In the category of “praise more fit for a eulogy,” U.S. Trade Representative Michael Froman is reported to have said of the last minute negotiations to prepare a package for upcoming WTO Ministerial in Bali: "It's unclear whether they will succeed or not. We certainly hope they will succeed. But [the WTO] has served a very important function and will continue to serve a very important function as a dispute settlement mechanism either way." (Inside US Trade, November 15, 2013).
Froman seems to be saying it is okay if Bali is a failure—which, given the latest news from Geneva, is a good thing because the meeting has failure written all over it.
There are lots of reasons why the system is failing. The Doha Agenda, adopted in 2001 and still ostensibly the framework for negotiations, should not have been agreed in the first place. Multilateral trade rules are worth getting right, but the Uruguay Round agreements on which the rules now in place are based got far too much wrong.
The trade agenda launched in Doha in 2001 is dead but the corpse is not yet buried. Most developing countries say they want it all still—Doha resuscitated—while the majority of industrialized countries want to salvage the corpse for parts; they’ll take deeper deregulation of services, more restrictive intellectual property rights and the harmonization of regulations for transnational firms, but are happy to leave rotting their promise to finally eliminate export subsidies in agriculture, make real cuts to trade-distorting support, or support disciplines on agricultural exporters that are as stringent as the disciplines imposed on food importers.
As we prepare to gather with family members around the dinner table and give thanks, let’s remember the nation’s 20 million food workers. From the field, to the processing facility to the grocery store, these workers have some of the nation’s most difficult and sometimes dangerous jobs, while often living below the poverty line.
The momentum to ensure food workers are treated fairly is growing, particularly around the need to increase the minimum wage. A recent report by the Food Labor Research Center at the University of California, Berkeley and the Food Chain Workers Alliance shows how raising the minimum wage would particularly improve the lives of food workers, while only increasing food prices by an average of less than half a percent. The Fair Minimum Wage Act in Congress would raise the minimum wage from $7.25 to $10.10 per hour over the next three years. The proposal also includes an increase in the minimum wage for tipped workers to 70 percent of the minimum wage. Better wages for workers help strengthen the economy and the food system. Sign this petition to ask Congress to act!
The Food Chainworkers Alliance’s Joann Lo outlines a number of other policy options to improve the lives of food workers at IATP’s Beyond the Farm Bill website.
People in the U.S. may still remember how the streets were shut down in Seattle exactly 14 years ago (1999) as trade diplomats from all around the world gathered for the World Trade Organization’s (WTO) 3rd Ministerial meeting. Back then, there were protests on the streets by citizens who asserted that trade policy could not be made without public debate and behind closed doors because of its implications for everyday concerns such as food, environment, health and other issues that shape our lives. At that meeting, there was a revolt by developing countries as well, who felt that a backroom deal was being made by a few powerful countries that would then be imposed on them as an international agreement. Though the U.S. and other rich countries failed to launch a new trade round in Seattle, they succeeded two years later, in Doha, in the wake of September 11.
Fast forward 12 years and we have a WTO stalemate once more in time for the 9th WTO Ministerial in Bali next week. The conflict proves yet again that trade policy cannot be made in a vacuum, particularly when it comes to critical human concerns such as governments’ obligation to protect their citizens’ right to food.
The controversy pits the government of India against the United States, but in reality, the controversial G-33 proposal (named after the group of developing countries who have tabled it) is about allowing all developing countries the policy space to spend public resources on food stocks to ensure price stability and food security. U.S. opposition to that proposal has focused in part on the argument that this would limit export opportunities for companies wanting to sell in the Indian market. U.S. agribusinesses and commodity groups also complained in an October letter to the US. Trade Representative (USTR) that the proposed creation of food reserves would unfairly advantage producers in those countries.
