To the Director-General of the World Trade Organisation (WTO) and Member States
Do not Dilute G 33 Proposal: Address Imbalance in Global Agricultural Subsidies Rules, Support Public Stockholding for Guaranteeing Livelihoods and Food Consumption of the Poor at Bali WTO Ministerial.
We, as members of the global civil society, urge the Director-General of the World Trade Organisation, Roberto Azevedo, and member states, to take the issue of food security in developing countries as a matter of serious and immediate concern, and not to render the G-33 proposal on public food stockholding a travesty by asking developing countries to agree to the current text on the peace clause.
Across the developing world, millions of people, most of them poor, still do not have basic and minimum access to food. According to the FAO, 868 million were undernourished in 2011-12, of them 304 million in South Asia and 234 million in Sub Saharan Africa. Even more disturbing is the fact that nearly 3.1 million children under the age of 5 die each year because of poor nutrition (Hunger Statistics, World Food Program 2013).
At the same time, in a volatile global economy, millions of small farmers are engaged in precariously poised food production that provides them essential livelihoods and caters to their own as well as their country’s food requirements. Eradication of global poverty and hunger would be impossible without addressing these concerns. It is clear that the global economy, with all its growth, has failed to take care of both poor farmers and food consumers across the vast majority of developing countries and least developed countries (LDCs). In sum, they still need support from their own governments, supported by the global community.
However, the rules of multilateral trading that have been institutionalized through the WTO make it impossible for developing country governments to provide this support. When GATT (WTO’s predecessor) was negotiated, all, except 17, developing countries which were not giving any subsidy at that time were barred from increasing subsidies, and were to adhere to a limit of 10% of additional production that could be given out as subsidies.
In contrast, developed countries that gave massive subsidies to their agriculture sector were asked to reduce these trade distorting subsidies (OTDS) by only about 20%. Moreover they were allowed to shift most of their subsidies to a “green box” which was marked as non-trade distorting. It is by now well established that both types of subsidies are very much trade distorting and have undercut prices, encouraged dumping of subsidized agricultural products in developing country markets and has threatened global market access for developing country farmers.
This twisted legacy of the WTO has resulted in a gross imbalance in global agricultural production, distribution and trading system. This has prevented developing country governments from providing essential support to their numerous small producers, or to poor consumers through direct measures, price supported public food stockholding or other processes, even if financially they are now able to do so. For example, India’s recently passed Food Security Act, which aims to provide minimum food entitlements to the poor 67% of the population, will need an allotment of US$20 billion and will conflict directly with WTO’s set limits. The WTO mandated obligations will constrain India from fully implementing its Food Security Act.
This peculiar juxtaposition in WTO’s agricultural trade rules has led the G-33 group of developing countries to table a proposal on food security at the WTO that argues that public food programmes for supporting livelihoods of small farmers and food consumption of the poor should be considered part of the “green box” and allowed without limits by changing the existing Agreement on Agriculture (AoA).
Under the WTO rules, a subsidy through price support shall be calculated using the gap between the fixed external reference price and the applied administered price. The reference price was fixed at average f.o.b. (free on board- price from farm gate till its delivery on the ship) price notified by each country for 1986 – 1988. Since the “fixed external reference price” is much lower than the minimum support price levels (MSP), the subsidy tends to get much inflated in comparison to reality. In addition, the entire production “eligible” to receive the subsidy and not the “actual” production is to be the basis for subsidy calculation, thus inflating subsidies further. Obviously for large developing countries the total subsidy calculated under broad price support programmes tends to significantly overstate the actual financial support provided to farmers.
On the other hand, the total domestic support of the USA grew from US$61 billion to US$130 billion between 1995 and 2010.The EU’s domestic support, which went down from 90 billion euro in 1995 to 75 billion euro in 2002, bloated again to 90 billion in 2006 and 79 billion in 2009. A broader measure of farm protection, known as total support estimate, shows the OECD countries’ agriculture subsidies soared from US$350 billion in 1996 to US$406 billion in 2011.
Unfortunately the G-33 proposal has found stiff opposition from the developed countries, notably the USA and the EU. This is despite the fact that in 2010, the poor in India received on average of only 58 kg per person, 3.1 times less than the 182 kg per person of the 80 million beneficiaries of cereals food aid in the USA. This is also 4.2 times less than the 241 kg for each of the 46.6 million beneficiaries of the Supplemental Nutrition Assistance Program (SNAP) or food stamp programme in the USA.
