Protecting our
poor farmers

I want to pursue my discussion yesterday about the World Trade Organization meeting in Hong Kong. One question asked by the poor countries is "What can we expect from this meeting?"

There were those who expressed optimism. I am pessimistic.

In this meeting, the center of contention to improve world trade and the lifting of tariffs is by the rich nations to stop their hefty subsidies for their farmers.

These subsidies which the rich nations can afford make them produce agricultural products at a much lesser cost and so therefore present an unfair competition to our own products.

We say there is no even playing field. But we cannot stop them from doing it.

* * *

What can we expect from this meet? I said, nothing.

WTO was organized six years ago. Four years ago, there was the first meeting in Doha, Qatar. It was a failure. The second meeting was held in the beautiful beach resort at Cancun, Mexico. It also ended a failure.

The rich countries, while sounding very helpful and concerned, did not budge an inch. On the contrary, their subsidies increased. I wrote yesterday a revelation by Australian Trade Minister Mark Valle that the European Union receives subsidy from government for every cow an equivalent of $2.20 a day. That is equivalent to some P118 a day which is more than what a billion poor people in the world live on each day.

And the reason is they don't want their dairy farmers lose and fold up and then import beef from Argentina.

If only rich countries reform their agricultural trade policies, the World Bank estimated it can lift some 140 million people all over the world out of poverty.

* * *

Nations are always after their own selfish interests. I may sound like a street marching radical but, the truth is, many of these countries want these poor countries to remain poor so that these rich countries will always have their captive market with their teeming millions of population.

Pork, dairy, poultry and beef are coming in heavily from rich countries. We could have fought back if our government also gives subsidy to our farmers.

Our problem is we only do not leave our farmers to fend for themselves. Our government set aside a big amount of P728 million supposedly to help the farmers for their fertilizer.

But the money did not fertilize the crops. It fertilized private pockets that has blown up to be one of the biggest scams in the country.

* * *

Our country has, I think, accepted the intransigence of the rich countries against withdrawing agricultural subsidies.

This time in Hong Kong, our representative there, Agriculture Undersecretary Segfredo, Serrano has realized the uselessness of asking the rich countries withdraw their farm subsidies.

Serrano said developing countries are now asking help in protecting their local agricultural industries by designating and imposing the special products, and special safeguard measures to follow up the Doha Development Agenda. Remember in Cancun, it was a failure with the 148 participating countries just breaking up without having done anything.

The problem is international trading is still as polluted as before, according to Serrano.

This means even if the U.S., Japan, and the European Union slash their subsidy by 80 percent, which Serrano called as purely "rhetorical and theatrical," the problem will still be there.

He didn't say it, but what is meant is that unless government in poor countries help their own farmers, local agricultural products can still not compete with the rich nations' produce. They will never take out their hundreds of millions of dollars of "domestic support."

This domestic production still go to markets abroad.

* * *

Protectionism, then free trade, has characterized international trading the last two centuries.

Remember the Monroe Doctrine. This was the policy set by U.S. President James Monroe called "America for Americans." This did not last because it isolated the U.S.

Free Trade is aimed at improving every one, particularly in the principle of making countries produce what it is efficient at.

If we are good in producing sugar, then let us produce sugar while other countries produce what is efficient at.

The problem was the subsidies. Ever since subsidies always hampered true free trade. This is where rich countries are at a more advantageous position.

What is the future? Bad. Unless we ourselves work for our own interest. We cannot make rich countries scrap their subsidies.

We must work to subsidize ours.

* * *

I have never tasted better "pancit Molo" than at the home of a true, genuine Moleño, my friend Felicito Sanson Wednesday night celebrating his birthday four days ahead. His birthday is Dec. 19 but had to be celebrated earlier because his fellow Sunshine Boys are to leave for Cagayan de Oro today.

It was also a chance to meet my college classmate 50 years ago, Manuel Poblador, Cito's brother-in-law. And it was a good time for reminiscences.*

back to top