Letter from 243 organizations from more than 50 countries on the Food Crisis: "The WTO's Doha Round Will Not Stop the Food Crisis: Time for Real Solutions." June 2008.

2 June, 2008 (All day)

To:      Trade Ministers and Agriculture Ministers <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

 

CC:     Ban Ki-moon, Secretary-General, United Nations

Jacque Diouf, Director General, FAO

Pascal Lamy, Director-General, WTO

            Robert Zoellick, President, World Bank

            Dominique Strauss-Kahn, Managing Director, International Monetary Fund

Angel Gurría, Secretary General, Organization of Economic Cooperation and Development (OECD)

 

 

Subject:          The WTO’s Doha Round Will Not Solve the Global Food Crisis – Time for Real Solutions

 

 

Dear Minister,

 

The global food system is in crisis. Millions of people can no longer afford or access the food they need, increasing global hunger and malnutrition.  The worlds’ governments need to act now. But the answer does not lie in deeper deregulation of food production and trade. We, concerned non-governmental organizations and social movements, urge you to reject the claims by the leaders of the World Trade Organization (WTO), World Bank, the International Monetary Fund (IMF) and the Organization of Economic Cooperation and Development (OECD), that concluding the Doha Round is a solution to the current crisis.[i]

 

We believe the Doha Round as is currently envisioned will intensify the crisis by making food prices more volatile, increasing developing countries’ dependence on imports, and strengthening the power of multinational agribusiness in food and agricultural markets. Developing countries are likely to lose further policy space in their agriculture sector, which would in turn limit their ability to deal with the current crisis and to strengthen the livelihoods of small producers.

 

The inability to manage the current food crisis is an illustration of the failure of three decades of market deregulation in agriculture. We need a new model for the trading system that puts development, employment and food security objectives at the centre. We are calling for real solutions that will stabilize food production and distribution to meet the global demand for healthy, adequate, and affordable food. Governments must start to take a long-term view of the challenges facing agriculture. The recent report of the International Assessment of Agricultural Knowledge, Science and Technology for Development [IAASTD], endorsed by 57 countries, says, “Modern agriculture has brought significant increases in food production. But the benefits have been spread unevenly and have come at an increasingly intolerable price, paid by small-scale farmers, workers, rural communities and the environment”. Support has to be directed at a different model of agriculture that can sustainably meet the needs of a growing population.

 

The WTO’s Doha Round and other bilateral and regional trade agreements currently under negotiation will not solve the food crisis, for the following reasons:

 

1. Existing WTO and bilateral and regional trade agreements push across the board liberalization, which worsens volatility of food prices. This leads to increased dependence on international markets and decreased investment in local food production. Trade liberalization has eroded the ability of a number of developing countries to feed themselves, for example, Mexico, Bangladesh, Indonesia and Mali. The removal of tariff barriers has resulted in dumping of heavily subsidized commodities in developing countries, such as Ghana, Kenya, the Philippines, Jamaica and Honduras, while undermining local food production.

 

Developing countries have turned from net exporters of food to net importers of food.[ii] Two-thirds of developing countries are net food importers and are extremely vulnerable to volatile world food prices. The current proposals under the Doha Round will increase countries’ dependence on food imports while further eroding their ability to feed their own populations.

 

2. High food prices provide enormous benefits to transnational agribusinesses and commodity cartels that control the trade in food and agriculture. One of the largest global grain traders, Cargill, announced in April 2008 that its third quarter profits rose 86 percent to US$1.03 billion, in the midst of the global food crisis.[iii] Bunge saw its profits in the last quarter of 2007 increase by 77 percent compared with the same period in 2006. Archer Daniel Midland’s (ADM’s) profits in 2007 rose by 65 percent.[iv] The Doha Round will strengthen the position of transnational companies in agricultural markets, who thrive on market deregulation.

 

3. The Doha negotiations do not tackle the major challenges facing the global food system, which include climate change, natural resource depletion, the quadrupling of oil prices, the lack of competition in world commodity markets, financial speculation and the rapid expansion of unsustainable agrofuels production.

