Lessonsfortradenego-a-onsfromdevelopmentandenvironmental

bodiesandprocessesDeborahJames

OurWorldIsNotforSale(OWINFS)globalnetworkCenterforEconomicandPolicyResearch(CEPR)

January27,2016

LessonsfromDevelopmentforTrade

•  Impactoftradeonvariousaspectsofdevelopment•  Posi-onofdevelopmentfocusedglobalins-tu-ons(UNCTAD,UN)ontrade-relateddevelopmentissues

•  ImpactsoftradebodiesWTOandothersondevelopmentpolicies

•  Balanceofpowerintradepolicymakingprocess•  Acasestudyofeffec-veadvocacyandins-tu-onalchange:TRIPsadvocacyforLDCwaiver

•  TheAarhusConven-onofUNECE(UNEconomicCoopera-onforEurope)asapossiblemodelfortransparencyandpar-cipa-onintradenego-a-ons

ASampleofMajorDevelopmentIssuesImpactedbyTrade

•  Agriculture(foodconsump-onandexport)•  Industrializa-onanddecentjobcrea-on•  Accesstohealth,educa-on,andotherpublicservices

•  Accesstomedicine•  Accesstocleanwaterandacleanenvironment

•  Accesstoinforma-on

Agriculture(foodconsump-onandproduc-on/jobs)-majorissues

•  Developingcountrieshaveamuchhigherpercentageoftheirpopula-onsinvolvedinfoodproduc-on.

•  Manydevelopingcountriesthatusedtobenetexportersarenownetimporters.

•  Theworld’ssmallholderfarmersmanagejust12percentofallagriculturalland,yettheyproducemorethan80percentoftheworld’sfood(invalueterms).

•  Foodinsecurityisamajorissueindevelopingcountries:TheUnitedNa-onsFAOes-matesthatabout795millionpeopleofthe7.3billionpeopleintheworld,oroneinnine,weresufferingfromchronicundernourishmentin2014-2016.

Agriculture–DevelopmentIns-tu-onsandPolicies

•  HumanRightsAgreements:Interna-onalCovenantonEconomic,SocialandCulturalRights-“Therighttoadequatefoodisrealizedwheneveryman,womanandchild,aloneorincommunitywithothers,hasthephysicalandeconomicaccessatall-mestoadequatefoodormeansforitsprocurement.”(CESCR)

•  UN:FoodandAgricultureOrganiza-onandtheWorldCommifeeonFoodSecurity(CFS)–  Recommendstrongdomes-cinvestmentinfoodproduc-onin

developingcountries–  UpholdtheRighttoFood–  Recommendpublicstockholding

•  TheRomeDeclara-ononNutri-on(ICN2)enshrinestherightofeveryonetohaveaccesstosafe,sufficientandnutri-ousfood,andcommitsgovernmentstopreventmalnutri-oninallitsforms.

•  SustainableDevelopmentGoal2.Endhunger,achievefoodsecurityandimprovednutri-onandpromotesustainableagriculture

Goal2.Endhunger,achievefoodsecurityandimprovednutri-onandpromotesustainableagriculture

•  2.1By2030,endhungerandensureaccessbyallpeople,inpar-cularthepoorandpeopleinvulnerablesitua-ons,includinginfants,tosafe,nutri-ousandsufficientfoodallyearround

•  2.2By2030,endallformsofmalnutri-on,includingachieving,by2025,theinterna-onallyagreedtargetsonstun-ngandwas-nginchildrenunder5yearsofage,andaddressthenutri-onalneedsofadolescentgirls,pregnantandlacta-ngwomenandolderpersons

•  2.3By2030,doubletheagriculturalproduc:vityandincomesofsmall-scalefoodproducers,inpar-cularwomen,indigenouspeoples,familyfarmers,pastoralistsandfishers,includingthroughsecureandequalaccesstoland,otherproduc-veresourcesandinputs,knowledge,financialservices,marketsandopportuni-esforvalueaddi-onandnon-farmemployment

