Second Pan-American Conference on Obesity - PACO II Oranjestad, Aruba, 15 – 16 June, 2012 Foreign Policy, International Trade and the Prevention of Childhood Obesity1 1. Health/Childhood Obesity as a Foreign Policy Issue The focus of my presentation is the use of an international relations or foreign policy framework, which embraces international trade policy, to address the problem of childhood obesity. According to Wang and Lobstein (2006)2 childhood obesity is rising worldwide. This is of particular concern since childhood obesity raises the risk of an early onset of heart disease, hypertension, type II diabetes, liver diseases and a number of other chronic diseases (Lobstein & Jackson-Leach, 2006)3. In spite of this, historically, international co-operation on matters of health has focused largely on pandemics associated to infectious diseases, with far less attention paid to chronic non-communicable diseases (NCDs) which do have equally debilitating effects on people and economies, particularly in the developing world. It may be worth noting that the much acclaimed Millennium Development Goals made specific reference to certain infectious diseases without any direct reference to non-communicable diseases (NCDs). There is no doubt that attention must be paid to addressing the diseases identified in the MDGs. However, in my view, no less effort should be spared in addressing the rise in chronic NCDs. The use of diplomatic efforts, and foreign policy in general, as a framework to address childhood obesity should be pursued more vigourously. David Fidler, who has conducted substantial research on the relationship between health and foreign policy, observes that the profile of health as an issue in global politics has grown significantly in the past 10 -15 years and the political prominence of health is a new phenomenon for those working in foreign policy and global health in the early 21st century4. In 2005, Fidler noted that ‘the nature and extent of foreign policy attention devoted to health today is historically unprecedented5’. The term ‘global health diplomacy’ has gained widespread 1 Presenter: Vincent J. Atkins, Trade Policy and Technical Advisor, Office of Trade Negotiations, Caribbean Community Secretariat. The views expressed in this presentation are the personal views of the presenter and are not intended to reflect the position of CARICOM on the subject. 2 Y. Wang & T. Lobstein (2006) Worldwide Trends in Childhood Obesity. International Journal of Pediatric Obesity 1, 11 – 25. 3 T. Lobstein and R. Jackson-Leach (2006). Estimated burden of Paediatric Obesity and co-morbidities in Europe. Part 2. Number of Children with indicators of obesity-related disease. International Journal of Pediatric Obesity 1, 33-41. 4 D. Fidler (2008). Navigating the Health Terrain: preliminary considerations on mapping global health policy. World Health Organization, Geneva. 5 D. Fidler, (2005).“Health as foreign power: Between principle and power,” Whitehead Journal of Diplomacy and International Relations 6/2, p. 179 1|Page use to describe the process by which state and non-state actors engage to position health issues more prominently in foreign policy decision making.6 It must be admitted however, that the exact nature of the relationship between health and diplomacy or international relations is not always quite clear. In fact, Drager and Fidler7 (2007) describe the relationship between health and foreign policy as being ‘vital, complex and contested’. On the one hand health may be perceived as one of the issue areas in international relations similar to national security, economics and development, the traditional elements of the national interest. From that perspective co-operation in addressing health issues serves as a tool to pursue the foreign policy goals of co-operation and progress among states. On the other hand, there are those who contend that health as an issue area in foreign policy may simply be a mechanism through which states exercise ‘soft power’ to achieve other strategic global political objectives – including the acquisition of power and influence . From that perspective health is not an imperative of foreign policy, but rather viewed as a means to other ends8. Labonte and Gagnon (2010)9 observe that in the past decade several governments have issued specific foreign policy statements on global health. They were able to catalogue nine such statements with titles such as: - Swiss Health Foreign Policy: Agreement on Health Foreign Policy Objectives (Switzerland, 2006); Oslo Ministerial Declaration – Global Health: A pressing foreign policy issue of our times (Norway, France, Brazil, Indonesia, Senegal, South Africa and Thailand, 2007); Meeting Global Challenges: international co-operation in the national interest (Norway, 2006). Bustreo and Doebbler (2010)10 state however, that most of these policy statements, do not view health as an essential inclusion of foreign policy. Whichever perspective one may subscribe to regarding the place of health in foreign policy, there is no doubt that health has become an important issue area in foreign policy. This may of course present an opportunity for health activists to use foreign policy as a medium to address both national and global health issues. To succeed in doing so, however, it is important that health sector officials become familiar with and active participants in, the field of diplomacy and foreign policy decision-making, much in the same way that trade officials have before major players in the conduct of the trade-related foreign policy objective of their home states. 