Press Release from the Institute for Agriculture and Trade Policy
September 13, 2003
For Immediate Release:
Contact: Ben Lilliston, in Cancun, 044-998-860-6632, blilliston@iatp.org
Draft Text Continues Promotion of
Agriculture Dumping
Cancun – The draft Cancun Ministerial test released this afternoon largely represents the
continued promotion of the U.S.- EU proposal and would do nothing to address the widespread
practice of agricultural dumping. In fact, by proposing no timeframe for reductions in all forms of
export subsidies, in article 3.6, this text is a step back from earlier proposals.
In addition, the text suggests that the Peace Clause will be extended. This would make it much
more difficult for developing countries to challenge export dumping in the WTO.
“The last WTO agreement, signed in Marrakech, led to a near doubling of dumping by companies
exporting out of the United States. This proposed text would lead to even greater levels of
dumping, not less as demanded and promised in the Doha talks. This will simply intensify the
global commodity crisis that is crushing farmers around the world,” said Mark Ritchie, President
of the Institute for Agriculture and Trade Policy. “What we’re seeing is more of the same failed
approach to trade – where the U.S. and EU get to continue dumping agricultural products onto the
world market.”
“The Peace Clause directly undermines countries’ ability to enforce the anti-dumping provisions
of the WTO,” said Ritchie. “It absolutely should not be on the table for extension. If it is extended
it will be a huge step backward for development. This is not a development agenda – it’s an
export dumping agenda. Good for the buyers of commodities, like the soft drink industry and
industrial feedlot operators, but a disaster for farmers and consumers.” said Ritchie. “
“There is a simple solution for anyone who wants to see a successful outcome of these
negotiations. All countries, north and south, could agree to phase out export dumping over the
next ten years. The net effect could be a near doubling of global prices in coffee, corn, cotton, and
other basic commodities bringing great benefit to farmers, peasants, and rural communities
worldwide” said Ritchie. “In addition to increasing export dumping, the Uruguay Round also
permitted the US government to actually increase the level of spending on farm programs. This
proposed text would do the same by moving almost all current US subsidies into a Blue, Green or
other box that would be exempt from serious reform and allow for over 10 billion dollars per year
in potentially new subsidies.”
The draft also gives special treatment on tariffs to developed countries – while depriving
developing countries of some of the same benefits.