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Posts Tagged ‘World Trade Organization

India, WTO and public food stocks

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Minister of State (Independent Charge) in the Ministry of Commerce and Industry, Nirmala Sitharaman, clarified on 6 May 2015 to the Rajya Sabha on India’s stand at the World Trade Organisation (WTO) on food security.

Here are the main points contained in Sitharaman’s reply to the Rajya Sabha:

1) A decision was adopted by the WTO General Council in November 2014 which makes it clear that a mechanism will remain in place in perpetuity until a permanent solution regarding this issue has been agreed and adopted.

2) The decision also means WTO members (countries) will not challenge the public stock-holding programmes of developing country members for food security purposes, in relation to obligations under the WTO Agreement on Agriculture.

3) The safeguard available for continuing the Minimum Support Price policy is thus strengthened and will ensure that India’s food security operations are not constrained due to WTO rules.

4) The WTO General Council Decision includes a firm commitment to engage in negotiations for a permanent solution.

Together with other developing countries, India has proposed an amendment to the rules of the WTO relating to public stock-holding for food security purposes. Sitharaman told the Rajya Sabha that “concerned at the lack of progress in implementing the Ministerial Decision on public stock-holding for food security purposes, India decided not to join the consensus in the WTO on next step for the implementation of the Trade Facilitation Agreement till its concerns were addressed”.

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What the WTO-FAO alliance on food portends

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Campaign material by GRAIN and Via Campesina to stop seed laws that criminalise farmers and to defend local seeds.

Campaign material by GRAIN and Via Campesina to stop seed laws that criminalise farmers and to defend local seeds.

A convergence that the agri-business multinationals have long looked for is now beginning. The UN Food and Agriculture Organisation – whose constitution includes “bettering the condition of rural populations” as one of its four main purposes – has joined forces with the World Trade Organisation, whose concern for rural populations is precisely zero.

Both organisations call it a collaboration, but that term is a smokescreen. The FAO is technically being run under the supervision of its eighth director-general (since 1948; their tenures are far too long and Asian and South American members especially ought to have corrected this error long ago). José Graziano da Silva, the number eight, has since 2013 increased the pace at which the FAO also collaborates with the private sector – which means the international grain traders, the agricultural commodity cartels, the food and beverage multi-nationals, and last but not least the exceedingly powerful agricultural biotechnology corporations.

The WTO has described the new alliance as a “step up” on the issue of “trade and food security, as well as other issues”. The first item of collaboration by the trade body with the FAO will be to participate in the annual State of Agricultural Commodity Markets report, which this year will focus on trade and food security, and which the WTO has mischievously described as “the FAO’s flagship publication”. It isn’t, for the FAO’s State of Food and Agriculture is the flagship report, but that misappellation is a sign of the changes to come.

Grain_defend-local-seeds_201503_2What is being sought, from the WTO point of view, is “evidence and greater clarity on a range of issues related to trade and food security”. This is ingenuous, for the WTO’s ‘greater clarity’ has only meant more trade, justified with make-believe macro-economical models that pretend trade is good for low income consumers and smallholder farm producers alike, and to ignore ground truth. For the FAO on the other hand, ‘greater clarity’ on the question of food and trade has long been available in-house in the form of the food balance sheets maintained for every country in FAOstat, which is the voluminous FAO database.

But the tone is being set by the WTO, which has said: “Considering the important role of open and strengthened food markets in supporting food security objectives, the two directors-general discussed how trade and the multilateral trading system could help in creating a more favourable global environment for food security and sustainable agriculture.” It obviously doesn’t occur to WTO Director-General Roberto Azevêdo and his secretariat that ‘the multilateral trading system’ and ‘sustainable agriculture’ are fundamentally incompatible.

The FAO’s description of its new alliance is couched in milder terms. The organisation has said the collaboration offers “mutual assistance on critical themes such as the functioning of international grain markets” but also invokes “evidence and greater clarity” on “the governance of trade flows and the pursuit of broader food security”. FAO has resorted to using the non sequitur that food security is closely linked to trade and therefore this alliance is important. As with the WTO, internal contradictions don’t matter – if FAO is discussing smallholder family farms, then food security doesn’t include trade; if FAO is discussing organic cultivation, then food security doesn’t include trade. But under an alliance with WTO, unquestionably it does.

Grain_defend-local-seeds_201503_1FAO Director-general José Graziano da Silva has insisted that “food security and trade can together play a very important role to help fulfil FAO’s mandate”. What part of the mandate could be ‘helped’ by this alliance? The FAO member states are committed under its constitution to (1) raising levels of nutrition and standards of living of the peoples under their respective jurisdictions; (2) securing improvements in the efficiency of the production and distribution of all food and agricultural products; (3) bettering the condition of rural populations; and (4) contributing towards an expanding world economy and ensuring humanity’s freedom from hunger.

If called upon to do so by FAO member states – and I wish the G77 would summon up the critical voice to do so – the new alliance will probably be explained by the WTO and FAO as helping to fulfil the second and fourth objectives. Thus ‘improving the distribution’ of food and contributing to ‘expanding the world economy’ is what the alliance will use to show that the FAO’s mandated objectives (problematic as hey are already) are being followed.

What could the immediate implications be of the WTO now having a hand in setting the FAO’s ‘development’ agenda concerning the production of food staples and their use? Here is a short list:

1. The FAO overtly supporting the push, through the WTO, by the USA and other major grain exporting countries, for developing countries to increase their ‘trade facilitation’ measures – which means their physical and policy readiness to receive grain and manufactured food, no matter what the cost is locally.

