WTO talks collapse, no deal on India's demand for resolving food security

The talks collapsed at the WTO's 11th ministerial conference with the US reneging on its commitment to finding a permanent solution to the public food stockpile issue, resulting in disappointment to developing countries such as India.

As the US refused to engage, the 164-member World Trade Organisation (WTO) failed to reach a common ground for resolving the food security issue, a demand raised prominently by India.

Even after hectic parleys, the member nations failed to break an impasse over the public food stockholding issue on the fourth and final day of the ministerial conference.

Following the breakdown of talks, there was no ministerial declaration at the end of the meeting, though conference chair and Argentinean Minister Susana Malcorra made a statement highlighting feeble progress made in areas like e-commerce and fisheries.

For India, failure to successfully push the food security issue was a disappointment but the officials took comfort from the fact that the country did not yield any ground on other issues and kept its defensive interests in various fields intact.

The fate of the ministerial conference was sealed after Assistant US Trade Representative Sharon Bomer Lauritsen in a small group meeting said that permanent solution to the food stockholding issue was not acceptable to America.

"Unfortunately, the strong position of one member against agriculture reform based on current WTO mandates and rules led to a deadlock without any outcome on agriculture or even a work programme for the next two years," said a statement issued by India at t
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Discord at WTO meet: No deal on food security, fisheries subsidies, e-com

The World Trade Organisation failed to reach any new agreements on Wednesday, ending a three-day ministerial conference in discord in the face of stinging US criticism of the group and vetoes from other countries.

The stalemate dashed hopes for new deals on e-commerce and curbs to farm and fisheries subsidies and raised questions about the body’s ability to govern increasingly disputed global trade.

The frustrations led some ministers, including US Trade Representative Robert Lighthizer, to suggest that negotiations among smaller groups of “like-minded” WTO countries were a better approach going forward.

“We have not achieved any multilateral outcomes,” European Union Trade Commissioner Cecilia Malmstrom told a news conference. “The sad reality is that we did not even agree to stop subsidising illegal fishing.”

She said the meeting laid bare one of the WTO’s biggest deficiencies - that all agreements must have the unanimous consent of all 164 member countries. She said the United States was partly to blame but that other countries also blocked progress.

WTO Director-General Roberto Azevedo added that WTO members needed to do some “real soul searching” about the way forward and realize they cannot get everything they want.

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Qatar blockade is a warning to desert countries that rely on imported food

The wealthiest nation on the planet is facing a sudden experience of what poverty might be like, if relationships with its neighbours are not restored. Though Qatar has an extraordinary per capita income of $130,000, compared with around $57,000 in the US, it has a glaring weakness – the small desert peninsula imports around 90% of its food.

This has come to a head as a result of the blockade placed around Qatar by neighbouring members of the Gulf Co-operation Council, who accuse it of supporting militants. It furiously denies the claim. Because most of Qatar’s food had previously arrived across its only land border with Saudi Arabia, the blockade created the potential for imminent shortages, food inflation and unrest. Severe food shortages have only been averted thanks to urgent new deals with Iran and Turkey, which are flying and shipping food in.

Qatar is an important example of a nation potentially made complacent by its wealth. Why cultivate your own food when you can simply buy it in? The country also has a major food waste problem exacerbated by a regional culture of social extravagance. It appears to have given little attention to securing resilience within its food supply chains.

The blockades have exposed Qatar’s lack of domestic food production. Its hot, dry climate means most land is unsuitable for agriculture, and costs are high. The local food industry therefore does not have the knowledge, expertise or infrastructure to compete with cheaper, sometimes “loss leader” ranges of food imports that are seeking to create an anchor presence in anticipation of other food ranges to follow. Huge economic inequality also plays a role: wealthy, status-conscious Qataris prefer higher quality imported food, while at the other extreme a cost-conscious imported workforce cannot afford to be choosy.
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