RI seeking food security<\/p>\n
Aileen Kwa, Focus on the Global South, Geneva<\/p>\n
Indonesia refused to sign on to a Cairns Group position paper
\ncalling for drastic tariff cuts submitted on Sept. 6, during the
\nagriculture negotiations at the World Trade Organization in
\nGeneva.<\/p>\n
The Cairns Group led by Australia, is a group of 18 exporting
\ndeveloped and developing countries pushing for an ambitious trade
\nliberalization agenda. Indonesia is currently a member of the
\ngrouping. The Cairns Group paper calls for deep cuts in bound
\ntariffs for both developed and developing countries in the
\ncurrent round of negotiations, slated to be completed by end
\n2004. They want developing countries with tariffs in agriculture
\nbetween zero to 50 percent to be cut to a maximum of 25 percent
\nand tariffs between 50 percent and 250 percent to be reduced by
\n50 percent. Such huge tariff reductions, will further decimate
\nthe livelihoods of small farmers in Indonesia.<\/p>\n
In negotiations, Indonesia said that they could consider the
\nCairns Group proposal, but only if four staple crops are excluded
\nfrom any further bound tariff reduction commitments -- rice,
\nsugar, soya and corn. This was rejected by the Group.<\/p>\n
The average bound tariff rate in agricultural products for
\nIndonesia is already low, at 47 percent, with the exception of
\nseveral staple crops.<\/p>\n
When Indonesia indicated that it would not go along with the
\nCairns Group proposal, various forms of pressures were put on
\nofficials in Jakarta and in Geneva, by the leading developed
\ncountries of the Cairns Group. These countries did not want
\nIndonesia to distance itself from the grouping. In Jakarta, their
\nambassadors have been visiting their Indonesian counterparts and
\nalso various ministers. Lower level officials have likewise been
\nlobbying Indonesian bureaucrats.<\/p>\n
Why does Australia and New Zealand want Indonesia to stay in
\nthe group?<\/p>\n
Australia and New Zealand do not want Indonesia to distance
\nitself from the Cairns Group primarily because Indonesia is an
\nimportant market for the two big agricultural exporters since the
\ncountry in their neighborhood.<\/p>\n
There are bilateral agreements between Australia and
\nIndonesia, such as various forms of investments, aid and
\ntechnical assistance provided by Australia. Such forms of
\nbilateral assistance has the effect of influencing recipient
\ncountries into accepting the demands of the country providing
\nsuch assistance.<\/p>\n
There is little compassion in the world of WTO negotiations.
\nIt is riddled with political games, and pressures by the big
\ncountries representing their corporations to gain markets in
\nother countries. For countries like Indonesia, pressures by the
\nbigger countries are not easy to stand up to given their
\nvulnerabilities (e.g. IMF loans etc), unless they are
\ncounterbalanced by pressures from the ground at home.<\/p>\n
There are already many signs of disquiet in the country. This
\nis not surprising given the silent crisis of hunger. Seventy
\npercent of Indonesian children under five are categorized as
\nmalnourished in a country where at least 32 million out of a
\npopulation of 210 million were categorized by the UN as living
\nbelow the poverty line last year.<\/p>\n
Indonesia's recent years of agricultural liberalization has
\nled to the explosion of food imports in staple crops. Indonesia
\nis now one of the largest rice importers in the world, importing
\nat least 10 percent of its rice. Between 1995 to 2001, sugar
\nimports have increased by 45 percent and soya imports by 40
\npercent.<\/p>\n
Overnight, the livelihoods of farmers provided by the
\nagricultural sector have been destroyed. This is serious, in a
\ncountry where over 100 million people live in the rural areas,
\nand the majority on subsistence farming. Indonesian officials are
\nfearful that policies which further aggravate the crisis will
\nplunge the country into political instability.<\/p>\n
In the first place, why should Indonesia liberalize, when the
\nbiggest exporting countries are slapping increasing amounts of
\nprotectionist subsidies on their farmers, and selling their
\nproducts at below the cost of production in Indonesia?<\/p>\n
The U.S. and the European Union are the prime perpetrators of
\nprotectionism. The U.S. exports corn at prices 20 percent lower
\nthan the cost of production, and wheat at 46 percent below cost.
\nSupports for soya in 1998-2000 total 20 percent the value of
\nproduction. In May this year, the Bush Administration adopted a
\nFarm Bill promising to raise spending by an additional US$73.5
\nbillion over the next decade, in addition to the existing
\nsupports.<\/p>\n
Importantly, three of the four crops that Indonesia has asked
\nfor exemptions in tariff reductions are targeted to be given
\nadditional subsidies through the U.S. Farm Bill -- rice, soya and
\ncorn. As if this is not enough of a slap in the face to its
\ntrading partners like Indonesia, the U.S. Senate on Sept. 10
\nvoted for an additional $6 billion in aid for corn and wheat
\nfarmers hurt by drought.<\/p>\n
The EU also subsidizes its farmers heavily, with subsidies
\nhitting 45 billion Euros a year, nearly half of its 98 billion
\nEuro budget. The EU is a net exporter of sugar, yet subsidizes
\nsugar to the tune of over 50 percent of the value of production.
\nWith enlargement creeping up upon them by 2004, total spending on
\nagriculture will no doubt significantly increase.<\/p>\n
The Indonesian government position -- calling for the
\nprotection of rice, corn, sugar and soya -- does not meet up with
\nthe demands of farmers' groups within Indonesia. Food security
\ncannot be narrowed down to four crops if small subsistence
\nfarmers' livelihoods based on biodiversity are to be protected.
\nSmall farmers in Indonesia and in the world community are calling
\nfor the total exclusion of WTO rules from agriculture. Indonesian
\nNGOs are also calling for Jakarta to get out of the Cairns Group.<\/p>\n
Whether or not life improves for the malnourished Indonesian
\nchildren, depends eventually on whether Jakarta heeds the food
\nsovereignty position taken by those it purports to represent.
\nNevertheless, Jakarta's brave attempt to stand up to the big
\nbullies in the negotiations must be supported as one step in the
\nright direction.<\/p>",
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"sponsor": "Okusi Associates",
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