EU contributes to development, trade of RI agriculture

Bungaran Saragih, Minister of Agriculture, Jakarta

The efforts of developing countries to propose special and differential treatment on a limited number of strategic or special products all the way to Cancun were driven by legitimate concerns.

We developing countries must have sufficient flexibility in deciding basic policies on people's livelihood, including food security, for a multilateral trade agreement that is politically accepted by all people.

Highly restrictive agreements would raise strong political opposition that not only would could cause national political and social instability, but also would accumulate negative public sentiment against the World Trade Organization itself.

Perfect market assumptions never exist and the long-run equilibrium keeps moving. Free trade and market mechanisms are not sensitive enough to social justice, such as assuring the right to food for all and poverty alleviation.

While we have plenty of food globally, there is widespread food insecurity in some countries. Free trade is not sufficient to assure equitable distribution, let alone economic access to sufficient food to all people for all of the times. Food security can only be assured through a managed market regime for which all governments must have sufficient flexibility, particularly on the policies of basic staples that are produced domestically.

If the right to food is a basic human right for which we all bear some responsibility, then some strategic food staples should be totally exempted from further tariff reductions and the expansion of tariff rate quotas, as well as automatic access to a special safeguard mechanism.

The above strategic basic staples are not only of the utmost importance for national food security, but also for poverty alleviation and overall economic development. Being historically basic staples, they are the major crops.

If poverty alleviation is our common platform, we should also agree to cooperate in promoting basic food staple production in developing countries where poverty prevalence is the highest.

Most developing countries have limited capacity to provide domestic support for their farmers due to budget constraints. Policy flexibility on domestic support is the advantage developed countries have. This is another reason that it is fair for developing countries to have special and differential treatment on market access.

We are very concerned by the inability of the WTO to reach an agreed consensus in Cancun. We came to the meeting in Mexico with great expectations that Cancun could pave a way for an agreed consensus on the modalities reflecting Doha's development agenda, which accommodated food security, poverty alleviation and rural development.

I really appreciate the European Union's sensitivity and willingness to cooperate in combating hunger and poverty. Our common objective is beyond economics, it is to assure the basic right for a healthy, decent and productive livelihood.

Regarding the policy targets, I would recommend using the Millennium Development Goals as our common platform, which we all have agreed to. The first of the eight goals is to eradicate poverty and hunger. What we need now is how to get an agreement in pursuing the goals through a comprehensive action plan.

In implementing this objective, in light of current global trade situations and to pursue sustainable agricultural development, Indonesia implements a policy of promotion and protection. We should support the majority of small farmers facing unfair trade in the international market.

The promotion of agricultural development is aimed at increasing the capacity of domestic agriculture with subsequent goals, higher efficiency and productivity. The efforts to promote agricultural development is done by providing public infrastructure, easier access to financial sources, promoting and providing better know-how and technologies, and enhancing the capacity of human resources.

We have seen the significant role of countries within the European Union in promoting development and agricultural trade with Indonesia and other developing countries.

Most developing countries have long rooted historical relationships with some member countries of the European Union. The European Union is one of the largest economic entities in the world, with a large capacity to provide support in our common efforts to assure freedom from hunger and freedom from living destitution for all people.

Although it may not be easy, I am optimistic we shall win the war against hunger and poverty.

The above was abridged from the writer's presentation at an informal meeting of European Union agricultural ministers in Taormina, southern Italy, on Sept. 22.