Farmers and Biodiversity
Life is a process equally dependent upon nutrients,
the waters, air, light from the sun, and the cycles of death.
In fields, forests and waters, cohabitation amongst species perpetuates
the process of life. Over many millions of years, the Earth has
become populated with a bountiful array of genetic diversity that
sustains us all.
Through myriad innovations, traditional peoples
learned to cultivate this diversity for food, shelter and clothing.
Diversity was the foundation of life, to be honored and preserved.
The cultivation of diversity has been incorporated
as a high art by human cultures through millenia. With the know-how
of generations of experience, farmers have learned to provide
food crops well-adapted to local soils and water cycles. They
select the seeds of the most productive plants to improve the
next harvest. They transfer pollen from one plant to another to
combine desireable traits and enhance the food supply. Over time,
farmers have generated a vast wealth of agricultural biodiversity
especially adapted to the particular conditions of most regions
on Earth.
Suddenly, in this -- our own generation, we
discover that the planet's gene pool is no longer expanding. It
is shrinking. With every extinction, ecological micro-catastrophes
occur. The human eye may not always see the destruction. But,
in each ecosystem, the survivors must adapt or perish.
Today, scientists and philosophers wonder whether
the gene pool of the planet may eventually become too narrow for
adaptation -- that is, whether a global catastrophe may occur.
It is not impossible that, even from our human point of view,
the loss of key species may cause gaps in the cycle of life so
great that major portions of the food supply fail.
Food Security and the Uruguay Round
After harvest, farmers bring their produce
to market. Traders often broker these deals. Modern exporters
and importers make billions of dollars, acting as intermediaries
between producers and consumers in different countries.
Historically, governments have established
rules to manage this trade. Tariffs on imports generated revenue
for the government. Quantitative and qualitative restrictions
on imports conserved markets for local producers. Minimum residue
limits on pesticides or bans on genetically-engineered foods guarded
consumer health and satisfaction. Anti-trust legislation was designed
to limit how dominant a company can become in controlling the
supply of a particular product, and thus its price.
The Uruguay Round of trade negotiations, however, resulted in rules that -- to the contrary -- limit governments, freeing trading companies from so-called "barriers to trade":
ï The U. R. Agreement on Trade-Related Aspects of Intellectual Property (TRIPs) limits the way in which governments can reward innovation, develop strategic industries, and transfer technologies, requiring them to allow patents on plants and animals or defend an alternative approach to restricting the exchange of seeds and other genetic materials.
ï The U.R. Agreement on Agriculture limits the way in which governments can support farmers and manage commodity supplies, requiring them to import basic foods.
ï The U.R. Agreement on Sanitary and Phytosanitary Standards limits the way in which governments can regulate food safety, requiring them to follow the standards of the "Codex Alimentarious Commission," an inter-governmental bureaucracy dominated by corporate lobbyists.
ï The U.R. also founded the World Trade
Organization, a membership-based institution with executive, legislative
and judicial functions designed to enforce these rules with the
power of economic sanctions.
The Uruguay Round was concluded in 1994, but
many countries have already begun to revise their national laws
to comply with these "free trade" rules. Defenseless
at the border, many nations are losing their productive capacity,
becoming dependent upon imports. Transnational corporations have
gained new markets and increased their control of key products,
displacing diverse local food and seed varieties with a handful
of genetically-identical commercial varieties.
Many farmers, and not just in developing countries,
have found it impossible to compete with world prices that are
artificially low due to the geopolitical arrangements made by
global policymakers encouraged by just a few transnational corporations.
Developing country producers have an even harder time. Their traditional
markets are now flooded with imported foods.
Meanwhile, U.R. prohibitions on domestic support
for farmers have forced millions of families off the land and
into cities lacking the jobs, housing, sanitation, and other social
infrastructure with which to cope. With millions of acres unplanted,
many formerly food-sufficient nations are suddenly becoming dependent
upon imports. Yet in the food-exporting countries, the 1996 harvest
was threatened by harsh weather and diseases that ravaged crops
made especially vulnerable because of their genetic uniformity.
The world's grain supply hit the lowest level
since World War II. World prices reached all-time highs for corn
and wheat. Food-importing countries suddenly faced not only dependence
upon their suppliers, but a near doubling in the price!
The promise of cheap imported food suddenly
became a nightmare of huge cash outflows, empty grain bins, deserted
fields and, in some places, hungry people.
Intellectual property rights (IPR) grant exclusive
rights to monopolize an invention or other industrial knowledge
for extended periods of time, usually 17-20 years. They generally
take the form of patents, trademarks, or copyrights and have traditionally
fallen under the domain of national law. Different countries have
produced different IPR laws, each one a balance between industry's
desire to capitalize on its investments in technological development
and the rights of society to benefit from its intellectual as
well as its financial contributions to industry.
Plant Patenting, Plant Breeders'
Rights, and Farmers' Rights
Under the new U.R. rules, all GATT/WTO member
countries must not only strengthen their IPR laws concerning the
mechanical technologies of industrialization, they must also apply
IPR to the use of plants, microorganisms, and other life forms.
The actual text of the TRIPs Agreement states that all members
"shall provide for the protection of plant varieties either
by patents or by an effective sui generis system or by
any combination thereof." (Sui generis is a Latin
phrase meaning "of their own kind.")
Simultaneously, governments are given the option
to exclude from patentability: "plants and animals other
than micro-organisms, and essentially biological processes for
the production of plants or animals other than non-biological
and microbiological processes." In other words, anything
that can be genetically manipulated can be patented and monopolized,
claimed as the private property of giant transnational agricultural
and pharmaceutical corporations.
And so the race to genetically engineer everything
and be first to the patent offices is on. The immense amount of
genetic data being churned out by automated DNA sequencers has
created a flood of patent applications to the U.S. Patent and
Trademarks Office (PTO.) According to PTO staff, it could take
a single senior staffperson 90 years to examine what has already
been submitted for patents at a cost of more than $20 million
for processing, yet fees may come to only $100,000.
Plant breeding is increasingly coming under
the control of a small number of transnational companies. Of 1,500
seed companies in the world, 24 hold a combined market share of
more than 50%. Of these, eight are transnational corporations
and all 24 are parent companies in the agricultural sector with
subsidiaries food processing, trade, and agro-chemicals. This
concentration of seed and agri-business companies -- which depend
upon patents to avoid sharing their benefits -- is expected to
increase further. Transnational seed companies are even seeking
patents to control whole crops. Both cotton and soybean, in their
engineered forms, are subject to sweeping patent applications,
giving sole ownership of their products to single corporations.
The commercial goal of developing plants with
only the most marketable traits leads to a decline in the pool
of genetic diversity. In the U.S. alone, a survey of seed banks
showed that some varieties of non-commercial crops such as chufas,
martynia and rampion have been lost entirely. When all possible
uses of a patented trait are monopolized, further research and
development on the genetics of that trait are stifled -- limiting
the genetic diversity of plants bred to express such a trait.
Furthermore, plant breeding programs are designed
to produce genetic uniformity, in order to meet the legal requirements
of the 1978 Convention of the Union for the Protection of New
Varieties of Plants (UPOV) which grants exclusive "Plant
Breeders Rights" (PBR) over the seeds of new varieties to
their developers. Breeding for uniformity means that, over time,
distinct varieties will become less and less distinct.
