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Background | First update | Second Update
Sisal vs. Steel | Lee Kyung Hae | "Blessings
Victory | To Presbyterians | Ag Subsidies 101

September 8 ~ Fair Trade Fair and the WTO

Tomorrow morning I fly to Cancun, not for vacation (alas), but to participate in the Fair Trade Expo and Symposium, which the PHP helped to finance. Your PHP is also providing scholarships to bring the President, Zulema Mena de Gonzalez, of the "New Life" Cooperative (Cooperativa Maquiladora Mujeres de Nueva Vida) in Nicaragua - the makers of our Sweat-Free T-shirts, and Mike Woodard from the Jubilee House Community, the Nicaraguan faith-based community development organization that has been assisting the women.

The Fair Trade Fair will demonstrate to economic ministers and the media from around the world a people-oriented, successful, albeit fledgling, alternative to WTO-style trade, which has tended to bolster the largest, capital-rich firms and agribusinesses at the expense of smaller producers. The advantages of WTO rules mostly accrue to richer countries, and domestic protections - including environmental laws and supports to less established businesses - are outlawed and subject to rulings by an unelected WTO council.

[* NOTE: As you know, the mainstream media tends to prey on sensational acts like vultures to roadkill, so remember the little you might see or hear about Cancun from your newspaper or TV over the next week is heavily weighted. As always, the peaceful and justice-loving throngs outnumber the few violent provocateurs by thousands. http://www.tradeobservatory.org/News/ would be one good source for alternative news on Cancun. Those who like the Utne Reader can read dispatches from Cancun, also. www.utne.com ]

Fair Trade producer groups from more than 100 countries will be serving community and cooperative-made coffee, chocolate, bananas, crafts, apparel, and on and on, while a three-day symposium on Fair Trade and Sustainable Development brings together great visionaries, such as Vandana Shiva and Nobel Peace Prize Laureate Rigoberta Menchu, to chart out a path to global economic justice.

As PHP is a partner of the Rural Coalition and Agricultural Missions, I will be meeting with those capable (and more experienced than I at such mass gatherings) groups to strategize ways to push for the removal of agricultural trade from WTO jurisdiction, and to network with WTO official reps. I also hope to meet representatives from SweatFree Communities, Maggie's Organics and several PHP grantees involved in fair trade - Coop America, TransFair USA, Peace Through Interamerican Community Action, Center of Concern, National Family Farm Coalition, Community Food Security Coalition, National Catholic Rural Life Conference, Missouri Rural Crisis Center, and the Institute for Agriculture and Trade Policy.

I am credentialed to observe (participate?) in WTO Ministerial meetings and hope to get a glimpse of the inner chambers. An excellent overview with what's on the agenda for the WTO in Cancun can be found on the Friends of the Earth International site at http://www.foei.org/cancun/what.html
(For the WTO perspective on what the WTO is, see http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm)

I will attempt to find a free computer in an internet cafe to send you all an update or two during the events. Don't feel at all obliged to read them, since they might be more than you ever wanted to know about trade - fair or "free."

Yours in Christ,
andrew

September 10 ~ First Update from Cancun

[Hi all, the difficulty of getting around barricades and traffic jams, and the busy schedule don't allow me to make it to the NGO center to a computer often. This is my first time since Tuesday.]

The blistering wet heat of the day was finally relenting as a Caribbean Sea breeze tossed the hair of about 400 people on the roof of the Fair Trade Fair building here in Cancun last night. Rigoberta Menchu was giving an impassioned speech about the suffering of poor people due to World Trade Organization rules that benefitted only large companies, the richer countries and the rich within poor countries. The Foreign Minister of Sweeden had finished speaking and the Foreign Minister of Mexico hadn't yet smashed away at a giant piñata filled with Fair Trade chocolate.

Yet, I was feeling conflicted. Mark Ritchie, head of the IATP, the main organizer of the event, had just announced the sponsors of this historic Fair Trade Fair - the Ford Foundation, Oxfam International, Denmark's Ministry for Foreign Affairs, the Swiss Secretariat for Economic Affairs, the North American Free Trade Agreements' (NAFTA) Commission for Environmental Cooperation (CEC) and the PRESBYTERIAN HUNGER PROGRAM.

