In his State of the Union address, President Obama urged Congress to renew Trade Promotion Authority, often called “Fast Track,” to complete two controversial international trade deals currently under negotiation, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). In attempts to portray this urgency, the President warned of China’s rising power in the realm of trade and global economics, and China is “trying to write the rules,” which would “disadvantage” American workers and businesses. Obama said, “We should write those rules. We should level the playing field.” But who actually writes the rules of these trade deals?
In mid-January, the Trade Benefits America Coalition submitted a letter to Congress leadership, urging the passage of Trade Promotion Authority. The undersigned Coalition members include over 200 of the largest corporations and trade associations in the country, a sample of which include Walmart, Coca Cola, the notorious corporate-led, state-focused ALEC, and four of the “Big 6” pesticide and GMO corporations: BASF, Bayer, Dupont, and Dow Chemical Company. Not one of the Coalition members appear to represent workers, the environment, or public health - a glaring indication of who will benefit from Fast Track and the pending trade deals.
The U.S. Country of Origin Labeling (COOL) rule is headed for a showdown at the World Trade Organization Appellate Body (AB) on February 16-17. At stake are not just the economic interests of those affected by the WTO ruling on COOL and the right of consumers to know the origin of their food, but also the capacity of WTO jurisprudence to reverse a ruling when new evidence emerges. In this instance, the AB will be presented with evidence that thoroughly rebuts the facts upon which a WTO Dispute Settlement Body (DSB) panel based its ruling against COOL.
COOL for a broad array of horticultural, nut, fish, shellfish and meat products was first mandated in the 2002 U.S. Farm Bill. Only the application of COOL to meat products has been challenged in court. The Institute for Agriculture and Trade Policy first supported COOL’s regulatory implementation at a U.S. Department of Agriculture (USDA) hearing in 2003. In successive Farm Bills, global meatpackers have sought to “reform” COOL by making the labeling rules so confusing as to be meaningless. COOL proponents have defended the labeling law successfully four times in U.S. Courts.
The eighth negotiating session for the Transatlantic Trade and Investment Partnership Agreement (TTIP) is happening this week in Brussels. One of the thorniest parts of the negotiations between the U.S. and EU concerns food safety.
Today, IATP published an analysis of the European Commission’s proposed chapter on food safety, plant health and animal health and welfare (SPS), released on January 7, and a January 28 leak of the chapter on “regulatory cooperation”. The proposal for regulatory cooperation covers all U.S. and EU “regulatory acts” (pre-regulatory research and draft proposed regulations, finalized regulations, and their implementation and enforcement), including those of U.S. states and EU member states that might have a “significant impacts on trade and investment” (Article 5).
Additionally, IATP has contributed to a joint NGO statement about the SPS chapter that was released in time for an EC-sponsored TTIP Stakeholders meeting on February 4. IATP’s analysis of the proposed chapters and of the U.S. government’s insufficient capacity to provide the “appropriate level” of SPS protection guaranteed in TTIP, give plenty of reason to doubt that public, environmental and animal health and welfare will be protected, as negotiators have promised.
Trade agreements can affect a huge range of laws and programs that determine how our economies work, how we grow and sell food, and who benefits―or loses. And they lock those decisions into permanent agreements that in many cases supersede state, local and even federal laws.
Shockingly, these powerful agreements aren’t the result of a thorough and informed public debate. While bills in Congress can be contentious, they do provide at least the possibility that the public can weigh in and even influence the final legislation. Under Fast Track rules, trade deals are negotiated behind closed doors, with the final results presented to Congress for an up or down vote, no amendments allowed, and limited floor debate.
Sometime soon, perhaps in the next month, Congress will be asked to give the Obama administration Fast Track authority. Earlier this year, IATP and more than 600 groups told Congress they should reject Fast Track, and instead take new a approach on trade, one that gives a voice to those most affected. We are launching a new webpage called Trade Secrets that uncovers what’s wrong with these new mega trade deals and how they affect our everyday lives, with our first piece focused on Fast Track.
We are hearing more and more news from Europe that the Transatlantic Trade and Investment Partnership (TTIP) is running into stiff head winds, and I had the pleasure of seeing this growing storm of opposition first-hand in Berlin last week. I attended a series of events culminating in the WIR HABEN ES SATT! “We’re Fed Up” march, a massive mobilization of people saying no to industrial agriculture. This year, a special focus was on TTIP and GMOs and demanding new protections for animal welfare. This was the fifth year of the march, and at 50,000 people, the biggest so far.
One of the organizers of the march, ARC2020, described the event: “Farmers and beekeepers, tractors and stiltwalkers, samba bands and chanting citizens of all ages made their colourful way from Potsdamer Platz to the Angela Merkel’s chancellery. Their aim? To say no to a broken industrialised globalised food system and yes to an alternative.”
IATP’s Shefali Sharma spoke at the We’re Fed Up rally following the march, along with Alessa Hartmann from the German organization Power-Shift. Shefali spoke about the reasons people in the U.S. are opposed to free trade agreements. We’ve seen what happens when corporations gain power at the expense of family farmers and local economies. “But,” she added, “the corporations and the Obama administration haven’t accounted for the massive organizing of unions, environmentalists, faith and farm groups to stop fast track and set our food systems in a different direction.”