•  2.4By2030,ensuresustainablefoodproduc:onsystemsandimplementresilientagriculturalprac:cesthatincreaseproduc-vityandproduc-on,thathelpmaintainecosystems,thatstrengthencapacityforadapta-ontoclimatechange,extremeweather,drought,floodingandotherdisastersandthatprogressivelyimprovelandandsoilquality

•  2.5By2020,maintainthegene:cdiversityofseeds,cul-vatedplantsandfarmedanddomes-catedanimalsandtheirrelatedwildspecies,includingthroughsoundlymanagedanddiversifiedseedandplantbanksatthena-onal,regionalandinterna-onallevels,andpromoteaccesstoandfairandequitablesharingofbenefitsarisingfromtheu-liza-onofgene-cresourcesandassociatedtradi-onalknowledge,asinterna-onallyagreed

•  2.aIncreaseinvestment,includingthroughenhancedinterna-onalcoopera-on,inruralinfrastructure,agriculturalresearchandextensionservices,technologydevelopmentandplantandlivestockgenebanksinordertoenhanceagriculturalproduc-vecapacityindevelopingcountries,inpar-cularleastdevelopedcountries

•  2.bCorrectandpreventtraderestric:onsanddistor:onsinworldagriculturalmarkets,includingthroughtheparallelelimina-onofallformsofagriculturalexportsubsidiesandallexportmeasureswithequivalenteffect,inaccordancewiththemandateoftheDohaDevelopmentRound

•  2.cAdoptmeasurestoensuretheproperfunc:oningoffoodcommoditymarketsandtheirderiva-vesandfacilitate-melyaccesstomarketinforma-on,includingonfoodreserves,inordertohelplimitextremefoodpricevola-lity

Development-FocusedTradePolicyinAgriculture-1

•  Countriesshouldhavetherighttosupporttheproduc-onoffoodthatisconsumeddomes-cally.Thus,PublicStockholdingprogramsforFoodSecuritymustbeconsideredaspartoftheGreenBox,andthusnotsubjecttolimitsorreduc?onscommitments.

Development-FocusedTradePolicyinAgriculture-2

•  Countriesshouldhavetherighttosupporttheproduc-on

offoodthatisconsumeddomes-cally.Thus,PublicStockholdingprogramsforFoodSecuritymustbeconsideredaspartoftheGreenBox,andthusnotsubjecttolimitsorreduc-onscommitments.

•  Countriesshouldnothavetherighttodamageothercountries’markets.Thus,exportsubsidiesshouldbebanned,ashasalreadybeenagreedintheWTO.Thisincludesdomes?csubsidiesthatgotowardsproductsthatareexported.Domes-callysubsidizedfoodshouldnotbeexportedinawaythatdamagesothers’markets,whetheritwasthroughapublicstockholdingprogramorthroughtheuseofdomes-callysubsidizedfeedorotherinputs.

Development-FocusedTradePolicyinAgriculture-3

•  Countriesshouldhavetherighttosupporttheproduc-onoffoodthatis

consumeddomes-cally.Thus,PublicStockholdingprogramsforFoodSecuritymustbeconsideredaspartoftheGreenBox,andthusnotsubjecttolimitsorreduc-onscommitments.

•  Countriesshouldnothavetherighttodamageothercountries’markets.Thus,exportsubsidiesshouldbebanned,ashasalreadybeenagreedintheWTO.

•  Countriesshouldhavetherighttoprotecttheirdomes-cmarketsfromdumpingbyothercountries.Forsomecountries,importsurgesareasignificantproblem,andthustheyshouldbeabletoincreasetariffsinthecaseofanimportsurge.TheyshouldhaverecoursetoaSpecialSafeguardMechanism(SSM)thatisworkableintheircontext.TheSSMproposedinRev4isinadequatebecauseithastoomanyonerouscondi-onali-esandtriggersthatwouldmakeitnearlyimpossibletouse.

Development-FocusedTradePolicyinAgriculture-4

•  Countriesshouldhavetherighttosupporttheproduc-onoffoodthatis

consumeddomes-cally.Thus,PublicStockholdingprogramsforFoodSecuritymustbeconsideredaspartoftheGreenBox,andthusnotsubjecttolimitsorreduc-onscommitments.

