Trade negotiators from the United States and the European Union are meeting in Brussels this week behind closed doors to inch towards a transatlantic free trade agreement, benignly referred to as the TransAtlantic Trade and Investment partnership (TTIP). Twenty-nine U.S. based community, farm, environmental, animal welfare and consumer organizations sent a letter today to United States Trade Representative Michael Froman voicing strong concerns about prominent corporate meat industry demands in TTIP. The aim of the agreement is to “harmonize” standards between the European Union and the U.S. on a wide range of issues that touch our lives, including how our food (meat in particular) is produced and processed and who controls that system.
Over 20 corporate meat and feed industry associations and representatives submitted public comments to USTR last May. Together, their comments demonstrate how these interests seek to weaken standards on meat and animal products that could undermine food safety, public health, animal welfare, worker safety and environmental regulations.
Across the U.S. and the EU, citizens, farmers and civil society organizations are advocating for a fairer, healthier and more humane form of meat production that eliminates the use of chemicals, hormones and antibiotics and which allows independent and local producers to flourish. The letter states:
This September, it will be five years since President Barack Obama and other Group of 20 leaders committed to regulating the over-the-counter (OTC) derivatives markets jointly and in each of their jurisdictions. The world’s largest banks would have defaulted in 2008–2009 on their bets in the nearly unregulated $700 trillion global OTC market had it not been for publicly funded bailouts, above all the $29 trillion U.S. Federal Reserve Bank emergency loan program of 2007–2010.
Fulfilling the G-20 commitments has been a political, legislative, budgetary, regulatory and technological struggle, due in part to the opposition of those same publicly rescued banks. For example, the International Swaps and Derivatives Association (ISDA), which represents OTC broker dealers and their largest corporate clients, is one of three parties suing the Commodity Futures Trading Commission (CFTC) to prevent the application of the Dodd-Frank financial reform legislation to the foreign affiliates of U.S. OTC broker dealers. Losing foreign affiliate trades, booked to their U.S. headquartered firms, triggered the 2008-2009 default cascades.
One of the most controversial provisions in free trade agreements is the Investor-State Dispute Settlement (ISDS) mechanism, which gives corporations the right to sue governments over public measures that undermine their expected profits. It’s a pretty outrageous assault on democratic structures. In fact, when I tell people new to the trade debate about it, at first they often don’t believe me.
But it is a fact. ISDS is included in bilateral and regional trade and investment pacts around the world. The supposed justification is that legal systems in many countries don’t adequately protect foreign investments, so it creates a special tribunal just for them. For example, under NAFTA, three U.S. agribusiness firms sued the Mexican government over restrictions on high-fructose corn syrup, and won $169 million in compensation. Tobacco giant Phillip Morris, operating through its Hong Kong subsidiary, has sued the Australian government over new rules on cigarette labels that highlight fthe health dangers. If that one seems a bit convoluted, it’s because when the Australian government signed a free trade agreement with the United States, it refused to include ISDS, saying its legal system was perfectly able to handle any disputes. But Australia was already bound by an investment pact with Hong Kong.
Busy hands make for busy minds—that’s the theory behind experiential, or hands-on learning. IATP’s new high school–level Farm to School Youth Leadership Curriculum, released today, is designed with this in mind: Beyond learning about sourcing local food and the research that goes into localizing their school lunch, students actually participate in creating or expanding a Farm to School program, assisting their school lunchroom staff and administration with the nitty gritty of sourcing local foods for lunch.
From the press release:
The Farm to School Youth Leadership Curriculum is comprised of six lessons that can be taught consecutively over a semester or as single lessons or activities to complement other classes. Each lesson contains a lesson summary, facilitator preparation notes, activities, worksheets, recommended optional work and further resources for students and teachers. Lessons include themes such as “School Lunch: How Does it Really Work?” and “Communicating with Producers of Local Foods.”
Development of the Farm to School Youth Leadership Curriculum was a collaborative process, including consultation with educators, food service professionals and Farm to School experts, supported by the Center for Prevention at Blue Cross and Blue Shield of Minnesota, the John P. and Eleanor R. Yackel Foundation, the Minnesota Agricultural Education Leadership Council and the Minnesota Department of Agriculture.
The food crisis of 2008 led to a broad agreement in the agricultural development community that the lack of appropriate investment in agriculture had been a key contributing factor to unstable prices and food insecurity. The crisis coincided with an increase in land grabbing in many parts of the world, but especially in Africa. It is in response to these events that the idea of developing some criteria on agricultural investments came up in international policy and governance arenas.
The food crisis also led the United Nations in 2008-09 to reform its Rome-based Committee on Food Security (CFS) to address both the short term food crisis, and the long-term structural issues that led to it. It involved bringing new people to the table where decisions were being made, and this included a new Civil Society Mechanism (CSM).
In October 2010, the newly reformed CFS was faced with a challenge: Should it endorse the international Principles for Responsible Agricultural Investment that Respect Rights, Livelihoods and Resources (PRAI) developed by the Inter-Agency Working Group (IAWG), composed of FAO, UNCTAD, IFAD and the World Bank, or refuse to endorse it in response to the CSM position rejecting the PRAI?
