G8 refuses to cut export subsidies

Leaders of five developing countries — India, China, Brazil, Mexico and South Africa — who also met for summit level talks here had separately, called for expediting a global trade agreement that would stimulate the world economy.

But for this to happen, they wanted developed nations to end trade-distorting subsidies and export sops. The G-8 declaration, however, promised only to refrain from taking decisions to increase tariffs above today’s levels.

“We will refrain from raising new barriers to investment or to trade in goods and services, imposing new exports restrictions or implementing World Trade Organisation’s inconsistent measures to stimulate exports.”

Leaders of the world’s eight most rich countries, in the same breath, vowed to keep markets open and free and to reject protectionism of any kind. “In difficult times we must avoid past mistakes of protectionist policies, especially given the strong decline in world trade following the economic crisis,” the declaration said. (via G8 refuses to cut export subsidies).

US of A - the most efficient agricultural system in the world?

Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 7.5 billion (conservative estimates, assuredly) of subsidies to survive. The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data)” - and gobble up most of this huge subsidy that lowers Third World agricultural prices.

Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

Devastation in the Third World

These subsidies lower agricultural prices, devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority. The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts.

The 'backward' Indian farmer

The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts. With the declining power and use of the dollar, the US is fighting a losing battle against agricultural subsidies. The US depends on less than 50,000 corporate ‘farmers’ for 50% of ts production. These corporate ‘farmers’ will abandon agriculture at the first sign of reduced subsidies.

Over the next 20-30 years, this leaves India (and Russia) to cater to global food shortfalls. The Western industrial model is in its sunset phase. The Indian agricultural model can be the big winner in the next few decades – under the right stewardship.

Indian agriculture has a great future – and don’t you ignore it! On the other hand, industrial over-production, debt-financed over-consumption, American economic model, funded in the past by Bretton Woods /Petro-dollars /Sino-dollars, is about to end.

And that is the reason why the West (America and Europe) will not lower barriers or subsidies.

Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

And then the propaganda overdrive

Of course, then out came the spin-meisters. The PR machines.

"There is an urgent need for decisive action to free humankind from hunger and poverty," G8 leaders said in a statement issued on the last day of their summit in Italy, at which they were joined by African heads of state. (via G8 announces $15 bn food security package- International Business-News-The Economic Times).

First the protection ... then the subsidies ... then the distortions ... then the aid.

"The sums just aren't adding up. Is this all really new money or are they fishing some of it out of the recycling bin?" asked spokesman Otive Igbuzor.

Rothschilds Move To Bankrupt European Farmers « Aftermath News

Even with the transportation and duty costs, the Indian fruit and vegetables are likely to bankrupt the European and Japanese farmers. In Europe, most of these farmers are heavily indebted as the EU paranoid sanitary norms as well as the packaging requirements of the supermarkets have forced them to invest in expensive machinery and infrastructures.

When the Indian fruits and vegetables arrive in Europe, most of these indebted farmer families will have to say goodby to their farms which will be confiscated by the banks. Many of the still remaining independent European farmers are producing fruit and vegetables since the independent livestock and wheat farmers have already been decimated by the “market economy” making profitable only the giant exploitations in these sectors. (via Rothschilds Move To Bankrupt European Farmers « Aftermath News).

How much paranoid can the Europeans get?

When it suits them they can talk, from one side of their mouth, about free market - and at other times they get suspicious about small farmers from India.

An interesting situation exists in the food sector - especially in the US. Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

Farmers became dependent on corporate supplies of seeds (at high prices) and corporate purchases by the same corporations (at low prices). Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 7.5 billion (conservative estimates, assuredly) of subsidies to survive. The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data)” - and gobble up most of this huge subsidy that lowers Third World agricultural prices. These lower agricultural prices devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority. (bold letters mine).

The Indian agricultural system, with nil subsidies, working with cost disadvantages, does not have giant buying corporations and monoclonal seed stock, is holding its own against subsidized agricultural systems of the West. And paid hacks of these Western corporations are trying to tell Indian consumers and policy makers that these giant corporations will reduce the costs of food In India.

