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Protection of Markets : a Development Tool

Coordination SUD

Too often today, the protection of markets is presented as a “protectionist” tool, a sign of economic weakness that discourages exports, leads to less efficient producers and favours the “corporatist” interests of the agricultural profession to the detriment of poor consumers.

 

In fact, half of the world’s population lives from family farming and experiences the full impact of the continued opening of agricultural markets. In its prior report, “Agriculture: for World Trade Regulations”, published in December 2005, the Agriculture and Food Committee of Coordination SUD highlighted the many negative effects of excessive and poorly regulated open markets based on various case studies, specifically affecting the poorest and most vulnerable populations. A report that underlines the increasing food dependence of many developing countries, which allocate a large portion of their budgets to imported food for their population. They therefore neglect the development potential of their own agriculture which, if supported, could improve the subsistence means of rural populations, while supplying local markets.

 

Faced with the negative effects of excessive liberalization, an increasing number of developing countries try to preserve a room for manoeuvre in order to protect their agricultural development, in particular in the context of World Trade Organization (WTO) negotiations.

 

Their proposals, whether related to the identification of “special products” protected from liberalization or specific safeguard measures providing temporary protection, have met significant resistance and many objections from major agro-exporting countries, whether in the West or developing regions. The current suspension of WTO negotiations has created a fear of a protectionist trade barrier. However, in reality, it has not lessened the pressure to open agricultural markets: this pressure is even greater in the context of bilateral and regional free trade agreements. Current negotiations of the Economic Partnership Agreements (EPA) between the European Union (EU) and African, Caribbean and Pacific (ACP) countries, planned to close at the end of 2007, indicate even greater demands for openness, at the risk of only allowing for a slight room for manoeuvre to protect agricultural markets.

 

Paradoxically, liberal dogma is being increasingly questioned or, at least, nuanced in inter

national debates on development policies. To quote one recent example, the last report of UNCTAD (1) highlights the need for protection of economic development, supported by public investment. “Each country, according to its level of development, is responsible for protecting sectors deemed important and easing customs protection once national companies become competitive. The phased opening of markets is key to progressive development.” (2)

 

For this reason, Coordination SUD decided to study recent examples of market protection for specific agricultural products in order to substantiate its reflections on the relevance of preserving this public intervention tool. This study is a step in the long-term research that Coordination SUD is conducting on the agricultural policy tools that are required for development: market protection, price regulations and supply management…

 

Our work is based on the daily experience of social movements and NGOs in developing countries with whom we work and seeks to shed light on often forgotten truths: development is based on a variety of policies, none of which works in all countries, for all products and at all times. In particular in agriculture, a qualified and diversified approach is required to meet the realities of each country. A variety of public policy tools is therefore crucial, one of which must be market protection. 

Download the report 

1 UNCTAD (2006), Report on Trade and Development.

2 Christian Losson, “In UNCTAD’s view, the South needs state stimulation”, interview with Detlef Kotte, Globalization and Development Strategy Manager for UNCTAD, “Libération”, 1 September 2006.

 

Documents à télécharger

• Protection of Agricultural Markets : a Development Tool

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