A matter of urgent concern is that all elements of the G 33 proposal have now been rejected for consideration in Bali and a peace clause (or due restraint clause) on the G-33 proposal is currently the only element being discussed at the WTO. A peace clause means that the use of such subsidies is still illegal but WTO Members will not go to dispute settlement for this period..
The Director General, Robeto Azevedo, has suggested a “take it or leave it” text on the due restraint clause for Bali. However this is to be effective only for 4 years and does not guarantee that a permanent solution will eventually materialise. Further, the conditions sought to be imposed are severe. The Anti-Circumvention/ Safeguard clause asks the member states to “ensure that stocks procured under such programs do not distort trade”. This broad condition may make it virtually impossible for any developing county to use this provision. This will dilute the already weak peace clause rendering it totally ineffective and would sound the death knell for millions of poor in India and in other developing countries.
The time to act, therefore, is now. Before it is too late, before millions perish because the global leaders could not rise above their own myopic agendas. Before hundreds of thousands of children are not able to make it to school or play or laugh because they are too weak from hunger. Before millions go to sleep not knowing what they will give to their family for food the next day.
In the complex labyrinth of international norm setting, it is the poor and marginalized who are being denied their livelihoods and minimum access to food. Global rules are challenging public provision of essential goods and services across the developing world. It is important for the WTO to address these concerns in its forthcoming and crucial ninth ministerial conference at Bali,
We, as members of civil society, therefore urge the global community, including the WTO Director General and the Member States, to address this issue and make changes in the AoA that allow developing countries to use such subsidies for public programmes on food to support poor farmers and consumers. We demand that you do not make a mockery of the hunger of millions round the world by accepting a peace clause that is unusable and damaging for long term solutions. We urge you to ensure that the international trade rules work for the people across the globe and not against them.
November 20, 2013
Signed by
International and Regional Organizations and Networks
1
ACP Civil Society Forum
2
Action Aid International
3
Africa Trade Network (ATN)
4
Arab NGO Network for Development (ANND)
5
APRODEV
6
Asia Pacific Mission for Migrants (APMM)
7
Dignity International
8
Eastern and Southern Africa Small-scale Farmer’s Forum (ESAFF)
9
IBON International
10
International Trade Union Confederation (ITUC)
11
LDC Watch
12
Oxfam
13
Pax Romana ICMICA Asia
14
People’s Coalition on Food Sovereignty (PCFS)
15
Peoples’ Health Movement
16
Pesticide Action Network - Asia and the Pacific (PAN-AP)
17
Pesticide Action Network (PAN) Africa
18
Plataforma Interamericana de Derechos Humanos, Democracia y Desarrollo (PIDHHD)
19
Public Services International (PSI)
20
Social Watch
21
Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI)
22
Third World Network (TWN)
23
Third World Network (TWN) Africa
National Organizations and Individuals
24
Fórum das Organizações Não Governamentais Angolanas (FONGA)
Angola
25
Gilbert Agricultural and Rural Development Centre (GARDC)
Antigua and Barbuda
26
Australian Fair Trade and Investment Network (AFTINET)
Australia
27
Kannan Srinivasan Adjunct Research Fellow School of Political and Social Inquiry, Monash University