•  Countriesshouldnothavetherighttodamageothercountries’markets.Thus,exportsubsidiesshouldbebanned,ashasalreadybeenagreedintheWTO.

•  Countriesshouldhavetherighttoprotecttheirdomes-cmarketsfromdumpingbyothercountries.

•  Countriesshouldbeabletousetariffstoprotectdomes-cfoodmarkets.Inanyfuturenego?a?ons,developingcountriesshouldnothavetocuttariffs.Inthecasethattherewouldbeanyfuturetariffcuts,thendevelopingcountriesshouldbbeabletoexcludeagricultureproductsnecessaryforfoodsecurityfromthetariffcuts.DevelopedcountriesshouldalsobeabletomaintaintariffsthatprotectFoodSecurity.

ActualTradeRulesDotheOpposite

•  GoalofWTOandFTAsistoincreasetrade(marketaccess)ratherthanensuringthattraderulessupportdevelopment.

•  WTOrulesallowrichcountriestosubsidizeagricultureandtoexportsubsidizedagriculturalproducts,damagingdevelopingcountrymarkets.

•  WTOruless-llallowrichcountries’tariffescala-on•  Developingcountriesarenotallowedtosubsidizefoodforexports•  Developingcountriesarenotallowedtosubsidizefoodfor

domes-cconsump-onbeyondalimitedamount•  Developingcountriesarenotallowedtoraisetariffsbeyond

UruguayRoundlevelsinthecaseofanimportsurge•  Developingcountriesarepressuredtocuttariffsintrade

agreements(EPAs,FTAswiththeU.S.)

EffectofTheseDiscussionsontheBalanceofPower:WhichInterna-onal

Ins-tu-onsMaketheRules?•  UNSpecialRapporteurontheRighttoFoodhasclashedopenly

withtheWTOaboutpublicstockholdingandrighttofood.•  CFShasafemptedtokeeptradeoutofthedebatesthere.•  HeadofFAObroughtintosupport“trade”inagriculturewithout

discussingactualrulesornego-a-ons.•  UNCTADfocusesonhelpingcountriesusetraderulesfor

development,butalongthelinesoftheWTOwithoutfigh-ngforbeferrules.Won’tchallengeWTOontradepolicy.

•  SDGsdeferredtoWTOonglobaltradepolicy.•  Agribusinessexportersindevelopedcountriessettherulesthrough

poli-calinfluenceofUS,EU,otherdevelopedcountrypolicymaking.•  FoodsecurityadvocatesinUS,EUnotinvolvedintradepolicy.•  MostofcivilsocietyinagriculturefocusesonCFSwhichhasamuch

moreinclusiveprocess.Stakeholdersareintheroomwhendecisionsaremade.Perhapsbecausetheydon’tsettherules?

Industrializa-on&JobCrea-on•  UnitedNa-onsIndustrialDevelopmentOrganiza-on(UNIDO)•  UN’sInterna-onalLaborOrganiza-on(ILO)hasaDecentWorkAgenda:

–  Jobcrea-on–  Rightsatwork–  SocialProtec-on(safeworkingcondi-ons,work-familybalance)–  SocialDialogue

•  Laborrightsarekeytodevelopment–toensurethatgainsfromgrowthgototheworkersandnotjustcapital

•  WTOargumentisthattradeincreasesgrowth,sogoalistopromotetrade–withouteverevalua-ngifgrowthisincreased–orifexpandedgrowthleadstojobcrea-onorpovertyreduc-on,orincreasesinequality

•  WTOandFTAs–racetothebofomonslashingtariffsbutdonotincludelaborrightsorsocialprotec-on

•  Tripar-testructureofILO–governments,workers,andemployers•  EvenITUCdoesnothaveaplaceattheWTO!Represents176million

workersin156countriesandterritoriesandhas325na-onalaffiliates.

