Bridges Weekly Trade News Digest • Volume 6 • Number 35 • 17th October 2002

Concerns Raised Over New US Agriculture Department Labelling Guidelines


FAO TO LAUNCH AGRICULTURE STRATEGY FOR AFRICA AMIDST DECLINING COMMODITY PRICES

On 11 October, UN Food and Agriculture Organization Director Jacques Diouf announced during a speech in Lomé, Togo that the FAO had begun work on an agricultural development strategy for Africa. Diouf said that food security programs would soon begin in several African countries, including regional initiatives in the West African Economic and Monetary Union (UEMOA) and the Economic Community of West African States (ECOWAS). The strategy will maintain a focus on water and soil management in the context of rural infrastructures, the need to increase production by small farmers, and an aim to diversify agricultural production methods. Diouf’s comments were reinforced by the 10 October release of a study by the UN Conference on Trade and Development (UNCTAD) entitled ‘World Commodity Trends and Prospects’, which stated that the ongoing sharp decline in primary commodity prices such as agricultural goods was having a "major impact" on Third World producer countries. The report noted that the impact was being felt most by countries in sub-Saharan Africa that are major producers of commodities such as coffee, cotton and sugar. Price drops for these goods, according to the report, have been "dramatic," with the level of commodity prices in current US dollars now comparable with that of the early 1970s.

"FAO Announces Agricultural Development Strategy For Africa," PANAFRICAN NEWS AGENCY, 11 October 2002; "Poor Nations Feel Impact of Falling Commodity Prices," IPS, 10 October 2002.

Recently issued US Department of Agriculture (USDA) guidelines for voluntary food labelling indicating country of origin are set to become mandatory by October 2004, according to sources. The labelling initiative has been criticised by various private sector and government parties from various countries. The rules outline specific criteria that must be met to use the label "United States Country of Origin"; many other countries feel that this distinction will create an unfair marketing advantage for American goods and may be in breach of WTO rules. Canada, together with other countries, has stated in comments filed with the USDA that this program "denies the market reality of a highly integrated North American red meat industry and will restrict trade to the detriment of producers" in both the US and Canada. Parties in Australia and New Zealand have also made public their dissatisfaction regarding the guidelines.

USDA Issues Country-of-Origin Labelling Plan; Mandatory Labelling Set for September 2004, WTO REPORTER, 11 October 2002.