Statement by Ambassador Berger on G20-briefing by the French Minister for Agriculture Le Maire in the General Assembly

Feb 17, 2011

·                    Thanks to the President of the GA, Joseph Deiss, and France for the briefing and the opportunity to exchange views on the G20 process

 

·                    Germanyaligns itself with the EU statement. We appreciate especially the priority given by Francepromoting outreach and cooperation of the G20 towards non-members and international organizations. We fully support the close cooperation of the G20 and the UN system in the implementation of the global development agenda.

 

·          Germanywelcomes the fact that Francehas put the topic of excessive price volatility on the agenda. In the sense of extreme peaks or lows, the behaviour of market participants and their effect on the price development are an important and particularly sensitive topic for the agricultural commodity markets.

·          The financial crisis showed the risks that insufficiently regulated key markets are exposed to. The objective of all efforts must be to strengthen and ensure the efficiency of financial markets so that they can perform their risk protection function. At the same time excessive price volatility, including volatility caused by financial transactions that do not serve to provide economic protection, must be avoided. More transparency and measures to limit extreme price fluctuations are important starting points in this context.  The market for financial derivatives of agricultural commodities is particularly in need of adequate supervision and measures to promote transparent price formation.

·                    At the same time we have to limit the consequences of increased price volatility for the Least Developed Countries. However, the current food price increase is not only a result of short-term price fluctuations; it is to a large extent also the result of growing demand and a shortage of food in combination with climatic changes. Consequently we must intensify our efforts to promote rural development while at the same time buffering excessive fluctuations at international and national level. The G20 Working Group for Development is working on this issue. Its work should be incorporated into further considerations.

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