2 IPC New challenges: Markets food markets: from demand constrained to supply constrained rapid expansion of bioenergy dramatic price volatility growing market share of developing countries climate change impacts on food production Share of non-LDC developing countries in world trade

3 IPC New challenges: Policies changes in agricultural policy regimes growing interest in policies addressing climate change and environment experiences with implementing AoA spread of RTAs

4 IPC Implications for priorities Growing scarcity requires well functioning markets, progress in Doha Round urgently needed Attention needed to burden on food consumers (in addition to constraining producer support in WTO) Improving food security in poor countries... demonstrates to developing countries what trade regime can do for them (DDA) Report suggests action, for shorter and longer term

5 IPC Policy Action Proposed (1) Export restrictions more transparency, consultations procedure to identify legitimate reasons to restrict exports “to prevent or relieve critical shortages of foodstuffs” food aid for countries in emergency exempted from export restrictions constraints on export taxes

6 IPC Policy Action Proposed (2) Biofuels Rules for reporting support to production and consumption of biofuels Constraints on biofuel support levels Green Box emphasise policies not distorting production/trade focus on public goods eligibility only after notification, with detail

7 IPC Policy Action Proposed (3) International co-operation and assistance improve market transparency small, targeted emergency reserves social safety nets improve productivity in agriculture, infrastructure assistance to agriculture must not decline again

8 IPC Policy Action Proposed (4) A new instrument of financial solidarity between –support for farmers in well-off countries, and –measures to improve food security in poor countries developed and emerging countries contribute relative to their farm support: yardstick could be overall trade-distorting support (OTDS) [for info: 1% of OTDS ≈ US$ 2 billion ≈ ¼ of ODA to agriculture] funds are used to improve food security in countries meeting agreed quantifiable criteria

9 IPCConclusions World agriculture and food system faces new challenges Improving food security is crucial Importance of Doha negotiations on agriculture has become even more obvious There are several policy actions that can respond to the new challenges... and demonstrate to developing countries what the trade regime can do for them