Cairns Group

The Cairns Group of Fair Trading Nations was established in 1986 as part of the early phases of the Uruguay Round of the GATT trade negotiations. The group takes its name from the place of its formation in Northern Australia and reflects Australia's prominent role in bringing the grouping into existence.

The original intention of this group of highly diverse countries was to encourage reform of the international agricultural trading system, which was distinguished by high levels of trade protection and subsidization. The European Union (EU) and Japan had become preoccupied with economic security in the aftermath of a number of economic shocks in the 1970s, and this had led to an increasingly nationalistic and illiberal approach to agricultural trade. The influence of powerful domestic agricultural lobby groups meant that reform became increasingly difficult and countries like the United States felt bound to retaliate.

It was against this background of rising protectionism, and the corruption of international agricultural trade, that the Cairns Group was formed. The original members—Argentina, Australia, Brazil, Canada, Chile, Colombia, Fiji, Hungary, Indonesia, Malaysia, New Zealand, the Philippines, Thailand, and Uruguay—were highly politically and economically diverse, but united in their sense of vulnerability and a desire to free up international trade for their generally large, export-oriented agricultural sectors.

One of the most striking aspects of the Cairns Group was the intellectual leadership provided by Australia, and to a lesser extent Canada. Australia's commitment to trade liberalization was the outcome of a long domestic debate in which neoliberal ideas had supplanted protectionism and become the guiding rationale of foreign and domestic policy. The Cairns Group offered a mechanism to promote this agenda in a key multilateral forum.

Consequently, the Cairns Group's original goals focused on reducing tariff barriers, reducing or eliminating subsidies, and providing special concessions for agriculture-dependent, less-developed countries. The Cairns Group had some success in the 1980s in playing the role of honest broker and mediating between the United States and the EU in particular, and it also managed to keep trade liberalization on the international economic agenda at a time when it seemed as if it might succumb to nationalistic protectionist pressure.

By the early 1990s, the Cairns Group's influence was declining, as was its capacity to encourage multilateralism rather than bilateralism among the major powers. It is striking that Australia has recently negotiated a bilateral free trade agreement with the United States, symbolizing just how far both Australian attitudes have shifted and how much the status and importance of the Cairns Group has diminished of [Page 66]late. At a time when such bilateral trade deals are proliferating and being linked to strategic concerns, it remains an open question whether coalitions of likeminded countries like the Cairns Group can wield an effective influence.

Nevertheless, the Cairns Group did help to promote trade liberalization and highlight the inequitable nature of the global trading system. The idea that agricultural trade ought to be freer has become widely accepted, and it appears that both the United States and the EU may finally be moving to do something about it. The Cairns Group can claim much of the credit for this.

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