Australia
28
The International Grail Network for Justice in Trade Agreements
Australia
29
Information Group on Latin America (IGLA)
Austria
30
Civil Society Bahamas
Bahamas
31
Equity and Justice Working Group Bangladesh (EquityBD)
Bangladesh
32
Barbados Association of Non Governmental Organisations (BANGO)
Barbados
33
11.11.11
Belgium
34
Africa Europa Faith and Justice Network
Belgium
35
CNCD-11.11.11
Belgium
36
SOS Faim – Belgique
Belgium
37
Belize Enterprise for Sustainable Technology
Belize
38
JINUKUN
Benin
39
René M. SEGBENOU
Benin
40
Groupe de Recherche et d’Action pour la Promotion de l’Agriculture et du Développement (GRAPAD)
Benin Republic
41
Grupo de Trabajo de Cambio Climático y Justicia (GTCCJ)
Bolivia
42
Botswana Council of Non Governmental Organisations (BOCONGO)
Botswana
43
Federação Nacional dos Trabalhadores e Trabalhadoras na Agricultura Familiar (FETRAF)
Brazil
44
Central Única dos Trabalhadores (CUT)
Brazil
45
Confederação Nacional dos Trabalhadores na Agricultura (CONTAG)
Brazil
46
Instituto EQUIT
Brazil
47
Rede Brasileira Pela Integração dos Povos (REBRIP)
Brazil
48
Network of Civil Society Organizations for Sustainable Food Security (ROSSAD)
Burkina Faso
49
Cadre de concertation des OSC pour le suivi du CSLP (CdC/CSLP)
Burkina Faso
50
Civil Society Organization Network for Development (RESOCIDE)
Burkina Faso
51
Action Développement et Intégration Régionale (ADIR)
Burundi
52
Africa Development Interchange Network (ADIN)
Cameroon
53
Collectif des ONG pour la Sécurité Alimentaire et le développement Rural en abrégé (COSADER)
Cameroon
54
Conseil des ONG Agrees du Cameroun (CONGAC )
Cameroon
55
Cambodian Human Right Actions Committee
Cambodia
56
Canadian Foodgrains Bank
Canada
57
Kari Polanyi Levitt, Canada
Canada
58
Association Commerciale, Agricole, Industriel et du Service (ACAISA)
Cape Verde
59
Conseil Inter ONG En Centrafrique (CIONGCA)
Central African Rep.
60
Centre d’Information et de Liaison des ONG (CILONG)
Chad
61
Central Unitaria de Trabajadores de Colombia (CUT)
Colombia
62
Fabio Arias Giraldo, General Secretary, CUT
Colombia
63
Instituto Latinoamericano Para Una Sociedad Y Un Derecho Alternativos, ILSA,
Colombia
64
Conseil de Concertation des ONGs de Développement (CCOD)
Congo
65
Cook Islands Association of Non-Governmental Organisations (CIANGO)
Cook Islands
66
Sociedad Económica de Amigos del País
Cuba
67
Conseil National des ONG de Développement (CNONGD)
D.R. Congo
68
Kalingo Carib Council
Dominica
69
Alianza ONG
Dominican Republic
70
Fernando Rosero, Centro Andino para la Formación de Líderes Sociales
Ecuador
71
Red De Accion Ciudadana Frente Al Libre Comercio E Inversion, Sinti Techan
El Salvador
72
Forum des ONG pour le Développement Durable (FONGDD)
Eq. Guinea
73
Alliance for Food Sovereignty in Africa (AFSA)
Ethiopia
74
Ethiopian Consumer Society (ECS)
Ethiopia
75
Institute for Sustainable Development
Ethiopia
76
Movement for Ecological Learning and Community Action (MELCA)
Ethiopia
77
Sue Edwards
Ethiopia
78
Cotonou Task Force
Ethiopia
79
Poverty Action Network in Ethiopia (PANE)
Ethiopia
80
Europe Écologie Greens
France
81
Francoise Alamartine, d’Europe Ecologie les Verts
France
82
Solidarité
France
83
Concertation Nationale Des Organisations paysannes et des Producteurs (CNOP)
Gabon
84
Worldview
Gambia
85
Agricultural Workers Union of TUC
Ghana
86
Inter Agency Group of Development Organizations (IAGDO)
Grenada
87
Confederación De Unidad Sindical De Guatemala (CUSG)
GUATEMALA
88
Federation de Femmes Enterpreneurs et Affairs de la CEDEAO (FEFA)
Guinea
89
Instituto Nacional de Estudos e Pesquisa (INEI)
Guinea-Bissau
90
Women Across Differences (WAD)
