Round of negotiations. The formation of the coalition was initiated by the Australian government seeking a way to liberalize world trade. Australian officials invited representatives of fourteen very diverse countries to the joint session, which resulted in the group's formation (later number of members of the group raised to nineteen). The group adopted the name after the city in which the deliberations took place, Cairns[3]. Australia, as the initiator of the creation of the organization and host of the first meeting, took over the informal role of the association's leader and this state of affairs continues to this day. The Cairns group from the very beginning of its existence, during the WTO Uruguay Round, had an important role. Its liberal views on agricultural exports have revolutionized the countries' approach to trade. Their mediator role in disputes between the United States and the European Union also proved to be invaluable. Also during the next WTO Doha Round negotiations, the group continued its efforts to make global exports free and fair by implementing its Vision Statement. The international success of the Cairns group is demonstrated by the fact that the well-known think-tank, The Institute of Economic Affairs in 2018 said that Britain should join the organization as soon as possible.

Vision statement

Since its creation, the Cairns group has been guided in its negotiations by three main objectives related to the export of agricultural products (the so-called Vision Statement) :

  • removal of tariff escalation - tariff barriers are government policies that restrict free trade by imposing high taxes. They are very dangerous for underdeveloped countries. On its way to liberalizing the export of agricultural products, the Cairns group is trying to remove tariff barriers imposed by many countries.
  • the elimination of all trade-distorting domestic subsidies
  • the elimination of export subsidies and clear rules to prevent circumvention of export subsidy commitments

Examples of Cairns group

  • The Cairns Group was established in 1986 to promote free trade in agricultural products. The group is made up of 19 countries that are committed to reforming global agricultural trade. For example, they have called for the complete elimination of export subsidies, the reduction of domestic support measures, and more transparent rules for agricultural trade. This has enabled their members to increase their agricultural exports and remain competitive in the global market.
  • Another example of the Cairns Group’s efforts is the Doha Development Agenda. This agenda was agreed upon in 2001 and seeks to reform the global trading system by reducing trade barriers and increasing access to markets for developing countries. Through this, the Cairns Group has been able to ensure that developing countries have greater access to global markets and can export their agricultural products more freely.
  • The Cairns Group has also worked to improve the access of their members to international financial institutions. For instance, they have advocated for the International Monetary Fund and World Bank to provide better access to resources so that their members can better develop their agricultural sector. This has enabled their members to increase their agricultural production and increase their agricultural exports.

Advantages of Cairns group

The Cairns Group of Fair Trading Nations has several advantages, including:

  • The ability for its members to share ideas, experiences, and best practices. This allows them to develop strategies to effectively increase agricultural exports and enhance their positions in the international market.
  • The group provides access to a larger market and resources, which helps members become more competitive.
  • Members have the opportunity to benefit from access to new technology, research, and development. This can help them to reduce production costs and increase their efficiency.
  • Through the Cairns Group, members are able to engage in negotiations and develop strategies to confront common challenges.
  • The group also serves as a platform for members to advocate for their interests in global trade and agricultural policy.
  • Additionally, the Cairns Group provides members with a forum to collaborate on regional and global issues.

Limitations of Cairns group

The Cairns Group of Fair Trading Nations has been successful in its mission of striving for unity and reform among its various members. However, this group is limited in its effectiveness due to several factors. These include:

  • Limited members: The Cairns Group consists of just nineteen members, which limits its ability to represent the interests of many agricultural exporters.
  • Geographical constraints: The Cairns Group is composed of members from five continents, which can make it difficult to develop solutions that can be universally accepted due to varying cultural and linguistic differences.
  • Lack of resources: With limited resources available, the Cairns Group is unable to fund initiatives or projects that could help further its aims.
  • Lack of strength: As a voluntary organization, the Cairns Group does not have the power to force its members to adhere to specific reform measures, making it difficult to ensure compliance.

Other approaches related to Cairns group

The Cairns Group of Fair Trading Nations is not only focused on reforming the international agricultural trading system, but also has other approaches related to this mission. These include:

  • Trade Liberalization: The Cairns Group works to reduce and eliminate tariffs and other barriers to agricultural trade. This includes advocating for the removal of subsidies and other forms of support for domestic producers.
  • Market Access: The Cairns Group wants to ensure that all members have access to international markets and that their products can be sold without excessive restrictions. This includes advocating for the reduction of non-tariff barriers, such as sanitary and phytosanitary measures.
  • Production Efficiency: The Cairns Group works to improve the efficiency of agricultural production by encouraging innovation and the adoption of new technologies. This includes promoting research and development, as well as advancing sustainable agricultural practices.

In summary, the Cairns Group is focused on reforming the international agricultural trading system through trade liberalization, market access, and production efficiency.

Footnotes

  1. ↑ Black J., Hashimzade N., Myles G., 2012, p.280
  2. ↑ Laborde D., Martin W., 2013, p.8
  3. ↑ Abjorensen N., Docherty J., 2014, p.87


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References

Author: Kinga Więcek

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