Originally, UPOV also granted farmers the "privilege"
of saving seeds at harvest and informally exchanging them with
other farmers, despite PBRs, and likewise granted breeders an
"exemption" allowing them to use the genetic material
of restricted seeds to develop new varieties without paying royalties
or penalties. In 1991, however, UPOV was amended to eliminate
both the farmers' privilege and the breeders' exemption -- creating
new rules for farmers' use of their harvested seed and severely
limiting breeders' use of genetic material covered by PBR. The
revision also allows governments to grant both PBR and patents
not only to genetic material but to whole crops.
As UPOV has moved away from farmers' rights,
the Food and Agriculture Organization (FAO) of the United Nations
has sought to define "Farmers' Rights" with the support
of the Convention on Biological Diversity. In 1983, the FAO adopted
the "International Undertaking on Plant Genetic Resources"
to promote the availability of plant genetic resources for the
purposes of scientific research, plant breeding and genetic resource
conservation. In 1989, the FAO endorsed a concept of Farmers'
Rights as an Annex to the Undertaking that specifically recognized
farmers' contributions to developing biodiversity and the obligation
to share with them the benefits of their work -- the exact opposite
of patent restrictions. In fact, this resolution stipulates that
"plant genetic resources are a common heritage of mankind
to be preserved, and to be freely available for use, for the benefit
of present and future generations."
Another FAO resolution in 1991 proposed implementing
Farmers' Rights through an international fund to support plant
genetic conservation and utilization, particularly in developing
countries. Governments agreed that the resources of the fund should
be substantial, and sustainable, and that the donors of genetic
resources would determine and ovsersee the its management. A 1993
resolution requested the Undertaking be revised as binding international
law in harmony with the Convention on Biological Diversity, a
process which is presently underway.
Genetic Engineering and Biosafety
The U.R. TRIPs Agreement brings plants under
corporate control by claiming patents for the "novelty"
of genetically engineered varieties. And yet genetic engineering
is a relatively new science, with many as yet untested impacts
on biodiversity, biosafety, economic and social welfare, and food
security.
Some genetically engineered organisms may produce
unanticipated harmful impacts in its new environment. A group
of scientists at Oregon State University in the U.S., for example,
found that a bacteria genetically engineered to more efficiently
convert agricultural wastes to ethanol fuel also destroyed much
of a fungus essential to the recycling of nitrogen through plant
roots. If this product had been commercialized, it could have
led to desertification throughout its biological range in the
field.
Genetically engineered fish and shellfish pose
even greater ecological risks, since all aquatic organisms are
undomesticated and have the capacity to survive in nature, moving
easily from the controlled environment to the wild. For example,
of 46 exotic fishes which have successfully invaded U.S. waters
to date, 22 escaped from aquaculture facilities. No fish farmer
can ensure sea pens are indestructible. A 1988 storm tore apart
hundreds of sea nets and their moorings at a Norwegian facility,
allowing a million farmed salmon to escape; catches in later years
have shown that these animals spread very widely. A similar accident
with transgenic fish, such as the Chinook salmon which grows 11
times faster than normal or the Atlantic salmon with an antifreeze
gene from winter flounder, could lead to global disruptions of
salmon communities and their ability to reproduce normally.
More than 2,000 applications for the experimental
release of genetically engineered organisms have been filed with
the U.S. government alone. At least 90 releases of genetically
engineered plants have taken place in developing countries, some
of which are entirely unregulated. Illegal releases have occurred
in India, where 80 different genetically engineered species of
microbes were illegally imported from Japan and released into
the field, in Kenya and in Argentina, where a genetically engineered
vacinnia-rabies virus was set loose in 1986.
Such risks have led governments to begin negotiating
a legally-binding protcol on "biosafety" as part of
the Convention on Biological Diversity. In addition to ecological
threats and human health risks, some governments are concerned
about the potential social and economic impacts of genetic engineering.
Forty percent of all present production processes in the world
are based on biological material, much of it now exported from
developing countries as raw commodities. Via genetic engineering,
patents, and "bio-reactors," agricultural products can
be reduced to plant compounds and brought under the control of
transnational corporations. Initial assessments by the International
Labour Organization suggest possible employment losses in the
Third World of up to 50%, due to the application of biotechnologies.
Conflict with the Convention on Biological
Diversity
Many governments have noted possible conflicts
between the TRIPs provisions and the objectives of the Convention
on Biological Diversity. After all, the Contracting Parties to
the biodiversity convention agreed to cooperate to ensure that
intellectual property rights "are supportive of and do not
run counter to its objectives" - which are the conservation
and sustainable use of biodiversity, and the equitable sharing
of its benefits.
Some governments have expressed concern that
intellectual property rights for industry, as defined in the TRIPs
agreement, will prevail over the traditional rights and rights
holders recognized in the Convention on Biological Diversity.
Indigenous and local communities, according to the biodiversity
convention, should share in the benefits derived from the use
of their knowledge, and have the right to approve and be involved
in plans to widen the use of their traditional innovations and
practices.
Other governments have noted a contradiction
between the rights of patent holders and the goal of diffusing
environmentally-friendly technologies, asking whether intellectual
property rights could be regulated in order to promote technology
transfer. Researchers seeking the enormous financial returns of
a patented product are contractually obliged to work in secrecy.
Or they may fail to develop products from the patent, waiting
to use the engineered gene later to monopolize a "more important"
crop. Of course, this disincentive for sharing knowledge applies
not only to research in the laboratory, but also to the transfer
of technologies across countries.
The TRIPs provisions were so controversial during the Uruguay Round negotiations that the final agreement states that they "shall be reviewed four years after the date of entry into force" -- in other words, in 1999. Between now and then, peoples and their governments can strive to organize defensible sui generis instruments that preserve the public interest -- defining the collective rights of Indigenous Peoples, strengthening the definition of Farmers' Rights with the FAO International Undertaking, building up Farmers' Rights and biosafety protocols under the Convention on Biological Diversity, and insisting that patents DO run counter to the objectives of the convention.
The Agriculture Agreement has three major sections
covering market access, domestic support, and export competition.
Each consists of a set of basic principles outlined in the main
text, and a set of what are called "schedules" that
are included as an annex to the main text. The schedules outline,
on a country-by-country basis, the ways in which each country
will implement the basic principles. Because the schedules and
formulas were also negotiated, they vary considerably from country-to-country
-- as will the long-term impacts.
Market Access
The original GATT rules, under Article XI,
allowed governments to adopt domestic supply management programs,
including restrictions on imports, in order to control production
levels, avoid the temptation to export surpluses, and relieve
"critical shortages of foodstuffs." The original Article
XX reinforced this, exempting countries from other GATT rules
when national food security was at stake.
Early in the Uruguay Round negotiations, however,
the U.S. called for abolishing all controls on imports. As some
countries defended their domestic markets, the compromise resulted
in formulas that, over a period of years, require increasing imports
by certain percentages of domestic consumption. The schedules
vary -- but generally, countries must import, as an absolute minimum,
at least 2% of their domestic consumption of all foods, up to
5% by 2000. If a country imported more than these percentages
during the 1986-88 base period used in the formula, it must continue
to import the higher quantity. Developing countries were able
to negotiate some exemptions when the imports are a predominant
staple in their traditional diets.
In addition, specific non-tariff barriers or
qualitative policies that restrict imports in some way -- such
as quotas, variable levies, minimum import prices, state trading
measures, and voluntary restraint measures -- must be abolished
and/or converted into tariffs, a process called "tariffication,"
regardless of the fact that a quota or other non-tariff barrier
is very different from a tariff. The effect of a qualitative measure,
for example, is predictable while the impact of a tariff can be
dramatically altered by the manipulation of exchange rates and
market prices. Non-tariff policies can effectively control the
outflow of hard currency, too, by restricting imports quantitatively,
whereas tariffs cannot.