 

 

We believe what is needed to solve the food crisis is the following:

 

1. Governments and communities need to have a range of tools at their disposal to build resilient food and agricultural systems that are ready for the challenges that lie ahead. This includes a greater emphasis on policies that increase food sovereignty, encourage local investment in local markets, support sustainable small-scale farming, safeguard local production from dumping, implement genuine agrarian reform, and allow trade instruments such as quotas and tariffs. Some of these instruments are being proposed by a group of 46 developing countries—known as the G33—in the WTO’s negotiations on Special Products and Special Safeguard Mechanism.

 

2. The volatility of agricultural prices must be addressed through national policies and global actions to avert food crises and to ensure small producers a reliable and steady income. Well-managed public stocks need to be re-established. Such stocks provide an important buffer against price volatility and food insecurity. Speculation and extremely high prices forced upon consumers by traders and retailers must be controlled. At the WTO, the African group has a long-standing proposal on the need to allow commodity-producing countries to make agreements among themselves in order to stabilize prices. This proposal deserves further attention.

 

3. Governments should establish safety nets and public distribution systems to prevent widespread hunger. Governments have to provide financial support for the poorest consumers to allow them to eat. Governments must use the maximum of available resources within the State and from the international community.

 

4. A reform of the food aid system to respond more rapidly and to allow greater flexibility in the delivery of food aid. Instead of dumping surplus agricultural production as “in kind” food aid, donors should provide cash to governments and aid agencies to buy local food.

 

5. Developing countries should not commit to financial services liberalization in the context of the General Agreement on Trade in Services (GATS) or bilateral and regional trade negotiations, as this can adversely impact farmers’ access to financial services such as insurance and credit.

 

We look forward to discussing these issues further with you, and to seeing real solutions to the global food crisis.

 

Sincerely,

 

International and Regional Networks

1.      

Action Aid International

International

2.      

 Africa Europe Faith & Justice Network (AEFJN)

Africa and Europe

3.      

 Africa Trade Network (ATN)

Africa

4.      

 Asian Peasant Coalition (APC)

Bangladesh, India, Indonesia, Neal, Malaysia, Mongolia, Pakistan, Philippines and Sri Lanka

5.      

A SEED

Europe

6.      

ATTAC

Argentina, Austria, Chile, France, Germany, Japan, Morocco, Norway, Spain, Poland, Flanders (Belgium), Hungary, Italy, Switzerland

7.      

Caribbean Association for Feminist Research and Action

Jamaica, St. Lucia, Trinidad and Tobago

8.      

Consejo de Investigaciones para el Desarrollo de Centroamérica (Council of Research for Development of Central America - CIDECA)

Central America

9.      

Coordinadora Latinoamericana de Organizaciones del Campo (Latin American Coordination of Rural Organizations – CLOC)

Latin America

10.  

East and Southern Africa Small Scale Farmers Forum (ESAFF)

Africa

11.  

Economic Justice Network (EJN) of the Fellowship of Christian Councils

Southern Africa

12.  

      Friends of the Earth International

International

13.  

      Friends of the Earth

Europe

14.  

      Fundación América Latina

      Latin America

15.  

Focus on the Global South

Thailand, Philippines, India

16.  

Global Network Latin America

Argentina, Bolivia, Brazil, Chile, Colombia, Dominican Republic, Ecuador, Mexico, and Peru

17.  

Grupo de Agricultura y Comercio de la Alianza Social Continental (Working Group on Trade and Agriculture of the Hemispheric Social Alliance)

Latin America

18.  

International Federation of Organic Agriculture Movements (IFOAM)

International

19.  

International Gender and Trade Network

International

20.  

International Metalworkers Federation

East and Southern Africa, South and Southeast Asia, Latin America and Caribbean

21.  

International Union of Food Workers

International

22.  

La Via Campesina

International

23.  

Mesa de Coordinación Latinoamericana de Comercio Justo

Latin America

24.  

Oxfam International

International

25.  

Pesticide Action Network (PAN)

International

26.  

Public Services International

Europe, Asia-Pacific, Inter-Americas, Africa & Arab countries

27.  

Red de Acción en Plaguicidas de América Latina (Network on Pesticides,

Latin America - RAPAL)

Latin America

28.  

Southern and Eastern African Trade Information and Negotiations Institute (SEATINI)

Kenya, Zimbabwe, Uganda

29.  