I hadn't known they were soliciting funds from two of the main purveyors of a development model and economic globalization agenda that has contributed amply to the crisis of rural families throughout the world - the World Bank and, since 1994, NAFTA (in this case, a kinder, gentler side of NAFTA, the CEC.)

Here in Mexico, NAFTA is credited with forcing as many as 2 million farmers into bankruptcy as industrial corn growers in the United States take advantage of the open trading border and export millions of pounds of corn, where corn has been the life-blood and cultural icon of the people. Doing the math, for every 10 tons of corn we export to Mexico, two farming families are displaced from their land. If they don't end up searching for jobs in overcrowded Mexican cities with tremendous unemployment rates, they brave the wide, harsh desert to enter the U.S. - if they make it alive. I was embarrassed to be announced and in the program along with these entities.

But okay, okay, Andrew. Alas, we live with contradictions and compromise even our heart-felt values on a daily basis. Indeed, the World Bank and CEC are getting public relations points for their sponsorship. On the other hand, in this case they are using a small amount of their funds for a good cause. But, I thought, perhaps - in the program booklet - they could have made the size of sponsors' logos based on the proportion of our contributions to our budgets! PHP would have been enormous; the World Bank would have been the size of this sentence's period.

Shaking these thoughts, I look around at the handfuls of trade ministers and governmental delegates mingling among the great numbers of people from non-governmental organizations from all over the world. I see many from organizations that the PC(USA) has partnered with (some I mentioned in my initial email). And the symposium workshops were well attended and invigorating. Already on its first day, the Fair Trade Fair and Symposium has been a success

People drinking, eating and networking stay on after the planned ending time until a rain cloud blots out the moon and Mars and drenches all without discrimination. Several of us use the Fair Trade Fair banner as a group umbrella and enjoy the crowded comraderie.

Soon the rain lets up and I realize that Fair Trade is coming of age. Never has it had this kind of exposure. I am proud of the PC(USA) work to support this life-giving alternative through Enough for Everyone and Joining Hands Against Hunger.

Finally, the gorgeous sparkling ocean called yet louder, and brother Stephen and a friend from Land Loss Prevention Project decided to take the plunge - clothes and all. Well, Stephen had has suit on underneath.

Sending you hot regards from Cancun,
Andrew

P.S. I just returned from one of the many parallel meetings and conferences happening in the city of Cancun, where farmers and students are camping - by the thousands - in parks and a baseball stadium. I attended an outdoor forum sponsored by another of our partners through the Environmental Justice Office - the Coalition for Justice in the Maquiladoras, heard horrifying sweatshop stories from workers in Mexico and Central America.

Then I stopped in the Casa de la Cultura where people had created a beautiful circle and cross with a hundred or more candles with the handsome photos of Lee Kyung-hae, the 55-year-old former president of a Korean farmers' organization who committed stabbed himself in the heart to express his outrage and despair against the WTO. He climbed up onto the fence of the barricade which kept the farmers from nearing the WTO negotiations. His sign said, WTO Kills Farmers. I said a prayer for him and especially for his three daughters and wife. How very sad that a life-giving occupation - feeding people - has been turned into a simple commodity. I vow to attempt to buy all my food from local farmers, not from the handful of supermarket chains that treat food as a profit-making commodity.

September 11 ~ Second Update from Cancun

Friends,
I write to you now before the weekend, since by the time Monday rolls around, the WTO negotiators will have achieved their objectives or not.

However they turn out, the impact - positive or negative - will be tremendous, since the rules on trade being debated determine the viability of common people's livelihoods - farmers, consumers, other laborers and the unemployed. And people who care about social justice and building a peaceable kingdom on this precious planet of ours.

Here in the NGO center computer room, the clatter of thousands of keys is bright white noise, as reporters send stories to their papers and organizational representatives send the latest updates.