6 R. Labonte and M. Gagnon (2010). Framing Health and Foreign Policy : lessons for global health diplomacy. Available at http//: www.globalisationandhealth.com/content/6/1/14. Retrieved 10 June 2012. 7 N. Drager and D. Fidler (2007). “Foreign Policy Trade and Health: At the cutting edge of global health diplomacy”, Bulletin of the World health organization 85/3, p 162. Available athttp://www.who.int/bulletin/volumes/85/307041079/en/. 8 F. Bustreo and C.F. Doebbler (2010). “Making Health an Imperative of Foreign Policy: The value of a Human Rights Approach”. Health and Human Rights Volume 12, No 1. P.47. Available at http//www.hhrjournal.org 9 Ibid. 10 Ibid. 2|Page 11 I do not wish to convey the impression that co-operation among states in the field of health is a new phenomenon. Far from being so, states have been co-operating for decades in addressing health issues and diplomatic activity among states to deal with the spread of communicable diseases is very well known. What may be new, however, is the greater integration of health issues in foreign policy considerations, that is health as a foreign policy issue and, perhaps more pertinent to the PACO II Conference, the greater tendency for co-operation among states to embrace the control of non-communicable diseases. Fidler (2008)11 notes that recent developments find more non-communicable disease concerns, such as control of tobacco and obesity and obesity related diseases, becoming the focus of diplomatic attention. He states that “this diplomatization of some non-communicable disease problems has, functionally, forced actors to formulate their interests, articulate and advance them, and determine what to do, if anything, if interests converge on the need to address such problems collectively”. The recent advances by the World Health Organization in addressing the problems of tobacco smoking through the Framework Convention on Tobacco Control (FCTC) and the Global Strategy to reduce the harmful use of alcohol are examples of states acting collectively to address noncommunicable health issues in which their interests converge. The FCTC is the first international treaty established under the Constitution of the WHO and the first dealing strictly with tobacco control. The Global Strategy details voluntary policy options and interventions at the national level and global priorities at the international level. Unarguably, childhood obesity is another health problem which has assumed global dimension and on which the interests of states in stemming the problem and its related diseases converge. Of course the problem of childhood obesity differs from both tobacco and alcohol abuse in the sense that both tobacco and alcohol are specific commodities for which there is irrefutable evidence of their causal link with NCDs. In the case of childhood obesity it is not as easy to identify specific products for which the causal link may be established in the same way that this can be done for alcohol and tobacco related diseases although in this presentation I have taken the liberty to refer to obesogenic foods almost as if this was a distinct class. Notwithstanding that difficulty, there is little doubt that certain products contribute substantially, if not solely, to the problem of childhood obesity. Whether one argues that the causes of childhood obesity are rooted in behavioral or other factors, there appears to be to be sufficient evidence that the consumption of certain foods is either directly contributable or more conducive to childhood obesity than others. Ibid. 3|Page The product classification systems used in international trade, the Harmonized System of Product Classification, and in the national schedules of countries utilize a product coding and description mechanism which makes it possible to classify products on the basis of their specific characteristics, such as sugar, fat or sodium content, and to treat products differently in international trade on the basis of these specific characteristics. For example, states could discriminate in their application of duties and other taxes on products on a tariff line basis depending on their levels of sugar or fat content, or between whole foods and refined foods or between fresh fruits and vegetables and processed foods. Where convincing evidence exists of a causal link between certain food characteristics and childhood obesity states can discriminate in their treatment of these foods, particularly where these obesogenic foods are popular with children, subject of course to international trade principles such as the Most Favoured Nation (MFN) principle , which discourages discrimination among sources of imports and the National Treatment principle, which discourages discrimination between domestically produced goods and like imported goods. My basic argument is that although it may be difficult to link the causes of childhood obesity to specific products in the same way that certain diseases can be linked to alcohol and tobacco childhood obesity is sufficiently important to be considered a matter of national interest which merits a collective approach to its solution, in ways similar to that taken on tobacco and alcohol. In that regard, the Government of Aruba has to be commended for the prominence which it has given to the control of childhood obesity both at the national level and in its contribution to international efforts to deal with the scourge of non-communicable diseases. In effect, Aruba has demonstrated a commitment to elevate childhood obesity as an issue area of national interest. If other countries can be persuaded to do the same, the tools of global health diplomacy and global collective strategies could be used in the efforts to control the problem. 