The EU has been unfairly criticised over its attitude to the developing nations, writes Padraig Walshe
As the world trade negotiations broke down this week it is unclear whether the breakdown is for months or years. Most of the blame for the breakdown is directed at the US. At a sectoral level, clearly agricultural trade issues were to the forefront in the negotiations.
Inevitably much will be said and written about the "rich north" being unconcerned and unsupportive of the "poor south". I feel that such criticism is unfair to the EU. The EU's record in terms of support for developing countries - particularly the least developed countries or LDCs - is clear and positive. I also believe that globalisation has little to offer the poorest countries of the world, and that a much broader-based development model is required.
The EU offer on agriculture in the WTO was very substantial and included:
A reduction in import tariffs by an average of 46 per cent and by up to 60 per cent for some products' including beef.
The EU agreed in Hong Kong to the phasing out of export subsidies by 2013, on condition that other developed countries would also eliminate their export subsidies.
The EU also offered to cut by 70 per cent any agriculture subsidy that was deemed trade distorting.
The EU offer has very profound implications for Irish farmers that would result in farm income being cut by one-third and the value of beef output would be halved.
In contrast to the EU, the United States has increased farm spending and has given no commitment on its intentions for the Farm Bill in 2007.
The EU offers a progressive relationship with developing countries. The EU WTO offer contains a commitment on "special and differential treatment for developing countries", i.e. they would not have to go as far as the developed countries in opening up their markets.
Some countries that wish to be classified as developing, such as Brazil and Argentina, have a huge capacity to export agricultural products very cheaply, based on large ranch-scale production and low wages. The EU, quite rightly, insists that these countries must also contribute to a fair agreement by opening up their own markets.
The EU has been particularly sensitive to the needs of the poorest countries. Under the "Everything But Arms" (EBA) agreement of 2001, it provided full duty-free and quota-free access to all exports, agricultural and industrial, from the 50 Least Developed Countries (LDC) of the world. The EU is the largest market for LDC exports of agricultural goods. The EU takes 85 per cent of Africa's agricultural exports.
The 50 countries covered by the EBA agreement include 34 African and 10 Asian countries with a total population of about 765 million people. These include the seven priority countries in the Ireland Aid Programme: Ethiopia, Uganda, Tanzania, Zambia, Mozambique, Lesotho and Timor.
A very significant event took place last December when IFA and EU farm organisations signed a joint declaration with farmer and co-operative organisations from developing countries on a common position on the WTO negotiations. In total, farmers in 128 countries or 86 per cent of WTO members are represented in this joint declaration. The following extracts summarise the common position.
"Less than 10 per cent of agricultural production is actually traded on the world market and any expansion in this trade will benefit only a few countries. Free trade will, first and foremost, benefit large-scale corporate farming and multi- national traders in developed and advanced developing countries rather than the poorer developing countries. Developing countries with a vulnerable and defenceless agricultural sector, in a market frequently manipulated and dominated by a few trading entities, must be able to take account of their rural development, food security and/or livelihood security needs."
It should be reminded that Doha Round is a "development round" and is not a "market access round". Access to resources such as land, seeds, water, technology and credit is a priority for developing countries. Free trade will make it impossible for farmers to meet their society's legitimate expectations concerning food security and safety as well as environmental, animal welfare and rural issues. All countries must be able to ensure their food sovereignty.
The "unconditional market opening" demands of the US, Brazil, New Zealand and Australia would certainly destroy the Irish farm family structure of food production. At least in Ireland we have had decades of development and over 30 years of European Union membership to build up our industry.
Farmers in the least developed countries are struggling with unimaginable obstacles. An alternative strategy should be formulated based on the following principles and realities:
(i) Food supply is a strategic issue: All countries, both developed and developing, must have the right to operate a policy of food security and price stability. This must reflect a balance between the interests of producers and consumers.
(ii) Agriculture is crucial to economic development: The developing countries need to follow the logical pattern of development, from agriculture to manufacturing to services, just as Ireland and other EU countries have done. In my view, a programme of agricultural research, education, advice and mentoring would do a lot more for agriculture in the poorer countries than "market opening".
(iii) Environmental Sustainability: In the poorest developing countries, environmental sustainability is a huge issue. If farmers in these countries are forced by low incomes to live from day to day, it is inevitable that the environment will suffer due to over-grazing, destruction of forests or desertification.
(iv) Capacity building and mentoring key to sustainable future: The development problems facing many LDCs include a range of non-trade internal issues, particularly civil conflict, corrupt governments, public health problems, and debt burden. Much good work is being done by the EU, by governments of the developed world and Development NGOs to help tackle these issues. I believe that there has been an increasing realisation both by these agencies and by the LDCs themselves that trade policy is only one of several elements in a sustainable solution to underdevelopment and poverty.
Padraig Walshe is president of the Irish Farmers' Association