WORLD TRADE
ORGANIZATIONWT/MIN(99)/ST/110
2 December 1999
(99-5346)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999Original:  English
FOOD AND AGRICULTURE ORGANIZATION
Statement by Mr. Hartwig de Haen
Assistant Director-General, Economic and Social Department
(Speaking as an Observer)
Around 800 million people still suffer from hunger.  The number of the undernourished in the
developing countries has declined somewhat in rece nt years but far too slowly.  Only last week, the
FAO Conference in Rome reaffirmed the 1996 World Food Summit goal of halving, not later than by
the year 2015, the number of the undernourished.  Urgent action is needed if this goal is to be met.
Access for all to sufficient, safe and nutritious food is essential for an active and healthy life.
Trade is vital to food security of both poor and rich countries.  Trade in agricultural products,amounting to about US$450 billion annually, has almost doubled since 1980.
FAO's main concern during the forthcoming r ound is to ensure that the reform in the
regulatory framework governing inte rnational agricultural trade is conducive to food security for all.
In this context, I should like to make seven brief points.
Key issues
1. World agricultural markets are still highly distorted
The Uruguay Round began a process of reducing distortions in the agricultural sector.  But
the continued high levels of support and protecti on in some higher-income countries adversely affect
the agriculture of other countries by depressing commodity prices, thus undermining investment in thesector.  The farmers of developing countries in particular suffer the effects of these distortions.
Consumers in importing countries have sometimes benefitted from the resultant surpluses but over the
longer term the depressed prices have led a number of net-food-importing countries to neglect their
own agriculture in public policies.
Many developing countries, on their part, have already undertaken substantial domestic
structural adjustment reforms.  These reforms have not only contributed to reducing distortions in
world markets, but have also reduced past disincentives against their own agriculture.  Clearly their
efforts would be less effective unless they are supported by corresponding reductions of distortions in
higher-income countries.
2. The reform process should respect the need fo r developing countries to give priority to
their own agriculture
Agriculture, in particular food production, is arguably the most vital of human activities.
Historically, very few countries have achieved rapid economic growth and reduced poverty without
agricultural growth.  Despite substantial potential, agriculture in many developing countries,WT/MIN(99)/ST/110
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particularly in the rural areas where most of the world's hungry live, remains underdeveloped.  For
many low-income food deficit countries, priority for agricultural development is the surest and
quickest means for combining sustained economic growth and poverty alleviation with enhanced
domestic food production.
For the developing countries, therefore, the key challenge in the forthcoming reform process
is to ensure that the international regulatory fram ework governing agricultural trade will contribute to
their agricultural development and food security.
3. Developing country agriculture needs to become more competitive to slow the trends of
rising dependence on food imports and stagnant export growth
Typically, the agricultural sector of developing countries can enhance food security in two
ways – through increased exports as a source of foreign exchange, and through increased food
production.  The latter is of fundamental importance for the least-developed and net-food-importing
developing countries whose food imports bills rose steadily during the 1990s.
For agriculture to fulfil this dual function, the reform process needs to enable countries to
pursue measures to enhance agricultural productivity and thus become more competitive in domestic
and export markets.
4. Developing countries need more flexibility in domestic agricultural policy and border
protection
In recognition of the importance of the sector in the developing world and its inability to
adjust quickly to changing conditions, the Agreement on Agriculture includes several provisions with
special and differential treatment for the developing countries.
The flexibility provided by these provisions needs to be maintained, and even enhanced.  For
example, some developing countries could be allowed to rebalance their border and domestic support
commitments for key commodities crucial to their food security.  Also, most developing countries do
not have access to the Special Safeguard clause, and thus lack needed protection against possible
import surges and depressed world prices.
5. Efforts are also needed to facilitate furt her access to markets in developed countries
Tariff peaks remain in a number of commodities of export interest to developing countries
and they would benefit if such tariff peaks were reduced, e.g. temperate zone horticulture, sugar,
cereals and meat.  Moreover, reduction in tariff es calation would allow them to benefit from exporting
higher value processed products.
