Think Forward blog

Negotiating oppression: A developed-country approach to agricultural trade

Posted January 31, 2014 by Patrick Tsai   

Used under creative commons license from world_trade_organization.

Michael Punke - Deputy USTR. Day 2 of the WTO's Ministerial Conference, Bali, 3 December 2013.

Food insecurity is a lucrative endeavor for U.S. agribusiness corporations. As a matter of course, hunger has taken a backseat to maintaining a dominant trade position when it comes to U.S. trade negotiations and domestic policy. As long as the U.S. holds its position as the world's largest agricultural exporter, and import-dependent countries continue to be bound by rules that exploit their vulnerability to volatile commodity markets, U.S. agribusiness will profit indefinitely at the expense of the most vulnerable.

In order to address global hunger effectively, the U.S. government will have to acknowledge the effect its current agricultural policy has on global food security and extend the same lenience to allow developing countries the reestablishment of sovereignty in their own food systems without threat of dispute settlement or retaliatory trade sanctions. As it stands, wealth, subsidy classification, export credits and food aid contribute to a system of subjugation and persisting power disparities.

Inequalities in power between nations exist before negotiations begin. Initial positions of wealth determine the degree to which countries can leverage the allowed subsidies outlined within international agricultural agreements to promote food security and rural development. Developed countries’ subsidies comprise the “lion’s share” of global spending supporting agriculture (though they are, in theory, bound by greater reduction commitments under trade agreements). This raises the question, “Given the inequality in initial positions, must [the situation]  inevitably result in inequality in outcomes?” (Matthews 2008, 82). Developing countries’ stagnant progress toward food security and rural development, compared to developed countries relative effectiveness, attests to the importance of economic wealth.

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Rural Climate Network expands

Posted January 29, 2014 by Tara Ritter   

The second Rural Climate Network newsletter was released last week, featuring updates on how rural America is responding to the climate challenge. Since the first newsletter, the network has welcomed five new member organizations that represent the diversity of climate work across the country and display how climate change impacts sectors ranging from fisheries to forestry to meat production. The member spotlight this month is Organic Valley, and a featured interview with Sustainability Program Manager Jonathan Reinbold outlines the organization’s views on climate change. Policy that incentivizes this kind of on-the-ground work is critical in supporting the growing rural movement to adapt to and mitigate climate change.

This edition of the newsletter also features a brief interview with Renata Brillinger of the California Climate and Agriculture Network (CalCAN) to better understand how California farmers and ranchers are handling the drought that is currently underway in California. According to Brillinger, “mandated cutbacks in water distributions, along with depletions in available surface water and groundwater, are forcing farmers to dig deeper into their pockets while making tough decisions about crop planting and livestock management.” Some farmers have resorted to pumping groundwater to compensate for the lack of water elsewhere, but that is not a sustainable strategy in the long term should the drought persist and other ideas are needed.

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Fast track targets local foods efforts

Posted January 28, 2014 by Karen Hansen-Kuhn   Ben Lilliston   

Used under creative commons license from Caelie_Frampton.

Congress is quietly considering legislation that would speed the passage of two mega trade agreements, and seeks to specifically eliminate government programs that favor “localization.” The bill would give the Obama Administration what is known as “fast track” authority—meaning Congress would surrender its constitutional authority to shape trade agreements negotiated by the president and instead can only vote up or down on the deal.

Why should those working for a fair, sustainable food system care? Perhaps no area of policy has undermined local food systems around the world more than the slew of trade agreements passed over the last several decades. These trade rules cover everything from tariffs, food safety and intellectual property to enshrining corporate rights. They place restrictions on what is allowed in national policies, like the Farm Bill, as well as the state and local level. These deals have heavily tilted the playing field from farmers and consumers toward global agribusiness and food giants like Cargill, Monsanto and Wal-Mart.

Because these trade deals, like NAFTA and CAFTA, have been so blatantly negotiated on behalf of multinational corporations and have contributed to growing income inequality, they’ve been extremely unpopular. This is why the Obama Administration has decided to negotiate these two new trade agreements in secret. That’s right, the Trans-Pacific Partnership (including more than a dozen countries) and the Transatlantic Trade and Investment Partnership (with our biggest trading partner, the EU) is being negotiated entirely behind closed doors. The negotiating text has not been made public, and, amazingly, even many members of Congress are in the dark about what’s happening.

