Agriculture food and safety
Legal texts on agriculture
Having decided to establish a basis for initiating a process of reform of trade in agriculture in line with the objectives of the negotiations as set out in the Punta del Este Declaration.
Introduction
The WTO Agreement on Agriculture entered into force when the World Trade Organization (WTO) came into being on 1 January 1995. Its main objective is to reform agricultural trade so that it is closer to competitive market conditions — but also to serve other objectives.
Agriculture Agreement
Historically governments have intervened in the agriculture sector more than in other sectors. Agriculture was always covered by the General Agreement on Tariffs and Trade which entered into force in 1948. But numerous exemptions meant agricultural trade escaped most of the disciplines that applied more generally to trade in industrial products. The result was the widespread use of measures that obstructed imports — import bans limits on quantities that could be imported (quotas) high import duties import duties whose rates varied and so created market uncertainty minimum import prices and various impediments not related to tariffs such as regulations and the activities of state trading enterprises. Major agricultural products such as cereals meat dairy sugar and a range of fruits and vegetables faced trade barriers on a scale unseen in the rest of merchandise trade.
Frequently asked questions
Agriculture is important but trade is distorted by subsidies and protectionism — hurting producers (and some consumers) who are not supported or protected. The 1994 agreement is a first step in the effort to reduce the distortion.
Foreword
Trade in food is difficult to imagine without standards. Food standards give confidence to consumers in the safety quality and authenticity of what they eat. By setting down a common understanding on different aspects of food for consumers producers and governments standards enable trade to take place. If every government applies different food standards trade is more costly and it is more difficult to ensure that food is safe and meets consumers' expectations.
Acknowledgements
This publication is the first WTO publication on illicit trade in food and food fraud. It includes contributions from participants in the WTO’s Annual Agriculture Symposium held on 11 and 12 December 2023 which explored this topic. The Symposium was organized by the Agriculture and Commodities Division with the cooperation of the Office of the Deputy Director-General Jean-Marie Paugam.
Protecting the international food supply chain from fraud
Global trade has both brought significant benefits to reducing hunger around the world but it has also increased the complexity of the food supply chain. This complexity is a strong enabler for food fraud. The more links across the supply chain and the longer the distance between where food is originally grown or produced and finally consumed provides opportunities for fraudsters to act for their benefit. The role of the WTO is fundamental in helping to reduce fraud. The WTO’s Trade Facilitation Agreement and the Agreement on Sanitary and Phytosanitary Measures (SPS Agreement) sit at the heart of global trade in food and help along with other international agreements standards and enforcement bodies strengthen our global food supply while reducing cross-border food fraud activity. This chapter argues that it is very important for all stakeholders of the food system to work together to keep the system resilient and safe from fraudulent activity with the final responsibility for keeping consumers safe ultimately resting with the food producer.
A snapshot of illegal practices in the trade in seeds and associated challenges
Seed is the most important input in crop production. Reliable high-quality seeds are vital to agriculture and the food supply chain. High-quality seeds enable farmers to boost crop productivity improve livelihoods and feed a growing world population. In recent years there has been an increase in illegal seed practices. Many of these practices constitute a violation of intellectual property rights such as trademark infringements including the production of counterfeit seeds the illegal reproduction of seeds in violation of a plant breeder’s right (PBR) and the theft of proprietary material. This chapter demonstrates through three case studies the impact of illegal practices on breeders farmers consumers the seed value chain and the entire agricultural production process. It highlights the need for cooperation among all actors involved in the global seed supply chain emphasizing the crucial role that must be played by regulatory authorities at the national regional and international levels and the actions required to better combat illegal seed practices in future.
Addressing illicit trade in food and food fraud
The WTO rulebook can be used by members in the fight against illicit trade in food and food fraud in particular the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) and the Agreement on Technical Barriers to Trade (TBT Agreement). This chapter explores the various definitions of food fraud providing an overview of the main food products that have been the target of fraud and the most notable incidents that have arisen over the past two decades. Building on the outcomes of the WTO’s Annual Agriculture Symposium in December 2023 dedicated to this topic the chapter asks whether it is time for a more explicit conversation at the WTO.
Mapping the negative impacts of illicit trade in agri-food and beverages against the United Nations Sustainable Development Goals
Agriculture forestry and fishing contributed 4.3 per cent of global GDP in 2022 and account for large shares of the GDP for developing economies. A healthy agricultural sector is vital to eradicating hunger and poverty. Illicit trade in agri-food and beverages in its various manifestations undermines sustainable farming limits crop yields and jeopardizes the delivery of fair safe and sustainable food supplies. This chapter examines how this form of illicit activity threatens the achievement of 11 of the United Nations Sustainable Development Goals (SDGs). Examples from illicit trade in food commodities processed foods and pesticides demonstrate how fraud and failures in the food supply chain hinder progress on the vital goals to eradicate hunger and poverty improve health and well-being strengthen consumers’ ability to make educated and eco-friendly decisions and generate sustainable economic growth.
Foreword
The WTO has long been committed to the fight against illicit trade which undermines legitimate business activity fosters corruption and denies governments potential tax revenue needed to improve socioeconomic conditions. Under the leadership of Director-General Okonjo-Iweala the WTO Secretariat has been examining how WTO rules help members to resolve some of the challenges posed by such illicit trade.
Bringing criminal justice to illicit trade in food and food fraud
This chapter presents an overview of food fraud cases through a criminal justice lens primarily focusing on the varied tactics employed by criminals to infiltrate the legitimate food supply chain and market fraudulent food products to unsuspecting consumers. These deceptive practices typically involve the manipulation of legal entities and operations. Our findings emphasize the need for a multifaceted criminal justice response one that considers the complex operations of these criminals to devise effective countermeasures. The role of emerging technologies in facilitating law enforcement investigations is also highlighted underscoring their potential to support successful criminal investigations and prosecutions.
WTO rulebook and combating illicit trade in food and food fraud
As the only global organization dealing with the rules of international trade the WTO has a key role to play in members’ efforts to tackle illicit agri-food trade through its rules and institutional framework. Specifically the WTO offers members a variety of tools and best practices as well as the opportunity to exchange information and implement policies both within and at the border that can assist them in combating this phenomenon. This chapter examines the most relevant parts of the WTO rulebook to fight the trade in illicit agri-food and the provisions which allow WTO members to derogate from commitments when fulfilling legitimate public policy goals. This chapter highlights that the lack of disciplines expressly addressing illicit agri-food trade does not prevent the WTO agreements from providing members with several important tools that they can use to tackle the problem.
Introduction
This is the first WTO publication on illicit trade in food and food fraud. It includes contributions from participants in the WTO’s Annual Agriculture Symposium held in Geneva 11-12 December 2023 which explored this topic. At the Symposium prominent experts discussed the various forms and definitions of illicit trade in food and food fraud the links to international trade and ways to combat the phenomenon effectively.