Sanitary and phytosanitary measures and technical barriers to trade continue to pose problems
for market access for developing countries.  They need time, resources and technical capacity to
establish appropriate legislation and to build the necessary capabilities to meet standards in the world
market.  Harmonization of national standards with science-based international standards is in the
interests of all.  This would not only enable them to respond more expeditiously to emerging export
opportunities but would also benefit domestic consumers and protect animal and plant health.
6. Fora and legal advice are still required for developing countries to address intellectual
property issues in the field of food and agriculture
Intellectual Property Rights (IPRs) related to agricultural inputs and technologies – including
patents and sui generis  plant varietal protection – impact heavily on the future evolution of the
agricultural sector, on the relationships between developed and developing countries, and between theWT/MIN(99)/ST/110
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public and private sectors.  FAO's main interest is in ensuring that IPR's in practice actually support
the sound growth of agriculture in poor countries, and to take in to account their specific needs and
those of their small farmers.
Many developing countries still lack a minimum "critical mass" of technical and legal
specialists able to participate in the coming negotiations on issues related to IPRs and agriculture, and
to ensure that their interests are taken into accoun t.  We feel it important to develop that capacity
rapidly.
7. Effective implementation of the Marrakesh Decision
FAO shares the concerns of the least-developed and net-food-importing developing countries
that little progress has been made since Marrakesh with respect to operationalizing the MinisterialDecision on Measures concerning the Possible Negative Effects of the Reform Programme on these
countries.  FAO considers essential that the negotiations lead to full implementation of the Decision,
as urged by the World Food Summit.
FAO's role in promoting food security through trade reform
FAO provides its members, developed and developing countries alike, with a range of
services on issues related to agricultural trade.  These include the monitoring of agricultural
commodity markets and the provision of food outlooks and food security assessments at global,
regional and country levels;  advice and training on agricultural trade issues;  and, provision of inter-governmental fora for setting sanitary and phytosanitary standards.
The 1996 World Food Summit Plan of Action mandated FAO to assist developing countries
in preparing for multilateral trade negotiations in ag riculture, fishery and forestry.  The aim is that
they might become well-informed and equal partners.
In this regard, FAO's activities fall into three main areas:First, FAO conducts analytical studies on agricultural trade and food security.  We have just
published a first comprehensive Assessment of the Impact of the Uruguay Round on
Agricultural Markets and Food Security, and are finalizing a volume on developing country
experience with the implementation of the Agreement on Agriculture.
Second, FAO provides inter-governmental fora for member countries to establish standards
for agricultural trade and relevant international instruments.  Such bodies include, for
example, the Codex Alimentarius Commission (jointly with WHO) for food quality and
safety standards, the Commission of the International Plant Protection Convention forphytosanitary standards.  Moreover, the FAO Commission on Genetic Resources for Food
and Agriculture is currently negotiating the revision of the International Undertaking on Plant
Genetic Resources which is expected to regulate access to plant genetic resources for food
and agriculture and benefit-sharing.  Another in ternational agreement, which is relevant for
the relationship between trade and natural resource management, is the Code of Conduct onResponsible Fisheries.
Third, FAO provides technical advice and assistance to its member countries in preparing for
WTO membership and adjusting their national food and agricultural policies.  It also assists
them in establishing national regulatory systems that comply with the SPS andTBT Agreements.  Legal advice is also provided on TRIPS.WT/MIN(99)/ST/110
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The Organization has recently launched a training programme to prepare trade experts from
developing and countries-in-transition for the forthcoming trade round.  The programme covers all
WTO agreements related to food and agriculture.
Finally, I would like to note that many of FAO's other technical assistance activities, in
agriculture, fisheries and forestry, aim at raising food and agricultural production and productivity and
at increasing competitiveness in these sectors.  Atte ntion is also given to improving market efficiency
with emphasis on private sector involvement.
To conclude, FAO's primary goal is the redu ction of undernourishment throughout the world
and food security for all.  The continuation of the agricultural trade reform process, and the
development of science-based standards to guide and facilitate that trade, is critical for achieving thisgoal.
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