We were pleasantly surprised yesterday to learn that the European Commission has taken major steps towards respecting the rights of citizens to see what is being negotiated in the Transatlantic Trade and Investment Partnership (TTIP). It published the EU negotiating texts for eight chapters of the agreement, including Sanitary and Phytosanitary Standards (SPS – on food safety and animal welfare), Technical Barriers to Trade (which could deal with such issues as food labeling), as well as chapters on state-owned enterprises, subsidies and government to government dispute resolution. The Commission committed to releasing draft proposed texts for 16 more TTIP chapters, as well as accompanying fact sheets and position papers related to each chapter. This is a big deal. It means that civil society groups and legislators can go beyond parsing proponent claims about TTIP to see exactly what’s on the table in TTIP, at least from a European perspective.
The European Union’s Ombudsman, Emily O’Reilly, issued her recommendations to the Commission yesterday for transparency measures to govern the negotiating of EC trade and investment agreements. Ms. O’Reilly said that of the EU TTIP negotiating texts she reviewed, only those concerning market access tariffs and quotas contained commercially sensitive information that justified an EC decision not to release the proposed market access chapter. She recommended that the Commission require the U.S. to justify why each and every of the consolidated EU-U.S. draft negotiating texts should not be made public.
One of the big sticking points in the TTIP talks has been the EU’s prohibition on imports of beef treated with growth hormones. EU officials continue to insist the issue is off the table, but U.S. officials keep pushing it right back on. Just this week, U.S. Secretary of Agriculture Tom Vilsack told reporters at Politico that EU restrictions on hormone beef (and GMOs) were problem areas in the trade talks. “We should be given an equal opportunity to make the case [for U.S. farm products],” Vilsack said. “It may very well be that European consumers decide not to buy product from the United States, but they ought to be given the choice.”
Well, in fact they are given the choice, at least in the case of hormones. According to a new report by Vilsack’s own Department of Agriculture, U.S. sales to Europe of beef raised without hormones have increased substantially over the last few years. It’s an interesting story of a trade dispute spurring new, and apparently profitable, changes in production.
The EU has banned the use of growth-promoting hormones in beef since 1989 over concerns about the safety for human health. The U.S. and Canada won a WTO challenge to that decision at the WTO, winning the right to impose retaliatory tariffs on EU farm goods. In the meantime, USDA’s Agricultural Marketing Service began a Non-Hormone Treated Cattle Program, which certifies U.S. beef for export to the EU.
This year’s World Food Prize and Borlaug Dialogue, held from October 17–19, 2014 in Des Moines, Iowa once again brought together the big gun stakeholders in industrial agriculture, and provided many insights to the current framing on the global food security challenge.
Given the parallel celebration of the Borlaug Centennial marking 100 years since the birth of Norman Borlaug, it should come as no surprise that Sanjaya Rajaram was named this year’s World Food Prize Laureate. As Borlaug’s protege in terms of sustaining his legacy of wheat breeding, this award for Rajaram appears to reinforce the importance of remembering what Borlaug was said to have achieved, while also ensuring that current research efforts at the International Maize and Wheat Improvement Center (CIMMYT) in Mexico, where Rajaram is based, continue to be perceived to play an important role in meeting global agricultural research needs. It is also noteworthy to acknowledge that Rajaram was born in India but has become a naturalized Mexican citizen given that Borlaug pioneered many Green Revolution ideas and technologies in Mexico in the mid 20th century before subsequently institutionalizing them in India’s post-independence agricultural sector. Indian agriculture continues to be geared towards a commitment to use “modern” and “improved” crop varieties and inputs even as many small farmers face a variety of severe social, environmental and economic challenges that fundamentally threaten production levels and livelihood security of a significant proportion of its population.
Just ahead of the G-20 Leaders’ Summit in Brisbane, Australia (November 15-16, 2014), India and the United States announced a breakthrough in their trade negotiations impasse over agriculture. That fight had brought trade negotiations to a crashing standstill in July after the few months of tentative optimism among negotiators that followed the eleventh-hour agreement in at the Bali Ministerial Conference in December 2013. Confidence in the multilateral rules-based trading system had reached an all-time low, and while the response was muted (an agreement between two WTO members is not the same as an agreement among all), the media coverage made it clear the news of the U.S.-India agreement was very welcome in trade circles.
Should the rest of the world share this excitement? The discussion underlying the fight between India and the United States has important implications for countries’ ability to set policy to promote food security and control their food systems—and the role the WTO and the multilateral system should play in that effort.
Communities across the United States and Europe are working to transform local economic systems so that they are more sustainable and equitable. Many states and communities are utilizing public procurement programs to support those efforts, especially bidding preferences for healthy, locally grown foods, energy or transportation programs that create local jobs and fair markets. Especially in the aftermath of the Great Recession, Buy American programs have helped ensure that taxpayer-funded programs create local jobs and serve social goals. Farm to School programs that incentivize purchases from local farmers have grown in all 50 U.S. states and many European countries. Innovative efforts are also underway to expand this approach to other institutions such as hospitals, universities and early childcare programs like Head Start.
In a move that could undermine those important initiatives, the European Union has made the opening of U.S. procurement programs to bids by European firms one of its priority goals for the Transatlantic Trade and Investment Partnership (TTIP). IATP published a new report today, Local Economies on the Table, which takes a look at what those proposals could mean.
The EU has been insistent on the inclusion of procurement commitments at all levels of government, for all goods, and in all sectors. At a speech in San Francisco, French trade minister Nicole Bricq declared, “Let’s dream a little with respect to public procurement. Why not replace ‘Buy American’ which penalizes our companies with ‘Buy Transatlantic’ which reflects the depth of our mutual commitment?”