Bridges Weekly Trade News DigestVolume 7Number 5 • 12th February 2003

In Brief


MEXICAN FARMERS, GOVERNMENT DISCUSS NEW DOMESTIC FARM POLICY

On 6 February, Mexican government officials and farm activists initiated talks focusing on ways to alleviate pressures on Mexico’s agricultural sector resulting from trade obligations. The parties will seek measures to help Mexican farmers compete with US farm producers. Mexico removed most agricultural tariffs under the North American Free Trade Agreement (NAFTA) on 1 January this year. Reportedly, farmers and the government are at odds, despite a billion-dollar farm programme to provide technical and financial assistance to Mexico’s agricultural distribution capacities that Mexican President Vincente Fox launched in November last year (see BRIDGES Weekly, 21 November 2002).

Major farm organisations have been organising country-wide demonstrations against Mexico’s farm policy, which they claim is insufficient in preventing Mexican farmers from being sidelined by competition from more efficient and subsidised farms in other NAFTA partners (i.e. the US and Canada). In particular, growers have been demanding protection from US and Canadian agricultural products such as apples, sorghum and wheat that flooded the Mexican market on a zero- duty basis after 1 January 2003. Recently, the Mexican government imposed an emergency safeguard tariff of 98.8 percent on chicken thighs and drumsticks imported from the US (exceeding a 50,000 ton quota). Against this background, Mexican farm groups are calling for a doubling of farm support and for the market openings under NAFTA to be revised. Nevertheless, Victor Suarez, head of a coalition called "The Countryside Can’t Stand Any More," said at a 6 February meeting that farm group leaders were set to negotiate in good faith "and with a positive spirit" as President Fox was "recognising that the countryside is this country’s number-one social problem". A set of more formal meetings on the issue is scheduled to begin on 10 February.

"Mexico, farmers begin talks over trade complaints," AP, 6 February 2003; "Farm protesters target Mexican capital," REUTERS, 31 January 2003; "Mexican farmers renew protests of NAFTA tariff removal," AP, 20 January 2003; "Mexico slaps 98.8% emergency tariff on US chicken legs," DOW JONES, 22 January 2003.

DELHI SUMMIT FOCUSES ON WSSD IMPLEMENTATION

From 6-9 February, The Tata Energy Research Institute (Teri) convened the third Delhi Sustainable Development Summit (DSDS) — focusing on the theme "The message from WSSD: Translating resolve into action for a sustainable future" — in New Delhi, India. According to Teri Director- General RK Pachauri, the four-day event was given the theme because there have not yet been any indications of parties starting to implement the outcomes from the World Summit on Sustainable Development (WSSD), which took place in August/September 2002 in Johannesburg, South Africa. Pachauri said that by bringing together a number of leading individuals from around the world, the DSDS presented participants with a unique opportunity to put together what he referred to as a "roadmap" to determine what the next stage of implementation will require. Nitin Desai, WSSD Secretary-General and UN Under- Secretary-General for Economic and Social Affairs, echoed Pachauri, expanding on the notion to move forward with the agenda. Desai was quoted as saying that "the real challenge is to ensure that we implement the commitments that we have already made (at Johannesburg, Monterrey, and Doha)… We have to see what it is that we can do to close the gap between promise and performance." To help close this gap Pachauri highlighted the potential formal indicators present in tracking success. The conference was the third in a series of seven, endorsed by world leaders who attended Teri’s silver jubilee conferences that took place in February 2000. The DSDS is a forum in the developing world concerned with global issues, seeking to create long-term solutions that will benefit the global community. This year’s summit included seven sub-themes and looked at issues ranging from climate change and water to media, corporate social responsibility, and biotechnology.

"Teri To Organise 3rd Delhi Green Summit From Feb 6," THE FINANCIAL EXPRESS, 31 January 2003; "Interview: DR R K Pachauri," THE FINANCIAL EXPRESS, 7 February 2003; "6 February 2003: Inaugural session," DSDS, 6 February 2003.

CONSULTATIONS ASSESS TRADE AND SUSTAINABLE FORESTRY LINKAGES

Forestry experts from governments, the private sector and non- governmental and intergovernmental organisations convened from 3-5 February to discuss the impacts and interactions of trade and sustainable forest management. Meeting at the UN Food and Agriculture Organisation (FAO) headquarters in Rome, experts discussed issues ranging from global trends in trade of forest products and services, trade agreements and restrictions, to new markets for environmental services. During the opening session, Wulf Killmann from the FAO addressed challenges of balancing trade in forest products with social and environmental concerns, and the need for capacity building for stakeholders, particularly at the WTO and its Committee on Trade and Environment (CTE). Duncan MacQueen from the International Institute for Environment and Development (IIED), highlighted the need for new ideas and solutions for how trade policy can be used to overcome the inequities of forest product trade.

Participants discussed the effects of trade restrictions on forests, emphasising the point that not only tariffs, but also forestry subsidies, have an effect on forest trade, and should therefore also be taken into account when discussing the effects of trade restrictions on sustainable forest management. During the closing plenary, participants highlighted the need for shaping trade policy to make it more supportive of sustainable forest management and improved forest governance. In addition, the experts agreed that international trade magnifies the effects of policy and market failure of forest and land use policy. They said national institutions and processes must be strengthened and supported before further trade liberalisation — especially in developing countries.

A second expert meeting will be conducted later this year, focusing on the implementation of the Doha Declaration of the WTO, as well as on regional trade agreements. For more in-depth coverage of the experts consultations, see the upcoming issue of BRIDGES Trade BioRes on 20 February, http://www.ictsd.org/biores/index.htm.

"Summary of the FAO Expert Consultation on trade and sustainable forest management: Impacts and Interactions 3-5 February 2003," IISD’s Earth Negotiations Bulletin, vol.79 No.1, 7 February 2003.