Bridges Weekly Trade News Digest • Volume 8 • Number 41 • 1st December 2004

Conservationists To Make Trade Work For Biodiversity

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AFRICAN COUNTRIES LOOK FOR WAY FORWARD IN DOHA ROUND

African trade officials and negotiators convened in Tunis, Tunisia from 25-26 November for a "high-level brainstorming meeting" organised by the UN Economic Commission for Africa. The meeting’s objective was to undertake a comprehensive evaluation of the July Package and to help African countries chart a course forward in the Doha Round negotiations. Sessions were tailored to help the participants develop and refine their negotiation strategies; identify areas of particular interest in the negotiations; and develop specific modalities for African countries in the modalities for agriculture and non-agricultural market access (NAMA). During his opening remarks, Commission Executive Secretary Amoako credited the July Package with having injected "urgently-needed momentum" into the talks. However, he criticised it for ignoring the concerns of African countries on NAMA and agriculture, leaving them to be dealt with in subsequent negotiations. He called on African countries to intensify their efforts to ensure that their concerns are reflected in the modalities to be negotiated, as well as in the final outcome of the Doha Round.

The brainstorming meeting followed an expert group meeting on market access held there from 23-24 November, during which African WTO negotiators discussed several technical aspects related to market access and non-tariff barriers.

Africa’s share in global exports has decreased from about five percent in 1980 to under two per cent today.

Documents from the meetings are available here.

Further information on the WTO ‘July Package’ is available here.

Opening Statement by K.Y. Amoako, Executive Secretary of the ECONOMIC COMMISSION FOR AFRICA (UN-ECA), 25 November 2004; " African trade negotiators strategize on kick-starting the Doha Round of WTO talks," ECONOMIC COMMISSION FOR AFRICA, 19 November 2004; "World Trade Liberalisation Still Excludes Africa, FINANCIAL TIMES, 23 November 2004.

BIG AGRIBUSINESS CASHING IN ON US AG SUBSIDIES

The US-based NGO Environmental Working Group recently released new statistics on the distribution of US farm subsidies. The updated statistics revealed, once again, that farm payments are highly concentrated and that big agro-industrial corporations, not family farms, are by far the greatest recipient. In 2003, the US farm sector received US$16.4 billion, with Riceland Foods Inc., Pilgrim’s Pride Corp. and Cargill Inc. topping the list of beneficiaries. Meanwhile, two-thirds of US farms received no payments at all, and eighty percent of farms that did benefit received only small amounts of money. In the case of corn, the most important crop in the US, ten percent of recipients got 72 percent of the payments. Cotton handouts were even more concentrated; the top three percent of recipients collected almost half the subsidies, cashing in more than US$1 million each on average. The "Step 2" programme, which supports companies that export or mill US cotton, provided the top four recipients with more than US$100 million each between 1995-2003.

US cotton subsidies have been successfully challenged at the WTO by Brazil (see BRIDGES Weekly, 15 September 2004). Their international implications attracted attention due to the cotton initiative by four West African countries in 2003, which aimed at the phase-out of subsidies and compensation for least-developed countries affected by depressed world prices.

The Environmental Management Group stressed that, "given the chasmal disconnect between farm subsidies and the livelihoods of the vast majority of farm families in America," citizens must start asking hard questions about whether their tax money is being appropriately spent.

Access the Farm Subsidy Database here.

"What’s The Plan? U.S. Farm Subsidies, 1995 through 2003," EWG RELEASE, 29 November 2004; "Farm Subsidies Enriched Biggest Producers, Group Says," BLOOMBERG, 29 November 2004.

OZONE MEETING APPROVES LIMITED USE OF METHYL BROMIDE

Meeting in Prague from 22-26 November, parties to the Montreal Protocol on ozone-depleting substances were unable to agree on exemptions to a ban on methyl bromide. The US and other developed countries sought exemptions from the full phase-out of this ozone-depleting pesticide and fumigant, originally set for 2005, citing "critical use" needs. Methyl bromide is applied to cut flowers, strawberries and tomatoes. To resolve the methyl bromide issue, an additional, extraordinary meeting will be held in mid-2005.

Parties to the Montreal Protocol also considered trade in products and commodities treated with methyl bromide. Kenya introduced a draft decision urging parties not to restrict trade in these products, given their significance in the agricultural sectors of developing countries. Switzerland, however, noted that trade barriers may be desirable in that they encourage the phase-out of methyl bromide, and also cited implications for international law. The language in the decision finally adopted on this topic "invites" parties not to restrict trade in products from parties in compliance with the Montreal Protocol just because they have been treated with methyl bromide. The decision also welcomes efforts at developing alternatives to methyl bromide.

For daily updates and a full summary of the meeting, see IISD’s Earth Negotiations Bulletin here.

ICTSD reporting; "Rich states’ demands threaten environment treaty," REUTERS, 25 November 2004; "Use of Ozone Destroying Methyl Bromide Will Continue," ENS, 29 November 2004.

More than 4,800 participants came together at the Third IUCN World Conservation Congress from 17-25 November in Bangkok, Thailand, to re-think and re-focus biodiversity conservation efforts. In relation to trade, resolutions called for a rights-based approach to conservation, the promotion of food sovereignty and the protection of water for public benefit. Trade concerns were integrated into a number of members’ motions, trying to ameliorate adverse trade impacts on specific issues. The overall theme of the congress, "People and Nature — only one world," was taken up by many motions that called for the consideration of poverty alleviation and human rights in conservation activities. While there was concern that focusing on poverty alleviation and development would distract IUCN from its mission, delegates agreed that biodiversity conservation cannot ignore development needs and called for an integrated approach. IUCN adopted the 2005-2008 Intersessional Programme which addresses population dynamics, consumption patterns, inequity, market failures and policy distortions as the four major underlying threats to sustainability. Accommodating fears about the impacts of genetically modified organisms, members also approved two resolutions calling for credible knowledge and a moratorium on these organisms until proven safe. IUCN decided in addition to advocate action to combat illegal wildlife trade in the ASEAN region and globally.

For further information, see the upcoming edition of BRIDGES Trade BioRes.

ICTSD reporting.