Furthermore, the text calls for reductions
in tariffs over time, in order to deliberately increase imports.
For poor countries which cannot afford to subsidize their own
farmers, tariffs can be essential tools to balance subsidized
imports, bringing prices in line with domestic markets. For developing
countries, the minimum reduction is 10% per item, with the average
reduction reaching 24% over 10 years.
In industrialized countries, tariffs must be
reduced by an average of 36% over six years with a minimum reduction
of 15% for any specific item. Precisely because the formula is
based on averages, there is considerable room for manipulation:
the industrialized countries may maintain prohibitively high tariffs
on products of interest to developing countries by reducing tariffs
more steeply on products of less interest.
All in all, a policy of obligatory imports
contradicts a policy of national food security although the occasional
exemption for some traditional staple foods may create an incentive
for increasing domestic production of those crops. And tariffication
distorts the effects of non-tariff trade policies; in some cases,
tariffication will result in high financial barriers to market
access -- no better than the non-tariff barriers replaced.
Domestic Support
Coupled with import controls and supply management,
government support for domestic producers has been essential in
most countries to offset competition from subsidized world market
prices. Aggressive exporting countries, on the other hand, prefer
not to compete with national support prices.
Officially, the Uruguay Round agreement calls
on GATT/WTO members to reduce their spending, direct and indirect,
for domestic farm programs. Governments must calculate all domestic
support in monetary terms and add it all up; this number is referred
to as the "Aggregate Measure of Support" (AMS). The
main text of the agreement establishes the principle that each
country's total AMS should be reduced over time -- 20% over six
years for industrialized countries and 13.3% over 10 years for
developing countries.
In fact, the U.S. and the European Union manipulated
the formula so that they will be able to increase their agriculture
subsidies if they so choose. To illustrate how this manipulation
could work, consider the following. The historical base line for
the AMS of the U.S. was set at $20 billion. However, the formula
used to establish 1995 levels of support resulted in an $8 billion
figure. Thus, the agreement to reduce the $20 billion figure by
20% over 6 years means that by the year 2000, the U.S. can still
subsidize agri-business up to $16 billion -- double 1995 levels
of support.
Furthermore, the calculation of the AMS rests
on an arbitrary "world price" as the base line reference
point, yet world prices fluctuate dramatically -- as observers
of the 1996 commodity futures markets can affirm -- suddenly changing
the value of AMS calculations across the board.
Direct payments to farmers under production-limiting
schemes were exempted -- although only a few rich countries can
afford to pay their farmers not to farm. By means of "producer
retirement" and "resource retirement" schemes,
governments are encouraged to offer financial support to farmers
who wish to change their occupation, on the condition that they
do not return to farming. These farmers will have no say in what
happens to the land they leave and are often forced to become
non-productive recipients of state welfare.
Exemptions from the principle of AMS reductions
were also made for countries where the AMS is less than 5% of
the total value of that nation's agricultural production; for
investment and input subsidies in low-income or resource-poor
developing countries; and for countries encouraging diversification
from illicit narcotic crops. For all countries, certain insurance
and safety net schemes, disaster relief, environmental programs,
research, and regional assistance are also exempt.
Export Competition
In principle, the U.R. Agreement on Agriculture
also requires industrialized GATT/WTO members to reduce their
direct subsidies to exporters by 36% in monetary terms and by
21% in volume by 2000, compared to the 1986-90 reference period.
For some crops, the reference period was moved to 1990-91, to
increase the upper limit from which the reductions must occur.
For developing countries, the monetary subsidies must decline
by 24% while the volume of subsidized exports must decline by
14%.
During the contentious negotiations, these
terms promising that there would be reductions in U.S. and EU
export subsidies were used to promote the Uruguay Round as a whole.
The upper bounds were set so high, however, that actual reductions
will not materialize. In 1996, the U.S. Congress extended and
amended the Export Enhancement Program through 2002, urging the
U.S. Secretary of Agriculture to continue to use export subsidies
to maintain its position in world markets. Also in 1996, the
European Union resumed using export subsidies after a year without.
What's more, this section of the Agreement
on Agriculture legitimizes food dumping, in apparent contradiction
to the GATT's Article VI. In short, the Uruguay Round enables
agri-business to continue to enjoy extensive export subsidies
while farmers' supports are slashed.
As in most South East Asian countries, rice
is the basic staple food of the Philippines, where it is grown
on about a third of all farmland by an estimated one million rural
households. However, growing rice by no means assures one of
having enough to eat.According to a 1986 report, farm children
in Central Luzon, the Philippine rice bowl, had among the highest
rates of malnutrition in the country.
During the 1980s about 70% of all Filipinos
were 40-60% deficient in protein intake and 40-80% deficient in
caloric intake. The daily cost of living in 1993 was about 125
pesos, the mandated minimum wage was about 68 pesos, and the average
farm worker earned just 41 pesos a day. In 1995, the National
Statistics Board estimated that one out of five Filipinos could
not afford to feed themselves and two out of five families fell
below the official poverty line of 7,212 pesos (about U.S.$277)
annual income.
The Rice Crisis
In 1994, the Philippine Confederation of Grains
Associations (Philcongrains) urged the government to speed up
land reform, rural infrastructural development and credit assistance
for rice and corn self-sufficiency. Philgrains warned the government
that under import liberalization mandated by the Uruguay Round
Agreement on Agriculture, "farmers would be at the mercy
of unscrupulous fly-by-night traders" who could not compete
with the subsidized grain imports, including those from the European
Union and U.S. Though the Philippines was committed to import
only 59,000 metric tons of rice in 1995, Philgrains' prediction
that cheaper rice imports would swamp the country was fulfilled.
Suddenly in August 1995, the price of rice
doubled throughout the country. The rice price jump consumed at
least a fifth of the official minimum daily wage. To avoid food
riots, the government's mobile rice caravans distributed the meager
rice stocks of the National Food Administration (NFA) in Manila's
poor neighborhoods.
Peasant organizations and consumer groups rejected
government accusations that farmer and consumer hoarding had caused
the crisis. Instead, thy demanded government support for national
grain production and increased NFA purchases of domestically produced
rice to sell to consumers at stable prices. NFA had bought less
than one percent of 1994's bumper rice harvest, the least in the
agency's history. The rest of the crop was bought by rice traders
who were able to drive up the price by withholding stocks from
the market. Despite another bumper rice crop in 1995, the government
imported extra stocks from Thailand and Vietnam and sold them
through the NFA at pre-crisis prices.
The government at first denied that Big Seven
Cartel rice traders had caused artifical shortages to drive up
prices. However, the National Bureau of Investigation and Bureau
of Internal Revenue were forced to examine Cartel operations after
the traders' prices for rice stayed at their crisis levels despite
government intervention to lower prices. Nonehtheless, the government
said that it was powerless to act against the Cartel, due to inadequacies
in the legal system.
In August 1996, an official announced that
government credit programs had increased rice output, and that
reserve stocks were on hand for for 70 days. The Philippines would
probably not need to import more rice in 1996 than the 846,000
metric tonnes already imported. However, many Filippinos lack
access to staples, rural communities are reportedly eating the
seeds for rice and corn. Meanwhile, the supply and price crisis
has spread to meat, eggs, wheat and corn.
Food Insecurity After The Uruguay
Round
The Philippines' official policy, driven by
its Structural Adjustment Program with the World Bank and the
Uruguay Round, is to plant fewer hectares of rice and other traditional
crops in the future. The High-Value Crops Act of 1995 (R.A. 7900)
offers financial and technical assistance, tax holidays and infrastructure
support for agribusiness to switch to producing fruits, vegetables
and flowers. The marketing of agro-exports remains in the hands
of transnational agribusiness firms, such as the U.S.-headquartered
Del Monte and Castle and Cook (via Dole Philippines) and the Japanese-headquartered
Marubeni.