Outside, the sun beats down relentlessly on the few tourists that continue to brave the road blocks and long trips forced by the high security. And it hits the trees shading the students in hammocks waiting for the next march, street drama and major wake memorial service for the Korean farm leaders, Mr. Lee, whose self-immolation continues to resonate. His expression, like the Buddhist monks who burned themselves during the Vietnam War, has added gravity to the WTO proceedings and opposing and alternative forums. These are life and death issues.

The sun strikes the permanent encampments of the 250 Korean farmers, teachers and factory union members and leaders in the traffic circle where Mr. Lee fell. The Koreans share their food among themselves and others that come to offer condolences and signs of solidarity. They maintain the altar and hold constant vigil.

Yet, the sun fails to reach the chilled hall of the convention center - enclosed within fences of metal and iron - where trade ministers meet and discuss their national positions based on economic calculations that neglect social and environmental costs.

And the questions swirl around -

What impact if any do the protests and marches have on the hearts and minds of the trade ministers?

How do WE reduce the suffering caused by so much of economic globalization, which the WTO rules attempt to institutionalize?

And who is WE?

Certainly the skillful organizers of dozens of NGOs from around the world working tirelessly day and night here to educate the media and negotiators about the negative effects of corporate-controlled globalization.

Certainly the thousands of students and farmers who traveled - sometimes for days on buses - to call for humane, democratic and just policies.

Certainly the religious folk here from all parts of the world who have faith that God works through us to realize justice and communion.

Certainly you and me.

But the "how" remains the challenge. How to stay true to what we believe? How to live out our faith daily? How to raise up our voices against the injustices and for a vision of a just world as Christ did. As always, we must make the road by walking it.

Let the sun shine down on us and the path, and brighten all of our hearts.

Warmly, andrew

September 12 ~ Sisal vs. Steel

This Saturday evening, I write to you with some trepidation since my mind is fuzzy, my body sticky with sweat and dust, and fatigue like I have not felt in years sets in, and I want to skillfully convey the community that was built on the streets of Cancun this day.

The Fair Trade Fair and Sustainable Trade Symposium had finished, so many of our new friends from the Fair had taken the hour-long trip (usually 15 minutes if the police had not closed down the main road up the peninsula) from the Hotel Zone to the city center to march for non-exploitative trade agreements and fair trade.

The two thousand or so marchers amassed in front of the giant barricades. Hundreds of students, farmers, workers and heaved on the thick sisal rope, braided together with many shorter and thinner strands. Indeed, this was a rope to bargain with.

Yet, the ten-foot tall barricades were ten foot tall, lashed together with giant U-bolts and chains. And they were three fences deep!

One middle-aged Korean man, primarily, was commandeering the positioning and tying off the two ropes at the top of strategic sections. And after 20 minutes or an hour of preparation, people would strain on the ropes, the metal would creak and lift and usually drop down almost where it started.

But they were persistent and kept at it for hours in the middle day heat.

Twenty yards down the barricade, which spanned a divided two-lane highway and a wide grassy area, were half a dozen women with wire and bolt cutters, who - chain link by chain link - like tiny beavers, were creating holes. When almost through, the lines of gray riot police with shields, masks and helmets closed in and set up more barricades inside.

Behind the workers, milled people from dozens of countries - while there were numerous gray-haired folk, the average age was probably 30 - there to express their opposition to an economic governing body elected by no one, whose disputes are judged by selected technocrats - the World Trade Organization.

As I wandered and took photos, I met a staff person from Church World Service, Maryknoll folk, Central American missionaries, leaders of the National Catholic Rural Life Conference, young Japanese from environmental groups, an former colleague from Brazil, Mexicans, Canadians, Koreans, students from the new U.S. United Students for Fair Trade, and so many other new and old friends.

All this time, the Korean farmers and workers kept at it, supported by a myriad hands on the homemade ropes. Periodically, everyone would raise their cheers as they pulled on the fence and - piece by piece - the iron and steel gave with groans and high-pitched squeels.

After a good three hours, the fence - with many fits and starts - gave way, almost dislodging the many media cameramen and photographers from their perches on the barricade on all sides.

