WTO FOOD AID DISCIPLINES COULD INCREASE HUNGER, WARNS UN AGENCY CHIEF
The head of the UN World Food Programme (WFP) warned WTO delegates from developing countries on 9 May that improperly drafted new rules on food aid could contribute to hunger in the world’s poorest countries.
The EU and other exporters of agricultural products have been arguing that food aid should be largely restricted to cash grants, except during emergencies. They aim to halt what they see as US exports of surplus subsidised products in the guise of bilateral aid programmes. The US denies these charges, countering that EU agricultural subsidies are the real source of harm. The cash grant proposal is supported by some recipient countries such as Uganda, which have seen poor farmers displaced from local markets by subsidised agricultural surpluses that entered the country as food aid.
James Morris, the executive director of the Rome-based agency, said that the WFP was "absolutely opposed" to limiting food aid to cash, since this may dissuade countries — especially developing ones such as India — from making legitimate in-kind donations.
Morris questioned the need for disciplines on food aid at a time when overall food donations are dropping, citing WFP statistics showing that food aid in 2004 amounted to 7.5 million tonnes — a 30 percent drop from the year before, and half the 1999 level. The number of chronically hungry people has increased to 852 million. Arguing that food aid now accounts for only 0.3 percent of worldwide cereals production, Morris said that food aid should be judged according to its end use, as opposed to whether or not it is surplus. He also urged donor countries to increase food aid back to the 11 million tonne mark it was at in 2001.
"Move by WTO ‘is threat to food aid,’" FINANCIAL TIMES, 9 May 2005; "UN Comments On WTO Food Aid Controls," ASSOCIATED PRESS, 9 May 2005; "UN raises eyebrows as WTO farm talks," ECONOMIC TIMES, 10 May 2005.
MERCOSUR, GULF COUNTRIES AGREE TO LAUNCH FTA TALKS
During a Latin American-Arab League Summit in Brasilia, the Common Market of the South (MERCOSUR) and the Gulf Cooperation Council (GCC) signed an agreement to begin negotiations on a free trade agreement. According to GCC Secretary General Abdulrahman al-Attiya, the 10 May accord laid a solid foundation for the future conclusion of a free trade agreement between the two trade blocs. The agreement calls for an increase in capital flows and investments in industry, agriculture and trade between the two areas, and creates a joint economic, technical and investment committee that will monitor and promote bilateral exchanges among the countries involved.
The 10-11 May summit was organised by Brazilian President Luiz Inacio ‘Lula’ da Silva to boost cooperation between South America and the Arab League and counter the global influence of the US and other major developed countries. Silva urged the participants to fight for free-trade rules that help the developing world’s impoverished masses, instead of benefiting only rich countries and multinational corporations. "Our great challenge is to design a new international trade and economic geography," he said, specifically criticising US and EU agricultural subsidies.
The spirit of the summit was somewhat dampened by the poor representation of Arab League members — only 5 of the 22 invitees were represented by heads of state. In addition, Argentina aired reservations about Lula’s push for increased South-South trade, noting that it could come at the expense of other markets.
MERCOSUR includes Brazil, Argentina, Paraguay and Uruguay and the GCC includes Saudi Arabia, Bahrain, Qatar, the Untied Arab Emirates, Kuwait and Oman.
"Mercosur, GCC sign free trade zone frame agreement," CHINAVIEW, 11 May 2005; " Leader says free trade must aid poor," AP, 10 May 2005; " Trade or politics? Latin America and Arabs differ," REUTERS, 10 May 2005; " Latin, Arab nations seek ‘alliance of civilizations’," MIDDLE EAST ONLINE, 11 May 2005; " South Americans, Arabs meet to forge links," AP, 11 May 2005; " Priorities differ as Latins meet Arabs," NEW YORK TIMES, 12 May 2005.
OECD MINISTERS CALL FOR ‘URGENCY’ TO FINISH DOHA ROUND
Ministers from the thirty primarily developed country members of the Organisation for Economic Cooperation and Development (OECD) called for "a heightened sense of urgency to achieve an ambitious result from the Doha Development Agenda by the end of 2006," during the group’s 3-4 May annual ministerial summit in Paris. Describing such an outcome as "a powerful engine for global growth, employment, development, and poverty reduction," they emphasised the need for progress in every major area of the negotiations. The official statement adopted at the meeting stressed that developmental concerns should be "reflected across the board."
Participants recognised that progress towards most of the UN Millennium Development Goals is "seriously lagging" in parts of the world. Ministers exhorted donor countries to "make their best efforts" to increase aid flows in order to help meet these objectives. They also urged "all countries to address greenhouse gas emissions towards the ultimate objective of the UN Framework Convention for Climate Change."
A handful of ministers from non-OECD developing countries were invited to the gathering. Indian Commerce and Industry Minister Kamal Nath called for a ‘development audit’ of the ongoing talks, declaring that "If ambition does not enhance development, then it is not ‘ambition,’ but illusion." Chinese Minister of Commerce Bo Xilai said that developed country WTO Members should act like advanced players and accord developing countries meaningful special and differential treatment.
The meeting took place concurrently with a WTO ‘mini-minsterial’ meeting from 2-4 May.
The chair’s summary of the meeting’s proceedings is available at http://www.oecd.org/document/10/0,2340,en_2649_201185_34842314_1_1_1_1,00.html
The official meeting statement is available at http://www.olis.oecd.org/olis/2005doc.nsf/linkto/c-min(2005)2
"Chinese Commerce Minister makes three-point proposal on DDA," PEOPLE’S DAILY ONLINE, 8 May 2005; " WTO talks: Nath raises duty issues," ECONOMIC TIMES, 5 May 2005.
FIRST STOCKHOLM CONVENTION COP MOVES TOWARDS IMPLEMENTATION
Delegates at the first meeting of the Conference of the Parties to the Stockholm Convention on 2-6 May took substantial steps towards establishing the process for implementing the Convention, which aims to reduce and eliminate a list of highly hazardous chemicals known as persistent organic pollutants (POPs). However, they continued to struggle with developing countries’ capacity to implement the health- and environment-motivated global treaty.
The meeting, held in Punta del Este, Uruguay, considered a new set of guidelines on best practices to prevent or reduce the release of dioxins and furans, toxic chemicals that are created unintentionally as by-products of combustion and industrial processes. Developing countries raised concerns about their capacity to adopt such environmental techniques. The COP clarified that they are not mandatory, and created a working group to make the guidelines more user-friendly. The meeting also created the Persistant Organic Pollutants (POP) Review Committee (POPRC) that will manage the process to add new chemicals to the list and approved a system for countries to be exempted if necessary from the ban on DDT, a toxic chemical used to combat malaria.
"The Stockholm Convention will save lives and protect the natural environment - particularly in the poorest communities and countries," said UNEP Executive Director Klaus Toepfer. It "reminds us that the central ideal of acting together in mutual self-interest is still alive and kicking." Article 3.2 of the Convention restricts trade in listed chemicals to cases where the purpose is environmentally sound disposal, unless an exemption is provided.
ICTSD Reporting; EARTH NEGOTIATIONS BULLETIN, Vol. 15 No. 117; "WWF Lists 20 Chemicals to be Added to POPs Treaty," WWF PRESS RELEASE, 28 April 2005; "Governments Meet to Eliminate 12 Persistant Organic Pollutants," ENS, 2 May 2005; "US Looking Next Year to Join Global Treaty Banning World’s Most Toxic Chemicals," AP, 6 May 2005; "Despite Int’l Agreement, DDT Will Not Disappear Overnight," IPS, 5 May 2005.