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The price of China’s meat and dairy industries

Posted January 28, 2014 by Shefali Sharma   

Over 13 years ago, IATP documented the transformation of U.S. hog production in The Price We Pay for Corporate Hogs. In a period of 30 years (1950–1980), the number of U.S. hog farms declined by nearly 80 percent, while the average farm size increased six-fold. Whereas in 1950, 2.1 million independent farmers raised pigs outdoors or indoors with bedded straw or hay (raising 31 pigs a year); at the end of the 90s, a total of 105 farms accounted for 40 percent of U.S. production (50,000 pigs each). By 1999, 50 percent or more of the farmers were under some sort of contractual arrangement and four companies (including Smithfield) controlled 20 percent of the production. In the last decade, this process has only intensified. By 2007, four companies controlled 66 percent of the production, all at great cost to U.S. farmers, consumers, the environment and public health.

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We’re fed up!

Posted January 24, 2014 by Karen Hansen-Kuhn   

On a slightly chilly morning last Saturday in Berlin, more than 30,000 people marched through the city to raise their voices against industrial agriculture and for good food and good farming. This was the fourth year for the Wir Haben Agrarindustrie Satt (We’re Fed Up with Agribusiness) march, and the biggest so far. The day started off with a breakfast led by family farmers from around Germany and the region. They led the march with a caravan of tractors, followed by slow food, animal rights, environmental, trade, development and other activists in a joyous celebration of food justice and local democracy.

The march was the culmination of a series of events during Green Week. We started with a public forum on agriculture and the Transatlantic Trade and Investment Partnership (“TTIP: No We Can’t!”) organized by Martin Haüsling, a Green Party Member of the European Parliament. The German government held its annual Global Forum for Food and Agriculture, which included informative sessions organized by NGOs, academics and corporations on the future of the food system. All great events, but hard to beat the Snippledisco (Disco Soup), where hundreds of people chopped vegetables deemed not quite good enough for the supermarket to pounding music, at once protesting food waste, preparing soup for the demo the next day and just having a great time.

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Fast tracking a corporate agenda

Posted January 10, 2014 by Karen Hansen-Kuhn   

Used under creative commons license from glynlowe.

The U.S. trade debate shifted into high gear yesterday with the introduction of Congressional bills to fast track trade deals. If approved, this would give the administration the authority to negotiate trade deals behind closed doors and then submit the resulting agreements to Congress for an up or down vote, with very limited debate and no possibility of amendments. Unions, environmental organizations and many other civil society groups immediately denounced the bill as undemocratic and out of date. Some 151 Democrats issued a letter last week expressing opposition to the bill, so its passage is far from assured.

Even beyond the undemocratic nature of the fast-track mechanism, the bill includes negotiating objectives that should raise alarms for advocates of food sovereignty and international development. It would direct the office of the U.S. Trade Representative (USTR) to eliminate “localization barriers to trade.” Rather than celebrating the emergence of strong local economies, that provision would direct USTR to "eliminate and prevent measures that require United States producers and service providers to locate facilities, intellectual property, or other assets in a country as a market access or investment condition, including indigenous innovation measures." That kind of measure, if enacted in a trade agreement, could easily boomerang back to the U.S. to undermine local content requirements for job creation or even perhaps local foods programs.

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Germans speaking out against industrial meat and agriculture

Posted January 9, 2014 by Shefali Sharma   

Author Shefali Sharma stands inside an industrial pig operation near Muenster, Germany.

One of Berlin’s big newspapers, the Berlin Zeitung, flashed images of little piglets today and of mass produced turkeys. This is part of a bigger build up towards a major demonstration on January 18 in which over 20,000 citizens are expected in Berlin to protest against industrial farming in the country—mass meat production being the vivid centerpiece for why it is so bad for people and the environment.

I have been in Germany for the last few weeks and am struck by how hot this topic is becoming—capturing media attention and putting the Green Party into elected positions in different states where animal factory farms have become a major problem. A slow movement is building, garnering ever increasing consumer support towards direct farmer-to-consumer marketing of organic, small-scale, locally produced, humane agriculture products.  

