Less affluent countries need to have a wide range of flexibility in using the policy tools appropriate to their specific context, in particular the import measures needed to protect or promote growth of their industries, agriculture and other important sectors of their economy. Above all, protective measures against import surges that destroy local food supply and security are paramount. For this purpose, traditional instruments such as tariffs, quotas and subsidies have to be considered in terms of their suitability for protecting common goods.

 

Once affluent countries have phased out rigged rules and aggressive export policies, and once they have redressed asymmetries, they too should obtain the right to legitimate border protection. They may need to use political space to establish qualified market access. However, the reasons are likely to be different with respect to Southern countries. Farmers, especially small and family farms, cannot compete with low price imports from developing countries, among other things because they face much higher production costs including various obligations to respect substantial environmental, social and health legislation. Moreover, transnational companies find a loophole to circumvent the quality standards at home by extending their supply chains into countries where labor, health, and environmental standards in agricultural production are comparatively low. For these reasons, differentiated charges are to be imposed at national borders to protect sustainable local production and rural development policies. The revenue generated can be recycled into an international fund that supports rural development and food security worldwide.

[Download Discussion Paper]

[Bajar versión en Español...]