Third World Network

Malaysia, Africa, Geneva, China

30.  

The World Alliance of Reformed Churches

International

31.  

UBUNTU

International

32.  

Young Womens Christian Association

International

 

National and Sub regional networks

33.         

Acción Ecológica

Ecuador

34.         

ACSUR Las Segovias

Spain

35.         

Advocates for Safe Parenthood

St. Lucia

36.         

Africa Action

USA

37.         

African Forum on Alternatives

Senegal

38.         

Agricultural Missions, Inc.

USA

39.         

Aitec

France

40.         

Alianza Social Continental Capítulo

Peru

41.         

Alianza por Litorales Manglares Aguas y Suelos(ALMAS)

Venezuela

42.         

Anti Debt Coalition (KUA)

Indonesia

43.         

Alliance of Progressive Labor (APL)

Philippines

44.         

Nationale des Consommateurs et de

l'Environnement du Togo

Togo

45.         

Asia Pacific Forum on Women Law and Development (APWLD)

Thailand

46.         

Artisanal Fishers Association

South Africa

47.         

Australia Fair Trade and Investment Network (AFTINET)

Australia

48.         

Bhartiya Krishak Samaj (national farmers’ movement – BKS)

India

49.         

Biios Iguana A.C. de Colima

Mexico

50.         

Brot Fuer De Welt

Germany

51.         

Campaign for the Reform of the World Bank (CRBM)

Italy

52.         

Canadian Council for International Co-Operation

Canada

53.         

Canadian National Farmers Union

Canada

54.         

Center for Encounter and Active Non-Violence

Austria

55.         

Centre for Civil Society Economic Justice Project (University of KwaZulu-Natal)

South Africa

56.         

Center for Women's Studies, Catholic University of Our Lady of the Ascension

Paraguay

57.         

Central Unica dos Trabalhadores (national labor federation – CUT)

Brazil

58.         

Centre du Commerce International pour le Developpement (CECIDE)

Guinee

59.         

Centre for Education and Communication (CEC)

India

60.         

Centre for Research on Multinational Corporations (SOMO)

The Netherlands

61.         

CENTINELA

Venezuela

62.         

Centro Cultural Pachakamak Ayni

Ecuador

63.         

Centro de Formación Guayana

Venezuela

64.         

Centro de Politicas Publicas para el Socialismo (CEPPAS)

Argentina

65.         

Centro de Estudios sobre tecnologías apropiadas (Center for the Study of Appropriate Technology)

Argentina

66.         

Center for Fair and Alternative Trade Studies

USA

67.         

Centre National de Coopération au Développement (CNCD-11.11.11)

Belgium

68.         

Christians for Justice and Peace

Colombia

69.         

CIDSE

Belgium

70.         

French Committee for International Solidarity (CFSI)

France

71.         

Central Geral dos Trabalhadores do Brasil (national workers’ federation – CGTB)

Brazil

72.         

Centro de Investigación y Promoción Franciscano y Ecológico (Center for Franciscan and Ecological Investigation and Promotion – CIPFE)

Uruguay

73.         

Center of Concern

USA

74.         

Citizen for Social Justice and Development

Pakistan

75.         

Ciudadanos Por La Integracion

Peru

76.         

Coecoceiba-FOE

Costa Rica

77.         

Colectivo de Lesbianas Feministas Josefa Camejo

Venezuela

78.         

Collectif Stratégies Alimentaires

belgium

79.         

Colectivo Rebelión

Mexico

80.         

Comhlamh

Ireland

81.         

Comitè de Solidaritat amb els Pobles Indígenes dZ Amèrica

Spain

82.         

Committee for Asian Women (CAW)

Thailand

83.         

Commission for Filipino Migrant Workers (CFMW)

The Netherlands

84.         

Confederation of Labor and Allied Social Services (CLASS)

Philippines

85.         

Consumers Association of Penang

Malaysia

86.         

Coordinador Consumidores por el Desarollo

Peru

87.         

Coordination Sud, French platform of Development NGOs

France

88.         

Coordination Andhra Pradesh Vyavasaya Vruthidarula Union (APVVU)

India

89.         

Corporate Europe Observatory (CEO)

The Netherlands

90.         

Common Frontiers

Canada

91.         

