The 2016 election is bizarre, to say the least. While the vast majority of reporting has focused on the horserace and he said she said aspects of the campaigns, the policy proposals put forward by the candidates will have profound and lasting impacts on the citizens they seek to govern. As a recent article in The Atlantic notes, “Once in office, presidents almost always try to carry out their pre-election agendas. When they’re unable to keep those promises, it’s usually because of congressional opposition—not because they’ve discarded campaign rhetoric to pursue other goals.”
With an increasingly globalized food system, trade and agricultural policies have become integral to combating climate change, providing economic security, and ensuring public health. These policies affect our jobs, the food we eat, and the land we live on. The trade and agricultural agenda set by the United States will affect billions of people around the globe. As the presidential debate season begins on Monday, the Institute for Agriculture and Trade Policy will be watching closely to see if and how the candidates address the following questions:
Regardless of their operation, do all farmers benefit when they sell their production to traders and processors who export crop- and livestock-derived products? According to a recent interview with Ambassador Darci Vetter, the chief U.S. agricultural trade negotiator, the answer is unequivocally yes. Even now, when prices paid to farmers and ranchers by those traders and processors are well below the cost of producing those crops and livestock, according to the U.S. Department of Agriculture (USDA)? Consider the case of dairy farmers.
IATP contends that the dairy import provisions of the Trans-Pacific Partnership Agreement (TPP) will do nothing to stem the global raw milk price collapse that is driving U.S. dairy farmers out of business. Those low prices provide very cheap raw materials to such mega-dairy processors as Kraft Foods, Dean Foods and Land O’Lakes, which is owned by the mega-cooperative, the Dairy Farmers of America, but the benefits to farmers are vanishingly small.
Free trade deals, and in particular the proposed Trans-Pacific Partnership (TPP), have taken a beating this election season. Most of the noise on trade from Presidential candidates Donald Trump and Hillary Clinton has focused on the loss of jobs linked to the offshoring. Much less attention has been paid to the serious impact the TPP and past trade agreements will have on our ability to respond to climate change.
In a new report on the TPP and climate commitments made by countries as part of the Paris climate agreement, we found that trade rules consistently benefit multinational corporations in high greenhouse gas emitting sectors like agriculture and energy, while creating barriers for governments in setting climate-related policies.
Our analysis found that the Trans Pacific Partnership expands the scope of past trade agreements to harm the climate in three important ways:
While food and agriculture were not on the official agenda for the latest round of Transatlantic Trade and Investment Partnership (TTIP) negotiations, July 11-15 in Brussels, the intense debate generated by Greenpeace Netherland’s leaks of 14 chapters of the draft agreement continue to reverberate through the trade policy world. Consumer and other civil society groups, having scrutinized the official texts, are pressing for major changes in the agreement’s alarming “innovations” in setting standards on agricultural animal health and welfare, plant health and food safety (in trade policy terminology, Sanitary and Phytosanitary Standards or SPS).
The Transatlantic Consumer Dialogue (TACD), an alliance of about 25 U.S. and 50 European NGOs, for which IATP serves as the U.S. co-chair of the Food Policy Committee, published a resolution on the TTIP SPS chapter in January. Because the Obama administration refuses to make public its negotiating proposals, TACD developed its resolution by using the SPS chapter of the Trans-Pacific Partnership (TPP) as a proxy for the U.S. SPS positions in TTIP. In July, TACD published an update to its January resolution that made recommendations to the European Commission (EC) Directorate General of Trade (DG Trade) and to the U.S. Trade Representative (USTR) on the basis of their negotiating proposals, as published by Greenpeace.
Last week, there was a bit of good news on the trade front: on July 8, tobacco giant Philip Morris lost its ridiculous case against Uruguay’s cigarette labeling laws. In 2010, the multinational company’s Swiss subsidiary—which owns its operations in Uruguay—sued the country over rules designed to discourage cigarette consumption, especially by young people. As in a similar case against Australia, the company alleged that requiring labels that emphasize the dangers of smoking lowered the value of its intellectual property rights (i.e., its trademarked labels) and therefore, its investments. The case was brought under the Investor State Dispute Settlement (ISDS) mechanism in a bilateral investment treaty between Switzerland and Uruguay. ISDS empowers companies to sue governments in private tribunals over measures that undermine their expected profits. It has become a lightning rod for controversy in the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP).
The Institute for Agriculture and Trade Policy’s European Office, along with international group Compassion in World Farming (CIWF), German member of Via Campesina—Arbeitsgemeinschaft bäuerliche Landwirtschaft e.V. (AbL) and PowerShift launched their new report Selling Off the Farm: Corporate Meat’s Takeover through TTIP today with a panel discussion and a press briefing at the European Parliament.