Eric Holt-Giménez, director of the amazing food policy think tank FoodFirst, recently wrote in the Huffington Post that if healthy, organic food is unaffordable, this is a problem of wages and rights, not inherently a problem with healthy, organic foods. Meanwhile, Doug Rauch, the former president of the grocery chain Trader Joe’s is set to open a market “to repurpose the perfectly edible produce slightly past its sell-by date that ends up in the trash . . . [the market] will prepare and repackage the food at deeply discounted prices.” One could take Rauch’s apparently noble kludge to reinforce the old saw that people only care about price when it comes to food.
This, of course, is nonsense.
A Spanish version of this commentary originally appeared in La Jornada.
One of the clearest stories from the NAFTA experience has been the devastation wreaked on the Mexican countryside by dramatic increases in imports of cheap U.S. corn. But while Mexican farmers, especially small-scale farmers, undoubtedly lost from the deal, that doesn’t mean that U.S. farmers have won. Prices for agricultural goods have been on a roller coaster of extreme price volatility caused by unfair agriculture policies, recklessly unregulated speculation on commodity markets, and increasing droughts and other climate chaos. Each time prices took their terrifying ride back down, more small- and medium-scale farmers were forced into bankruptcy while concentration of land ownership, and agricultural production, grew.
It’s hard to separate the impacts of NAFTA from another big change in U.S. farm policy: the 1996 Farm Bill, which set in place a shift from supply management and regulated markets to an accelerated policy of “get big or get out.” Farmers were encouraged to increase production with the promise of expanded export markets—including to Mexico. But almost immediately, the failure of this policy was evident as commodity prices dropped like a stone, and Congress turned to “emergency” payments, later codified as direct payment farm subsidies, to clean up the mess and keep rural economies afloat.
Then, as new demand for biofuels increased the demand for corn, and investors turned from failing mortgage markets to speculate on grains, energy and other commodities, prices soared. It wasn’t only the prices of farm goods that rose, however, but also prices of land, fuel, fertilizers and other petrochemical based agrochemicals. Net farm incomes were much more erratic.
To truly see the power of agribusiness, and its growing disconnect from regular people and farmers, look no further than the current dust-up over Country of Origin Labeling (COOL). Polls say more than 90 percent of consumers want simple labeling indicating what country the meat they are buying comes from. Farm groups like the National Farmers Union and the U.S. Cattlemen’s Association support it because of the marketing advantage it gives to U.S. produced meat and livestock producers. Yet, agribusiness has repeatedly flexed its lobbying muscles to block COOL and now they are at it again as Congress negotiates a new Farm Bill. Why do companies like Cargill, JBS and Tyson care so much about COOL? Remarkably, these enormously profitable global corporations are frightened that if consumers better understood their business model—which pays no attention to what country animals come from—they might have to make some changes.
On October 29, big meat (Cargill, Smithfield, Tyson, JBS, among others) sent a letter (subscription required) to the House and Senate Agriculture Chairs demanding that the Farm Bill “reform” COOL. Soon thereafter, House Agriculture Chair Frank Lucus (R-OK) parroted big meat’s arguments in announcing he wants to repeal COOL to avoid retaliation from trade partners. Senate Agriculture Committee Chairwoman Debbie Stabenow has admitted that COOL is on the agenda for the Farm Bill conference committee.
In the past week, we have had a terrible reminder of what’s at stake in our work with the horrific typhoon hitting the Philippines. IATP Board Member and Director General of the Asian Farmers Association (AFA), Esther Penunia, has let us know that she’s alright, after several anxious days. Some of our earliest work with AFA was working together to build knowledge and capacity on climate change before the Copenhagen talks in 2009, and they continue to be close partners to promote agroecology as a resilient, low-carbon solution to feeding a climate-challenged world.
Esther lives in Manila and was there when super typhoon Haiyan struck last Friday. Esther and her immediate family got through fine, but her sister’s family lives in Tacloban, the hardest hit city. Esther had no news from them for several days. But Tuesday, she reported that her sister and family are safe—despite being in Tacloban at the height of the storm. As Esther told us, “You know how strong you are when being strong is the only choice left for you."