Daughters of Mumbi Global Resource Center

Kenya

92.         

DECA Equipo Pueblo

Mexico

93.         

Departamento de Pastoral Social Diócesis de San Carlos de Bariloche

Argentina

94.         

Ecologistas en Acción

Spain

95.         

Earth Spirituality

USA

96.         

Economic Justice Network

South Africa

97.         

Economic Justice and Development Organization (EJAD)

Pakistan

98.         

Ecoportal.Net

Argentina

99.         

El Movimiento Popular y Social Organizado de El Salvador en las Comunidades de Fe y Vida COFEVI.Y su Pastoral Ecumenica

El Salvador

100.     

Enda Tiers Monde

Senegal

101.     

Espacio DESC

Mexico

102.     

Enginyeria Sense Fronteres - Catalunya

Spain

103.     

El Grupo Por Una Agricultura Alternativa Y de Alerta Ante La Transgenesis (Alternative Agriculture and GMO Alert Group - AGALAT)

Panama

104.     

Ethical Development Action (EDA) of Cork

Ireland

105.     

Fair

Italy

106.     

Family Farm Defenders

USA

107.     

Farmer Solidarity Project

USA

108.     

Federación de Obreros Universitarios

Venezuela

109.     

Federación de Sindicato de Profesores Universitarios (FENASINPRES)

Venezuela

110.     

Federación de Trabajadores de la Harina (FETRAHARINA)

Venezuela

111.     

Federación de Trabajadores de la Industria Gragica (FETRAIG)

Venezuela

112.     

Federación de Trabajadores de Telecomunicaciones (FETRATELECOMUNICACIONES)

Venezuela

113.     

Federación de Trabajadores del Sector Eléctrico (FETRAELEC)

Venezuela

114.     

Federación de Trabajadores Universitarios (FETRAUVE)

Venezuela

115.     

Federación Nacional de Sindicatos de Trabajadores de la Salud (FENASIRTRASALUD)

Venezuela

116.     

Federación Nacional de Trabajadores del Sector Público (FENTRASEP)

Venezuela

117.     

Federación Regional Única de Trabajadores Campesinos del Altiplano Sur FRUTCAS de Uyuni

Bolivia

118.     

Federación Unitaria de Trabajadores de Petroleo y Gas (FUTEP)

Venezuela

119.     

Farmer and Nature Net (FNN)

Cambodia

120.     

 Fondazione Neno Zanchetta

 

121.     

Food & Water Watch

USA, Europe

122.     

FoodSPAN

Ghana

123.     

Food First

USA

124.     

Foro “Corriente de Opinion Ciudadana”

Argentina

125.     

Frente Democrático Campesino (FDC)

Mexico

126.           

Friends of the Earth

Malaysia

127.           

Friends of the Earth

England, Wales and Northern Ireland

128.           

Fundación de Estudios, Acción, y Participación Social de Ecuador

Ecuador

129.           

Fundación Solon

Bolivia

130.           

FUNDAMAYA

Guatemala

131.           

Galway One World Centre

Ireland

132.           

Ghana Trade and Livelihoods Coalition (GTLC)

Ghana

133.           

Global Compliance Research Project

Canada

134.           

Global Exchange

USA

135.           

Global Youth Network for Economic Justice (GLOYONEJ)

Indonesia

136.           

Globalization Watch Hiroshima

Japan

137.           

Gret

France

138.           

Grassroots International

USA

139.           

GroundWork, Friends of the Earth

South Africa

140.           

Grupo Red de Economía Solidaria del Perú (GRESP)

Peru

141.           

Grupo de Estudios Ambientales

Mexico

142.           

Hecho en Buenos Aires

Argentina

143.           

IBON Foundation, Inc.

Philippines

144.           

ILSA

Colombia

145.           

Indian Society For Sustainable Agriculture & Rural Development

India

146.           

Informationsgruppe Lateinamerika (IGLA)

Australia

147.           

Initiative Colibri

Germany

148.           

Institute for Agriculture and Trade Policy (IATP)

USA

149.           

Institute for Global Justice (IGJ)

Indonesia

150.           

Instituto de Regeneración Ecológica

Ecuador

151.           

International Forum on Globalization

USA

152.           

International Grail Justice in Trade Network

Australia

153.           