In 1996, a year of high world prices for grains,
the government enacted trade legislation that exceeds the compliance
schedule for its commitments under the Uruguay Round Agreement
on Agriculture. In May, the Speaker of the Philippine House of
Representatives, José de Venecia, obtained passage of The
Agricultural Tariffication Act (Republic Act 8178). RA 8178 abolishes
quantitative restrictions on agricultural imports and repeals
vital provisions of the 1992 Magna Carta of Small Farmers (R.A.
7607), which prohibited imports of certain agricultural commodities
if those commodities are produced locally in sufficient quantity.
With the passage of RA 8178, the government has removed minimal
import restrictions allowed under the Uuruguay Round. Philippine
Aggregate Measures of Support for any agricultural commodity are
no more than half the levels allowed by its Uruguay Round commitments.
Cargill, the giant U.S.-based agribusiness,
together with the U.S. Embassy in Manila, lobbied heavily for
RA 8178's passage. The lobbying effort implemented Cargill's belief
that "self-sufficiency is not a practical answer to Asia's
growing food demand." (Daniel Amstutz, a former Chief Executive
Officer in Cargill's futures trading and commodities division,
played a pivotal role in drafting the U.R. as the Reagan Administration's
Chief Negotiatior for Agriculture.) U.S. threats of trade sanctions
for violating U.R. commitments helped to overcome Philippine congressional
resistance to the legislation.
In a 1994 review of all the Philippine laws
that would have to be abolished or changed in order to conform
with the U.R. agreements, one commentator wondered: "Are
you saying that we do not need the legislative branch of the government?
That Congress would just need to pass an enabling act: 'All those
laws, provisions, articles, sections that are deemed inconsistent
with GATT coverage and agreement are hereby repealed'?"
In addition to legislative repeal of food security,
President Fidel Ramos has been issuing Executive Orders that will
"liberalize" other aspects of the Philippine economy
even beyond the degree of trade liberalization called for by APEC
trade ministers in their July 1996 meeting. At that meeting, the
Philippines, opposed only by Japan and Korea, joined other APEC
countries in following the U.S. call for preparing further agricultural
trade liberalization as terms of the U.R. Agriculture Agreement
in the year 2000.
"Super Rice": A Solution
?
"BIOTECH OFFERS BEST HOPE FOR A HUNGRY
WORLD," blares a headline in the Financial Times.
Yet South East Asians who had relied on "Miracle Rice"
(IR8), developed by the Philippine-based International Rice Research
Institute (IRRI), have cause to be skeptical about the promises
of the IRRI's new biotech "Super Rice."
Through expanding irrigated land and quintupling
fertilizer use, IRRI claims that annual growth rate in Phillipine
rice production increased from 2.3% before 1964 to 4.5% per annum
between 1965 and 1980. However, while using a constant amount
of fertilizer, rice yields at IRRI's research farm decreased at
a rate of 1.25% per year from 1966 to 1987, a total of 27.5% in
21 years. From 1966 to 1980, IR8's yield fell from 9.5 tons per
hectare to about 2 tons per hectare while still receiving 120
kilograms of pure nitrogen fertilizer per hectare. Yet by 1990,
IR8 and similar varieties were planted on about 80% of Philippine
rice crop area.
When IR8 and its cousins left the research
farm and entered the harsher environment of Philippine agriculture,
the infamous "side" effects of rice production began
to dwarf the fame of the Green Revolution. These "side"
effects included pesticide-caused deaths of rice farmers, estimated
at 4,000 in the Philippines alone during the 21-year life of IR8;
polluted groundwater and soil degradation; lowered nutritional
quality (measured by IRRI primarily in terms of calories); loss
of flavor; social, political and economic disruption as governments
altered traditional rice farming cultures to introduce IR8 and
other Green Revolution rices.
In 1994 testimony to Philippine Senate hearings
on the Uruguay Round, Nicanor Perlas reported that 70% of all
Philippine soils under Green Revolution agriculture were chemically
degraded, resulting in lowered yields and lowered nutritional
value of crops. Other unanticipated effects of the industrialized
agriculture were accelerated diseases and weakened resistance
to insect infestation, due to monocultural cropping.
Brown planthopper (BPH) has ravaged millions
of metric tons of rice in Vietnam, Thailand and Indonesia, as
well as in the Philippines. Indonesia lost more than a million
tons of rice to BPH in 1977, enough to feed 2.5 million people,
and continues to lose a large portion of its wet season rice harvest
to BPH every year. According to SEARICE, a Philippine-based non-governmental
organization (NGO), "the brown planthopper was not a major
problem in 'Southeast Asia until IRRI technologies (breeding and
pesticide applications) made it one."
IRRI is one of sixteen research centers in
the Consultative Group of International Agriculture Research (CGIAR)
Centers. The CGIAR Secretariat is housed in the World Bank.
IRRI denies that its research strategy contributed
to the spread of BPH. Kevin Gallagher, a former IRRI scientist,
said that IRRI's BPH strategy of breeding pest resistance in rice
assumed the need for insecticides."But Peter Kenmore, head
of the FAO's Rice IPM Program for Asia and the Pacific said, "[t]rying
to control such a population outbreak [of BPH] with insecticides
is like pouring kerosene onto a housefire."
Because IRRI has little direct interaction
with farmers and non-laboratory farming conditions, its technological
tools for dealing with pest, disease and yield problems tend to
ignore resource management approaches, including on-farm research,
in favor of genetic determinism. Biologists have criticized IRRI
biotechnology for assuming that the traits of an organism are
encoded in a single or few genes and that these genes can be manipulated
irrespective of their cellular and extra-cellular environments.
At the 1995 Federation of Crop Sciences Societies
conference, the head of IRRI's biotechnology research unit, justified
IRRI's development of a genetically altered rice that would resist
yellow stem borer infestation, one of the most serious rice pests
today. Yet the yellow stem borer, like BPH, can be controlled
through natural biological control mechanisms already demonstrated
on over 5,000 hectares of Philippine rice fields. The millions
of dollars IRRI invests in developing a genetically altered rice
would be better invested, critics say, in studies to involve farmers
in controlling pests in field conditions through community ecology
approaches.
IRRI persists in its technological approach,
arguing that "[s]ocioeconomic factors have essentially no
effects on cropping intensity. We conclude that it is physical
environments, particularly the presence of irrigation and to a
lesser extent the adoption of modern varieties, that determines
cropping intensity." And IRRI's Medium-Term Plan for 1994-98
abandoned research on the "relationships among growth in
productivity, environment, and poverty" as one of its priorities.
Responses
Absent a decisive and consistent policy shift
towards sustainable development, rice insecurity would seem to
be the future not only of the Philippines, but perhaps of many
Asian-Pacific nations. If this policy shift succeeds, it will
do so because various and even divergent groups in civil society
will have consistently persuaded government officials and business
people that not to do so would invite the kind of food insecurity
that not only causes great suffering and loss of economic productivity,
but the downfall of governments themselves.
Despite U.S. and transnational corporate pressure
for fast-track liberalization, Philippine NGOs have negotiated
an agreement with the Philippine government to discuss APEC commitments
within a framework of sustainable development. Chief among government
commitments made to the NGOs is that it will not impose a uniform
5 percent tariff on all imports by 2004, but will specify differential
tariffs after an extensive two-year study of affected economic
sectors. Non-governmental organizations argued that because the
Philippines will chair APEC in 1996, Canada in 1997 and Malaysia
in 1998, there is a good opportunity for APEC to pursue sustainable
development, rather than trade liberalization, as its fundamental
objective.
