Ten Ways to Fix Agricultural Trade

Global trade in agriculture has induced a mix of national policies and multilateral rules that has sent commodity prices plunging. Farmers around the world have been forced off their land because they can no longer make a living. Refugees who are victims of agricultural trade policies are flooding cities causing a shortage jobs and housing. Every international institution from the United Nations and it agencies to the World Trade Organization (WTO) blames the agricultural trade practices of rich countries for devastating rural communities in developing countries. The ability of people to support themselves with adequate amounts of food from their own production, imports or even a mixture is suffering as a result. The debate at WTO has centered on three aspects of agricultural policy: domestic support, tariffs and export subsidies. Experts believe all three are damaging to global agriculture and trade rules subject all three to restrictions and reduction. However, current WTO talks to tighten these disciplines are stuck. The proposals now in play reflect the domestic politics of WTO members, especially developed country members, and the export interests of multi-national agribusinesses that trade in commodities and processed food. The present WTO agricultural agreement and proposed changes, fail to incorporate binding commitments to realize fundamental objectives that include the fulfillment of the human right to food and the establishment of a resilient rural sector as a basis for economic development. The WTO agreement on agriculture has failed rural communities around the world. Its successor now under negotiation, is set to continue the failure. The new agricultural trade system proposals are as following:
1. Ban on dumping
2. Improve available data on costs and prices
3. Target real trade distortions
4. New criteria for subsidies
5. Allow state trading enterprises
6. Increase transparency in commodity markets
7. Regulate market concentration
8. Safeguard food security
9. Reform food aid
10. Democratize the process
The WTO is overdue for an objective evaluation of whether its prescriptions have benefited people, not just boosted cross-border trade statistics. It is time to craft policies that discipline all sources of market distortion and to measure success against the imperative of meeting agreed international developed benchmarks.

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