Japan Family Farmers Movement (NOUMINREN)

Japan

154.           

Justice and Witness Ministries, United Church of Christ

USA

155.           

KAIROS: Canadian Ecumenical Justice Initiatives

Canada

156.           

Kentucky Interfaith Taskforce on Latin America and the Caribbean

USA

157.           

Kilusang Magbubukid ng Pilipinas (KMP)

Philippines

158.           

La Coordinadora Simòn Bolìvar

Venezuela

159.           

La Unidad Ecológica Salvadoreña (UNES)

El Salvador

160.           

 

La Articulación Nacional Campesina

Dominican Republic

161.           

Labour, Health, and Human Rights Development Centre

Nigeria

162.           

La'o Hamutuk (Timor-Leste Institute for Development Monitoring and Analysis)

Timor-Leste

163.           

Latin American Solidarity Centre

Ireland

164.           

Legal Defense and Education for Women "Vereda Themis"

Mexico

165.           

Llamado Mundial a la Acción contra la Pobreza

Peru

166.          M

Malawi Health Equity Network

Malawi

167.           

MASIPAG

Philippines

168.           

Marcha Mundial de Mujeres

Argentina

169.           

Marcha Mundial de las Mujeres

Peru

170.           

Mesa Global de Guatemala

Guatemala

171.           

Mennonite Central Committee

Canada

172.           

Movement for Land and Agricultural Reform (MONLAR)

Sri Lanka

173.           

Movimiento De Trabajadores Alfredo Maneiro

Venezuela

174.           

Movimiento Por La Autonomia Sindical

Venezuela

175.           

Mujeres Trabajando

Argentina

176.           

Mujeres para el Diálogo (MpD)

Mexico

177.           

Marcha Mundial de las Mujeres (MMM)

Mexico

178.           

National Agricultural Workers Forum (NAWF)

India

179.           

National Alliance of People’s Movements

India

180.           

National Network of Agrarian Reform Advocates

Philippines

181.           

OEBV-Via Campesina

Austria

182.           

Movimiento de Agricultura Orgánica Costarricense (Costa Rican Organic Agricultural Movement – MAOCO)

Costa Rica

183.           

Poverty Eliminationaand Community Education Foundation (PEACE FOUNDATION)

Bangladesh

184.           

Peoples' Network against Liberalization of Agriculture (PUMALAG)

Philippines

185.           

Planeta Paz

Colombia

186.           

Plataforma Argentina del GCAP

Argentina

187.           

Plataforma de Solidaridad con Chiapas, Oaxaca y Guatemala de Madrid

Spain

188.           

Platform Aarde Boer Consument (Earth Farmer Consumer)

The Netherlands

189.           

Polaris Institute

Canada

190.           

Public Citizen’s Global Trade Watch

USA

191.           

Presentation Justice Network

Ireland

192.           

RALLT

Ecuador

193.           

Red de Organizaciones Sociales

Paraguay

194.           

Red de Semillas “Resembrando e Intercambiando”

Spain

195.           

Red Mexicana de Accion frente al Libre Comercio (Mexican Action Network on Free Trade - RMALC)

Mexico

196.           

Red Peruana de Comercio Justo y Consumo Ético (Peruvian Network of Fair Trade and Ethical Consumption)

Peru

197.           

Red Sinti Techan

El Salvador

198.           

Rede Social de Justiça e Direitos Humanos

Brazil

199.           

Red Nacional Género y Economía (REDGE)

Mexico

200.           

Resistance and Solidarity against Agrochem TNCs (RESIST)

Philippines

201.           

Rural Women’s NGO

Kyrgyzstan

202.           

Sandigan Samahang Magsasaka (SASAMAG)

Philippines

203.           

SETEM

Spain

204.           

Social Enterprise Development Foundation of West Africa (SEND)

Ghana

205.           

Sindicato Nacional Fuerza Unitaria Magisterial (SINAFUM)

Venezuela

206.           

Sindicato Unitario De La Construcción (SUTAC)

Venezuela

207.           

Social Development Network

Kenya

208.           

SOS Faim – Agir avec le Sud 

Belgium

209.           

SOS Faim - Action for Development

Luxembourg

210.           

