Food Sovereignty and Food Sovereignty and the WTOthe WTO

Harmon C. ThomasChief

Commodity Policy and Projections ServiceCommodities and Trade Division

FAO, RomeFAO, Rome

Outline of PresentationOutline of Presentation

I.I. Comparison of food policy conceptsComparison of food policy concepts Food Security Food Security Right to food Right to food Food SovereigntyFood Sovereignty

II.II. MDG challenge: reducing poverty & MDG challenge: reducing poverty & hunger by half by 2015hunger by half by 2015

III.III. WTO rules and food policiesWTO rules and food policies WTO Agreement on Agriculture WTO Agreement on Agriculture

(AoA) – focus and objectives(AoA) – focus and objectives Current renegotiation of the AoA Current renegotiation of the AoA

and food policy issuesand food policy issues

I.I. Comparison of food policy Comparison of food policy conceptsconcepts

• Food Security - a technical conceptFood Security - a technical concept

• Right to food - a legal conceptRight to food - a legal concept

• Food Sovereignty - a political conceptFood Sovereignty - a political concept

scope of the three terms is not strictly scope of the three terms is not strictly comparable because of their different comparable because of their different natures !natures !

Food Security IFood Security I

Final GoalFinal Goal::

““Food security exists when all people, Food security exists when all people, at all times, have physical and at all times, have physical and

economic access to sufficient, safe economic access to sufficient, safe and nutritious food to meet their and nutritious food to meet their

dietary needs and food preferences dietary needs and food preferences for an active and healthy life”for an active and healthy life”

World Food Summit, 1996World Food Summit, 1996

Food Security IIFood Security II

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Right to food IRight to food I

Legal foundation:Legal foundation: Universal Universal Declaration of Human Rights (Article Declaration of Human Rights (Article 25), I25), International Covenant on nternational Covenant on Economic, Social and Cultural Rights Economic, Social and Cultural Rights (Article 11)(Article 11)

InterpretationInterpretation: General Comment : General Comment No. 12 by CESCRNo. 12 by CESCR

OperationalizationOperationalization: Voluntary : Voluntary GuidelinesGuidelines

Right to food IIRight to food II

Ultimate Goal:Ultimate Goal:

““The right to adequate food is realized The right to adequate food is realized when every man, woman and child, when every man, woman and child,

alone or in community with others, has alone or in community with others, has physical and economic access at all physical and economic access at all

times to adequate food or means for its times to adequate food or means for its procurement” procurement”

CESCR, General Comment No. 12, para 6CESCR, General Comment No. 12, para 6

Food Security = Right to food?

Definition:Definition:“…“…the right of peoples, communities, and countries the right of peoples, communities, and countries

to define their own agricultural, labor, fishing, to define their own agricultural, labor, fishing, food and land policies which are ecologically, food and land policies which are ecologically,

socially, economically and culturally appropriate socially, economically and culturally appropriate to their unique circumstances. to their unique circumstances.

It includes the true right to food and to produce It includes the true right to food and to produce food, which means that all people have the right food, which means that all people have the right to safe, nutritious and culturally appropriate food to safe, nutritious and culturally appropriate food and to food-producing resources and the ability to and to food-producing resources and the ability to

sustain themselves and their societies.sustain themselves and their societies.

Food Sovereignty IFood Sovereignty I

Food sovereignty means the primacy of people’s Food sovereignty means the primacy of people’s and community’s rights to food and food and community’s rights to food and food

production, over trade concerns. This entails the production, over trade concerns. This entails the support and promotion of local markets and support and promotion of local markets and

producers over production for export and food producers over production for export and food imports.” imports.”

