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Monsanto's Retreat on GE Wheat a Victory for Farmers
In May, seed biotech company Monsanto announced that it would abandon research and development of genetically engineered (GE) Roundup Ready wheat. Monsanto had been seeking USDA approval to de-regulate GE wheat. It is unclear whether Monsanto will now remove GE wheat from the USDA approval process.
"If Monsanto is in fact abandoning research and development of its genetically engineered wheat, this would represent a major victory for North American wheat farmers who have followed the market principle that `the customer is always right,'" said Dennis Olson, director of IATP's Trade and Agriculture project.
Olson noted that U.S. and Canadian wheat farmers have vigorously opposed Monsanto's proposed introduction of the world's first genetically engineered wheat variety primarily because a vast majority of their consumers worldwide have stated they don't want it. It is commonly recognized that once GE wheat is introduced into fields, it will be nearly impossible to keep it completely segregated from non-GE wheat. Widespread genetic contamination has already taken place in the case of corn, soybeans and canola-the three major GE food crops currently grown in North America.
Wheat farmers have also raised serious agronomic concerns such as the danger of creating "super weeds" that would develop immunity to the herbicide glyphosate. "In looking closely at GE wheat, many wheat farmers have concluded that it would complicate weed management, not simplify it as Monsanto has claimed," Olson said. Additionally, farmers have expressed worry that GE wheat introduction would further tighten Monsanto's monopoly control of seeds worldwide, and place unfair liability on individual farmers. "Monsanto's predatory prosecution of individual farmers for patent violations has gone a long way towards convincing farmers that they will face unfair liability exposure if GE wheat is introduced, even if they choose not to grow it themselves," Olson added.
Read more about genetically engineered wheat at iatp.org.
Minnesota Smart Fish Calculator Helps
Maximize Benefits, Minimize Health Risks
Consumers now have a new tool for calculating exactly how much fish to eat, to maximize the health benefits while reducing the health risks. Launched prior to the Minnesota fishing opener, the Smart Fish Calculator offers information on over 30 different fish commonly eaten by Minnesotans. The calculator is a simple tool for sorting through often conflicting or incomplete information about fish consumption and risks.
"Government advice about how much fish is 'safe' to eat often is confusing and not specific enough to protect children of varying sizes," says Kathleen Schuler, MPH, Public Health Scientist at IATP. "The Smart Fish Calculator is easy to use. Consumers simply put in their body weight and fish selection, and it gives them the amount of that fish they can eat per week while remaining within government health guidelines."
While fish can be a good source of protein, vitamin D and healthful omega-3 fats, there are risks from eating too much of certain types of fish. Environmental pollutants like mercury and polychlorinated biphenyls (PCBs) are common fish contaminants. Most mercury pollutants come from coal-fired power plants. Mercury and PCBs can impact human health, especially fetuses and children. Exposure to too much mercury in the womb leads to brain damage, learning and behavioral disorders; PCBs cause cancer, and also are toxic to the young, developing brain.
The Smart Fish Calculator uses the Environmental Protection Agency's health standards for fish consumption. The Smart Fish Calculator can be accessed at iatp.org.
WTO Rules against U.S. Cotton Program
An interim ruling by a World Trade Organization (WTO) dispute panel in April found that the U.S. cotton program violates international trade rules. The panel, siding with Brazil, found U.S. subsidies exceeded 1992 levels, the ceiling set by the 1994 Uruguay Round Agreement on Agriculture. Unfortunately, the ruling does not address the central problem of agricultural trade - widespread dumping (the export of commodities at below cost of production).
In the case, Brazil alleged that subsidies paid to U.S. farmers growing cotton from 1999 to 2002, and those subsidies mandated through 2007 in the latest Farm Bill, violate WTO rules. The ruling apparently supported Brazil's charges that the U.S. cotton program drove world cotton prices down. The U.S. share of the world cotton exports is expected to reach 42 percent this marketing year - the highest since 1960. This is an increase from 24 percent of the world market in 1996.
Central to the legal challenge are direct payments to U.S. farms under the 1996 and 2002 farm bill, as well as payments made under emergency supplemental appropriations bills. The U.S. government argued that direct payments are de-coupled - meaning that under the WTO Agreement on Agriculture, they are not linked to current production, and thus not trade distorting. Brazil argued that the real-world effect of these payments is to encourage production.
Behind Brazil's challenge is widespread cotton dumping. Earlier this year, the Institute for Agriculture and Trade Policy issued its report United States Dumping on World Agricultural Markets. The report found that in 2002, the latest numbers available, cotton was exported from the U.S. at 61 percent below its cost of production. The export price for U.S. cotton is 37 cents per pound, down from 93 cents per pound in 1995.
IATP has prepared a short backgrounder on the Brazil challenge. IATP's press release and a commentary by IATP Trade and Agriculture Project Director Dennis Olson, can be found at tradeobservatory.org.
NGOs Call for Broad UNCTAD Mandate to Assist Poor Countries
In April, a group of nongovernmental organizations (NGOs) expressed concern that the United Nations Conference on Trade and Development (UNCTAD) is being pressured by a few industrialized nations to narrow its mandate to assist developing countries. The groups expressed these concerns during an open hearing with UNCTAD officials in Geneva in preparation for the upcoming UNCTAD XI ministerial in June in São Paulo, Brazil.
The NGOs called for UNCTAD to focus its resources on issues impacting developing countries, including the global farm commodity crisis and the impact of regional and bilateral trade deals on developing countries. The groups are concerned that recent proposals by certain industrialized countries sideline developing countries demands and undermine UNCTAD's independence.