These giant corporations are aiming for entry into India - promising ‘efficiencies’ in buying (which will give consumers a better price), and higher prices for farmers (which will increase farm incomes). Of course, this will last as long as there is competition. Once, these giant corporations, fueled by huge amounts of debt and equity, drive out competition, they will lower the boom on the consumers and the farmer - like in the USA.

Raj Patel, in his book, Stuffed and Starved, demonstrates how global food corporations are behind global food habits, imbalance traditional diets, creating disease epidemics (like diabetes) - and how India needs to be careful before crafting industrial policies that encourage these global corporations to destroy Indian agriculture. A book review extracts some key points as follows,

What we think are our choices, says Patel, are really the choices of giant food production companies. Millions of farmers grow food, six billion people consume it. But in between them are a handful of corporations creating what Patel calls “an hourglass” model of food distribution. One Unilever controls more than 90% of the tea market. Six companies control 70% of the wheat trade. Meanwhile, farmers across the world are pitted against each other, trying to sell these gatekeeper companies their produce. And if you think the consumer comes out on top because of all this competition, think again.

Rothschilds to use Indian farmers to supply EU with fruits and vegetables - Portfolio.com

China has 60 percent of the arable land of India, but it's 40 percent more productive because of technology. That India is the largest producer of fruits, No. 1 in the world, No. 2 in vegetables, and has only 1 percent of the export market. So, those are all really big factors that we know how to fix. You fix them with technology on the ground, with cold storage and infrastructure on the ground. And if the retail sector isn't ready to buy higher-quality fruit and vegetables, which I always thought they would be-but three years ago, it was less obvious than now-you could export them and be the lowest-cost exporter.(via An interview with Lady de Rothschild - Executives Column - Lloyd Grove - World According to ... - Portfolio.com).

Most interesting

The Indian farmer working without subsidies, with low technology, lower productivity has a cost edge over his European an American counterparts.

Giant food corporations, killed buying competition with high prices (to farmers), direct buying from farmers (at higher prices), monoclonal seeds that destroy bio-diversity. And the US consumers are not getting the lower food prices that are being promised in India.

Farmers became dependent on corporate supplies of seeds (at high prices) and corporate purchases by the same corporations (at low prices). Today, an ‘efficient’ and ‘hi-tech’ agricultural farm sector in the US needs more than US$ 7.5 billion (conservative estimates, assuredly) of subsidies to survive. The US-EPA says, “By 1997, a mere 46,000 of the two million farms in this country (America), accounted for 50% of sales of agricultural products (USDA, 1997 Census of Agriculture data)” - and gobble up most of this huge subsidy that lowers Third World agricultural prices. These lower agricultural prices devastate agriculture in Third World countries, creating man-made famines. These man-made famines, of course, gives the West a false sense of superiority. (bold letters mine).

The Indian agricultural system, with nil subsidies, working with cost disadvantages, does not have giant buying corporations and monoclonal seed stock, is holding its own against subsidized agricultural systems of the West. And paid hacks of these Western corporations are trying to tell Indian consumers and policy makers that these giant corporations will reduce the costs of food In India.

These giant corporations are aiming for entry into India - promising ‘efficiencies’ in buying (which will give consumers a better price), and higher prices for farmers (which will increase farm incomes). Of course, this will last as long as there is competition. Once, these giant corporations, fueled by huge amounts of debt and equity, drive out competition, they will lower the boom on the consumers and the farmer - like in the USA.

Raj Patel, in his book, Stuffed and Starved, demonstrates how global food corporations are behind global food habits, imbalance traditional diets, creating disease epidemics (like diabetes) - and how India needs to be careful before crafting industrial policies that encourage these global corporations to destroy Indian agriculture. A book review extracts some key points as follows,

What we think are our choices, says Patel, are really the choices of giant food production companies. Millions of farmers grow food, six billion people consume it. But in between them are a handful of corporations creating what Patel calls “an hourglass” model of food distribution. One Unilever controls more than 90% of the tea market. Six companies control 70% of the wheat trade. Meanwhile, farmers across the world are pitted against each other, trying to sell these gatekeeper companies their produce. And if you think the consumer comes out on top because of all this competition, think again.