Now, the barricade was gone. Still, hundreds of riot police, a tank-like vehicle with tear gas and water cannons, more squadrons of federal police and riot police, and six and a half miles of road peppered with four more manned barricades lay between us and the WTO Convention Center. What to do.

The anarchists, some with a telephone poll, others with metal poles, all with helmets, pads and bandanas, certainly had their agenda. But the Korean leaders were successful in having a thousand or so of those up close sit as they and others spoke of their opposition to the WTO´s agenda to make the world safe for corporate rule.

To make a long, long day´s story short, the entire crowd and police were silent during a memorial for the farm leader, Lee, who had given his life for the struggle - punctuated by the occasional cell phone. Then a symbol of the WTO was burned, the anarchists, yes, added a U.S. flag to the flames, and the ceremonies were finished.

We were not going in. And then the celebration began. Drummers from many countries, a drum corp mostly from the U.S., with jazzy trumpets and dancers played as they wound through the crowds, and Korean cymbal players joined in the party. People danced and laughed, a huge snake dance boggied to the rhythm and tunneled through people with hands grasped above them. Everyone was clapping, smiling, stomping and playing.

The sisal had vanquished the steel. The steel from which weapons are made to take or protect, the steel that locks so many out of the riches of the planet to which all should equally have access, the steel fences within which the WTO officials struggled to enforce their vision of a top-down global economy - that steel was torn down. And all of us could see in. The message seemed to be, we are vigilant and will not prevent you from selling away our democracy, our faith in people, and our hope for a just world.

We were a community, there on the streets of Cancun, one I can´t imagine any of us forgetting. A lump comes to my throat, as I think of the many faces of people today who love and care for the world so much that they would give so much of themselves. I am sad, but also somehow feel powerful and proud, as I think of Mr. Lee, who made the ultimate statement and sacrifice. So clearly, from the crowded wakes held and the respect it garned, his expression was like a salve over all of us, helping us to remember the value of life and what is truly important. Life with dignity, life with hope, life with love. And this remembrance was like thousands of threads of sisal, tying us to one another, tying us together with all of our relations and all of those we care about - a gorgeous web. A glimpse of the unity to be found in God´s kin-dom.

andrew

September 14 ~ In Memory of Lee Kyung Hae

Dear friends,

On this Sunday morning, still in Cancun, I am attaching for you a short piece which gives the farm leader´s final sentiments. It is a powerful.

Peace, andrew

P.S. The WTO negotiations have been extended by a day as they attempt to salvage the talks, primarily due to the gulf between the US and European Union on one side, and the Group of 22, led by Brazil and backed by the significant presence of China and India, who demand cutting US and EU agricultural subsidies, the bulk of which end up in the hands of huge agribusiness.

"The WTO Kills Farmers:"
In Memory of Lee Kyung Hae


Americas Program, Interhemispheric Resource Center (IRC) www.americaspolicy.org

On September 10, opening day of the Fifth Ministerial of the World Trade Organization, Lee Kyung Hae climbed the fence that separates the excluded from the included and took his life with a knife to the heart.

Lee, leader of the Korean Federation of Advanced Farmers Association, had been excluded for most of his professional life. A farmer working with farmers, he watched as hundreds of his neighbors were driven off their lands and separated from the only livelihood they knew. He spoke eloquently and passionately of the death of hope in the Korean countryside, the sense of impotence and the anger against policies that promoted imports over national production.

So Lee decided to fight that exclusion by going straight to its source. Earlier this year, he staged a one-man hunger strike in front of WTO headquarters in Geneva, in protest of the draft proposals for the Cancun meeting. He was ignored. Seven months later, he joined the march of over 15,000 farmers, indigenous people, and youth in Cancun wearing a sandwich board that read "The WTO Kills Farmers" and holding a firm conviction in his still-beating heart. When the protesters reached the point where they could go no farther, he plunged a knife into his heart and was soon pronounced dead in a Cancun hospital just miles from where WTO Ministers deliberated on how to promote the same agricultural trade that drove Lee, and hundreds more farmers in Korea, India, and other developing countries, to such a drastic end.