The campaign that is organizing events and the demonstration during Germany’s “Green Week” is called "Meine Landwirtschaft" or “My Agriculture,” building a message to put back agriculture into the hands of better stewards who can respect soil, water and integrate human and animal health into good food for the people and the planet. This year’s theme for the campaign demonstration is "Wir Haben Agrarindustrie Satt!" or "We’re fed up with industrial agriculture!" The poster child: a big pig face.

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Have it THEIR way

Posted January 8, 2014 by Dr. M. Jahi Chappell   

Used under creative commons license from cafemama.

The illusion of choice takes away from our ability to get to a just, sustainable food system, meaning we’ll have to “Vote with our Vote.” We can’t afford to just “Vote with our Fork.”

We’ve been told that we in the U.S. have the best, safest food system in the world. Without getting bogged down in endless debate, let’s get some context: the U.S. has 6 percent of households with very low food security and almost 9 percent more who are not sure they’ll have enough money or resources for food (at the same time, our average food availability is equal to 3,800 calories per person per day, much more than the recommended 1900 to 2500 calories/person/day); we throw away and waste 30 to 50 percent of our food; our food system is rated as fourth in food safety; we’re first (among industrialized countries) in overweight and obesity and tied with Greece for second in terms of the number of people who can’t reliably afford adequate food. That’s right: despite having some of the world’s cheapest food, we have one of the highest levels among wealthy countries of people not being able to reliably afford it.

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The New Year came to Casselton with a bang

Posted December 31, 2013 by Dale Wiehoff   

The New Year came in on the heels of an explosion in the small prairie town of Casselton, North Dakota, when two BNSF Railway trains collided, one carrying crude oil. The residents of Casselton were told to evacuate as the thick clouds of black smoke filled the sky. The only comfort in this latest of crude oil transportation disasters was that no people lost their lives. That wasn’t the case in Lac-Megantic, Quebec where 47 people lost their lives when a Montreal Maine & Atlantic Railway Ltd train carrying tar sand oil derailed and exploded. Small rural communities and First Nations lands have suffered the most from this steady flow of oil spills.  When it isn’t train tankers careening off the tracks, it is crude oil pipeline leaks flowing out on to wheat fields and into rivers. When it isn’t crude oil, it is natural gas explosions such as the one in West, Texas last April, when a fertilizer plant blew up, killing 15 innocent people. Repeatedly, the oil and gas industry has shown criminal disregard for the lives and property of people and communities.

So, what can citizens do? We could and we must say that the nation’s infrastructure for oil and gas development is not up to the threat posed by the headlong drive to squeeze every last drop of petroleum out of the earth. We could and we must say that federal, state and local governments have failed to protect us, and have fallen far short of establishing and enforcing effective regulatory standards for the oil and gas industry. These measures are critical and it is up to us to hold our governments accountable.

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"Trading" at the speed of light

Posted December 19, 2013 by Dr. Steve Suppan   

A chart documenting high-frequency trading volume.

Is it possible or necessary to regulate Automated Trading Systems (ATSs) on commodity futures markets that transact business electronically without direct human intervention at the speed of light (high-frequency Trading (HFT))? The Commodity Futures Trading Commission (CFTC) sought answers to that question in a September 2013 Concept Release with 132, often multi-part, questions. As CFTC Chairman Gary Gensler remarked in an appendix to the release, ATSs account for 91 percent of all trading, and farmers and ranchers are affected by ATS-generated price volatility. IATP responded to a few of the 132 questions in a comment filed last week with the CFTC.

The failings of ATSs, characterized popularly as “computer glitches,” came to the public’s attention on May 6, 2010, when U.S. stock markets lost 5–6 percent of their total value in a matter of minutes, before recovering later in the day, due to human intervention. The CFTC and the Securities Exchange Commission (SEC) issued an analysis of the “flash crash” in September 2010. The CFTC’s Technology Advisory Committee (TAC) held hearings over more than a two year period to exchange information about financial industry HFT practices and to recommend rules and definitions that were featured in the Concept Release.

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