After the food crises in 2007-2008 and in 2009-2010, food security has become - more than ever before- a worldwide concern particularly in the Middle East and North African Countries (MENA).
Many in the policy arena and academia have partially linked the food crisis to the global trading system and its emphasis on trade liberalization. For example, The UN Special rapporteur argues that the WTO agenda has failedand prevented developing countries from pursuing their national food security policies. However, WTO disputes this claim and emphasizes that rule-based trade enhances availability and access to food. For WTO, the Agreement on Agriculture (AoA) provides sufficient flexibilities for members to design their own food security policies.
Because of limited agricultural resources, trade will be an essential element of any food security strategy in the MENA region. As such MENA countries have every stake to be an active part of the rule-based global trading system. Currently among the 22 Arab countries, only 12 are WTO members meaning that the MENA region will not weigh heavily in ensuring that WTO rules better serve its national food security interest. India, for example, because it has been an active WTO member has led the negotiation on the ongoing Doha round to reach an agreement in favor of its public grain stockpiling, an essential element of its food security strategy.
In addressing food security, the MENA region seems to be embarked on a two-pillar strategy based on enhancing domestic food supply and reducing price and supply risk, particularly through building food strategic reserves. The latter pillar is a major element of the GCC food security strategy as countries like Oman, Bahrain, UAE and Qatar have more than doubled their storage capacity for rice and wheat. The question for countries that are WTO members is how to improve food security through these two pillars and at the same time be in line with WTO rules. Food security concerns are loudly voiced in the on-going Doha Development Agenda (DDA) in order to introduce more flexibilities for developing countries to address food security issues.
However, for MENA countries, the current AoA already provides sufficient policy space to improve food security through the two pillars stated above. The “Green Box” policies (non-distorting measures) allow countries to provide public support - without limitation - to enhance agricultural productivity and promote rural development (Annex 2 of the AoA). Policies in this category, still not effectively used in MENA, involve public expenditures on research programmes, training and extension services, disease and pest control, marketing and promotion service, and infrastructural services. In addition, development programmes (article 6.2) and the de minimus rule (article 6.4) of the AoA allows countries to provide overall and product-specific subsidies (trade-distorting measures) to farmers to address food security concerns.
Public stockholding is addressed by the AoA in its article 3 annex 2 and in the current DDA negotiations. The GCC countries procure cereals for their stocks from the world market at the world price and therefore meet the WTO requirement that the procurement price of stocks should be no less than the external reference price. However, while strategic reserves can help reduce both supply and price risks there is a significant cost associated with storing and maintaining these reserves. The level of storage should be carefully tailored to the specific needs of the country to minimize cost and provide sufficient insurance against supply and price risks.
In conclusion, food security is not self-sufficiency and therefore trade should be considered an integral part of any food security package. However food safety nets, including cost effective food strategic reserves are necessary to reduce price as well supply risks. MENA countries should be more actively involved in DDA negotiations to insure that these polices are compatible with WTO rules.
