A coalition of 80 nations, which includes India, China, and South Africa, has initiated efforts to engage with Arab countries and the least-developed nations. Their aim is to collectively exert pressure on developed economies, urging them to prioritize food security for developing nations.

The G33, African Group, and the ACP (African, Caribbean, and Pacific) alliance within the World Trade Organisation (WTO) has introduced a novel approach for calculating subsidies designated for the acquisition, stockpiling, and distribution of food, with the goal of enhancing food security in developing and impoverished nations.

Furthermore, they have recommended permitting the export of food grains from government-held reserves to aid countries in need, primarily for international food assistance and humanitarian reasons.

Officials have expressed their determination to garner increased backing for these propositions, with one official stating, “The co-sponsors of the proposal are actively seeking support from 6-7 Least Developed Countries (LDCs) and the Arab Group, both of which have already expressed their support during discussions.”

The coalition proposes adjusting public stockholding solutions for inflation and using a more current reference price, as the current external reference price (ERP) is based on 1986-88 prices. This adjustment is seen as essential, especially as many countries face reduced staple production and heightened food security concerns amid rising global food prices, according to a second official.

They have recommended a fresh approach to calculate subsidies, either by factoring in “significant inflation” within the ERP or by determining the ERP based on the last five years, excluding the highest and lowest entries for a particular product. The ERP, which remains unchanged since the base years of 1986-88, gains renewed importance as developing and poor nations seek an alteration in the WTO’s agricultural regulations – a permanent solution. This is to safeguard their policy space for food security programs in anticipation of the 13th Ministerial Conference (MC13) scheduled for next year in Abu Dhabi.

The coalition also proposes amendments to the anti-circumvention clause outlined in the 2013 Bali Ministerial Declaration. Under this clause, developing countries engaged in food stock procurement for security purposes should not distort trade or adversely affect the food security of other WTO members.

Source: TPC