The World Trade Institute Bern Switzerland Liberalising Trade

The World Trade Institute Bern, Switzerland Liberalising Trade and Investment in Agricultural Commodities - How Fast? UNCTAD GLOBAL COMMODITIES FORUM 2011 Panel A 6 “Commodity policy challenges“ Presentation by Christian Häberli, Ph. D, Senior 1 February 2011 © Christian Häberli Research Fellow

Financial Times 6 January 2011 d o o F h g i h d or , c h t e r n t o hi m t s s e a c La N l i e r h h t p g i g d h iña’s n o i o r d f r u l o d a c d pow Glob s hit a re vels seen a UN foo T erful e h e c c l o i e omm t punc e phen pr h g t n i g d o n h hit r i o d i s o s s m i c t a c c i e p a e s ausin n , s s o i sur s n i. x know g str cr e d 8 n 0 i o and a n n 2007 ffect g atmos as La N ing r pher iña i e c sour arou even c n e Free d the ts trade mark w rs orld. e t s can s The a till fe nswe volat ed th r to th ility i e wor t e cur r o f s not m o c mark s l d to pro rent pric AO draw ets, b F iots r secut e ut to G 20 d o o f f o e or b use th must lack t a lo act to e ely The relativ put fo m better. T ck Robe rice p d e n i a r rt Zo od first, w he t s re ellick s r e l i p t a t es s f o e. increas y. a b t a d r o c 1 February 2011 © Christian Häberli 2 keeps dis

policy failures galore International Organisations international commodity agreements have not delivered stable prices and producer revenues „Right to food“ but no solutions addressing global food security, food aid quantity and quality, shortages under-regulated and over-protected foreign direct investment including „land grabbing“, cartels, and climate change response to food crisis 2007 -08 (HLTF): „It is necessary to immediately scale up public spending and private investment. “ 1 February 2011 © Christian Häberli 3

policy failures galore (cont‘d) Fragmentation the Right to Food has been ratified by 160 countries in international conventions (ICESCR). It implies a “do no harm” obligation but surplus dumping is still allowed by WTO. “trade negotiators either are not aware of the human rights obligations of the Governments they represent, or they do not identify the implications for their position in trade negotiations” (Olivier de Schoutter 2009) 1 February 2011 © Christian Häberli 4

policy failures galore (cont‘d) WTO today… the Marrakesh NFIDC Decision is useless “mutual supportiveness”? sea turtles enjoy better protection in WTO courts than hungry people! no multilateral trade rules remedies for access to resources, export taxes and restrictions (food, oil/gas, timber, rare earths) domestic support (e. g. biofuel subsidies) and tied food aid as a means of surplus disposal export credits and export state trading dual pricing of energy commodities (oil/gas) 1 February 2011 © Christian Häberli 5

policy failures galore (cont‘d) … and after Doha Round implementation! WTO rules may one day effectively prevent food aid from displacing commercial supplies of third countries, but unless there is a more coherent and less fragmented approach WTO will continue to allow such ‘aid’ to displace local production and destroy the livelihood of local farmers. “without the introduction of appropriate safeguards and transitional measures, trade rules and policies could have adverse effects on the right to food, workers’ rights and other rights of small farmers and the rural poor. ” (UN High Commissioner on Human Rights) 1 February 2011 © Christian Häberli 6

Doha Round: (unaddressed) 2008 proposals to revise GATT-Art. XX(h) “adoption of intergovernmental commodity agreements, for stabilization of prices for exports of agricultural commodities at levels that are stable, equitable and remunerative“, including „agreements of which only commodity-dependent producing countries are parties“, „negotiated and adopted on an international or regional basis“ with the „participation of associations of producers“ “technical assistance shall be provided for, inter alia, the improvement of world markets for commodities” 1 February 2011 © Christian Häberli 7

any ways out? International Organisations • general obligation to cooperate in the sense of ICESCR-Article 11(2) • enforce the obligation to protect, respect and remedy (Ruggie 2009) • develop mandatory standards for ‚good practices‘ (agricultural and mining) and ‚good commodity investment‘ (including competition rules) • enable producer access to risk management instruments • ensure access to information and access to justice under multilateral agreements 1 February 2011 © Christian Häberli 8

any ways out? (cont‘d) WTO improve DDA results 2008 and conclude the Doha Round rules and decisions on strategic (regional) stockpiles, and export restrictions methodologies for S&DT which would allow real needs to be targeted and support the justifiability of S&DT as a substantive equality initiative (Moon 2009) binding trade preferences with graduation criteria (Bartels & Häberli 2010) 1 February 2011 © Christian Häberli 9

any ways out? (cont‘d) WTO: Doha Round Final Act • formal commitment of food aid donors not to reduce food aid volumes in times of food price increases • mandatory and quantified Aid for Trade Programme by the ‘Doha winners’ including for food crop production in NFIDCs 1 February 2011 © Christian Häberli 10