2. International Trade and the control of Childhood Obesity As in foreign policy, there are conflicting views between the relationship between health and trade, which have implication for the effectiveness of using trade policy to address health issues, including the control of childhood obesity. On one hand is the view that trade liberalization increases growth and development, which reduces poverty, which leads to improved health that in turn improves growth (Labonte and Gagnon, 2010)12. Bustreo and Doebbler (2010 )13 reference a study by Owen and Wu (2007)14 which suggested that there was a positive correlation between trade and health which was due to trade openness increasing technology and knowledge transfers that benefitted health care. The same study concludes that economic 12 Ibid. Ibid. 14 A. L. Owens and S. Wu, (2007), “Is Trade Good for Health?” Review of International Economics 15/4, pp 660-682 13 4|Page policy based on openness to trade may increase donors’ confidence and thus improve the level of investment in health. On the other hand, Labonte and Gagnon (2010)15 indicate that the evidence to suggest that trade liberalisation leads to increased health through its contribution to growth and poverty reduction is weak. They observed that while most econometric studies find liberalization on average is associated with growth, this positive relationship is neither automatically guaranteed nor universally observable. Lobstein (2010)16 states that ‘while trade liberalization may contribute to global wealth and economic development, the process is not without its drawbacks: in particular, the opening of markets facilitates the importation of foods and the inward investment of capital in the manufacture and retail of foods that can undermine healthy dietary patterns”. He notes that “the extra-ordinary rise in the prevalence of obesity witnessed in the last two decades cannot be attributed simply to worldwide failures in personal responsibility” and that “the context in which choices are made must be recognized”. He says further that “the effects of trade liberalization on obesogenic foods popular with children form an important part of that context”. International trade policies may provide some scope, within a foreign policy framework, to treat with public health issues generally and with the problem of childhood obesity, in particular. International trade policy is constantly evolving and the World Trade Organization, which has responsibility for oversight of the trade agreements which its Members have already concluded, also serve as a forum for further negotiations among its Members.WTO Members, therefore, have the facility to incorporate into their multilateral trade relations emerging concerns which have implications for trade or which could be addressed through trading mechanisms. It is in that context that concerns related to climate change and the environment constitute part of the agenda of the WTO and the use of trade instruments to address these concerns are making their way onto the agenda of the WTO. In my view, there is no reason why childhood obesity which is impacted by global trade and investment measures should not be considered in the context of further negotiations in the WTO where it is evident that trade and investment policies contribute in a substantial way to the incidence of childhood obesity. The concern which many WTO Members may have with using the WTO as a forum to address health and other non-trade concerns is that health-related measures may be used as disguised barriers to trade. International trade in the goods is governed by a number of WTO agreements which specify the major principles and rules to govern that trade. In general these rules pertain to the application of tariffs and other duties on imports, the prohibition on quantitative restrictions on imports, 15 Ibid. T. Lobstein in C. Hawkes, C.Blouin, S.Henson, N. Drager and L. Dube (eds.) 2010. Trade, Food, Diet and Health: Perspectives and Policy Options. Wiley- Blackwell. P 195 16 5|Page regulations on food safety measures and technical product standards. Two fundamental principles underlying multilateral trade arrangements are the Most Favoured Nation Principle referred to earlier, which prohibits discrimination according to source of imports and the National Treatment principle which prohibits discrimination between locally produced goods and imported products of a like nature with respect to domestic taxes and regulations. The debate on the efficacy of the use of economic measures such as maintaining high duties or tariffs on food imports with a greater propensity to cause childhood obesity and lowering taxes on healthier alternatives calls into question the use of these measures to address childhood obesity. However, the WTO Agreements does not prohibit a country from lowering such tariffs or from increasing them, provided that the increase in tariff does not surpass the maximum levels which the WTO Member has agreed to