But it is a more fitting tribute to let Lee tell his own story, from a statement he distributed in Geneva and later minutes before his death in Cancun:

I am 56 years old, a farmer from South Korea who has strived to solve our problems with the great hope in the ways to organize farmers' unions. But I have mostly failed, as many other farm leaders elsewhere have failed.

Soon after the Uruguay Round Agreement was sealed, we Korean farmers realized that our destinies are no longer in our own hands. We cannot seem to do anything to stop the waves that have destroyed our communities where we have been settled for hundreds of years. To make myself brave, I have tried to find the real reason and the force behind those waves. And I reached the conclusion, here in front of the gates of the WTO. I am crying out my words to you, that have for so long boiled in my body:

I ask: for whom do you negotiate now? For the people, or for yourselves?


* Stop basing your WTO negotiations on flawed logic and mere diplomatic gestures.
* Take agriculture out of the WTO system.
* Since (massive importing) we small farmers have never been paid over our production costs. What would be your emotional reaction if your salary dropped to a half without understanding the reasons?

Farmers who gave up early have gone to urban slums. Others who have tried to escape from the vicious cycle have met bankruptcy due to accumulated debts. For me, I couldn't do anything but just look around at the vacant houses, old and eroding. Once I went to a house where a farmer abandoned his life by drinking a toxic chemical because of his uncontrollable debts. I could do nothing but listen to the howling of his wife. If you were me, how would you feel?

Widely paved roads lead to large apartments, buildings, and factories in Korea. Those lands paved now were mostly rice paddies built by generations over thousands of years. They provided the daily food and materials in the past. Now the ecological and hydrological functions of paddies are even more crucial. Who will protect our rural vitality, community traditions, amenities, and environment?

I believe that farmers' situation in many other developing countries is similar. We have in common the problem of dumping, import surges, lack of government budgets, and too many people. Tariff protection would be the practical solution.

I have been so worried watching TV and hearing the news that starvation is prevalent in many Less Developed Countries, although the international price of grain is so cheap. Earning money through trade should not be their means of securing food. They need access to land and water. Charity? No! Let them work again!

My warning goes out to all citizens that human beings are in an endangered situation. That uncontrolled multinational corporations and a small number of big WTO Members are leading an undesirable globalization that is inhumane, environmentally degrading, farmer-killing, and undemocratic. It should be stopped immediately. Otherwise the false logic of neoliberalism will wipe out the diversity of global agriculture and be disastrous to all human beings.

Laura Carlsen <laura@irc-online.org> is director of the IRC's Americas Program. She wrote this commentary from Cancun, Mexico.

Counting my "blessings"

14 September 2003

Yes, I counted my blessings last night that I could go back to a clean hotel room and cold shower, and sleep in relative peace. Yet the irony did not escape me. In my email last night, I spoke of the amazing community that was built. But as we parted from the friends we shared dinner with, the community shifted from something tangible to something abstract.

Most the students - at some point during the night - returned to their shared hostel rooms with fans at best, or to sleep in stuffy tents or on clammy tarps in a municipal baseball stadium. If the mosquitoes let them sleep at all, they work covered in sweat to the unrelenting tropical heat. Their budgets allowed them to eat tacos in Palapa Park, so at least no one went hungry. Food Not Bombs, also, was there to help feed any pesoless folk. But today and tomorrow, they will board dozens of buses to return to the schools, while I sit in this air conditioned Cancun terminal, waiting for my 3:45 flight.

On the other hand, there are overlooked advantages on the other side. While I went on about the community that was built out in the streets during those hours taking down the barricade and the celebrations that followed, those students and farmers have been experiencing variations of community like that ever since they started their grueling road trip from Mexico City or Chiapas or many other locations.

