International Food and Agricultural Trade Policy Council

• When Precautionary Becomes Reactionary
  While attitudes toward GMO crops and seeds in Europe remain skeptical, there is a growing desire on both sides of the Atlantic for Europe to move beyond its concern for agricultural biotech products. In this Trading Ideas post, IPC Member Carl Hausmann, also president and CEO of Bunge North America, suggests that Europeans acknowledge the growing scientific body of evidence supporting the safety of genetically modified crops, and recognize that GMOs can help us address increasing environmental and food security concerns. While Europe's initial skepticism of GMOs may be understandable, Hausmann says that we have to be wary when precautionary may turn into reactionary forces, and prevent the good of the many to be served through modern scientific advances in agriculture.
• TRQ Expansion-Creating Opportunities for Trade?
  Many WTO Members have submitted proposals pertaining to the formulae for tariff and subsidy cuts and exceptions in the Doha Round to influence a draft modalities text being prepared by Crawford Falconer, the chair of the WTO agricultural negotiations. As reported, one such proposal on market access put forth by the EU, dated June 29, called for a complex formula for calculating the size of new import quotas countries would grant in exchange for reductions in tariffs on commodities. This Trading Ideas post highlights concerns, voiced by many, of the uncertainties over whether the formula would offer trading partners any real increased opportunities in market access. Read the post.
• Doha Development Round--Is There A Way Forward or Not?
  The recent breakdown in the G-4 talks in Potsdam, Germany has stalled the negotiations in the Doha "Development" Round yet again. IPC Member C. Joe O'Mara, who was also formerly a Special Agricultural Trade Negotiator, has submitted his assessment of what the recent deadlock means for the trade round in general, and what the next steps forward are. Specifically, O'Mara urges us to consider the cost of a failed Doha Round, including not achieving duty free and quota free market access for the least developed WTO Members, and not eliminating export subsidies or reducing trade distorting domestic support programs that hinder prospects for agricultural development abroad. The way forward now is for all Members to find a common solution to breaking the deadlock in negotiations so that this Round can truly live up to being a "Development" Round. Read the post on Trading Ideas.
• Globalization and Rural America
  Proposals to shore up support for trade liberalization and globalization in America have focused on structural adjustment assistance, wage insurage, social safety nets, and better trade adjustment assistance. While these proposals would do much to enable America to be more of a champion for globalization, another component that needs to be addressed is improving the competitiveness of rural agriculture and entrepreneurship. In a recent Chicago Fed Essay, IPC Member Robert Thompson discusses this, and gives recommendations on how rural leaders can create an enabling environment for stimulating investment and strengthening non-farm and service jobs in agricultural communities.
• Biofuels in Japan, Q and A with Hiroshi Shiraiwa
  The dialogue about the rise of biofuels has mostly focused on production in the US and Brazil.In this Trading Ideas post, we have asked IPC Member Hiroshi Shiraiwa about his views on domestic biofuel production in Japan, and about the concerns this raises for the environment, Japan's trade policy, competitiveness, and agricultural and rural development in the country. What will the development of a bioethanol industry in Japan mean for job creation, Japanese farmers, the fight against global warming, and the overall economy in Japan? Read the post and find out. Shiraiwa is also formerly a counselor for the Japan International Agriculture Council, and a former director of Mitsui and Co.
• New Issue of the Agritrade Forum
  IPC has released its second quarter issue of the Agritrade Forum, the official newsletter of the International Food and Agricultural Trade Policy Council. In this issue, we feature a column by IPC Member Timothy Groser, also New Zealand's Shadow Minister of Trade and Deputy Finance. Titled, "Saving the Doha Round: We Need Real Political Leadership," the column lays out both the economic and political benefits of reaching a successful Doha conclusion, and emphasizes the necessity of doing so to further global poverty reduction. "If we walk away from this Round, no progress will be made in removing [trade] imbalances...a new generation of political trade managers will have to confront exactly the same starting point if they seek to revive world trade talks." Groser was also formerly New Zealand's WTO Ambassador.
• Energy and the Farm Bill
  IPC has issued the third in a series of Farm Bill briefs which highlight the key issues in the Farm Bill debate currently underway in the US. This brief, titled "Energy and the Farm Bill," analyzes how the biofuel boom has impacted the US Farm Bill discussions.
• Agriculture is Special After All
  IPC Member Michel Petit has submitted the following column on the special roles that agriculture plays in developed and developing countries. His piece provides a useful context for understanding the current round of WTO trade negotiations. Petit is also a professor at the Institut Agronomique Mediterraneen in Montpellier, France, and is the former director of rural development at the World Bank.
• Saving Doha and Delivering on Development
  As the Doha Round of global trade talks continue, doubts have emerged as to whether successful negotiations, which can help lift millions out of poverty, are possble by the summer. Recent media reports have identified key constraints to progress on the talks, including a nearing expiration deadline of Trade Promotion Authority, and the need for political will amongst the G-4 to reach an agreement on market access issues. While negotiating morale is at a low ebb, a recent speech by IPC Member Timothy Groser of New Zealand helps to put the current situation into historical context, and provides insightful suggestions for the way forward in the multilateral talks. Read a summary and the full speech on Trading Ideas.
• The Past and Future of CAP Reform
  IPC Chairman Piet Bukman spoke at the 26th European Agricultural Outlook Conference held in London during the 27th-28th of March, titled "Towards 2013: The Prospects for CAP Reform." He spoke on the historic context of the creation of the Common Agricultural Policy (CAP), and the multiple domestic, international, political, and economic forces shaping its future. Most interestingly, Bukman highlighted how the challenges of the modern era have called into question the efficacy of the agricultural support regime in Europe, and the need to modernize it to better meet the needs of Europe and the world. Among the challenges and forces influencing CAP reform that Bukman identified are: climate change, global demographic trends, emerging energy needs, and globalization and liberalization. Read Buckman's speech, and a summary of the speech, on Trading Ideas.
• The Farm Bill, Doha, the Budget (and Ethanol!)
  As the Farm Bill debate is currently underway in the U.S. Congress, IPC has published the first of five IPC Policy Focus briefs highlighting the key topics in the debate, including: developments in the Doha "Development" Round, the U.S. budget, trade promotion authority, energy and the Farm bill, white commodities and the global implications of domestic reform, and food aid. In this first brief, "The Farm Bill, Doha, the Budget (and Ethanol!)," IPC Member Timothy Josling gives a concise overview of the domestic and international forces at play in influencing the future of U.S. agricultural policy. Future briefs in this Farm Bill series will focus on what implications Farm Bill reform has on developing countries.
• The Food Miles Debate
  The "Food Miles" argument is gaining traction. So far, it has sprung up mostly in the UK, but it is finding resonance in other European countries, and groups in the US are also beginning to find it attractive. The UK discussion has mostly focused on food imports from New Zealand, but horticultural imports from Kenya have now also come under scrutiny.
• The Fight Over Cotton, Q and A with Pedro