maintain on that product and providing that the same tariff is applied universally without discrimination among sources of imports, except in the instances which the WTO Agreements allow. The difficulty with this approach is that where a country produces the same or similar products domestically an increase in import duties would not increase the price of the locally produced products. A country which raises import duties on products which it produces domestically may also run the risk of facing higher duties on its own products when these are exported. Lowering import duties on healthy foods, such as fruits and vegetables, however, may provide an incentive to consumers to purchase them particularly since there is evidence that fresh fruits and vegetables generally cost higher than processed foods. Moreover, the product classification system and customs schedules used by countries allow them to apply different rates of duty and other taxes on products depending on particular characteristics of these products. For example, imports of products with a sugar or fat content below a particular threshold can be exempted from the payment of duty or could be charged a lower rate of duty than a similar product containing higher levels of fat or sugar. Energy dense foods and obesogenic products can therefore be treated distinctly in a country’s customs schedule without violating existing international trade rules. Moreover, negotiations on trade in goods can also take into account strategies to control childhood obesity and cater for that objective in the revision or formulation of trade rules. Existing international trade policy permits the grant of subsidies to agriculture under specified conditions. Domestic support (subsidies) in favour of the production of healthy foods could be one measure used by governments to encourage the production of these foods, thereby making them more affordable and accessible. Developing, countries in particular have additional flexibility to grant subsides to resource poor and low income farmers. The weakness of such a measure is that it assumes the availability of budgetary resources to provide the levels of support which would create the incentive to grow the targeted commodities and it also has the potential to distort the market giving rise to inefficiencies in resource allocation and use and gives domestic production an advantage of imports. If subsidies give rise to protectionism 6|Page retaliatory measures could also be adopted by trading partners. However, in the context of a strategy to reduce childhood obesity exemption for the grant of subsidies that facilitate healthy food choices is an option which could be explored in international trade negotiations. The WTO Agreement on Sanitary and Phyto-sanitary Measures (SPS) seeks to regulate the use of such measures by WTO Members. SPS measures are used to protect consumers from risks arising from additives, contaminants, toxins or disease causing organisms in food, beverages or feedstuff. Fidler(2010)17 states that measures to counteract obesity that restrict fats, sugars or salts in foods may qualify as SPS measures because they seek to protect consumers from risks these additives pose when consumed. However, the food safety rules under the SPS agreement only address additives that directly harm health. Added fats and sugars may be considered as only contributory factors to obesity and therefore may not directly harm health. Strategies to counteract childhood obesity that qualify as SPS measures would have to comply with WTO disciplines which seek to ensure that these strategies are non-discriminatory, not disguised restrictions on trade and are the least restrictive strategies reasonably available to achieve the objectives sought. The WTO Agreement on Technical Barriers to Trade (TBT) in Article 2,2 recognizes that health is a legitimate reason for enacting regulations and standards (Fidler, 201018). The TBT agreement regulates the use of technical regulations which lays down product characteristics or their related processes and production methods with which compliance is mandatory and technical standards, for which compliance is non-binding. Restrictions on the levels of fats, sugars and salt or labeling requirements may be considered as falling within the ambit of the TBT agreement and would therefore have to comply with the rules governing the application of technical regulations and standards. A strategy to counteract obesity that involve restricting fat, sugar and salt content, applied on an MFN basis and consistent with the national treatment principle, may be acceptable under the TBT Agreement and is yet another avenue through which states can seek to control childhood obesity through the use of international trade policy. I have not attempted to exhaust the list of possibilities for using international trade policy to address childhood obesity. The examples I have provided should suffice however to demonstrate that there is flexibility within international trade policy for states to adopt a global strategy to address the problem through the trade component of their foreign policy. *** 17 D. Fidler “ The Impact of International Trade and Investment Rules on the Ability of Governments to implement Interventions to Address Obesity: A case Study of the European charter on Counteracting Obesity” in C. Hawkes et al. (eds.) 2010. Trade Food Diet and Health. Wiley-Blackwell. 18 Ibid. 7|Page 8|Page