AccesstoPublicServices•  KeyaspectofmanySDGsisaccesstohealth,educa-on,energy,sanita-on,otherservices.

•  HumanRightstohealth,educa-on,energy,sanita-on,etc.

•  WTOandothertradeagreementshavenomandatetoensurethattheyfacilitatethoserights,butinsteadfacilitatemoretradeinthoseservices-limi-ngdomes-cregula-on,andfacilita-ngpriva-za-onandderegula-on.

•  Nomechanismtoevaluateimpactonaccess.•  Thesearenottradeissuesbuttradeagreementsincludethemanyways–mechanismtolimitdomes-cregula-on.

ModelforDevelopment-OrientedImpactonTradePolicy:Health

•  Challenge:Trade-RelatedIntellectualPropertyRules(TRIPS)agreementdistortstradeinmedicinesinfavorofpatentmonopolyholders

•  Newdrugforhepa--sC,sofosbuvir,issoldforUSD84,000fora12weekcourse,orUSD1,000apill.ProfitsforthecompanyGileadhaverunatmanybillionsofdollarsalready.Thoughthecompanyhasnowofferedthatsomepoorercountriescanhaveaccesstogenericversionsatlowerprices,themajorityofpeopleintheworld,indevelopedcountriesandmiddleincomedevelopingcountries,cannothavethisaccess.Thereare170millionpeoplelivingwithhepa--sCworldwide,andaround350,000deathseveryyear.

•  Progress:RighttoHealthincludesrighttoaffordablemedicine•  WTOincludes2001Declara-onontheTRIPSAgreementandPublicHealth-

posi-vebutinadequate•  Exampleofsuccess:recentwaiveronTRIPSimplementa-onforLeastDeveloped

Countries(LDCs)whoholdavery-nyminorityofglobalpatents•  46percentofpeopleinLDCslivebelowthepovertyline(US$1.25aday),about

50%ofhealthexpenditureisoutofpocket.Atendof2013,only36%ofthe10.7millionpeoplelivingwithHIVinLDCshadaccesstoan-retroviraltherapy.

ModelforDevelopment-OrientedImpactonTradePolicy:Health

•  LDC’stransi-onperiodforTRIPSimplementa-onoriginally10years.In2001,LDCsgivenextension-specificexemp-onfrompatentsandtestdataprotec-onforpharmaceu-calproductsun-l2016.

•  In2015,LDCsdemandedthatthepharmaceu-calexemp-onbeextendedforaslongascountriesareLDCs.Alsorequestedformailboxandexclusivemarke-ngright(EMR)waivers.

•  LDCgovernmentsandNGOsadvocateswagedyearlongcampaignincluding:–  Tablingstraighrorwardrequestin-me,inlinewithWTOmandates–  ConstantmonitoringandupdatesofdevelopmentsbyNGOs,par-cularlyfromThirdWorldNetwork,

MédecinsSansFron-èresandKnowledgeEcologyInterna-onal,–  Understandingwhoisopposingtheextensionandlobbyingatthatlevele.g.inUS,Switzerland–  Holdingmee-ngswithrelevantmissionsthatmaybeopposed–US,Switzerland,EC–  RighttohealthanddevelopmentadvocacyNGOlefersofsupport(interna-onalandLDCNGOs)–  LDCGrouprepslobbyingothercountriestosupport–  Supportfrominterna-onalagencies:UNITAID,UNAIDS,UNDP,andWHO–  SupportfrommembersofUSCongress–  SupportfromagenericsuppliertoLDCs–  NoofficialprocessinWTOforexpertpolicybestprac-ce,scien-ficinput

•  Advocatescreatedpoli-calclimatewherelongerextensionwaspoli-calreality;USresistanceeventuallyworndown.

•  LDCsgot17yearspharmaceu-calexemp-onandwaiversfrommailboxandEMR!Theperiodisslightlylongerthanthedura-ongrantedin2001andgotanaddi-onalwaiverfrommailboxwhichwasnotgrantedin2001.

