1. Trading away food security Adam Wolfenden Australian Fair Trade and Investment Network

2. Food Crisis Impacts Rice price multiplied by 2.95 Wheat price multiplied by 2.8 Corn price multiplied by 2.4 Extra 100 million people pushed into poverty. Food riots in 34 countries Berthelot, J. Sorting the truth out from the lies in the explosion of world agriculture prices, Solidarite, 30 May 2008, http://solidarite.asso.fr)

3. How did we get to this? Production falls Oil price explosion Financial speculation More mouths to feed?

4. How did we get to this? Biofuels World Bank estimates that bioethanol is responsible for 65% of the surge in food prices. US exports 2/3 of all Corn exports. Corn for ethanol now exceeding corn for export. Falling US production coupled with increased percentage of use for ethanol. Mandatory targets in Energy Independence Bill (9 bill gallons in 2009). Decreasing land used for other cereals, and decrease in corn used for feed.

5. How did we get to this? Liberalised Markets Structural adjustment policies from IMF and WB Dismantling marketing boards and guaranteed prices Elimination of subsidies and support for fertilizers, machines, infrastructure etc. Reduction in tariffs

6. Ghana: Case study in crisis Food policies of self sufficiency support through 1960s to 1980s. IMF and WB began to reverse this in mid-80s. Fertilizer subsidy removed Marketing role of the state phased out Minimum guarantee of prices for rice and wheat abolished. Tariffs reduced to 20% Martin K. Rising world prices reinforce need for food security policies, SUNS, 3 July 2008, www.twnside.org.sg

7. Ghana: Rice In 1970s could meet all local needs, by 2002 imports made up 64% of domestic supply. Rice output fell from 56,000 tonnes (1978-80) to 27,000 tonnes by 1983. US exporting 111,000 tonnes in 2003 at a price 34% below cost.

8. Ghana: Tomatoes Tomato was a thriving sector. Part of privatisation programme saw canning factories sold off and closed. Tomato paste imports rose 3,200 tonnes (’94) to 24,077 tonnes in 2002. Local tomato production has stagnated since 1995.

9. Ghana: Poultry Ghanian poultry produce reached its prime in 1980s but steeply declined in 1990s. Imports rose 144% between 1993 and 2003, mostly heavily subsidized from EU. In 1992 domestic farmers supplied 95% of Ghana’s market, this fell to 11% by 2001. Parliament tried to raise tariff from 20% to 40%, IMF let gov’t know it objected to this.

10. World Trade Organisation – Doha ‘Development’ Round “International trade can play a major role in the promotion of economic development and the alleviation of poverty. We recognise the need for all our peoples to benefit from the increased opportunities and welfare gains that the multilateral trading system generates. The majority of WTO members are developing countries. We seek to place their needs and interests at the heart of the Work Programme adopted in this Declaration.” - Doha World Trade Organisation Ministerial Declaration, November 14, 2001

11. World Trade Organisation – Doha ‘Development’ Round Mandated to remove barriers to trade in agricultural goods. Dubbed “development” round as aimed to deal with issues of developing countries. Seven years of negotiations without resolve, largely due to developing countries not willing to accept a bad deal.

12. World Trade Organisation – Doha ‘Development’ Round Developing Country Demands: Cut in the level of trade subsidies given in industrialised countries. Special Safeguard Mechanism (SSM) – effectively respond to import surges. Special Products (SPs) – food stuffs that are treated to less cuts in tariffs. Last two vital for food security in developing countries.

13. World Trade Organisation – Doha ‘Development’ Round Industrialised Country Demands: Lowering of tariffs in developing countries. Restriction of the use of the SSM Maintaining levels of domestic subsidies.

14. World Trade Organisation – Doha ‘Development’ Round As we speak, negotiators are thrashing out the details. G7 - Taking on negotiations and DG Lamy has produced a text. Being considered by Ministers NOW. A bad deal is on the table and looks like it may be agreed to.

15. What way forward? Defend what we currently have. How do we see economic relationships being organised? What role does trade have? What does it mean to focus as much on local markets?

16. What way forward? International Assessment of Agricultural Knowledge, Science and Technology for Development (IAASTD) recommends: Ensuring that effective institutions and infrastructure are in place before opening up to imports; Special and differential treatment for countries to enhance food security; Supporting small scale farming National policy space to balance needs of poor consumers and small scale farmers.