This document discusses the food crisis facing least developed countries and the World Trade Organization rules around food. It summarizes that both cyclical factors like droughts and structural changes like increasing meat consumption in developing countries have contributed to the crisis. It notes the double impact on least developed countries from the end of cheap food imports and subsidies in rich nations. The document calls for increased agricultural investment and trade liberalization balanced with food security protections to help address global food security challenges.

1. WTO Rules and Food Crisis in
the Least-developed Countries
Policy Reflection Co-organised by the LDC Group
in the WTO with CSEND Trade Policy Governance
Group & Diplomacy Dialogue
Introduction by Christian Häberli, Ph.D.
World Trade Institute (Bern)
17 July 2008 (Geneva)

2. Cyclical and Structural Causes of the
present food crisis coincide
Cyclical causes: Structural developments:
 droughts and floods  Demography
 low stocks  Tigers eat meat
 currency fluctuations (China, India etc.)
 export restrictions  Oil barrels at $150
 speculation (?)  (Subsidised) Biofuel
 Water shortages
 Climate change
080717 CSEND Christian Häberli 2

3. Double impact on NFIDCs
The end of cheap food (international food aid,
export subsidies and price support in rich
countries are down) :
• Hunger strikes millions without purchasing power
• Urban poor without means to satisfy other
essential needs (health, housing, schools)
☝good news for poor farmers?
• Rural poor without means and incentives to
produce more
☛ no surprise:
WFP warnings of more famines
ICRC warnings of more wars
080717 CSEND Christian Häberli 3

4. Everybody is responsible
• IBRD now warning 33 governments may fall and
calling for $500m in food aid – but only 2 years
ago discovered agriculture as a worthwhile area of
investment
• FAO focus on summits?
• G8/OECD promising aid but no end to decade-
long market distortions hurting poor farmers
• Many NFIDCs enjoyed cheap food at the expense
of their farmers or even taxing exports
• Some exporters restrict exports for their own
food security
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5. WTO: Politics vs. Economics
Global vs. national welfare and „policy space“:
• Trade liberalisation increases food security –
overall but not at home
• Shifts from Amber to Blue and Green will not
increase food security
• Refusal to bind present zero import duties; G33
needs Special Products for food security
• Refusal to lift export taxes and restrictions (small
revision GATT-Art.XI:2 in Falconer modalities)
080717 CSEND Christian Häberli 5

6. Outlook
World food production for > 7bn meat eaters needs
more
• production investment and technologies
• trade liberalisation and regulation including
prohibition of taxpayer support to staple food
• regional food security stocks financed by rich
importing countries
• genuine food aid financed by food+oil price gains
☛ The whole WTO Membership must stand up
to all these challenges!
080717 CSEND Christian Häberli 6

7. Note: This publication has been made available by CSEND with the agrement of the author.
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