What is the Cairns Group?

Established in August 1986 in Cairns, Australia by 14 agricultural producers and exporters. It includes most of the developing countries engaged in agricultural export. They suffer from export subsidies from European and American countries due to low production efficiency and lack of funds. They strongly demand that the distortion of agricultural trade be corrected. Also known as the Stele Organization.

Keynes Group

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Produced by 14 agricultural producers and exporters in August 1986

The Cairns Group is an informal consortium of 15 countries that was established in Cairns, Australia in 1986. In the Uruguay Round of changing trade negotiations, the Keynes Group was a strong consortium that demanded the removal of trade barriers and the steady reduction of subsidies affecting agricultural trade. These countries include Australia, Argentina, Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, the Philippines, New Zealand, Thailand, Uruguay, Fiji, and Canada, and their agricultural exports account for 25% of world exports. No subsidies were given to its agricultural products. On November 29, 1999, the group decided to include three American countries as its members: Bolivia, Costa Rica and Guatemala.

Its 19 member states now include: Argentina, Australia, Brazil,

The group played a pivotal role in the GATT Uruguay Round of agricultural trade negotiations. There are two reasons for this: one is similar to the US position in promoting the liberalization of agricultural trade, and the other is similar to the views of developing countries in considering the transition methods and deadlines for implementing agricultural trade liberalization. The former is because the Keynes Group has huge interests in agricultural products export, so it actively advocates restricting domestic agricultural support measures with traffic light schemes; agreeing to transform non-tariff barriers into tariff measures; agreeing to reduce agricultural product tariffs according to certain formulas. The latter is due to the overwhelming majority of members of the Keynes Group being developing countries.

For a long time, member states of the European Community and the United States have implemented subsidy policies on agricultural exports. This protectionist approach has caused oversupply in the international market and caused other agricultural exporters, especially developing countries, that are unable to subsidize. Loss of competitiveness in the international market and severe economic losses.

Keynes Group member states have held meetings since 1986, demanding the abolition of agricultural export subsidies. The United States advocates the phasing out of subsidies, which will be eliminated in 10 years. The European Community believes that some measures can be taken to change this policy, but it is not possible to eliminate subsidies entirely. The Cairns Group was dissatisfied with these two approaches and hoped to eliminate all subsidies as soon as possible.