FOR IMMEDIATE RELEASE: 06/21/05
CONTACT: Cara Santos Pianesi, 202/939-2211, csantos@CarnegieEndowment.org
Of all the thorny issues for WTO members seeking a deal for this year’s ministerial in Hong Kong, none would have more impact on overall progress—and the well-being of the world’s poor—than agriculture. A new Policy Outlook by Sandra Polaski argues that the agricultural trade debate lacks a critical focus on livelihoods, grossly ignoring the impact of trade on the poor. She outlines the issues and interests at stake and offers a proposal on subsistence farming that would defend the most vulnerable households and allow the overall trade talks to proceed. Agricultural Negotiations at the WTO: First, Do No Harm is available here.
The chess game of trade negotiations reflects the fundamental reality of how the world’s populations make a living. In rich countries, most work in service industries or manufacturing. In poor countries, agriculture is typically the largest employer. Much of the recent trade impasse results from developing countries’ position that they will not make concessions on service and manufacturing trade, unless the wealthy world addresses agriculture first.
Attention to agriculture has focused on developing countries’ offensive push to export their farm goods to rich countries. But Polaski emphasizes the defensive concerns of subsistence farmers in their local markets, where prices may drop if foreign crops enter unfettered by tariffs. Polaski proposes that developing countries should be allowed to designate as “special products” all crops that are cultivated by small-scale farmers. These products should be exempted from further tariff reductions or import quota increases. Tariff or quota decisions should then be left to national policymakers to manage the transition to modern agricultural, manufacturing and service sectors in ways that will not further exacerbate poverty in those countries.
Polaski also urges the G-20—the bloc of developing countries united primarily around their offensive agricultural interests—to join forces with the G-33, the bloc formed at Cancun in 2003 to address the defensive interests of the developing world.
Why should the rich world care about the impact of trade on poor countries? Because as the developing world prospers, its buying power increases. Rich countries should also care because of their concern with global stability, security, and basic decency.
Sandra Polaski is the director of Carnegie’s Trade, Equity and Development Project.
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Direct link to PDF paper: http://carnegieendowment.org/files/PO18.polaski.FINAL.pdf
Carnegie author bio: http://carnegieendowment.org/experts/index.cfm?fa=expert_view&expert_id=161&prog=zgp&proj=zted
About the Trade, Equity and Development Project: http://www.carnegieendowment.org/programs/global/index.cfm?fa=proj&id=102