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. 
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