Many peasant farmers in Zimbabwe primarily
women, curse the day when they turned their backs on their traditional
crops, sorghum and millet, and planted government-provided maize
hybrid seed as a condition of obtaining credit. The government's
generosity was based upon an agro-export growth strategy tied
to Zimbabwe's Structural Adjustment Program (SAP) with the World
Bank.
Imported Maize, Drought and Hunger
Peasant farmers who adopted the government's
hybrid maize and fertilizer package and were fortunate enough
to make a profit from maize sales, did not make a fortune. The
1991 gross average margin from maize sales for peasant farmers
in four regions surveyed was about Z$200 (about U.S.$20 at an
October 1996 exchange rate), while secondary school fees for one
child were Z$400 per year. Less fortunate farm families have had
to rely on non-farm jobs or diminishing remittances from family
members living in urban areas. Fertilizer prices roses about two
and a half times from 1980 to 1989. Nonetheless, the World Bank
report praised Zimbabwe's adoption of chemically intensified agriculture
in 1991.
That year, the World Bank obligated the government
to sell surplus maize stocks, stored as security for drought years,
to help "stabilize" its national budget at a time when
the Zimbabwean dollar had been sharply devalued. Having no national
stock of maize seed, in 1992, Zimbabwe contracted for maize seed
with Cargill and Pioneer Hybrid. The government had to pay with
foreign currency reserves designated for economic development.
Then came the 1992 drought. Overall Zimbabwean
food production fell by half, because of its dependency on foreign
maize and wheat, compared to a 27% drop in neighboring Mozambique
where a higher percentage of drought resistant millets and sorghum
was planted. The severe decrease in Zimbabwean national food
security struck a nation with empty maize bins. In 1993, the government
announced that it would keep 936,000 metric tons of an anticipated
2 million ton maize harvest as a strategic food reserve and would
seek ways to fund that storage.
But the possession of maize seed was no guarantee
of household food security either. Even in the high-rainfall areas,
just half of all rural families enjoyed household food security
in 1994. Many households face the possibility that their maize
is contaminated by a toxic fungi, wide-spread in Africa, which
has been associated with high rates of liver cancer and a suppression
of the immune system in children. There was a greater prevalency
of childhood malnutrition among those who cash-cropped hybrid
maize compared to those who grew sorghum and millet for home consumption.
Rural children became stunted, as farmers sold maize they needed
for home consumption at low prices to pay off the high cost of
chemical inputs and loans.
Ironically, these distressed sales of maize
showed up as macro-economic "growth" and testimony of
the success of the agricultural SAP.
Structural Adjustment and Macro-Economic
Indicators
A 1991 World Bank report mistakenly interpreted
increased Zimbabwean maize sales as a sign of enhanced household
food security in rural areas. The government's announcement of
a 13 percent increase in agricultural output in 1995 prompted
one journalist to suggest that "Zimbabwe is generally self-sufficient
in food." Yet this statistic included tobacco, the country's
greatest earner of export revenue, accounting for 22 percent of
all revenues that year.
An extensive survey of peasant farmers in 1994-1995
concluded that "[d]espite a huge increase in hybrid maize
grain sales in the smallholder sector, which has contributed to
a high level of national food security, household food security
has remained precarious while the majority of farmers in the more
marginal areas are short of seeds of their traditional crops."
The disparity between macro-economic measures
of crop production and the reality of household food insecurity
has part of its origins in the agricultural strategy followed
by the post-colonial government to try to overcome the effects
of apartheid. In 1980, the year of Zimbabwe's liberation from
the colonial ruins of white-ruled Rhodesia, 6,000 white farmers
owned 45 percent of arable land, mostly high rainfall areas, while
700,000 black peasant farmers farmed about 50% of arable land
in low-rainfall areas, with another 5% in high rainfall areas
farmed by 8500 black farmers. At this time, small landholders
accounted for about 6 percent of commercial maize.
By 1989, the smallholders produced about 55
percent of the nation's commercial maize crop, as a result of
comprehensive government intervention including wide distribution
of inputs and loans, a vastly expanded agricultural extension
agent force, and the establishment of primary health care clinics
for hundreds of thousands of rural people who had no government
health care previously. During the same period, the large scale
commercial sector increased its output of maize by 300 percent,
benefitting from better lands in higher rainfall areas and easier
access to credit. Increased maize exports from 1986 to 1991 caused
journalists to dub Zimbabwe the "bread basket of Africa."
As small landholders increased their cash crop
production, however, the land and resources available for growing
subsistence crops dwindled. Women, the major providers of household
food security, lost part of their fields as well as their choice
over what to plant, as men sought to increase their arable land
for cash crops. The largest supplier of crop seeds in Zimbabwe,
the Seed Coop, does not even include millet in its seed advertising
brochures. Maize seeds, on the other hand, are given out free
as part of a government seed/fertilizer package.
A Second Green Revolution?
Proponents of the so-called Green Revolution
have declared the first "revolution" towards high-input
high-yield staple grains to be a success in Asia and Latin America,
and now wish to bring a second Green Revolution to Africa: "What
are needed are a few venturesome scientists who can work across
disciplines to produce appropriate technologies and who have the
charisma and courage to make their case with political leaders
in order to bring these advances to fruition."
Likely, they will introduce their technologies
in the form of genetically engineered maize seeds, distributed
free as part of a World Bank Structural Adjustment Program. With
its new emphasis on private sector investments, the World Bank
will likely encourage the use of genetically engineered seeds
for floriculture, horticulture and tobacco growers.
Like most developing countries, Zimbabwe will
probably allow private companies to introduce new varieties without
tests and approvals, according to a report of the World Bank and
the United Nations Development Programme on "Import Barriers
for Agricultural Imports." In Zimbabwe, the registration
of planting new varieties is voluntary.
Critics of the Green Revolution argue that
proponents overestimate the benefits and underestimate the environmental
and socio-economic costs of their project. Absent from the World
Bank's 1996 advice on "Good Practice" in agriculture
is an analysis of how its Structural Adjustment Programs (SAPs)
have affected agricultural biodiversity. The report estimates
that from 1988 to 1995, only 10 percent of its agricultural loans
had biodiversity conservation as an explicit objective.
Responses
The resilience of peasant farmers and their
traditional seeds, however, defies the Green Revolution. Despite
an imported crisis, farmers have taken advantage of Africa's agricultural
biodiversity to achieve degrees of food-security outside the formal
commodities trading system. Farmers have produced this food despite
unfavorable climates, and the rising costs of inputs and falling
yields and prices of Green Revolution crops.
For most Zimbabweans -- indeed for most Africans
-- growth in agricultural trade has not resulted in enhanced food
security. Especially since the 1996 world grain shortages, when
African countries experienced a near tripling in the cost of wheat
imports, analysts have been looking carefully at non-commercial
food sources as a way to avoid future food security crises. By
sharing access to traditional seed, increasing the production
of traditional foods, and improving coordination among traditional
food providers, particularly women, smallholders in Zimbabwe are
coping with the present crisis.
Maize,also known as "corn," is the
principal food of the Mexican diet, and the principal crop-- planted
on 40% of arable land as of 1990. That year it was estimated that
two to three million Mexicans grew corn, mostly on small parcels
-- 65% of 5 acres or less --of often poor quality land. Most farmers
produce corn principally to feed their families, and yet about
40% of Mexico's commercial corn is produced by them as well.
