OneWorld.net (U.S.)

OneWorld.net note: Trade ministers from 35 countries meeting at the World Trade Organization talks this week must put poor countries first and reform trade policies that endanger poor farmers by prioritizing the interests of rich countries, writes an international relief organization.Farming in Haiti: Small farmers, including these men, stand to gain a lot from more equitable terms of trade, says Oxfam. © FrizzText (flickr)

• The Doha Round, a meeting of trade ministers from around the world, convened in Geneva, Switzerland on Monday to discuss agriculture, links between trade and the environment, and international development, among other economic issues.
• The recently passed U.S. Farm Bill was a topic of contention at the Doha Round. The international development organization Oxfam has criticized the Farm Bill for hurting small farmers by increasing subsidies to industrial farms and for neglecting to adequately reform food aid in the face of skyrocketing commodity prices.
• The Foreign Minister of Brazil had harsh words for developed countries on the first day of WTO talks, criticizing their negotiating tactics and accusing them of "giving their farmers an unfair advantage," reported the BBC. Meanwhile, wealthy nations have pressured developing countries, including Brazil, China, and India, to lower tariffs on foreign goods in exchange for diminished subsidies for rich-country farms.

Fair Trade Deal Needed Now More Than Ever

From: Oxfam America

22 July 2008

Washington, DC -- Trade reform that puts poor countries first is desperately needed in the face of rising food and fuel prices and global economic insecurity. But current offers at the World Trade Organization (WTO) would make the situation worse and undermine development, warned international agency Oxfam America today at the beginning of a week of talks in Geneva.

"Given the context of rising food and fuel prices, a fair trade deal as promised could make a massive difference to people living in poverty around the world," said Raymond C. Offenheiser, president of Oxfam America. "But what's currently on the table falls far short of what is needed and continues to prioritize the interests of rich countries, as locking in big tariff cuts without adequate safeguards in place will only expose poor farmers to more shocks."

As trade ministers from 35 countries gather at the World Trade Organization in another attempt to forge a trade deal, Oxfam is calling for a clear and transparent process that involves all members and gives formal opportunities to respond to proposals.

If current offers are accepted, the US may not have to cut a penny from current spending on agriculture, and the EU will only have to cut around $2.6bn, from a total of $30bn, according to Oxfam. The proposals on non-agricultural trade will lock poor countries into low-value economies by preventing them from building up infant industries through strategic trade policy.

"High prices certainly present the opportunity to reform, but with current proposals, this opportunity looks set to be squandered," said Offenheiser. "A trade deal that only accommodates vested interests could be destructive for development and efforts to reduce poverty."

The recently passed US Farm Bill has landed like an unwelcome guest at the negotiating table. In a new analysis released today, Oxfam outlines how the Farm Bill undermines progress in the Doha Round. Despite the fact that US farmers are enjoying very high prices and record farm income -- an average of $89,000 per farm -- the US Congress actually expanded government farm subsidies in the 2008 Farm Bill and reinstated cotton subsidies previously ruled illegal at the WTO.

"Not only do provisions in the 2008 Farm Bill go against previously agreed to obligations at the WTO, but they maintain -- and in some cases, increase -- precisely the subsidies and market protections that developing countries entered the Doha Round to stop," said Offenheiser.

Europe has also not done enough to ensure a pro-poor deal. The EU continues to insist on exemptions for its sugar, beef and dairy farmers, while simultaneously denying poor countries the space to safeguard their own farmers' livelihoods. In recent weeks they have proposed resurrecting the controversial 'peace clause' which would protect them from challenge at the WTO.

"A fair trade deal would mean significant reform of trade distorting subsidies in rich countries coupled with flexibilities for poor countries to promote food security, livelihoods and rural development," said Offenheiser. "But what we're looking at now would only entrench existing advantages for rich countries and vulnerabilities for poor countries."

To read more about trade policies and the food crisis, visit Oxfam America.