The recent announcement that Mexican regulatory officials are again refusing to go forward with field trials of biotech corn points out the continued confusion over economic development. Developing countries often complain about the U.S. not doing enough to open trade through the WTO negotiations process and yet refuse to adopt regulatory policies that encourage productivity increases within their own agricultures.
In July of this year Congressman Marion Berry (D-AR) and two cosponsors introduced legislation to eliminate import restrictions on ammonium nitrate imports from Russia and urea from Russia and Ukraine. Both products are used as nitrogen fertilizer by U.S. farmers. U.S. producers of nitrogen fertilizers have been under cost pressures from the high cost of natural gas, and the U.S. industry is restructuring even with these import restrictions.
Negotiating a U.S.-Korea Free Trade Agreement has proven to be as difficult as many analysts had expected. Agriculture has been a major pressure point because of the Korean government’s history of protecting agriculture from international competition. It is tempting to think about taking the low hanging fruit in an agreement and forgetting about the hard to reach items. That would lower the bar for all future bilateral free trade agreements and miss an opportunity to build on the successes of agreements under the WTO.
A WTO dispute settlement panel’s rulings on U.S., Canadian and Argentine cases against the EU on approval of biotech crops released on September 29th are critical for the WTO in establishing a rules-based system for handling trade disputes on biotech crops. The cases were not about biotech crops being safe, but did the EU act as it had agreed to as a WTO member.
With U.S. domestic agricultural policy receiving part of the blame for the suspension of the Doha Round of WTO trade policy talks, the 2007 farm bill and its link to trade policy has become a prime target for comments by non-agricultural groups. The Chicago Council on Global Affairs released a report titled “Modernizing America’s Food and Farm Policy: Vision for a New Direction.” It was developed by an Agricultural Taskforce that included economists from land-grant universities, agribusiness people, former members of Congress, one farmer and representatives of related institutions.