NGO/CSO Forum’s Statement NGO/CSO Forum’s Statement Food Sovereignty: A Right Food Sovereignty: A Right for All, 2002for All, 2002

Food Sovereignty IIFood Sovereignty II

Outline of PresentationOutline of Presentation

I.I. Comparison of food policy conceptsComparison of food policy concepts Food Security Food Security Right to food Right to food Food SovereigntyFood Sovereignty

II.II. MDG challenge: reducing poverty & MDG challenge: reducing poverty & hunger by half by 2015hunger by half by 2015

III.III. WTO rules and food policiesWTO rules and food policies WTO Agreement on Agriculture WTO Agreement on Agriculture

(AoA) – focus and objectives(AoA) – focus and objectives Current renegotiation of the AoA Current renegotiation of the AoA

and food policy issuesand food policy issues

III.III. MDG challenge: reducing poverty & MDG challenge: reducing poverty & hunger by half by 2015hunger by half by 2015

Scope of the problemScope of the problem

• Poverty Poverty 1.1 billion people live on less than $1 a day1.1 billion people live on less than $1 a day 2.7 billion people – on less than $2 a day2.7 billion people – on less than $2 a day

• HungerHunger 815 million people go the bed every night hungry815 million people go the bed every night hungry Of 94 developing countries for which info is available Of 94 developing countries for which info is available

- in 28 of them, 20 – 34 % of pop undernourished- in 28 of them, 20 – 34 % of pop undernourished In another 18 countries, the proportion is more than In another 18 countries, the proportion is more than

35%35%

III.III. MDG challenge: reducing poverty & MDG challenge: reducing poverty & hunger by half by 2015hunger by half by 2015

Role of agriculture in reducing poverty and hungerRole of agriculture in reducing poverty and hunger

• Most of the world’s poor and food insecure people live in rural areas of developing countries - on average 70% of pop live in rural areas

• . . . . .and depend on agriculture for their livelihoods. • Agricultural sector therefore crucial for their immediate

welfare and for their future prospects. • Food and agricultural production, and trade, are vital for

food security, poverty alleviation and economic growth. • Few countries have developed economically without first

developing their agricultural sector • Considerable un-utilized agricultural potential exists in

many developing countries to meet the twin challenges of hunger and poverty.

• However, the potential is under-exploited. Why?

Why is the agricultural potential Why is the agricultural potential underexploited in developing countries?underexploited in developing countries?

Domestic factorsDomestic factors• Low investment and utilization of modern Low investment and utilization of modern

technologytechnology• Ineffective domestic policy frameworksIneffective domestic policy frameworks

External factorsExternal factors• distorted international markets and the distorted international markets and the

challenges arising from integrating into such challenges arising from integrating into such marketsmarkets

Government expenditure on Government expenditure on agriculture as a share of total agriculture as a share of total expenditureexpenditure

19901990 19981998Latin America and the CaribbeanLatin America and the Caribbean 2.462.46 2.542.54

Near East and North AfricaNear East and North Africa 4.124.12 5.045.04

Sub-Saharan AfricaSub-Saharan Africa 6.536.53 4.214.21

East and Southeast AsiaEast and Southeast Asia 6.816.81 4.574.57

South AsiaSouth Asia 7.657.65 4.874.87

Source: FAO (2003)

Annual and accumulatedAnnual and accumulatedTotal support to agriculture in OECD Total support to agriculture in OECD

countriescountries1980 -1980 - 2002 2002

US$ bil. 1938 US$ bil. 2208 US$ bil. 2336

Policy developments and responsesPolicy developments and responses At the national levelAt the national level

• Reactions to BOP crises Reactions to BOP crises

• Policy objectivesPolicy objectives - - food security, livelihood security, poverty food security, livelihood security, poverty

reductionreduction

- - food self-sufficiency vs. food self-reliancefood self-sufficiency vs. food self-reliance

At the international level• Agricultural reform process in the WTO

III. WTO rules and food policiesIII. WTO rules and food policies

WTO Agreement on Agriculture (AoA) Focus: trade (commercial)

interests Objectives:

“to establisih a fair and market-oriented agricultural trading system”

“to provide for substantial progressive reductions in agricultrual support and protection...resulting in correcting and preventing restrictions and distortions in world agricutral markets”

