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The Women’s Edge Coalition Proposes Solution to Break the Current Agriculture Deadlock at WTO

For Immediate Release: September 12, 2003
For More Information: Ana Rahona, Women's Edge Coalition, arahona@womensedge.org, 202.884.8399
Sponsor Organization: Women's Edge Coalition

U.S. NEEDS TO ANALYZE POSITIVE AND NEGATIVE CONSEQUENCES OF THE AoA

Cancun, Mexico, September 12, 2003 – The Women’s Edge Coalition believes that little progress has been made on the draft text of the Agreement on Agriculture (AoA) at the WTO meeting this week. Without consensus from the “Group of 26” developing and other nations that are unwilling to engage in further negotiations until the U.S. and E.U. make concessions on their high levels of agricultural subsidies and protections, negotiations cannot move forward. Understanding actual benefits and drawbacks of the AoA can help break this deadlock. Armed with facts, the AoA can be drafted to preserve positive benefits for poor countries and address the negative results.

The Women’s Edge Coalition developed a viable alternative to dealing with unintended consequences with its Trade Impact Review (TIR). The TIR allows trade negotiators to forecast how trade agreements will affect, positively or negatively, poor women and men in developing countries before the agreements are locked in place. The organization urges the WTO and the U.S. to conduct a TIR on the AoA issues before any further negotiations occur.

“Women are particularly vulnerable as they are the vast majority small farmers in the world,” said Ritu Sharma, Co-Founder and Executive Director, Women’s Edge Coalition. “Failure to examine the potential benefits and drawbacks of the AoA can lead to devastating and unintended consequences for poor farmers.”

About the AoA

Adopted in 1994, the AoA is intended to eliminate protection of domestic agricultural products, increase export opportunities for wealthy and developing countries and eliminate taxes on exports. The AoA requires countries to reduce government support and subsidies to farmers.

Under the AoA, wealthy countries are required to cut taxes on exports by 15 percent, and poor developed countries by 10 percent. However, the AoA contains a loophole that allows corporate farms to purchase agriculture products below the cost it takes to produce them ­­– making it difficult for small farmers in both wealthy and developing countries to compete.

Marceline White, Global Trade Director at Women’s Edge Coalition, is currently in Cancun, Mexico for the WTO. For more information on women and trade or to speak with Marceline White at the WTO, contact Ana Rahona at the Women’s Edge Coalition, 202.884.8399, arahona@womensedge.org.

About the Women’s Edge Coalition

The Women’s Edge Coalition, created in 1998, advocates with the U.S. government for international economic and human right policies that support women worldwide in ending poverty in their lives, communities and nations. The organization pushes for pioneering development aid programs and offers positive alternatives to current trade policies that benefit and empower the poorest women. The Women’s Edge Coalition has researched and developed several initiatives including the GAINS for Womens and Girls Act and the Trade Impact Review. For more information visit http://www.womensedge.org.