Working Group on Food Security Intensifies
Discussions, Eyes First Report in July
At a meeting of the WTO’s working group
on food security on 8 June, members continued their dedicated discussions on supporting
least-developed countries (LDCs) and net food-importing developing countries (NFIDCs)
in addressing key challenges for food security, including financing difficulties
and enhancing food production and productivity. The coordinator of the working group,
Marcel Vernooij of the Netherlands, expressed his intention
to release a report in July summarizing the positive progress in working group discussions
with the aim of encouraging further work.
Members shared
their insights from the thematic workshop on financing in February and the expert
session on 6 June, both focusing on the financing challenges for agricultural and
food imports faced by governments of LDCs and NFIDCs and exploring potential solutions.
This subject is an important component of the agreed Work Programme.
Referring
to the 6 June session, which featured presentations by the European Bank for Reconstruction
and Development, Rabobank and the WTO Secretariat, Mr Vernooij
underlined how the lack of import finance is such a critical issue, especially during
a food crisis. This has greatly impeded the availability and accessibility of food
imports for vulnerable countries. He asked members to deliberate on what can be
done by various stakeholders, including importing and exporting governments, international
financial institutions, the private sector and the WTO to alleviate the situation.
Many members
reaffirmed the significance of addressing import finance challenges for LDCs and
NFIDCs. While recognizing that the WTO is not a financial institution, some suggested
that the WTO and the Committee on Agriculture can play a vital role as a platform
for sharing information between public and private sectors, raising awareness about
the food security implications of the lack of financial resources for food-importing
countries and ongoing initiatives by other international and regional financial
institutions.
Members continued
their discussions on how to enhance agricultural production and productivity and
to build resilience in LDCs and NFIDCs, building upon the initial exchanges during
the thematic workshop on 12 April.
Some members
emphasized the role of technology and the importance of ensuring access to technologies
for farmers. They highlighted the need for capacity building and technical assistance
to achieve this goal.
Ensuring sufficient
flexibilities for LDCs and NFIDCs to support the development of their agriculture
sector was reiterated by some members. This includes short-term flexibilities to
support agricultural producers in emergency situations as well as long-term investments
in infrastructure, research and development, services, marketing and promotion.
The issue
of access to agricultural inputs and pesticides during price hikes was raised by
some members, while others emphasized the importance of cultivating high-yield seeds
to improve productivity.
There was
a strong emphasis on the need to enhance international cooperation. Some suggested
improving transparency regarding new policies that could impact food prices and
the availability of food and fertilizer.
Members examined
a summary (G/AG/W/233) of members' responses to the questionnaire on their needs (G/AG/GEN/214) finalized last December. The objective was to identify common areas
of interest and formulate recommendations based on the findings.
Mr Vernooij raised the question of whether members would be willing
to collectively agree on a common framework or guidance regarding international
food aid at the customs point of the recipient country. This would involve exempting
it from the imposition of customs duties and other taxes by the recipient country
at the border. One member clarified that they only exempted custom duties and value-added
tax for food aid imports and not necessarily other levies applicable to imports.
Another member stressed the need for a fuller examination of the matter by gathering
additional information on recipient members' practices.
Mr Vernooij expressed his intention to continue consulting with
members to reach a consensus on the language that could be acceptable to all.
The WTO Secretariat
presented the newly launched grain dashboards, which provide real-time data on seaborne
trade in wheat and other grains and oil seeds. They were developed in response to
members' requests for regular updates on trade and market developments, as outlined
in the Declaration on the Emergency Response to Food Insecurity adopted at the WTO's
12th Ministerial Conference last June.
The working
group serves as a dedicated platform under the Committee on Agriculture to address
the food security concerns of LDCs and NFIDCs as part of a work programme launched
as a follow-up to the mandate given by the 12th Ministerial Conference in June 2022.
Mr Vernooij said that the next working group meeting, scheduled
for 19 July, will serve as an opportunity to assess the progress made thus far and
lay the groundwork for further work after the summer break. A report, prepared in
his role as Coordinator, will be released prior to the July working group meeting.