World bodies call for reforms in global farm trade

Ahead of the forthcoming ministerial meeting of WTO in Cancun, the IMF, OECD and World Bank have called for reforms in global farm trade, as...

int(2)

Ahead of the forthcoming ministerial meeting of WTO in Cancun, the IMF, OECD and World Bank have called for reforms in global farm trade, as at present many developed countries use exports subsidies that drive down world prices and takes markets away from farmers in poorer countries.

‘‘Agriculture is of particular importance to the economic prospects of many developing countries, and reforming the current practices in global farm trade holds perhaps the most immediate scope for bettering the livelihoods of the world’s poor. Yet, developed countries impose tariffs on agriculture that are eight to 10 times higher than on industrial goods,’’ a joint declaration by heads of IMF, Organisation for Economic Co-Operation and Development (OECD) and World Bank said here.

Many continue to use various forms of export subsidies that drive down world prices and take markets away from farmers in poorer countries, it said.

Story continues below this ad

‘‘In every sector except agriculture, these same countries long ago agreed to prohibit export subsidies. Agriculture support costs the average household in european Union, Japan and US over a thousand US dollars a year,’’ it said adding much of this support depresses rural incomes in developing countries while benefiting primarily wealthiest farmers in rich countries.

Pointing out that the key challenges now lie with governments, the declaration said ‘‘all have to do their part.’’

While rich countries have to take the lead in areas now blocking the talks, particularly agriculture, the middle income countries have to contribute as well, reducing tariffs that affect not only their own citizens but other developing countries, it said.

The low income countries, even as they receive more aid for trade and win more time to implement some WTO rules, have to assume the new responsibility of participation in the international system, the declaration said.

Story continues below this ad

‘‘Working together the international community has an opportunity to help the world’s poor. We should not let it slip away,’’ it said.

‘‘Trade can be a powerful tool for development. To be fully effective, trade policy should be placed firmly within national strategies for development and poverty reduction, and be built on a foundation of good governance,’’ it said.

Realising the benefits of greater trade would require complementary efforts, it said, adding that while on the supply side this means investments in infrastructure and education, and policies to safeguard the interest of most vulnerable in society.

‘‘Both often require external technical and financial assistance. We are ready to help. All our organisations have stepped up efforts to provide aid for trade in support of a positive outcome of the Doha talks,’’ it added.