September 12, 2003
Something extraordinary is happening in Cancun this week. Much of the developing world has banded together (also here) in an attempt to bring about a fairer trading environment for agricultural goods.
The Group of 21 (G21), which includes China, India and Brazil, has threatened the traditional dominance of rich countries during world trade talks in Cancun, Mexico. The G21 is demanding the complete abolition of subsidies paid by rich countries to their farmers which, they say, locks the developing world out of international markets.Agricultural subsidies in rich countries might be the single most important policy issue in the world today, and it's looking like this coalition might be able to do something about them. As I've discussed here before, getting rid of those subsidies would cut to the heart of the development problem - without them, farmers in developing countries could compete favorably in first world markets, and in their own.
The other side of this story is the coalition itself, which is unprecedented on the international stage. If this works, it could alter the way international trade decisions are made. It has the potential to create a new environment in which all countries have to work in coalitions in order to further their economic aims.
MORE: Rice Grad also posts on trade.
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