•  Poorinnon-LDCdevelopingcountriesnotincluded

ViewsonotherDevelopmentProcesses-UNDP

•  UNDPhasbothformalandinformalchannelstoenableCSOstoinfluenceitsthinkingonmajordevelopmentissues.Annually,wehosta2daymee-ngwithNGOs–frombothNorthandSouth–andtheydecideontheissuestheywanttocover.

•  UsuallyCSOsmakeshortpresenta-onsonissuesofmutualinterestfollowedbyUNDP’sfeedbackandac-vi-esinthesameareaandadiscussiononareasthatcouldbereinforced(orwheretheremaybedisagreement).

•  Onamoreinformallevel,CSOsovensendUNDPtheirpolicypapersondifferenttopicsandweregularlymeetwithCSOrepresenta-vesaswellasdojointresearchandjointevents/panelpresenta-onsondifferentthemes.Asisthenaturewiththesethings,someUNDPstaffersaremoreopenthanothersbutonthewholeI’dsaywe’reprefygoodandmostpeoples’doorisalwaysopen!

OtherDevelopmentProcesses-UN•  TheUNpolicymakingprocess,intheGeneralAssembly,isbyfarthemostinclusive

outofalltheinterna-onalorganiza-ons.Civilsocietymakesregularinterven-ons,havetransparentaccesstothenego-a-ondocumentsandcanalsoconductadvocacyanddialoguedirectlywithgovernmentdelegatesandnego-ators.

•  TheUN'sstakeholderinputmechanismisstructuredbothformallyandinformally.Formally,sincetheRio+20nego-a-onsbeganinlate2011andearly2012,the"MajorGroups"systemhasbeenenshrined:

Ø  Women'sMajorGroup YouthMajorGroupØ  IndigenousPeople Non-GovernmentalOrganiza-onsØ  LocalAuthori-es WorkersandTradeUnionsØ  BusinessandIndustry FarmersØ  Scien-ficandTechnologicalCommunity

•  ThereisnoguaranteethattheadvocacycontentoftheMajorGroupsistakenupbythegovernmentdelegates,butthetrackrecordintermsofwitnessedexperienceshowsthatthereisindeedagreatdealofabsorp-onandimpactofCSOinput.Forexample,duringtheSDGnego-a-ons,whentheWomen'sMajorGrouporganizednumerouspe--onsandcampaignsaroundSRHR(sexualandreproduc-vehealthandrights),theimpactwastangiblewhengroupsofmemberstateslenttheirsupportanddravedtheirownstatementsuppor-ngSRHRtargetsandlanguagewithintheSDGgoalforgenderequalityandwomen'srights.

OtherDevelopmentProcesses-UN•  Theinformalchannelisthroughdirectadvocacywithmemberstates.

•  OntheMOI-thestructuralreformsinglobaltradeandfinancearchitectures,systemicissues,righttodevelopment-intheSDGs,CSOworkreceivedagreatdealoftrac-onfromkeydevelopingcountrynego-atorswhotookourinputandintegratedourcontent,sta-s-cs,figures,analysisandlanguageintotheirproposalsoftheG77andChinagroupasawhole(134countrygroup,thelargestdevelopinggroup).

•  IntheFFDprocesstherewerenomajorgroups,however,therewasageneric"CSO"slotduringallthenego-a-ons,meaningthatauptoacertainnumberofCSOscouldmakeinterven-onsduringtheFFDnego-a-ons.

•  Whenthenego-a-onsgointo"informal"oreven"informalinformal"modeCSOsarenotguaranteedaccess.Thesedelibera-onsoventakeplaceinverysmallroomswheretheremayormaynotbeenoughsea-ngforCSOs.Evenwhenthereare,theremaybesomeobjec-ons.However,theseareusuallyputonwebcast,soCSOscanalwaysaccessthedelibera-ons.

•  Ingeneral,CSOshaveasignificantandovenevenpowerfulimpacttheycanmakeonpolicyandlanguageinthenego-a-onsandoutcomedocuments,thenorma-velanguageandtheissuestakenupintheUN.However,theprocessisoneofinfluenceandvoice.Deliveringstatements,makinginterven-ons,speakingonpanelsviatheformalmechanisms,anddialogue,bilateraladvocacyandinputstothedravnego-a-ondocumentsintheinformalstrategy.