"For eight years, the U.S. has been trying to wipe out UNCTAD's role-and the UN-based commitment to development-from trade," Kristin Dawkins, Vice President for International Programs at IATP, said at a Geneva press conference. "The World Trade Organization's mandate is narrowly focused on commercial trade, and fails to consider all the social dimensions of economic policy. We need both stronger rules governing transnational corporations at the global level and greater flexibility at the national level-with UNCTAD doing both the analytical work and the multilateral institution-building needed to manage trade for development."
IATP will be very active at the UNCTAD XI meeting in São Paulo, hosting several workshops on agricultural commodities and fair trade products for delegates. For more about UNCTAD XI, go to iatp.org/unctadxi.
CAFTA Benefits Agribusiness Over Farmers
The Central American Free Trade Agreement (CAFTA) would erode farmers' rights set out in an international convention on plant breeding and establish the right of agribusiness to sue governments for regulating to protect the environment and public health, according to a new analysis of CAFTA agriculture provisions by IATP.
"This agreement is consistent with the Bush Administration's approach to agriculture trade-set rules that are highly favorable to transnational corporations at the expense of farmers," said Dr. Steve Suppan, IATP's Director of Research and author of the analysis. "This agreement contains some provisions that we haven't seen before that will strengthen the position of agribusiness to sue farmers and governments. And because CAFTA has no provisions against the unfair trade practice of exporting agricultural products at below their cost of production, absent drought or disease, commodity prices for farmers in all participating countries will likely remain depressed."
President Bush signed CAFTA on May 28. But it is still unclear whether CAFTA will be presented to Congress for a vote this year. The deal is expected to face fierce opposition in Congress, and a vote may be avoided until after the elections in November. The CAFTA text is consistent with U.S. positions in bilateral and multilateral trade agreements: aggressive in market access (tariff reduction), particularly regarding agriculture and the services industries; demanding of strong intellectual property and investment protection for corporations; very weak on protection for environment and labor; and calling for the eventual elimination of agricultural export subsidies.
Read IATP's full analysis of CAFTA at tradeobservatory.org.
Fishy Business in Indian Country
Fish farming is fast emerging as one of the key development initiatives afoot across American Indian country, but its often-disparate elements have yet to be widely recognized by tribes, nonprofit organizations, educational institutions, foundations and the federal government. On March 21-23 in Minneapolis, a group of tribal aquaculturists and representatives from the Native food community convened for the first Indigenous Aquaculture Network meeting. The First Nations Development Institute and IATP coordinated activities.
At this convening, participants discussed sustainable aquaculture development and the role it can play in Native communities. The diverse range of aquaculture practiced by participants revealed some common themes. One is that affirmation of treaty rights played an important role in the development of each operation. Another, that institutional racism and general unfamiliarity with aquaculture have combined to complicate the permitting and establishment of tribal aquaculture projects. When these barriers were overcome, aquaculture advanced in a sustainable fashion.
Fish has always been central to many North American indigenous cultures, and all the participants expressed a belief that aquaculture can not only contribute to tribal economic development, but also help tribes to reconnect with traditional food sources. The meeting also found that aquaculture has the capacity to rebuild these food systems and aid self-reliance.
For more details on the conference and Native Aquaculture, go to nativeaquaculture.org.
UN Commission Looks at Progress on Water
The UN Commission on Sustainable Development (CSD-12) held a two-week-long session April 19-30 to assess the progress made on issues relating to water, sanitation and human settlements since the World Summit on Sustainable Development (WSSD) in South Africa two years ago. IATP's Shiney Varghese attended the session as the co-chair of the CSD-12 Freshwater Caucus, the NGO forum through which water related inputs are channeled into the session.
Both activists and developing country representatives expressed their concern that the promises made at WSSD have not been kept, be it transfer of technology or financial resources. For example, most of the investments in water and sanitation sector in developing countries still come from national sources and only one-third comes from overseas development assistance (ODA). There has been a decline in ODA through the 1990s.
Civil society groups expressed concern that an Advisory Board on Water and Sanitation set up by the UN includes many people whose track record is not particularly favorable to poverty alleviation or meeting the needs of water poor, including a Senior Vice President of Suez-the world's largest water corporation. Civil society demanded that either the Suez representative be excluded from the list or alternatively, that various civil society interest groups (trade unions, farmers, indigenous groups, women, public utility managers) be represented in the panel.
For more information on global water issues, go to waterobservatory.org.
IATP Changes Information Technology Directors
Glen Ingram, director of the information technology program at IATP, is leaving this June after four years of dedicated service. During Glen's tenure, IATP maintained its reputation as being an innovator in the use of technology within the nonprofit community. Creating a syndicated Internet radio broadcast during the 2003 World Trade Organization meetings in Cancún, providing IATP with video and audio live streaming capability and creating a highly effective team of information technology professionals are some of the accomplishments Glen has overseen. A Canadian citizen, Glen will return to Canada to promote sustainability issues through the use of technology.
The Institute is excited to welcome Kitwana Ford (left) as the new information technology director. Kitwana comes from the Minnesota Child Care Resource and Referral Network where she worked as the organization's lead technology specialist for nearly six years. Kitwana will continue to improve the service provided to IATP staff and find innovative ways of using technology to support IATP's mission.
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IATP News is an occasional publication reporting on recent events and activities at the Institute for Agriculture and Trade Policy (IATP). It is sent to board members, supporters, partners and friends. If you want to learn more about any particular item or if you do not want to receive this newsletter, send email to Communications Coordinator Ben Lilliston at blilliston@iatp.org or call: 612-870-3416. Your comments and suggestions are appreciated.
Institute for Agriculture and Trade Policy (IATP)
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