Guyana
91
Plateforme haïtienne de Plaidoyer pour un Développement Alternatif (PAPDA)
Haïti
92
Programme de Plaidoyer Pour une Intégration Alternative (PPIA)
Haïti
93
Federacion de Sindicatos de Trabajadores de la Agroindustria (FESTAGRO)
Honduras
94
Fundación Cosecha Sostenible de Honduras (FUCOHSO)
Honduras
95
All India Drug Action Network
India
96
Alliance for Democratization of Agricultural Research in South Asia [ADARSA]
India
97
Alliance for Food Sovereignty in South Asia [AFSSA]
India
98
Amitava Guha, Confederation of Indian Trade Unions
India
99
Annakili, Unorganised Workers Union, Vellore
India
100
Aruna Rodriguez, Sunray Harvesters
India
101
Asha Kisan Swaraj
India
102
Bhagirath Lal Das, Former Ambassador to the WTO
India
103
Bharatiya Krishak Samaj
India
104
Centre for Organisation Research & Education
India
105
Chandra, Women’s Education and Economic Development Trust
India
106
Commission on Justice, Peace and Creation, National Council of Churches in India
India
107
Community Media Trust
India
108
Confederation of Indian Traders (CAIT)
India
109
Centre of Science and Technology for Rural Development (COSTFORD)
India
110
Deccan Development Society
India
111
Delhi Network of Positive People
India
112
Dr. K. Prabhakar, Professor, SRM University, SRM Nagar, Chennai,
India
113
Dr. Ms Mahtab S. Bamji, INSA Honorary Scientist, Dangoria Charitable Trust,Hyderabad
India
114
Focus on the Global South-India
India
115
Forum for Biotechnology & Food Security
India
116
Green Souls
India
117
Hind Mazdoor Sabha (HMS)
India
118
India FDI Watch
India
119
India Resource Center
India
120
Indian Social Action Forum (INSAF)
India
121
Initiative for Health & Equity in Society
India
122
Inter Cultural Resources
India
123
IT for Change
India
124
Jan Swasthya Abhiyan
India
125
Jayati Ghosh, Professor, Jawaharlal Nehru University
India
126
Kavita Srivastava, on behalf of the Steering Committee of the Right to Food Campaign
India
127
K. Pandu Dora, Convenor, Adivasi Aikya Vedika
India
128
LOCOST
India
129
Madhusudhan, Yakshi
India
130
Madhyam
India
131
Madras Christian Council of Social Service
India
132
Malini Chakravarty, Senior Economist, Economic Research Foundation
India
133
Millet Network of India [MINI]
India
134
Mira Shiva, Health and Women’s Rights Activist
India
135
National Hawker Federation
India
136
New Trade Union Initiative (NTUI)
India
137
Omkar Bhaskar, India
India
138
Oxfam India
India
139
Ponnuthai, Kalanjium Women farmers Association
India
140
Prof. J. George [Phd. Economics, Delhi School of Economics]
India
141
Regional Centre for Development Cooperation (RCDC)
India
142
Reji K. Joseph, Assistant Professor, Central University of Gujarat
India
143
Research Foundation for Science Technology & Ecology
India
144
Rythu Swarajya Vedika
India
145
Sheelu, Women’s Collective
India
146
Smitha Francis, Economist
India
147
Southern Action on Genetic Engineering [SAGE)
India
148
Sundari, Tamilnadu Resource Team
India
149
Udhayam Capuchin Franciscan Peace Centre
India
150
Uma Shankari , Rashtriya Raithu Seva Samithi,
India
151
Utsa Patnaik, Professor Emeritus, Jawaharlal Nehru University
India
152
Vikas Rawal, Professor, Jawaharlal Nehru University
India
153
Diverse Women for Diversity,
India
154
Sagari Ramdas, Anthra-Hyderabad
India
155
Cinta Alam Pertanian - Adonara East Flores
Indonesia
156
Farmer’s Initiative for Ecological Livelihoods and Democracy (FIELD Indonesia)
Indonesia
157
Institut Perempuan (Women’Institute)
Indonesia
158
KePPAK Perempuan (Kelompok Peduli Penghapusan Tindak Kekerasan terhadap Perempuan dan Anak)
Indonesia
159
Komite Pemantau Legislatif (KOPEL)
Indonesia
160
Sarekat Hijau
Indonesia
161
