Asian countries demand rice protection as part of global trade pact
Developing countries raised the specter of millions of destitute subsistence farmers Monday as they pressed for extra protection of their domestic rice producers from surges in foreign imports.
By Agencies |
GENEVA: Developing countries raised the specter of millions of destitute subsistence farmers Monday as they pressed for extra protection of their domestic rice producers from surges in foreign imports.
India and Indonesia have led demands for a ``special safeguard'' to be included in a new global trade pact being negotiated in Geneva, despite opposition from the United States and agricultural exporters in Latin America.
Trade Minister Mari Pangestu of Indonesia, the world's fourth most populous country, said she has to ensure the survival of some 60 million farmers mostly small-scale rice growers who are vulnerable to competition from large foreign producers.
Poor countries want the power to increase tariffs on rice and other foods as soon as either imports rise or prices drop by a certain level. The US, European Union and others have proposed severe restrictions before countries can invoke emergency tariffs, Pangestu said.
``It's so limited that we cannot use it, whatever the situation food crisis or no food crisis,'' said the agricultural economist, who is opposing a tentative deal laid out last week by WTO chief Pascal Lamy.
The issue of a special safeguard for poor-world farmers also featured in a list of gripes mentioned Monday afternoon by India's trade minister, Kamal Nath. He spoke as talks paused for heads to cool following a difficult closed-doors meeting at the World Trade Organization.
India and Indonesia have led demands for a ``special safeguard'' to be included in a new global trade pact being negotiated in Geneva, despite opposition from the United States and agricultural exporters in Latin America.
Trade Minister Mari Pangestu of Indonesia, the world's fourth most populous country, said she has to ensure the survival of some 60 million farmers mostly small-scale rice growers who are vulnerable to competition from large foreign producers.
Poor countries want the power to increase tariffs on rice and other foods as soon as either imports rise or prices drop by a certain level. The US, European Union and others have proposed severe restrictions before countries can invoke emergency tariffs, Pangestu said.
``It's so limited that we cannot use it, whatever the situation food crisis or no food crisis,'' said the agricultural economist, who is opposing a tentative deal laid out last week by WTO chief Pascal Lamy.
The issue of a special safeguard for poor-world farmers also featured in a list of gripes mentioned Monday afternoon by India's trade minister, Kamal Nath. He spoke as talks paused for heads to cool following a difficult closed-doors meeting at the World Trade Organization.
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Nath, who has been singled out by Washington for criticism, said some 90 countries supported his position and that he was determined to protect the ``poorest of the poor from import surges.''
Developing countries have pointed to the current jump in food prices as a major reason for why their farmers need extra protection against a spike in prices or imports. They say rapid fluctuations could cause entire domestic rice markets to dry up if left unchecked, imperiling their food security.
Rich countries accept the need for a safeguard, but say it goes against the idea of a trade liberalization round to allow tariffs to climb above already existing levels, especially if the threshold for action is too low.
But Pangestu said poorer countries cannot risk waiting for the full impact of price drops to hit farmers before adjusting.
``It's not like manufacturing. It's not a machine you can just turn on or off,'' she told The Associated Press in an interview, adding that even a 10 percent import surge could hurt a large number of Indonesian farmers.
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Pangestu dismissed an argument by countries that cheaper, imported rice would benefit Indonesia. Rice is a staple food in the country, as in much of Asia, and high prices have led to protests and even riots in recent months. Pangestu said her country is hoping to become a net importer of rice in the medium term by increasing its farm output to better compete with large foreign growers. In the meantime Indonesia has the backing of more than half of the 153 members of the WTO on the issue of special safeguards, she said.
Any deal in the so-called Doha round of trade talks which began in the Qatari capital seven years ago requires the support of all members before it can come into force.
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