South Asian Network for Social and Agricultural Development (SANSAD)

India

211.           

Southeast Asian Council For Food Security and Fair Trade (SEACON)

South Asia

212.           

Spire, the Development Fund Youth Group

Norway

213.           

St. Lucia National Organization of Women

St. Lucia

214.           

Sugar Workers Solidarity Network

Philippines

215.           

Taller Ecologista

Argentina

216.           

Tanggol Magsasaka

Philippines

217.           

The Cornucopia Institute

USA

218.           

The Development Fund

Norway

219.           

The National Confederation Of Officers Associations (NCOA)

India

220.           

The National Union of Students of the Philippines (NUSP)

Philippines

221.           

The Oakland Institute

USA

222.           

The Trade Collective

South Africa

223.           

Tierra Viva

Bolivia

224.           

Trade Watch

Italy

225.           

Transnational Institute

The Netherlands

226.           

Trócaire

Ireland

227.           

Union De Comunidades Indigenas De La Zonanorte Del Istmo (Community Union of Indigenous of the Northern Zone of the Isthmus – Ucizoni)

Mexico

228.           

Veterinarios Sin Fronteras

Spain

229.           

Voice

Bangladesh

230.           

Vredeseilanden

Belgium

231.           

Washington Biotechnology Action Council

USA

232.           

War on Want

United Kingdom

233.           

Welfare Association for the Rights of Bangladeshi Emigrants (WARBE)

Bangladesh

234.           

Womyn's Agenda for Change (WAC)

Cambodia

235.           

World Development Movement

United Kingdom

236.           

World View

The Gambia

237.           

X minus Y Solidarity Fund

The Netherlands

 



[i] At the WTO’s General Council and Trade Negotiating Committee (TNC), the Director-General, Pascal Lamy, said “we have all witnessed the financial turbulence we are in and the hikes in energy and food prices that are affecting severely many of your countries. At a time when the world economy is in rough waters, concluding the Doha Round can provide a strong anchor.” Mr. Lamy has argued that the continuous expansion of multilateral trade is an insurance policy against market instabilities and financial turbulences. The President of the World Bank and former U.S. Trade Representative, Robert Zoellick, argued in a speech at the Center for Global Development, that a key solution to the food crisis “is to break the Doha Development Agenda impasse.” He said, “A fairer and more open global trading system for agriculture will give more opportunities – and confidence – to African and other developing country farmers to expand production. Similarly, Dominique Strauss-Kahn, Managing Director of the IMF, wrote in an opinion in the Financial Times, “no one should forget that all countries rely on open trade to feed their populations. […] Completing the Doha round would play a critically helpful role in this regard, as it would reduce trade barriers and distortions and encourage agricultural trade.” Finally, the Secretary General of the OECD, Angel Gurría, wrote in an opinion piece in the International Herald Tribune, “Governments around the world face weakening economies and soaring food prices. Amid the hand-wringing, an important and immediate step they can take to help would be to agree on a new multilateral trade deal.”

See http://www.wto.org/english/news_e/news08_e/gc_chair_tnc_7may08_e.htm;

http://www.wto.org/english/news_e/news08_e/tnc_17apr08_e.htm; http://www.wto.org/english/news_e/sppl_e/sppl88_e.htm; http://www.wto.org/english/news_e/sppl_e/sppl85_e.htm; http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21711307~pagePK:34370~piPK:42770~theSitePK:4607,00.html; Financial Times, COMMENT: A global approach is required to tackle high food prices, By Dominique Strauss-Kahn, Apr 21, 2008; International Herald Tribune, Trade Agreement Needed Now, By Angel Gurría, April 25, 2008

[ii] A food trade surplus of US$1.9 billion in the 1970’s was transformed into a US$17.6 billion deficit in 2000 and a US$9.3 billion deficit in 2004. Excluding Brazil, the figures are even more drastic: A food trade surplus of US$1.6 billion was transformed into a deficit of US$26.1 billion by 2004. The cereal import bill for low-income food deficit countries in 2007 reached over US$38 billion. According to FAO projections, by the year 2030, the net food trade deficit of developing countries is expected to swell to more than US$50 billion.

[iii] Cited in The Star Tribune

[iv] Making a Killing from Hunger, Grain, April 2008