IATP is excited to announce the release of a series of new reports looking in-depth at China’s feed, pork, poultry and dairy sectors, the past and future trajectory of the industry, and global impacts of China’s efforts to balance grain self-sufficiency and the desire to provide cheap meat.
China's transition to an industrial, resource-intensive model of livestock production could have major implications around the world, impacting farmers, public health and the environment.
Economists are still struggling to quantify the trillions of dollars of costs to the global economy of collapse and bailouts of the world largest private banks. Three Federal Reserve Bank of Dallas economists “conservatively estimate” $6-14 trillion dollars of damage to the U.S. economy alone from the 2007-2009 financial and commodity market crisis. At the upper end of their estimate, that’s $120,000 for every man, woman and child in the U.S. The global damage caused by the global bank near defaults, publicly funded bank rescues, and fiscal crises that followed the rescues, has yet to be estimated.
International cooperation on the regulation of global banks is required because of the global trading practices and corporate structure of the largest banks, most of which are major commodity traders. For example, according to another Fed study, the seven largest U.S. headquartered bank holding companies have about 5,700 foreign subsidiaries in dozens of foreign jurisdictions. To judge by the geographic distribution of these subsidiaries, the largest banks are structurally transatlantic institutions that require intensive U.S. and EU regulatory cooperation to prevent another 2007-2009 debacle.
It’s a big week in the agriculture world. Just days before Obama signed the new Farm Bill into law, Agriculture Secretary Tom Vilsack announced the locations of seven regional hubs for climate change adaptation and mitigation. These hubs will attempt to address the risks that farmers increasingly face due to climate change—including fires, pests, droughts and floods—by disseminating research on ways landowners can adapt to and adjust management strategies to build resilience.
This is a notable step forward in climate policy and has important implications for rural communities. Many rural communities tend to view large governmental agencies negatively, especially those agencies that regulate the agricultural activities that dominate many of those communities’ economies. However, farmers feel the direct impacts of extreme weather more than anyone. The climate hubs will help by linking a diverse network of partners, including universities, nongovernmental organizations, federal agencies, state departments, native nations, farm groups and more. Broadcasting climate change research and information from this wide array of sources, including sources that farmers trust and regularly interact with, could make climate change adaptation and mitigation a more accepted and commonly desired goal.
Encouraging action on climate change is paramount not only from an environmental perspective, but from an economic perspective as well. The drought of 2012 cost the American economy an estimated $50 billion between 2011 and 2013. It’s too early to assess the costs of the current drought punishing California, which produces nearly half of the country’s fruits and vegetables. Clearly, the risks posed by volatile weather events have implications not only for farmers, but for the economy and society as a whole.
Was it just exhaustion from two-plus years of negotiations that finally produced the Farm Bill that is expected to be signed by the President this week? Or, was it the sense that “it could have been a lot worse” when compared with a mean-spirited, destructive Farm Bill passed by the House of Representatives last year. For whatever reason, there is a sense that a deeply flawed Farm Bill—the terms of which were dictated largely by austerity fanatics from the start—is the best we’ll get under the current political environment.
That’s a problem for all of us. It’s definitely a problem for the growing number of working age Americans who rely on food stamps. This Farm Bill cuts food stamp benefits (about 80 percent of the Farm Bill costs) by $8.6 billion.
It’s a problem for the environment and the urgent need to help farmers shift toward more climate resilient production systems to deal with extreme weather events. The bill cuts about $6 billion from conservation programs, the first time conservation funding has been cut since it became part of the Farm Bill in 1985 (excellent analysis by the National Sustainable Agriculture Coalition). Those cuts reduce the number of acres for the Conservation Reserve Program (which takes sensitive land out of production to protect habitat and wildlife) from 32 million to 24 million acres. It also limits the new acres of enrollment into the Conservation Stewardship Program (which support conservation measures on working farms) to 10 million per year—a cut of 2.8 million acres per year over the next decade.
Farmers, union, environmental and women’s activists gathered in Mexico City last week to take stock of the lessons from NAFTA and plan strategies to confront the next big threat: the Trans Pacific Partnership (TPP). One of the earliest lessons from the NAFTA experience was that people and environments in all three countries were affected. The stories from Mexico, Canada and the U.S. were remarkably similar: environmental destruction, threats to union and community organizing, and, in all sectors, a marked increase in corporate concentration as companies gained new abilities to move different aspects of production across borders in search of lower costs and higher profits.
This has been especially true in agriculture. As part of the multisectoral forum, more than 100 members of ANEC, (the National Association of Rural Commercialization Enterprises, which brings together more than 60,000 Mexican small- and medium-scale farmers), organized a farmers’ forum with international allies. Alberto Arroyo, a longtime leader in the Mexican Action Network on Free Trade (RMALC), explained that Mexico’s dependency on food imports has increased dramatically since the agreement began, from 16 percent before NAFTA, to more than 42 percent today. That situation is even more alarming when we consider that today nearly half of Mexican families, even with two wage earners, can’t afford the “canasta basica” of basic necessities. Adding on to the devastation wreaked on the countryside by the influx of cheap corn under NAFTA, TPP would compel Mexican coffee farmers to compete with cheap Vietnamese robusta coffee.