2. This push will become stronger and energetic very quickly. So far, the Bali decision on public stockholding for food security purposes is to remain in place until a permanent solution is agreed and adopted. The WTO, the USA and the European Union want negotiations (which in their parlance means that all other countries accept their proposal) to be agreed to and adopted by 31 December 2015.

3. The new WTO-FAO alliance will immediately start exerting pressure on India, countries of the South and the G77 on Bali decisions concerning agriculture: tariff-rate quota administration, export competition and phasing out of cotton subsidies.

4. The FAO using trade-related arguments to defend the unacceptable biases in the existing WTO Agreement on Agriculture, and to beat down the developing countries stand (taken at the Bali ministerial meeting of the WTO in 2013) on the issue of public food reserves for food security.

5. The WTO using the FAO’s long experience in the field to sharpen its attack on the public food reserves systems of developing countries – which the US Trade Representative and its allies in the OECD calls ‘trade distorting’ – so that the socio-ecological institution of the smallholder farmer, and family farms, are done away with.

WTO, trade, markets, agribiz research-the meeting of agriculture ministers in Berlin

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Thou Market, southern Sudan. Across the Sahel, women generate income from balanites seeds, which are about half oil and a third protein. After processing at home, they can be turned into many tasty items, including roasted snacks and a spread not unlike peanut butter. They also supply a vegetable oil that is a prized ingredient in foods as well as in local cosmetics. (From 'Lost Crops of Africa: Volume III: Fruits', The National Academies Press. Photo: Caroline Gullick)

Thou Market, southern Sudan. Across the Sahel, women generate income from balanites seeds, which are about half oil and a third protein. After processing at home, they can be turned into many tasty items, including roasted snacks and a spread not unlike peanut butter. They also supply a vegetable oil that is a prized ingredient in foods as well as in local cosmetics. (From 'Lost Crops of Africa: Volume III: Fruits', The National Academies Press. Photo: Caroline Gullick)

Forty-eight ministers of agriculture from countries large and small, poor and rich, met in Berlin to talk about food and about how people in their countries put two meals on the table. They ought to have got to grips with the prices question, they ought to have called for justice and equity, they ought to have represented what the poorest and most vulnerable in their countries want.

They didn’t. Instead, they have released one of the sorriest, weakest, most unfocused and pointless statements I have seen in recent years on the subject.

This piece of diplomatic puffery is called ‘Final Communiqué of the 3rd Berlin Agriculture Ministers’ Summit 2011 in Berlin on January 22nd 2011’.

It explains: “At the ‘3rd Berlin Agriculture Ministers’ Summit’, agriculture ministers from 48 countries came together to exchange experiences and ideas on how trade at local, regional and global level could contribute towards food security. They are convinced that sustainable and regional production and an integrated, rules-based trading system, are prerequisites for making food security and the right to food a practical reality’.

And there you have it. Trade is the most important ingredient, as far as these ministers can see, for food security. The integration of trade is what is needed, and a trading system (conveniently, such as the one they refer to several times in the following text) is the ultimate answer. The paragraphs of their mercantile output have been added to the agriculture page. When you read it:

Note the heavy-handed propaganda techniques employed in this communiqué. “Economic growth” appears early, in the second para, and is found to be “inextricably linked” with the provision of sufficient and nutritious food.
Note that private investment appears in the third para and the ministers emphasise that it must increase. Of course R&D is all done privately now, and national agricultural research systems must be arm-twisted to turn over their best and brightest to the agribiz giants.
Note that “climate change”, some muddy notion of “responsibility” and an equally muddy notion of “sustainable” comes early in the communiqué. This is done so that the environmentalists cannot fault the ministers for ignoring ground realities, but is not explained by any operational directives arising out of this meeting.
Note that the term “integrated” is used early. I’ll explain the significance below.
Note that “markets” makes its first appearance in the text in para eight, and here “integration” is immediately linked to this term in the following para. This is sought to be justified by invoking ideas of food security and “global economic development”.
Note that “value creation” comes next as a keyword, and is attached to the idea of “producers” (who I am sure are not meant to be smallholder farmers) and the familiar tautology of “fair competition”.
Note that “smallholder” does in fact turn up in the following para (ten) but only as a recipient of “due regard” and only provided they “integrate” themselves with markets.
Note that “trade” is the glue which, in this view of the agricultural world, binds everything together.
Note that “markets” and a “trading system” are important enough to be in a puff para together.
Note that developing countries must be “supported” in the primary quest to remove “technical” and “institutional” “obstacles” to – what else? – trade.
Note that the Doha Development Round (which collapsed unceremoniously) is resurrected in para 14 as the new champion of this global agricultural vision.
Note that in para 15 the Doha Development Round is further held up as being a signal contributor to “global food security” and that this is vital to “the poorest countries”, a precondition of which the World Trade Organization chief negotiators are strongly urged to recognise.
Note that “markets”, “price” and “free and transparent” all appear in the same para (16).
Note that “price volatility” follows immediately thereafter, as being evident throughout the world (now just how did all that happen?) and therefore “risk-protection” measures are required (such as markets, of course).
Note that the statement ends with a hurried hodge-podge of a conclusion and a fireworks of “market” and “price”.

If you have the stomach for such vacuous declaiming, the original statement is here.