Farm groups oppose G-33 WTO food security proposal
November 01, 2013 | 05:14 PM
A coalition of more than 30 farm and agribusiness groups has sent a letter to the Obama administration urging opposition to a proposal by the Group of 33 developing countries (G-33) that would allow developing countries to buy food at prices established by price supports and exempt those purchases from their commitments to report farm subsidies to the WTO.
“Current WTO rules allow countries to make purchases into government stocks at market prices and then make those stocks available at subsidized prices to needy consumers. Expenditures for such programs need not be added to a country’s [aggregate measure of support],” the groups said in a letter to Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack.
“However, we see no reason why WTO rules should allow such food aid to be linked to price support programs, which have much more to do with boosting farm income and increasing production than feeding the poor, and which often result in the accumulation of excess stocks that are later dumped at subsidized prices onto the world market.”
The G-33 proposal is one of the elements under consideration for agreement when trade ministers meet in Bali, Indonesia, in December.
The letter, which was signed by the American Farm Bureau Federation and commodity groups including the American Soybean Association, said “We believe that a Bali agreement based on the so-called ‘food security’ proposal from the Group of 33 (G-33) would represent a significant step backwards for the WTO and would make it much more difficult to reach a comprehensive Doha Round agreement.”
“Current WTO rules allow countries to make purchases into government stocks at market prices and then make those stocks available at subsidized prices to needy consumers. Expenditures for such programs need not be added to a country’s [aggregate measure of support],” the groups said in a letter to Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack.
“However, we see no reason why WTO rules should allow such food aid to be linked to price support programs, which have much more to do with boosting farm income and increasing production than feeding the poor, and which often result in the accumulation of excess stocks that are later dumped at subsidized prices onto the world market.”
The G-33 proposal is one of the elements under consideration for agreement when trade ministers meet in Bali, Indonesia, in December.
The letter, which was signed by the American Farm Bureau Federation and commodity groups including the American Soybean Association, said “We believe that a Bali agreement based on the so-called ‘food security’ proposal from the Group of 33 (G-33) would represent a significant step backwards for the WTO and would make it much more difficult to reach a comprehensive Doha Round agreement.”
