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FOREWORD


This is the second issue of the Review of basic food policies, which covers policy developments in production, consumption marketing and trade of cereals, oilseeds and livestock products during the period 2001-2002. The policy information contained in the report is taken from country responses to FAO questionnaires and from publicly available sources.

The period under review was marked by several significant developments, particularly the World Trade Organization (WTO) Doha Ministerial Agreement that launched a new round of multilateral trade negotiations. This Agreement has set in train discussions on agriculture that include a review of experience so far with the implementation of the Uruguay Round Agreement on Agriculture (AOA). Thus it is hoped that the examination of agricultural policies that is contained in this and earlier versions of the Review might be of use to countries in their preparations for the negotiations on agriculture.

The state of world markets for basic foods was difficult in 2001-2002. Depressed international markets and market prices put national policy-makers under pressure, as they sought to alleviate the plight of farmers while adhering to the internationally agreed policy framework that most of them subscribed to under the WTO. By 2001, the developed countries had completed implementation of their AOA commitments while developing countries were well on the way to completion. What stands out in the detailed reviews given below is the re-instrumentation of national production policies largely towards substantially decoupled payments, even though some policies were more decoupled than others. The period also saw very active use of border measures to offer some relief to hard-pressed farmers through the employment of WTO safeguard measures, tariff increases (even though within their bound levels) and an increased use of scientific-based trade measures such as those on SPS and environment grounds. Policy measures to assist exporters that often face WTO compatible export subsidies by other countries on world markets are also reviewed in some detail. A similar policy stance was followed also by non-WTO member countries, which were either in the process of negotiating their accession to WTO or facing special conditions as part of structural adjustment programmes.

An interesting development that is highlighted in two text boxes is the number of import measures on Genetically Modified Organisms. There have been a number of such measures reported in the oilseeds complex and for grains. This is a relatively new policy development that reflects concerns that have sprung up in recent years and will require close monitoring in the future.

One of the expected responses of policy-makers to a period of depressed markets is enhanced efforts to stimulate demand. While several examples are given in the following chapters, two stand out as particularly noteworthy - school milk programmes (which of course represent longer term concerns too) and Bio-diesel use of oilseeds. Both of these are covered in special boxes.

It is hoped that the information provided will be of use to policy-makers, researchers and others concerned with agricultural policy issues. Comments and suggestions are welcome and can be sent to the Chief, Basic Foodstuffs Service, Commodities and Trade Division, FAO, Viale delle Terme di Caracalla, 00100 Rome, Italy, or by e-mail to: [email protected].

The internet site of the Commodities and Trade Division is www.fao.org/es/esc/default.htm

Alexander Sarris
Director
Commodities and Trade Division


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