In fact, when we offered one of the young people our room's extra bed, without hesitation, they turned us down, and explained with a sparkle in their eyes that, while they were nine people packed like sardines, it was wonderful.

~~~~~~~~~~~~~~~

If you still want more, you can see a series of reports from colleagues at the National Catholic Rural Life Conference, which includes updates from brother Stephen Bartlett, a couple of my reports, and reports from NCRLC staff. http://www.ncrlc.com/NCRLC-at-Cancun-for-WTO.html

The daily reports from Food First staff are also very good - http://www.foodfirst.org/wto/dailyreports.php

VICTORY for Global Civil Society

Dear Friends,
This is my final email (which I'm sending prior to a couple others since I prepared it first and wish to send it prior to my computer crashing) with a statement by Lori Wallach of Ralph Nader's Public Citizen, one of the main organizers of the "inside" actions at the WTO. They have lots of excellent information for further reading at http://www.publiccitizen.org/trade/wto/
Thanks for sticking with me on these!
Warmly, andrew

Sept. 15, 2003

Victory for Global Civil Society, Developing Nations as U.S.-EU-Japan Agenda for Major Expansion of WTO Corporate Agenda is Defeated at Cancun WTO Ministerial

U.S. and EU Intransigence Exposes WTO's Growing Crisis of Legitimacy; Sends Debate on Future of Corporate Globalization and WTO Home to Nations Worldwide

Statement of Lori Wallach, Director of Public Citizen's Global Trade Watch

The WTO's ever-growing crisis of legitimacy has burst into public view again as the WTO's Cancun Ministerial summit collapsed this weekend when the United States and Europe stubbornly rejected the demands of the majority of the organization's signatory nations to make global trade rules fairer.

The economic and environmental damage and social upheaval experienced in scores of nations implementing the WTO rules over the past nine years translated into a rejection of business-as-usual at the WTO, with a majority of nations demanding negotiation instead of dictation of WTO terms by the United States, Europe and the WTO staff. Many U.S. civil society groups sided with the poor nations, admonishing the United States for bullying and threatening other nations and clarifying for negotiators and the press that the Bush administration's agenda at the WTO summit did not represent the interests of most U.S. citizens, but instead suited the large corporations bankrolling Bush's re-election effort.

The Bush administration calls itself the great promoter of democracy, free trade and the global trade system, but it just caused the WTO summit to implode by rejecting the demands of the majority of WTO signatory nations - which wanted a little democracy, free trade and multilateralism - after those countries refused to simply sign off on the corporate agenda pushed by the United States and its small, rich-country coalition of corporate shills.

The United States, the EU, Japan and a few other developed nations were seeking an agreement to launch negotiations to expand the WTO's scope by adding a list of new WTO agreements that now appear only in the North American Free Trade Agreement (NAFTA) and that provide more privileges for foreign investors, constrain countries' domestic procurement and food and product inspection policies, and dictate other domestic policies of WTO signatories. (For a full list of the proposed WTO expansion agenda items, click http://www.publiccitizen.org/documents/Cancunchecklist.pdf.) The majority of the WTO's signatories, which are developing countries, in contrast demanded that the serious problems in the existing WTO rules be the focus of future WTO negotiations. Global civil society groups have called for the WTO to "Shrink or Sink," demanding 11 transformational changes to existing rules, including elimination of the WTO's inappropriate one-size-fits-all rules that constrain governments' domestic polices, and a rewrite of the trade rules to make them more broadly beneficial.

Now the fight goes to each country and the WTO's Geneva headquarters. In nations around the world, elected officials and those on the campaign trail - including U.S. presidential candidates - will be asked what they intend to do to transform the failed WTO rules and its version of corporate globalization rejected in Cancun into a trade system that benefits the majority of people worldwide.

Special Message to Presbyterians

Good morning,
Below this initial message is a very short piece written especially for those of us in leadership positions in the PCUSA.

But before that, on a related issue, I wanted to mention that I've been asked to represent the PCUSA at a meeting in Niagara Falls on Oct. 1-2 on the Churches Consultation on Globalization: Just Trade Agreements?, which includes Canadian, US and Mexican churches. This is a preparatory meeting leading up to the Final Consulation in January 2004 to describe and help bring focus to North American churches' educational and advocacy plans around economic globalization and trade issues.

