Dumping hinders battle against hunger

Date: 17/10/02

By Martin Banks

EU EFFORTS to alleviate starvation in famine-hit countries are being undermined by the 'dumping' of subsidised agricultural exports, according to MEPs.

Richard Howitt, a member of the Parliament's development and cooperation committee, said the EU could be 'rightly proud' of its record in providing food aid to those needing it most.

'However, I have to say that the biggest problem the EU causes is the dumping of subsidised agricultural exports on Third World markets,' he said.

Dumping is the practice of selling goods at below-cost price, normally to gain footholds in new markets or to prevent effective competition emerging in existing markets.

One example of this is the dumping of dairy products in southern Africa.

'This undermines local farmers and the long-term self-sufficiency of developing countries,' said Howitt.

The UK Socialist, who was speaking after holding talks with representatives from Malawi, where thousands face starvation, continued: 'The current situation in southern Africa is critical.

'The development committee is calling for recognition of the principle of food security in trade negotiations, in particular with African, Caribbean and Pacific countries.

'Every human being has the right to healthy and nutritious food and clean water and a fundamental right to be protected from famine.'

Poul Nielson, commissioner for development and humanitarian aid, recently told the Parliament that poverty reduction had become the 'overall' objective of the Community's development policy.

But Max van den Berg, the committee deputy chairman, said that instead of pouring in aid, the EU should be encouraging famine-hit countries to become more self-sufficient.

'As important as it is, it isn't just a question of providing food aid. The EU also has to look at opening up the markets and lowering our trade exports barriers so that these countries start producing their own food.'

The Dutch Socialist is also highly critical of 'selfish' US policies; the recent Farm Bill could have a disastrous impact on developing nations, he added.

Another committee member, Glenys Kinnock, also believes much more has to be done.

She said: 'As we see the tragedy that food shortages bring to huge swathes of southern Africa and the Horn of Africa, we are right to demand this matter be given the importance it deserves.

'Our humanity is called into question when 820 million of our fellow citizens are hungry.'

The Welsh Socialist said it was crucial that people not only had enough to eat for their everyday needs but also food in reserve for leaner times.

'Over the past 40 years, per capita food production has grown by 25 and food prices in real terms have fallen by 40. Yet insecurity and malnutrition continues to be an enormous challenge,' she said.

On current population growth figures, demand for cereals could rise by 40 by 2020 and by 60 for meat.

Agricultural subsidies are a 'key' factor, said Kinnock, and are estimated to be the same as sub-Saharan Africa's total GDP.

'The average European Union cow now receives a subsidy of 2.20 a day when half of the world's population lives on less than 2 a day and one billion people live on just 1 a day,' she added.

Subsidised exports, artificially low prices and dumping 'legalised' by the World Trade Organization are damaging elements of current trade patterns, she said.

'To start making a difference, Western governments need to open up markets and tackle the trade-distorting impact of subsidies.'

Developing countries need to permit higher returns on agriculture which, believes Kinnock, would raise rural incomes and spur economic development.

'We need to argue for a food security clause in the WTO's agreement on agriculture.

'Post-Doha, the WTO should focus on reform of agricultural trade to enhance food security.'

She said that June's World Food Summit in Rome did not go far enough in addressing key issues.

'The summit reaffirmed the right to food but regretted the fact that this right to food is denied to one person in seven.

'It also recommended the same remedies proposed five years ago even though achievements so far have been modest and, following current trends, the goal of halving the number of people suffering from hunger may take 20 years longer than planned.'

The Parliament's Liberal group leader Graham Watson went even further in his criticism of the EU's food aid record, declaring: 'The EU's credibility is severely dented by the effects on developing countries of our protectionist policies.

'For humanitarian and other reasons, the time to reform these policies has come,' he said.

EU efforts to alleviate starvation in famine-hit countries are being undermined by the 'dumping' of subsidised agricultural exports, according to MEPs. Article is part of a European Voice survey 'Feeding the World'.