At least 10,000 others were not so lucky.
Haiyan was the strongest tropical storm to make landfall in history. It was almost certainly made stronger by the warming of shallow Southeast Asian seas due to man-made climate change, and its effects were exacerbated by the unusually high degree of sea level rise the region has already experienced in recent decades. The Philippines delegate to the international climate talks in Warsaw issued a strong plea for action, and has gone on a hunger strike to try to spur strong action.
During the more than three years since Congress passed the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, financial regulators have struggled to draft, approve and implement the rules authorized by Dodd-Frank. No agency has met greater Congressional, Wall Street and corporate resistance to Dodd-Frank rulemaking than the Commodity Futures Trading Commission (CFTC), which has authority over more than 90 percent of the $300 trillion U.S. derivatives market. Derivatives are financial contracts, whose value is derived from the value of an underlying asset, such as wheat, oil or a mortgage interest rate. No single CFTC proposed rule has generated more comments—more than 23,000 and counting—than a rule that would limit financial firm market share of agricultural, energy and metals derivatives.
On November 5, the CFTC approved a nearly 400-page revised position limits rule and consequently withdrew an appeal to defend its original rule at the Washington D.C. Court of Appeals. (For an explanation of the October 2012 district court ruling that gave rise to the appeal, see IATP’s blog.) Position limits attempt to prevent excessive speculation and market manipulation by regulating the market share percentage that any one trader and its affiliates can control of a designated commodity contract. The CFTC also approved a rule on the data aggregation of positions across borders, to prevent regulatory evasion by trading through foreign affiliates. And so begins Round 2 of the position limits fight.
Submit a comment by Friday, November 15 to tell the FDA why their proposed food safety rules don't work for small- and medium-scale food producers.
Access to safe food is something that many of us take for granted. It is assumed that the jam we pick up from the farmers market or the chicken purchased from the grocery store will have been grown and processed in a way that will nourish, not harm, our health or the health of our family. Behind these and all food purchases is a long line of farmers and processors with the responsibility to ensure that we can be afforded this assumption of safety.
The rise of the industrialized food system has deteriorated this trust through increasingly common breaches. Just In the past two months, outbreaks of Salmonella in industrialized chicken production and E. coli in the prepared food products of national retailers have, once again, made consumers suspicious of the food on their shelves. Too often, these outbreaks are the result of the scale and cost-cutting priorities of the industrial food system, making public health the collateral damage of an unsustainable food systems.
The annual global climate talks are underway this week in Warsaw, Poland. The agenda for the 19th session of the Conference of Parties (COP 19) to the U.N. Framework Convention on Climate Change (UNFCCC), as the climate talks are formally called, includes discussions on “issues relating to agriculture” with climate change adaptation identified, appropriately, as a primary focus. As anyone who is engaged in farming or in other natural resource related fields or who lives in a rural landscape knows, there are big changes already occurring that are impacting their livelihoods, communities and local economies.
Despite this focus, it is unlikely that there will be many rural voices at the negotiating table in Warsaw. That is unfortunate, because in order to succeed, we believe it is essential to involve rural stakeholders in identifying possible policy and on-the-ground solutions. Sadly, the discussions at COP 19 are more likely to revolve around the promotion of carbon markets rather than the real strategies and investments needed to help rural communities, farmers and others to be more resilient and to help slow the pace of climate change.
To focus and strengthen the U.S. rural perspective on both the problems and solutions associated with climate change, IATP and its partners are excited to announce the launch of the Rural Climate Network (RCN). Formed out of the 2011 National Rural Assembly, the Rural Climate Network was born in response to this identified lack of rural engagement in climate policy development, but also out of a recognition for a greater need of collaboration among rural organizations and leaders regarding relevant climate change adaptation and mitigation resources, information and strategies.