WORLD TRADE  
ORGANIZATION  RESTRICTED 
G/AG/W/90 
14 November 2011 
 (11-5855) 
Committee on Agriculture Original:   English 
  
 
THE WTO RESPONSE TO THE IMPACT OF THE FOOD CRISIS 
ON LDCS AND NFIDCS 
 
Communication from the NFIDCs
1, African and Arab Groups 
 
 
 
The following communication, dated 11 November 2 011, is being circulated at the request of 
the NFIDCs, African, and Arab Groups.  
_______________ 
 
 1. The 2007–08 food-price crisis, followed by the global financial crisis and economic 
recession, pushed the number of hu ngry and undernour ished in the world to unprecedented levels in 
2009.  World agricultural and food commodity prices began rising again in mid-2010, and as of early 
May 2011, the food price index was higher than the spike observed in June 2008.  According to 
projections in the OECD-FAO Agricultural Outlook  2010–2019, real commodity prices are expected 
to be higher on average over the next decade th an they were in the period from 2000 to 2009.
2  This 
alarming situation, and such high levels of food pri ces that are anticipated to continue, at least, over 
the next decade, poses serious challenges for LDCs a nd NFIDCs.  It would awfully affect their ability 
to access to food, elevate their vulnerability to intern ational shocks in the international food market, 
and create balance of payments problems. 
2. Action in the framework of WTO shall be  based on the acknowledgment of Members 
common interests and mutual dependence. Action, that takes account of the fact that "trade is a key 
element in achieving food security" as agreed in the 1996 World Food Summit, which committed to 
"strive to ensure that food, agricultural trade a nd overall trade policies are conducive to fostering food 
security for all through a fair and market-oriented world trade system".  One of the actions agreed 
upon in the 1996 Rome Plan of Action, which is very relevant to today's circumstances, states the following:  "recognizing, the effects of world pri ce fluctuations, [governments and the international 
community will, as appropriate,] examine WTO-compa tible options and take any appropriate steps to 
safeguard the ability of importing developing countries, especially LIFDCs
3, to purchase adequate 
supplies of basic food stuffs from external sour ces on reasonable terms and conditions".  This was 
further confirmed by the pledge made at the 2009 Wo rld Summit on Food Security to "strive to ensure 
that [world populations], in particular vulnerable groups, have access to safe,  adequate, nutritious and 
affordable food" and to "consider non-market-distor ting international measures to mitigate the impact 
of food market volatility on the poor". 
                                                      
1 G/AG/5/Rev.9. 
2 The State of Food and Agriculture, 37th Session of the FAO Conference, held in Rome, 25 June – 
2 July 2011. 
3 Low-Income Food-Deficit Countries.  G/AG/W/90 
Page 2  
 
  3. In 1994, the situation was not as critical as t oday and the LDCs and NFIDCs were promised 
international support through the 'Marrakesh NFIDCs  Decision' for possible difficulties that they may 
face.  Now, when the situation is most elevated and the food crisis is exacerbated by other macro-
economic variables, it is time for real and tangible st eps to be taken to relief the devastating situation 
of LDCs and NFIDCs to enable them meet today's ch allenges.  At MC8, Ministers have to decide on a 
WTO future work programme to mitigate the impact  of the food market prices and volatility on LDCs 
and NFIDCs. 
 
_______________ 
  G/AG/W/90 
 Page 3 
 
 
  Proposed Ministerial De claration on a "WTO future work programme  to mitigate the impact of the food 
market prices and volatility on LDCs and NFIDCs" 
 
Ministers recognized that the first responsibilit y of each WTO Member is to ensure food 
security of its own population.  They emphasized that the multilateral trading system should 
contribute to achieving greater coherence for econom ic policy-making on food security.  Ministers 
directed the General Council to develop a comprehe nsive on-going work programme to:  (i) ensure 
access of LDCs and NFIDCs to adequate supplies of basic food stuffs;  (ii) explore the possibility of 
developing rules to exempt LDCs and NFIDCs from export restrictions enacted by other WTO 
Members, which are major exporters of basic food st uffs;  (iii) facilitate access of LDCs and NFIDCs 
to trade financing through, inter alia , re-assessing the possibility of establishing  an ex-ante  revolving 
fund to provide financing on concessional terms to address the short-term difficulties they face in 
financing their imports of basic food stuffs.  In this regard, the General Council will report on the 
progress of the work programme, including r ecommendations for action by the WTO Ninth 
Ministerial Conference.  
 
 
__________