Outline of the presentation Introduction

Transcription

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2 Outline of the presentation Introduction A. Food security and the role of trade B. Existing and future trade rules C. Conclusion

3 Food Security - Definition A. Role of trade FAO definition: Food security exists when all people, at all times, have physical, social and end economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for a healthy and active life. No agreed definition at the WTO

4 Food Security 4 dimensions A. Role of trade 4 dimensions: Access Availability Utilization Stability over Time Trade has a role to play in all 4 Trade rules have a role to play in all 4 and in ensuring that the food security of one country is not achieved at the expense of the food security of another country

5 Trade and the efficient allocation of resources A. Role of trade Where would we produce if the world was just one country? Where it would be the most efficient to do so Trade openness does precisely that: allows the production to take place where it is the most efficient and links producers with consumers

6 Food Security and the Agreement on Agriculture B. Trade rules Most importantly: the Agreement on Agriculture supports food security by promoting a more open, less distorted and more predictable international market while at the same time leaving policy space to individual countries to implement their food security policies Trade liberalisation Policy space

7 Agreement on Agriculture (1) B. Trade rules Preamble: the reform programme of trade in agriculture has to take into account food security Market access Tariffs (bound, applied), Tariff Rate Quotas, Special Safeguards Export competition Export subsidies, export restrictions (quantitative only) and prohibitions Domestic Support Green Box, Blue Box, Amber Box, Development programmes

8 Agreement on Agriculture (2) Domestic Support (cont d) B. Trade rules Development programmes (Art. 6.2) - subsidies without any limitation investment and input subsidies for developing countries Green Box subsidies without any limitation General services (i.e. research, training, pest and disease control, marketing and promotion, infrastructure, farmer settlement, land reform, rural development and rural livelihood security) <= Bali Decision Public stockholding for food security purposes => Bali Decision Domestic Food Aid Decoupled income support Income insurance and income safety net Payments for relief from natural disasters Payments under environmental programmes Payments under regional assistance programmes (and other) Common argument by Developing countries: GB requires financial resources they do not have However, the cost of these policies should be compared to the cost of other policies

9 Agriculture Negotiations B. Trade rules Much remains to be done Art. 20: mandated a continuation of the negotiations one year before the end of the implementation period Negotiations: Market access: tariff reduction (with a special treatment for sensitive and special products, and tropical and preference erosion products), simplification, and escalation; mtrq (tariff reduction); Special Safeguard (SSG); Special Safeguard Mechanism (SSM) Bali Decision on TRQ administration Export competition: elimination of export subsidies; disciplines on state trading enterprises, export credits and insurance, and food aid Bali Declaration Domestic support: reduction of trade distorting domestic support some changes in the Green Box, notably regarding direct payments related to natural disasters in DgC (30% criteria and method of calculation) and crop or production insurance (30% criteria)

10 Conclusion Conclusion - While not a sufficient condition on its own, trade is a necessary condition to ensure global food security - The WTO has a crucial role to play by promoting and enforcing consistent and predictable trade rules to make the arteries of trade as free of cholesterol as negotiators are able to achieve -. while at the same time leaving sufficient policy space to individual countries to implement policies they deem necessary to ensure food security for their populations and by making sure that the pursuit of food security by some will not be done at the expense of other Members. - Rules are however not perfect, hence the current (and future) Round(s) - Many changes are foreseen, among which changes to facilitate the use of some non-trade measures by developing countries

11 Thank you! Merci!