Structural Adjustment, NAFTA and
"Comparative Advantage"
Due to falling revenues from oil exports, a
cash-short Mexican government declared a temporary moratorium
on paying interest on its foreign debt, in August 1982. Mexican
access to international capital markets closed immediately. As
a condition of renegotiating loan terms, Mexico was forced to
accept the conditions of the International Monetary Fund (IMF)
and World Bank for restructuring the Mexican economy. These conditions
of Mexico's Structural Adjustment Program (SAP) included reducing
public expenditures, eliminating subsidies, privatizing state
enterprises, devaluing currencies, conforming to "free"
trade policies, and removing barriers to foreign investment and
ownership.
SAP-mandated reductions in public support for
peasant farmers changed Mexico from a nearly food self-sufficient
nation in basic grains to a major food importer in just over a
decade. Agro-exports increased 3% annually from 1988 to 1993,
while imports, largely from the U.S., increased 22% annually.
At the same time, agricultural employment fell 4.5% annually among
25 million producers, about a third of all Mexicans. During this
period, one in five rural Mexicans received no cash income and
three of five received less than the minimum wage of $65 a month.
According to some of Mexico's leading policy analysts, family
farming underwent a process of "demodernization" to
prepare for NAFTA.
Following the terms of the Uruguay Round negotiations
closely, the North American Free Trade Agreement (NAFTA) required
Mexico to abandon price supports and import restrictions that
fostered family farming and national food security. According
to the theory of "comparative advantage" touted by free
trade proponents, Mexico would be able to import basic grains
more cheaply than it could produce them.
However, when world prices for basic grains
jumped to record levels in the past year, the theory proved to
be false. The price increases, greatly exacerbated by the December
1994 Mexican peso devaluation, make imported corn more expensive
than domestically grown corn. Prices are not expected to drop
substantially before the year 2000.
As a result of policies undermining Mexican
family farmers , Mexico produced 2.5 million tons less corn in
1995 than in 1994, and had to import 2.5 million tons of higher
priced corn from the U.S. In 1996, Mexico demand for imported
corn is expected to increase to 4 million tons. Because the U.S.
fulfills grain export commitments to Europe and Japan first, Mexico
faces the threat of widespread hunger, if the U.S. cannot fulfill
its commitments.
The failures of "free" trade macro-economic
and agricultural policy, combined with the record price hikes
in basic grains in 1996, have gravely imperiled Mexican food security.
Transnational grain exporters and processors, such as Cargill
and Archer Daniels Midland, will be the main beneficiaries of
these policies as they freight more and more expensive corn out
of the U.S. to meet increasing Mexican demand.
After NAFTA's approval in 1993, "demodernization"
accelerated as financial and technical assistance went to agro-exporters.
NAFTA's predicted benefits for Mexico disappeared on December
20, 1994, when the peso -- kept artificially high throughout the
contentious NAFTA negotiations and the Mexican election -- was
sharply devalued. Following the devaluation, the costs of producing
corn and other crops rose 40%. Agricultural loans, available at
30% interest prior to the peso crash, soared to 120% interest.
According to orthodox economic theory, with
Mexico's prices below the world market price because of the peso
devaluation, domestic production for domestic markets should have
been stimulated. Prices should have been allowed to rise to cover
costs, and domestically produced grains would still have been
cheaper than imported grains.
Nonetheless, in February 1995, the Mexican
government was advised by the World Bank and IMF to continue to
depress prices to reduce domestic grain production and to import
supplies, largely from the U.S. In late summer 1995, the Mexican
government followed that advice. To facilitate quicker and greater
imports, it decided that the 15 year phase-out of protection against
corn imports negotiated in NAFTA would be completed by 1998. As
of October 31, 1995, Mexican corn imports were up 71.9% over the
same time period in 1994. In 1995, Mexico increased the tariff-free
portion of those imports to 3.3. million tons, 28% more than the
2.5 million tariff-free tons agreed to in NAFTA.
Hunger in the Countryside, Hunger
in the Cities
Because of high costs, government-depressed
prices and other hostile government policies, many farmers stopped
producing corn and other basic grains. The Mexican Department
of Agriculture reported a 41% decrease in fall 1994/winter 95
production for 10 basic grains, with an anticipated 1995/96 harvest
of just half of that. Four million farmers may have left some
about 25 million acres unplanted because of these federal policies
and the drought in northern Mexico. As of October 1995, some
1.8 million family farmers had been forced to migrate since NAFTA
went into effect on January 1, 1994.
Falling post-devaluation wages and rising unemployment
have made it difficult for many Mexicans to afford to eat. The
government estimates that about 2.8 million Mexicans lost their
jobs during the first 22 months of NAFTA.
From 1983-1989, 40% of all government agricultural
support went to corn, much of it in the form of subsidizing the
purchase of tortillas, the principal form in which Mexicans eat
corn. Subsidies of basic foodstuffs were among the public expenditures
slashed to achieve macro-economic objectives stipulated in the
February 1995 U.S.-Mexico loan agreement and in the loan Letter
of Intent with the IMF. (The loan agreements were intended to
"stabilize" the Mexican economy in order to regain the
confidence of investors whose capital flight contributed to the
peso crash.)
By October 1995, the estimated monthly cost
of feeding a family of five was US$340, while the legal minimum
monthly wage was US$90. And yet, that December, the Mexican government
announced that it was discussing how to phase out the subsidy
for corn tortillas, the basic food for most Mexicans. Eliminating
the subsidy would at least double the price of tortillas.
The minimum wage now buys 40% of what it did
in 1982, when SAPs were first imposed. On April 1, 1996, the government
increased subsidized milk prices 50 percent and tortilla prices
27 percent in Mexico City, both of which outstripped the 12 percent
increase that raises the minimum wage to $3 per day. A 1996 inflation
rate of 30% is further eroding every Mexican's buying power.
Per capita consumption of corn, wheat, fruit
and vegetables has dropped by 29% during the past six years. The
United Nations Food and Agriculture organization estimates that
per capita consumption of corn, beans and wheat has decreased
about 35 percent in Mexico over the last ten years. According
to Mexico's National Nutrition Institute, 16 % of Mexican children
and 80% of all Chiapans are malnourished. Already, eighty children
under the age of one year die each day of malnutrition. Between
January and April 1996, the government of the northern border
state of Chihuahua reported that 77 people had died from malnutrition
and dehydration.
White Corn, Yellow Corn, Genetically
Engineered Corn
Mexico is a "center of origin" for
corn. Blue corn, red corn, speckled corn, white corn, yellow corn
-- thousands of varieties were developed by Mexican farmers throughout
human history. In modern times, white corn became the favored
variety for tortilla-making among the peasants. The grain trains
moving U.S. corn into the country, however, are carrying yellow
corn, the variety grown in the U.S. for cattle feed. The displacement
of traditional maize with relatively flavorless imported cattle
feed not only threatens biodiversity, limiting the gene pool from
which the Mexican people can continually improve corn breeding
-- it is an insult to the dignity of the Mexican people.
Meanwhile, agri-business is preparing the way
to introduce genetically engineered corn. The U.S. Department
of Agriculture approved the first herbicide-tolerant corn, a product
of the AgrEvo USA company, in July 1995. Also that year, the U.S.
Environmental Protection Agency granted approval for full commercial
use of genetically engineered corn, cotton and potatoes containing
genetic information from Bt, a naturally occurring bacteria that
acts as an insecticide. A dispute over the patent rights to Bt-corn
was resolved in early 1996, when a federal judge held that Monsanto
did not violate Mycogen's patent on the process, and prohibited
Mycogen from challenging Monsanto further.