I am very eager to hear from all of you how unjust trade and economic globalization is affecting communities and churches that you work with. Stories from our church and community partners are the most effective way to bring awareness, understanding and action, so please let me know if you have any. These can be stories from a rural church, groups dealing with new immigrants, or overseas partner churches or communities. Just steer me to them. Thank you!

* * *

WHAT TOOK THE WTO DOWN?

The failures of this 5th WTO Ministerial are a strong blow to the Free Trade Areas of the Americas. Hopes of a final FTAA agreement in 2005 grew dimmer as positions hardened on both sides, and the poorer countries came together as a block in the Group of 23.

Washington is scrambling to salvage what they can of the WTO and the White House is threatening to remove preferential trading status from Mexico and others in Latin America who opposes the U.S. agenda.

Nevertheless, the Republicans are wielding tremendous political power recently, and if we are to help prevent our country from pushing free corporate trade on the rest of the Americas, we will need to deploy all the tools and resources available to ensure that the failures of NAFTA are not institutionalized in the form of an unjust trade agreement.

You and I as Presbyterians, and especially as national leaders of the denomination, have our education, access to alternative media and analysis, and other opportunities to understand the negative impacts of NAFTA, for example, and can predict, based on the policies of future agreements, the impact those will have.

And like it or not, we are obliged by our choosing Jesus as our Lord, to stand with the oppressed (even, ironically, as we often stand on them!).

Here is something I saw that relates to those voices which need to be heard and echoed.

In the Fair Trade Fair and Sustainable Trade Symposium were people from producer groups in the Americas, Africa and Asia. I spoke to many, especially from Mexico and Central America, and heard about the conditions of poverty they live in. The few who knew about the FTAA were adamant in their opposition and in their understanding that their communities would be impoverished further. But most didn't know about the FTAA or had no idea about what the effects of NAFTA have been; some didn't even know the WTO Ministerials were happening just three miles down the peninsula!

These coffee, tequila, blanket, crafts, tamarind jam, chocolate producers and craftspeople understand so much about their situation and usually have a very sophisticated analysis, but many do not understand how FTAA would affect their communities.

All this to say that we must raise our voices in a clear cry for justice, care for creation and for moral trade. Plus, our General Assembly has called on us to do so!

Agricultural Subsidies 101

I'm attaching this piece that I wrote on the plane between Cancun and Atlanta. I believe it will give you a better feel for the issue that was the center of what took down the WTO Ministerials.

Yours,
andrew

Agricultural subsidies are at the core of the irreconcilable divide between the rich and poorer countries. But let's take a quick look at the issue.

For many months, Kathy Ozer, director of the National Family Farm Coalition, a long time partner of the PC(USA) Rural Ministry Office and the Hunger Program, has been trying to explain the subsidies issue to me.

Finally, after more conversations and a presentation by Daniel de la Torre Ugarte, a Peruvian professor at the University of Tennessee - who together with colleagues just completed an excellent study on the real impact of subsidies and the impact on prices once they are removed - I think I got it.

It can get complex, but let me try to explain it briefly. First, let me say that if subsidies are not at the crux of the debate, then they are a diversion from the real issue - namely, the methods used by the oligopoly (for now defined simply as when fewer than four companies control over 40% of an industry) of agricultural corporations to keep agricultural products below the price of production. When these cheap goods are dumped on other countries, farmers cannot compete and suffer or go bankrupt. So that is one of the punch lines.

Why subsidies alone are not the issue.
As background,

  1. Understand that most farmers in the U.S. (and anywhere) would rather receive a fair price for their products than receive subsidy payments, which feels akin to living on welfare or food stamps (something to which many U.S. farmers have resorted).
  2. Approximately 80% of the total amount of subsidies (also remember that these are paid for with our tax dollars), goes to large agribusiness operations, not to family farmers.
  3. Corporate livestock operations and processors, such as ADM, buy raw agricultural products for less than the cost of production.
  4. Most farmers outside of the U.S., European Union and Japan have had their subsidies and import restrictions dramatically reduced or eliminated and are no longer protected -- which has made them extremely vulnerable and has compromised their nations food security and food sovereignty. Even if developing countries wanted to protect their farmers and national food security, many have neither the funds in their treasury to provide payments nor the political support. In the U.S., we had the funds in 2002, due to a budget surplus, but we lacked the political will to make the changes in our policies which would have really helped family farmers through support for fair prices.