VIVAT Indonesia
Indonesia
162
Yayasan Lembaga Konsumen Sulawesi Selatan
Indonesia
163
Confederazione Generale Italiana del Lavoro (CGIL)
Italy
164
Fairwatch
Italy
165
Sergio Cesaratto, Full professor of Economics, University of Siena
Italy
166
Alliance Pour la Reconstruction et le Developpement Post-Conflit (ARDPC)
Ivory Coast
167
Campaign for Social and Economic Justice (CSEJ)
Jamaica
168
Pacific Asia Resource Center (PARC)
Japan
169
Kenya Human Rights Commission (KHRC)
Kenya
170
Wote Youth Development Project
Kenya
171
National Council of NGOs
Kenya
172
Kiribati Association of Non-Governmental Organisation (KANGO)
Kiribati
173
Policy Analysis and Research Institute of Lesotho (PARIL)
Lesotho
174
Lesotho Council of NGOs (LCN)
Lesotho
175
West African Women Association (WAWA)
Liberia
176
Plate-Forme Nationale des Organisations de la Societe Civile de Madagascar
Madagascar
177
Malawi Economic Justice Network (MEJN)
Malawi
178
Malawi Economic Justice Network
Malawi
179
Consumer Association of Penang
Malaysia
180
Sahabat Alam Malaysia (Friends of the Earth)
Malaysia
181
Foundation pour le Developpment au Sahel (FDS)
Mali
182
Marshall Islands Council of NGOs (MICNGOS)
Marshall Islands
183
Association for Developement and Promotion of Human Rights (ADPDH)
Mauritania
184
Federation of Democratic Labour Unions
Mauritius
185
Mauritius Trade Union Congress
Mauritius
186
Migration and Sustainable Development Alliance
Mauritius
187
Mauritius Council of Social Service (MACOSS)
Mauritius
188
Alicia puyana Mutis, FLACSO-MÉXICO
Mexico
189
Ignacio Perrotini, Professor, UNAM
Mexico
190
Mujeres Para El Sialogo A.C. (MpD)
Mexico
191
Red Nacional Género Y Economía (REDGE)
Mexico
192
SIEMBRA A.C., Mexico
Mexico
193
FSM Alliance of NGOs (FANGO)
Micronesia
194
National Forum for Mozambiquan NGOs and CBOs (TEIA)
Mozambique
195
Episcopal Commission for Education, Catholic Bishop Conference of Myanmar
Myanmar
196
Myanmar Partnership for Development for Human Resources in Rural Areas (MyanDHRRA)
Myanmar
197
Namibia Non-Governmental Organisations Forum Trust
Namibia
198
Nauru Island Association of NGOs (NIANGO)
Nauru
199
Rural Reconstruction Nepal (RRN)
Nepal
200
Both ENDS
Netherlands
201
Jacques van Nederpelt, Wijk bij Duurstede
Netherlands
202
Working Group Food justice
Netherlands
203
Devinder Sharma, Chair, Forum for Biotechnology & Food Security
New Delhi
204
Action, Research and Education Network of Aotearoa (ARENA-NZ)
New Zealand
205
Edward Miller, chairperson of the Aotearoa Human Rights Lawyers Association
New Zealand
206
Reseau des Organisations de Developpement et Associations de la Defense des Droits de L’homme Et de La Democratie (Rodaddhd)
Niger
207
National du Réseau des Ong de Développement et Associations de Défense des Droits de l’Homme et de la Démocratie (RODADDHD)
Niger
208
African Heritage Institution (AfriHeritage), Enugu
Nigeria
209
African Heritage Institution
Nigeria
210
Alliance pour la Reconstruction et le Developpement Post-Conflit (ARDPC)
Nigeria
211
Chiwuike Newington Uba
Nigeria
212
Health of Mother Earth Foundation (HOMEF)
Nigeria
213
Labour, Health and human Rights Development Centre
Nigeria
214
The Knowledge and Policy Management Initiative Ltd
Nigeria
215
National Association of Nigerian Traders (NANTS)
Nigeria
216
Niue Island (Umbrella) Association of NGOs (NIUANGO)
Niue
217
Social Alternatives for Community Empowerment
Pakistsan
218
Melanesian NGO Centre for Leadership (MNCL)
Papua New Guinea
219
BASE Investigaciones Sociales
Paraguay
220
Federación Nacional De Trabajadores Del Agua Potable Y Alcantarillado Del Perú (FENTAP)
Peru
221
Red Peruana de Comercio Justo y Consumo Ético
Peru
222
Campaign for a Life of Dignity for All (KAMP)