Some key findings from the report:
The outcome of the referendum in the United Kingdom is worth some thoughts about our future as Europeans.
It is useless to enter into the blaming mode. There are many reasons for being frustrated, upset, desperate or simply sad about the state of the world as it is. Our part of this world, Europe, is in a very bad state of mind. Hate is back between us, between political camps and parties, between governments, countries and people who do not even try to talk or understand each other. The question of the referendum was whether to stay or leave the EU. But the answer was more than “leave!”. It was an outcry of discontent and fear.
On front pages of newspapers and internet networks there is language which feeds racist, nationalist, chauvinistic and egoistic feelings and thinking. First there is hate in thinking, then in words, then in action. The killing of Jo Cox, the British young Member of Parliament during the Brexit campaign should ring a bell to all of us.
The proposed Transatlantic Trade and Investment Partnership (TTIP) between the U.S. and the European Union has been negotiated in secret – preventing the public from knowing what exactly is on the negotiating table. In May, TTIP text was leaked by Greenpeace Netherlands. The leaked text provides a snapshot of the status of the talks. Review of the leaked TTIP text—U.S. and EU proposals along with an EU “Tactical State of Play” document— provides important insights into the direction of the trade talks, and raises alarm bells for advocates of fair and sustainable food and farming systems. This is part five in a five part series.
Both the U.S. and EU have stated their intention for TTIP to be the “gold standard” for other agreements. This could mean that rules set in TTIP could become the default position at the World Trade Organization (WTO) and other trade talks. Early in the TTIP talks, the U.S. proposed a special chapter that would encourage the EU and U.S. to work together to eliminate “localization barriers to trade”—measures that favor local content or preferences for local businesses—used by other countries not party to TTIP. It’s not clear if that idea ever saw the light of day, but now, the EU is proposing a chapter on Agriculture that could also serve to unite pressure on developing countries to conform to EU and U.S. proposals.
The proposed Transatlantic Trade and Investment Partnership (TTIP) between the U.S. and the European Union has been negotiated in secret – preventing the public from knowing what exactly is on the negotiating table. In May, TTIP text was leaked by Greenpeace Netherlands. The leaked text provides a snapshot of the status of the talks. Review of the leaked TTIP text—U.S. and EU proposals along with an EU “Tactical State of Play” document— provides important insights into the direction of the trade talks, and raises alarm bells for advocates of fair and sustainable food and farming systems. This is part four in a five part series.
“Regulatory Cooperation” is an apparently benign name for an insidious process that would be inserted into trade agreements to establish new tools for corporate “stakeholders” to frame and dominate the development of virtually any kind of public regulations as they are being developed or even to weaken or eliminate existing rules. The U.S. and other TPP members took a first run at it in that accord, although what resulted was mainly a voluntary forum. Leaked drafts of the plurilateral Trade In Services Agreement (TISA) call for similar disciplines on Domestic Regulations. The TTIP push for Regulatory Cooperation also advances that idea, with slightly different approaches coming from the EU and U.S.
The proposed Transatlantic Trade and Investment Partnership (TTIP) between the U.S. and the European Union has been negotiated in secret – preventing the public from knowing what exactly is on the negotiating table. In May, TTIP text was leaked by Greenpeace Netherlands. The leaked text provides a snapshot of the status of the talks. Review of the leaked TTIP text—U.S. and EU proposals along with an EU “Tactical State of Play” document— provides important insights into the direction of the trade talks, and raises alarm bells for advocates of fair and sustainable food and farming systems. This is part three in a five part series.
Though the main critique of TTIP has been its sweeping impacts on rule making and standard setting in the two regions, further agricultural tariff liberalization will have a major impact, in particular in the E.U. The leaks offer a first look at which agricultural goods will be on the line. While average tariffs on goods traded between the U.S. and EU are quite low, those figures obscure substantial differences on key products, some of which currently protect vulnerable farming sectors that are already suffering from low prices and unstable markets. In a memo describing tariff reduction offers dated November 20, 2015, the EU notes the intention under TTIP to eliminate tariffs on 97 percent of goods. While exactly how this will play out will only become clear during the final “endgame” of the negotiations, the memo describes substantial, and in many cases, abrupt changes in tariffs on farm goods. As of November, the EU was offering to lower more tariffs than the U.S., but in the latest round of negotiations in April, the U.S. reaffirmed its goal for total tariff elimination. The EU still opposes this position in the interest of its most sensitive agriculture products.