And in August 1996, the NAFTA Sanitary/Phytosanitary
Committee announced it would review whether it was the proper
venue for regulating continental trade in genetically modified
crops, including corn.
The NAFTA text on intellectual property rights
is even more restrictive than the Uruguay Round TRIPs Agreement.
An industry group calling itself the "Intellectual Property
Committee" -- consisting of Bristol-Myers, Squibb, FMC, Hewlett-Packard,
Johnson & Johnson, Monsanto, Procter & Gamble, DuPont,
General Electric, IBM, Merck, Pfizer, Rockwell International,
and Time Warner -- urged U.S. Trade Representative Carla Hills
in 1992 to consider the TRIPs agreement as "a floor -- not
a ceiling -- for the level of protection that must be involved
in NAFTA's section on intellectual property."
The companies' plea was heeded. Among NAFTA's
rules that are more stringent than TRIPs is obligatory compliance
with UPOV, either the 1978 or 1991 versions; and "at least"
20 years of protection from the date of filing for the patent.
Furthermore, a party to NAFTA "may extend the term ... to
compensate for delays caused by regulatory approval processes"
and may not carve out exclusions "solely on the ground that
the party prohibits commercial exploitation in its territory of
the subject matter of the patent."
As transnational corporations seek to extend
their commercial control throughout Latin America, the U.S. will
use its influence to help them monopolize the hemisphere's plant
genetic resources. The political pressure is so intense, an Argentine
businessman participating in a forum on technology and IPR held
in Colombia in 1996 called it "imperialistic." The discussion
became so heated that the U.S. called in heavily armed security
guards.
To achieve its goal of extending highly restrictive
IPR and other features of neoliberal policy throughout the hemisphere
(with the exception of Cuba), the U.S. has organized negotiations
aimed at a "Free Trade Agreement of the Americas" by
the year 2005. Eleven working groups were set up in 1996: Argentina
chairs the group on subsidies (especially agricultural subsidies),
El Salvador chairs the group on market access, Mexico chairs the
group on sanitary and phytosanitary standards, and Honduras chairs
the group on intellectual property rights.
Responses
In May and June 1996, women and children responded
to the scepter of hunger by stopping corn and wheat trains and
breaking into them, emptying tons of grain by the sackful and
barrelful. Other peasants seized a luxury estate owned by former
President Salinas de Gortari's brother in law, declaring it was
constructed fraudulently on community land. The Popular Revolutionary
Army has launched armed attacks while the Zapatistas maintain
their control of parts of Chiapas while demanding a peaceful transition
to democracy in Mexico.
Faced with revolt, grim statistics and a two-week
grain supply, President Ernesto Zedillo launched a program to
foment corn production. In June 1996, Mexico prepared to spend
$2 million to buy about 10 million metric tons of corn, wheat,
sorghum, soy, pinto beans. In August, Mexico's Agricultural Minister
announced that corn import quotas would be cut in order to encourage
sales of corn domestically grown on the national market.
Mexican civil society has organized numerous
activities in response. A nationwide movement has arisen to free
the people of debt, referred to as "El Barzón"
-- meaning "the yoke." The "New Peasants' Movement"
has consolidated hundreds of regional and local networks of grain
producers and other social and economic organizations, which are
working together as well as independently to achieve alternative
policies for the production of basic grains.
A National Forum for Food Sovereignty, held
in August 1996 in Mexico City, brought together farm groups, small
and medium-sized agribusinesses, non-governmental organizations
and academics from all over Mexico to sift through myriad proposals
for food security -- such as how to finance and implement their
own plan for restoring idle lands to productivity, with the goal
of producing a million metric tons of corn in one to three years.
Abandoned fields, toxic fields, sterile fields...
Eye-witnesses in much of the world can testify to the ravages
brought about by industrialized agriculture, with its massive
doses of chemicals and genetically-uniform monocultures. Wielding
free trade ideology, its proponents trot about the globe advocating
more of the same.
With $13 million from the Nippon Foundation,
for example, the founder of the Green Revolution, Norman Borlaug,
and G. Edward Schuh, dean of the Humphrey Institute at the University
of Minnesota and a former World Bank executive, have founded the
Sasakawa Africa Association (named after a former Japanese industrialist.)
Their goal: to change African government policies towards farming
and increase corn yields. Their method: organizing foreign fertilizer
manufacturers and seed traders, including the Monsanto and Cargill
companies, to lobby for expanding their markets in Africa so agriculture
can be a "powerful engine" for economic growth.
Suspicious of such promises, developing countries
during the Uruguay Round insisted upon a safety net. One of the
outcomes of the Round was a Ministerial "Decision on Measures
Concerning the Possible Negative Effects of the Reform Programme
on Least-Developed and Net Food-Importing Developing Countries"
(LIFDCs.) The Decision commits developed countries to provide
compensation to LIFDCs if they are adversely affected by higher
world food prices as a result of the implementation of the Uruguay
Round.
However, there is strong disagreement about
the impact of the Uruguay Round on world prices and net food import
bills, and corresponding disagreement on whether or not to implement
the Ministerial Decision. The United Nations Food and Agriculture
Organization, on the one hand, estimates that price increases
in basic commodities could lift the food import bill of LIFDCs
by some $10 billion by 2000, of which $1.4 billion may be attributed
to the Uruguay Round provisions. The FAO analysis concludes that
both weather and the reductions in government intervention required
by the Agreement on Agriculture have affected price increases;
that food aid will remain low because the Uruguay Round no longer
permits government stocks as a supply control measure; and that
Uruguay Round-prescribed reductions in export subsidies will structurally
change agricultural production patterns and thus import supply
availability. The International Monetary Fund, on the other hand,
insists that the Uruguay Round's impact on net food import bills
are negligible, arguing that the recent price spikes are "unrelated
to the Round."
Ultimately, the World Trade Organization Committee
on Agriculture will determine whether or not developing countries'
acknowledged struggle with food security is due to trade liberalization,
and therefore, whether or not the Marrakesh Decision should be
implemented.
As governments exercise diplomatic means to
resolve such differences, which are probably more political than
factual in nature, non-governmental organizations are increasingly
more engaged in the same international negotiations. Among their
recommendations to the world's governments:
1) Implement the Marrakesh Decision on Measures
Concerning the Possible Negative Effects of the Reform Programme
on Least-Developed and Net Food-Importing Developing Countries
promptly;
2) Acknowledge the established principle that
food security is a fundamental human right, consistent with Article
25 of the 1948 Universal Declaration of Human Rights;
3) Revise the International Undertaking on
Plant Genetic Resources to ensure the implementation of Farmers'
Rights through a substantial international fund controlled by
the donors of genetic materials, and include Farmers' Rights and
other provisions of the International Undertaking as a legally-binding
protocol of the Convention on Biological Diversity "to ensure
that intellectual property rights support and do not run counter
to" the objectives of the Convention;
4) Conclude the negotiation of a legally-binding Biosafety Protocol under the Convention on Biological Diversity with utmost speed -- fully addressing socio-economic issues and provisions
for liability and compensation in the case
of accidents resulting from the release of genetically engineered
organisms;
5) Adopt and implement the United Nations "Draft
Declaration on the Rights of Indigenous Peoples" which recognizes
their right "to control, develop and protect their sciences,
technologies and cultural manifestations, including human and
genetic resources, seeds, medicines, knowledge of the properties
of flora and fauna, oral traditions, literatures, designs and
visual and performing arts" and develop protocols of the
Convention on Biological Diversity consistent with these provisions;
6) Revise the Uruguay Round TRIPS clauses regarding
the patenting of plants and other living material between now
and the year 1999, enabling sui generis national legislation
that prohibits all patents on life or that otherwise respects
the rights of Indigenous Peoples, Farmers' Rights, collective
community rights, and the healthy functioning of genetically diverse
ecosystems;
7) Revise the Uruguay Round Agreement on the
Application of Sanitary and Phytosanitary Measures establishing
minimum international food safety standards instead of limitations
on food safety, and rid the Codex Alimentarious Commission of
corporate influence;
8) Initiate negotiations toward a global Sustainable Food Security Convention to elevate food security to the highest level of priority within international law: at a minimum, enabling governments to implement national food security plans that could exempt staple foods from WTO rules and disciplines that undermine these plans; coordinating an international network of local, national and regional food reserves; facilitating international commodity agreements to ensure access to staples that nations are unable to provide for themselves; and creating mechanisms to aid governments in disputes over food and agriculture policy with other entities such as the WTO;
9) Revise the Uruguay Round Agreement on Agriculture
between now and the year 2000: at a minimum, reinstating and improving
upon former GATT Article VI (which prohibited export dumping),
Article XI (which allowed the use of import restrictions to maintain
the integrity of domestic supply management programs), and Article
XX (which created exemptions from GATT rules and disciplines for,
among other things, products essential for national security,
natural resource conservation, and the protection of human, animal
or plant life or health); and
10) Build local, national, regional and global political systems based upon the full participation
of all segments of civil society.