Philippines
223
Knights for Peace, Int’l
Philippines
224
Marie Sol Villalon-National In Mission for Victims of Human Trafficking, Overseas Filipino Workers and their Families, The United Methodist Church in the Philippines
Philippines
225
The Centre for Development Programs in the Cordilera (CDPC)
Philippines
226
WomanHealth
Philippines
227
Rwanda Civil Society Platform
Rwanda
228
Samoa Umbrella for Non Governmental Organisation (SUNGO)
Samoa
229
Forum das Ong de São Tomé e Principe (FONG-STP)
Sao Tomé and Principe
230
Caritas Sénégal
Senegal
231
Plate-forme des acteurs non étatiques pour le suivi de l’Accord de Cotonou au Sénégal
Senegal
232
Liaison Unit of the non-governmental organisations of Seychelles -(LUNGOS)
Seychelles
233
Civil Society Movement of Sierra Leone
Sierra Leone
234
Development Service Exchange (DSE)
Solomon Islands
235
Somali Organisation for Community Development Activities (SOCDA)
Somalia
236
African Centre for Biosafety
South Africa
237
South Durban Community Environmental Alliance
South Africa
238
Southern and East African Trade Institute (SEATINI)
South Africa
239
Studies in Poverty and Inequality Institute in Johannesburg
South Africa
240
South African NGO Council (SANGOCO)
South Africa
241
Citizens’ Coalition for Economic Justice
South Korea
242
Community Empowerment for Progress Organization-CEPO, South Sudan-Juba
South Sudan
243
South Sudan Human Rigfhts Defender Network
South Sudan
244
Iyanola (St.Lucia) Council for the Advancement of Rastafari Incorperated (ICAR)
St. Lucia
245
Windward Islands Farmers’ Association (WINFA)
St. Vincent and the Grenadines
246
Stichting Projekta
Suriname
247
Council for NGOs (CANGO)
Swaziland
248
Church of Sweden
Sweden
249
Helvetas Swiss Intercooperation
Switzerland
250
Alliance Sud
Switzerland
251
Chad Acting For The Environment (TCHAPE)
Switzerland
252
International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF)
Switzerland
253
International-Lawyers.Org
Switzerland
254
Berne Declaration
Switzerland
255
Tanzania Association of NGOs
Tanzania
256
Tourism Investigation & Monitoring Team
Thailand
257
The Asia Foundation
Timor-Leste
258
Groupe d’Action et de Reflexion sur l’Environnement et le Développement (GARED)
Togo
259
Civil Society Forum of Tonga (CSFT)
Tonga
260
Grassroots Organisations of Trinidad & Tobago (GOTT)
Trinidad & Tobago
261
Korkut Boratav, Professor (retired), Ankara University
Turkey
262
Mustafa Ozer, Professor, Anadolu University
Turkey
263
Tuvalu Association of NGOs (TANGO)
Tuvalu
264
Consumer Education Trust
Uganda
265
Farms Not Factories
UK
266
Harry Shutt, economist, UK
UK
267
The Landworkers Alliance
UK
268
William Gomes, Human Rights Ambassador for Salem-News.com
UK
269
Missionary Oblates of Mary Immaculate
USA
270
American Federation of Labor and Congress of Industrial Organizations (AFL–CIO)
USA
271
Arthur MacEwan, Professor Emeritus of Economics, University of Massachusetts Boston
USA
272
Center for Women’s Global Leadership
USA
273
CODEPINK
USA
274
Community Alliance for Global Justice
USA
275
Global Exchange
USA
276
Haider A. Khan, Global Deep Democracy Network and Korbel School of International Studies, University of Denver, USA
USA
277
International Presentation Association of the Sisters of the Presentation
USA
278
New Rules for Global Finance
USA
279
Peace and Justice Resource Center
USA
280
Public Citizen, USA
USA
281
The Oakland Institute, CA
USA
282
Vanuatu Association of NGOs (VANGO)
Vanuatu
283
Center for Sustainable Rural Development (SRD)
Vietnam
284
Aljawf Women Organization For Development
Yemen
285
Zambia Council for Social Development
Zambia
286
National Association of NGOs (NANGO)
Zimbabwe