Food crisis: Brazil proposes global deal for commodity stocks

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The Brazilian government has proposed a permanent agreement to allow poorer, food-importing countries to maintain and build stocks of grain and other products without violating international trade rules. The project was presented in Geneva this week, less than two weeks before the start of the WTO ministerial conference.

The fear of Brazil and other commodity exporting countries is that without clear rules, diplomatic maneuvers by India and other governments will result in unfair competition for national products in the international market.

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Discussions over food stocks left governments on opposite sides of the table. However, due to the war in Ukraine and the shortage of supplies in various sectors, the fear of international organizations is that the food crisis could spread around the world and, above all, affect the poorest population.

However, one of the main issues is cited by what food exporting countries see as India’s attempt to capitalize on the crisis to get some sort of blank check so they can subsidize its agriculture. on resources.

Today, Indians subsidize their $70 billion production, one of the largest volumes in the world. But they insist that the WTO must expand the capacity of developing countries to build up their own stockpiles.

However, an understanding must be established for Brazil. On the one hand, food importing countries must have guarantees that such stocks can be made and food safety must be ensured. But as long as the conditions are met to prevent any maneuvers of governments.

One of the criteria proposed by Brazil is that such stocking programs should only be used to ensure food security in one country. Stocks cannot disrupt the market or affect food security in another country.

According to Brazil’s recommendation, the stocks cannot be used for export or used as animal feed.

In his speech at the organization, the Brazilian delegation insisted that price support is the agricultural policy that has distorted the markets the most. For Itamaraty, such policies cannot happen without validation when government purchases are made to build up food stocks.

source: Noticias

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