Okay, this is the key point. The data from countries that have phased out and eliminated subsidies on agricultural products shows that the prices farmers get for their produce and grains do not rise. This conclusion comes from other developed nations, such as Canada, and looks at grains, cotton and oil seeds - the primary globally traded commodities.

Why do prices not rise?
Okay, say a small or medium-sized farmer loses her subsidy, which previously had made up for the low sale prices of her products. She tries to cut costs, but eventually must sell her land or loses it to the bank. In either case, a neighboring farmer or agribusiness venture buys up the land. What they found was that land mostly stays in production, so the amount of aggregate product grown does not decrease. Family farmers attempting to continue farming by getting bigger often don't buy land, but instead must rent land from large, often absentee, landlords.

So, production does not decrease. And here is another punch line. There is an abundance of food and feed being produced in the world, which has been the primary cause behind the dramatic drops in prices. Farmers are just too good at what they do and agribusiness has shaped policies that perpetuate the overproduction. Why? You've probably figured that out already. So the raw products they buy are dirt-cheap. Even when supplies become low, farmers have no alternative but to sell every bushel from every crop to make ends meet because there is no price floor and prices don't respond dramatically unless the perceived shortage is acute.

Then, since these agribusinesses are horizontally (buying up other companies engaged in the same business) and vertically integrated (owning all the components and processes from seed, to agricultural chemicals, to processing and distribution), the profits they can make using cheap raw material is staggering, and accounts for their ability to take over company after company and pay multi-million dollar salaries to their executives. (More on this at http://www.agribusinessaccountability.org/page/data/)

So, if the elimination of subsidies doesn't raise the prices farmers get for their products, what will?

We must return to managing the supply and putting price floors on agricultural goods. The catch is, this must happen internationally, so other major producers of that same product (or those that might enter that market if the price was significantly higher) would increase production and drive the price back down. But the U.S. must take the lead since it still supplying 60-70% of corn in world trade, around 50% of soybeans, and is still the largest exporter of wheat with approximately 25% of the global market share. Furthermore, we have a history of using farm programs to do exactly what is needed-creating a price floor, a food security reserve and conservation set-asides.

It became sadly apparent from Cancún that, on the contrary, it is our U.S. agribusiness-backed government that is forcing everybody in the opposite direction.

So, one of our jobs, then, is to de-emphasize solely cutting subsidies and emphasize the real challenge before us - changing farm policies that encourages over-production. (Remember, farmers would rather not over-produce; rather, they are doing what they must when economically pressed against the wall, which they are, even with subsidies.)

Concurrently, we must develop the will and mechanisms to increase the prices on agricultural products so family farmers and smaller-scale farmers around the world can survive. Within this, we can create incentives and compensation for farmers of all sizes to implement conservation measures that would save wetlands, topsoil, and forests, and give a boost to organic and non-industrial farmers for the benefit of farmers, farm workers and consumers alike - not to mention organisms from micro to mammals.

This is exactly where the Farm Bill's Conservation Security Act fits in: When grain is reasonably priced, the incentive to feed livestock in confinement diminishes, and farmers can viably raise livestock on family farms. They can be further supported by better prices available through CSA (Community Supported Agriculture, or "share" farming), which encourages them to re-incorporate hay, pasture and small grains in their rotation.

Again, the key component parts of a farmer oriented policy are:

  • Price support mechanisms
  • Set-aside/short-term land retirement program
  • Elimination of government payments
  • Supply management (with national food reserves)

With such practices, not only will farm families prosper, but rural communities as well will be revived. In truth agriculture is the foundation of ours and all cultures, and if it thrives, we all do. For what can be more important or sacred then food, produced and eaten with dignity and reverence?


Thank you for your perseverance. And congratulations, especially if economics are not your cup of tea. You made it through, and you are still alive. Good.

 

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