The Uruguay Round Agreement on the Application of Sanitary and Phytosanitary Measures (SPS) prohibits countries from legislating food safety regulations that create trade barriers and that differ from those established by the Codex Alimentarious Commission, an international body that sets international food safety standards, unless:
ï they are "necessary" for the protection of human, animal or plant life; and
ï they are based on "scientific
principles" and not maintained "without sufficient scientific
evidence;" or where such evidence is insufficient, they may
"provisionally" adopt regulations based on "available
pertinent information" while seeking information "for
a more objective assessment of risk" and a subsequent review.
Codex Alimentarious (meaning "Food Code"
in Latin) consists of standards, guidelines and principles regarding
food production and processing, including the concentration of
additives, contaminants, pesticide residues, and animal drug residues;
procedures for sampling and analyzing processed foods and for
hygiene practices; and labeling. Recent initiatives address the
inspection and certification of food imports and exports, and
the labeling of genetically engineered foods.
Recently, the U.S. and the European Union have
been locked in conflict over the U.S.' determination to export
growth hormone-produced beef and genetically engineered soybeans
to Europe. At a 1995 meeting of Codex, the U.S. instructed its
19 delegates representing various corporations to lobby the delegates
of other countries regarding three key votes on the definition
of "sound science" and the health risks of using hormones
to promote growth in beef cattle and milk production in dairy
cows.
For many years, Codex Alimentarious has been
linked to transnational food corporations. The U.S. food industry
financed the U.S. government's participation in Codex at its founding
in 1962. More than four out of five non-governmental participants
on national delegations at many Codex committee meetings represent
industry. The International Federation of National Associations
of Pesticide Manufacturers, for example, has sent dozens of representatives
to Codex meetings. Among non-governmental participants at the
1991 Codex meeting, 26 represented public interest groups and
662 represented industry.
The food industry has even better access to
decisionmaking, seated as members of official delegations. Half
of the official delegates on both the U.S. and the United Kingdom
delegations at the 1989 Nutrition Committee meeting were corporate
officials. During the two-year period of meetings referred to
as Codex's 19th Session, from 1989-1991, a total of 445 industry
representatives served on national delegations, compared to only
8 representatives of public interest non-governmental organizations.
A government wishing to defend local or national
food safety regulations more stringent than those of Codex bears
the burden of proof, and must convince a WTO dispute resolution
panel that the regulation is both necessary and scientific. Where
a government is less protective of health, however, the WTO has
no jurisdiction. Thus, the net effect of the Uruguay Round SPS
Agreement is a lowering of food safety standards in many countries,
to the advantage of transnational food exporters.
With the creation of the World Trade Organization
(WTO), the traditions of GATT itself -- flexible negotiations
among consenting parties through a series of negotiating rounds
-- were abolished. In their place, the WTO uses voting and binding
dispute resolution procedures backed by economic sanctions to
enforce its decisions. Chief among the WTO's characteristics is
the legislative and judicial power to address areas that had formerly
been strictly national in scope by prefixing the adjective "trade-related"
to any issue at all. The WTO is a permanent political body and
can, with a three-fourths majority, establish new obligations
at any time; under the old GATT, the principle of non-discrimination
gave every country an implicit veto toward any new obligations
that might be proposed.
Instead of sovereign contracting parties who
choose to participate or not in any of the 180 or more treaties
comprising the earlier GATT system, the WTO has "members"
which must agree to each of the agreements of the Uruguay Round
in order to participate in the world trading club at all. Self-exclusion
is almost unthinkable for governments, especially for developing
countries bound to structural adjustment policies, net food-importing
dependence, and the "open investment" regimes aggressively
promoted in today's integrated economy. Indeed, one of the WTO's
explicit goals is "achieving greater coherence in global
economic policymaking" with the IMF and the World Bank.
The WTO even assumed the power to require each
member to "ensure the conformity of its laws, regulations
and administrative proceedings with its obligations as provided"
in the Uruguay Round agreement. Under these rules, the WTO can
oblige members to enforce the revision of certain national, state
and local laws -- such as regulations for pesticides, use of
public lands, or nutrition labeling -- to minimize their "trade-restrictive"
effects or to bring them into compliance with often weaker international
standards. According to the Office of the U.S. Trade Representative,
even "Indigenous Tribes" recognized through a century
of treaties negotiated according to the U.S. Constitution, will
be considered "sub-federal jurisdictions" under the
WTO.
Disputes resulting over implementation of the
Uruguay Round are decided in secret by panels of trade experts
appointed by governments; the rules prohibit the members of a
dispute panel from releasing documents and from disclosing their
opinions to the public. When a dispute panel judges that a country's
trading behavior or domestic law does not comply with the rules
of the Uruguay Round agreement, the country may bring an appeal
before another panel of appointed appellate judges. Whereas formerly
a unanimous opinion of all the GATT contracting parties was required
before retaliatory trade sanctions could be imposed to enforce
a dispute panel's finding (and there were no appeals and no appellate
panel -- generally, a losing country would negotiate a satisfactory
settlement well before retaliation was proposed), the WTO appellate
panel's findings are absolutely binding unless all WTO Members
-- including plaintiffs and defendants -- unanimously agree to
reject its decision.
A losing country must change the offending
practices, laws or administrative procedures within a reasonable
period of time. If it fails to do so, the winning country can
retaliate by asking the WTO for permission to suspend a certain
amount of its trade with the loser. For example, if a country
refuses to change a food-related law judged to be unnecessarily
stringent, it could lose opportunities to trade in agricultural
products with the other country -- or pay an equivalent monetary
compensation. If this penalty is ineffective, then the winning
country can "cross-retaliate" with sanctions against
industrial products and other perhaps more costly sectors of the
economy.
Sanctions and cross-retaliation are powerful
economic instruments. In fact, the mere threat of sanctions is
often sufficient to persuade countries to change their laws or
other trade practices. Sanctions are also a single-sided sword,
their effectiveness being relative to the disputing countries'
economic dependence, market shares, and import sensitivity.
Altogether, the new and powerful WTO enforces
a series of commercial trade agreements that jeopardize biological
diversity and food security everywhere. Unless civil society worldwide
insists upon a more democratic form of political organization,
the future of life on Earth may be at risk.