•  Butofcourseintermsofanactualvote-onlymemberstatesareallowedtovoteintheadop-onofGeneralAssemblyresolu-ons.

OtherDevelopmentProcesses-CFS•  TheCFSdecisions,unliketheWTOarelargelyvoluntaryandnotbinding

oncountries,butitisagoodmodelformember-statesleddiscussions.Unfortunatelythereisveryliflebywayofdirectstakeholderinput.

•  However,theCFSprocessesallowforthistohappenbyhavingtheCivil

SocietyMechanism(CSM)representedintheroominallthesessionsandgroups.TheagendaoftheCFSisalsoguidedbytheAdvisoryBureauwhichhasCSMrepresenta-on.Itisthereforemorepar-cipatory.Theyevenhaveasimilarmechanismfortheprivatesector(PSM)thoughitiss-lllimitedinitsoutreachandworkattheCFS.ThisisabigdifferencebetweentheWTOandCFSasintheWTOcivilsocietyisnotintheroomintheministerial,thegreenroomsoranydiscussionsatall.

•  TheCSMiscomprisedofregionalrepresenta-ves(withsome-mesmorethanoneregionpercon-nent)andcons-tuencyrepresenta-ves(thosethataremostaffectedbyhunger)-forexamplepastoralists,fishworkers,agriculturallabouretc.

“TradeAdvisoryCommifees”

“TradeAdvisoryCommifees”

AarhusConven-onofUNECE•  TheUnitedNa-onsEconomicCommissionforEurope(UNECE)ishomeofthe

AarhusConven-ononAccesstoInforma-on,PublicPar-cipa-oninDecision-makingandAccesstoJus-ceinEnvironmentalMafers.

•  Whereasmostinterna-onalagreementsgrantrightsonlytostates,theAarhusConven-onprovidessignificantrightstothepublic,including:

•  ●Therighttoaccessenvironmentalinforma-on(Ar-cle4),coupledwithadutyuponeachpartytocollectanddisseminatesuchinforma-on(Ar-cle5).

•  ●Therighttopublicpar-cipa-onindecisionswithenvironmentalimpact:–  ○rela-ngtospecificenvironmentally-sensi-veac-vi-essuchasmineral–  extrac-onorrefinement(Ar-cle6);–  ○concerningplans,programmesandpoliciesrela-ngtotheenvironment–  (Ar-cle7);and–  ○duringtheprepara-onofexecu-veregula-onsand/orgenerallyapplicable–  legallybindingnorma-veinstruments(Ar-cle8).

•  ●Accesstojus-ce--thatis,toindependentreviewofaparty'sdecisions(Ar-cle9).

LessonsfromTradeandDevelopment•  Non-tradearenasallowformul--stakeholderinputs,butCSOsare

increasinglyconcernedaboutcorporatecapture(likeintheWHO).•  Officialtradenego-a-onshaveruleswhichdonotallowformul--

stakeholderinputs,asinotherarenas;butcorpora-onshaveinfluenceinagenda-se}ngandpolicydelibera-ons.

•  Corpora-onsusetradeagreements–increasinglyonnon-tradearenasofdecision-making–toachievebindingpoliciesthatwouldnotbeapprovedthroughdemocra-cprocesses,andthatovenitisnotinthepublicinteresttohaveincludedintradeagreements.

•  Corpora-onsusetreaty-shopping(WTO,bilaterals,BITs)asmechanismtogettheirviewstobeaccepted.

•  Theyonlyneedone“win”whereasadvocatesmustwinevery-me.•  Development-friendlypolicieshavebeenacceptedintrade

ins-tu-onsonlywhendevelopingcountrygovernmentsandstrategiccivilsociety(withpowerfulthird-partyvalidatorsandrelevantUNagencies)worktogethertoinfluencetheprocessasimposedbydeveloped-countrygovernmentsandcorpora-ons.