By Nigel Hunt
LONDON (Reuters) - Free trade in agricultural markets canhurt attempts to ease poverty in developing countries and harmthe environment, according to a report from a United Nationsand World Bank sponsored group issued on Tuesday.
"Opening national markets to internationalcompetition...can lead to long term negative effects on povertyalleviation, food security and the environment without basicnational institutions and infrastructure being place," thereport said.
Sixty governments, including Brazil, China, France andIndia, have approved the report. The U.S., Australia and Canadaare due to submit reservations later this week while Britainhas not yet officially responded.
The report, from the International Assessment ofAgricultural Science and Technology for Development, aimed toset the agenda for hunger and poverty reduction in the next 50years when demand for food is expected to rise sharply.
Food prices have already started to climb in response torising demand linked to population growth and changing diets incountries such as China, sparking widespread concern about theimpact on the world's poor.
There have been food-related riots in Haiti as well asprotests in Cameroon, Niger and Burkina Faso in Africa, and inIndonesia and the Philippines.
Robert Watson, Director of the IAASTD's Secretariat, toldreporters that the rise in food prices had been driven byincreased demand, unfavourable weather, export restrictions,commodity market speculators, increased land use for biofuels,particularly in the U.S., and rising energy costs.
RISING PRICES
"It is a combination of those factors that clearly have hadan influence on the short-term price (of food)," he said.
Top finance and development officials from around the worldcalled this week for urgent steps to stem rising food prices,warning that social unrest would spread unless the cost ofbasic staples was contained.
The IAASTD, whose co-sponsors include the World Bank, theU.N.'s Food and Agriculture Organisation and the World HealthOrganisation, said the benefits of increases in agriculturalproduction were unfairly distributed with the current systemoften increasing the gap between rich and poor.
The IAASTD also called for a careful study of theenvironmental impacts on genetically modified crops andbiofuels without taking a clear overall stance on either issue.
"The U.S. objection (to the report) was primarily aroundthe trade issue...They also felt we were not as positive asthey would have liked on some of the new forms of biotechnologyand transgenetics. They have a less nuanced perspective thanus," Watson said.
GMO crops are widely grown in several key producingcountries including the U.S., Brazil and China and supportersbelieve the technology can help crops adapt to changingclimatic conditions as well as reduce carbon-based inputs.
Opponents, however, are sceptical of such claims and citeenvironment and food safety concerns which have sparkedconsumer wariness of GMO foods in the European Union.
(Editing by Peter Blackburn)