III. WTO rules and food policiesIII. WTO rules and food policies

Relevant issues in the current renegotiation of the AoA

• Doha Declaration• July 2004 Framework agreement• Where we are now - 14 days to Hong Kong –

areas of convergence and divergence

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Market AccessMarket AccessThe basic objectiveThe basic objective1.1. ‘substantial improvements in market access .. ‘substantial improvements in market access ..

for all products (thru a ‘single approach’)for all products (thru a ‘single approach’)

Additional objectivesAdditional objectives2.2. progressivityprogressivity

(deeper cuts in higher tariffs)(deeper cuts in higher tariffs)

3.3. flexibilityflexibility sensitive productssensitive products special productsspecial products

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Market AccessMarket AccessMechanisms for addressing sensitivitiesMechanisms for addressing sensitivities Sensitive productsSensitive products

• selectionselection: by self-designation, but no. of tariff lines to be : by self-designation, but no. of tariff lines to be negotiatednegotiated

• treatmenttreatment: flexibility to achieve improvement in MA thru : flexibility to achieve improvement in MA thru combination of TRQ commitments and tariff reductioncombination of TRQ commitments and tariff reduction

Special productsSpecial products• selectionselection: self-designation based on criteria of food security, : self-designation based on criteria of food security,

livelihood security and rural development – to be negotiatedlivelihood security and rural development – to be negotiated• treatmenttreatment: more flexible treatment to be negotiated: more flexible treatment to be negotiated

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Market AccessMarket AccessSpecial and differential treatment for developing Special and differential treatment for developing

countriescountries proportionalityproportionality

to be achieved through lesser:to be achieved through lesser: tariff reduction commitments, ortariff reduction commitments, or TRQ commitmentsTRQ commitments

SSM for use by DC membersSSM for use by DC members fullest liberalization of trade in tropical productsfullest liberalization of trade in tropical products preference erosion will be addressed (how?)preference erosion will be addressed (how?) LDCsLDCs

no reduction commitment requiredno reduction commitment required duty-free and quota-free MA should be provided by DD and DCs duty-free and quota-free MA should be provided by DD and DCs

(in a position to do so)(in a position to do so)

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Domestic SupportDomestic Support1.1. TDS = AMS +DM + BBTDS = AMS +DM + BB

• Formula for cutting final bound total AMSFormula for cutting final bound total AMS• Overall reduction in TDSOverall reduction in TDS• Product-specific AMS capsProduct-specific AMS caps• De MinimisDe Minimis• Blue box criteriaBlue box criteria

2. Green box2. Green box

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Export CompetitionExport Competition1.1. All forms of export subsidies - parallel All forms of export subsidies - parallel

eliminationelimination• scheduled export subsidiesscheduled export subsidies• export credits (etc) exceeding 180 daysexport credits (etc) exceeding 180 days• STEs – subsidies, gov’t financing & STEs – subsidies, gov’t financing &

underwriting of lossesunderwriting of losses• food aid – not in conformity with disciplines to food aid – not in conformity with disciplines to

be agreedbe agreed

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Export CompetitionExport Competition2.2. Export measures with equivalent effects - Export measures with equivalent effects -

parallel eliminationparallel elimination• export credits (etc) of 180 days or lessexport credits (etc) of 180 days or less• STEs STEs

- practices to be disciplined- practices to be disciplined- monopoly status- monopoly status

• food aid food aid - rules to prevent commercial displacement- rules to prevent commercial displacement - exemption of food aid in emergency situations- exemption of food aid in emergency situations- other issues: aid in fully grant form, in-kind aid, - other issues: aid in fully grant form, in-kind aid, monetizationmonetization

Policy changes under consideration in Policy changes under consideration in the negotiationsthe negotiations

Export CompetitionExport Competition

3.3. ‘‘Credible end date’ and implementation Credible end date’ and implementation pathpath

• 5 yrs, 10 yrs after agreement come into 5 yrs, 10 yrs after agreement come into effect ?effect ?

• equal annual phase-outequal annual phase-out• down-payment?down-payment?• back-loading will be permitted?back-loading will be permitted?

..

Thank youThank you