68 | IAASTD Synthesis Report

ing the security of access and tenure to land and resources; targeting AKST research, development and delivery to meet the needs of small-scale farmers; and increasing investments in infrastructure such as post-harvest capacity, market feeder roads, and information services. Collective and individual legal rights to land and productive resources, especially for women, indigenous people and minorities, are emphasized in order for these groups to benefit from opportunities cre­ated by agricultural trade.

Options for Action to Advance Development and Sustainability Goals
This section discusses approaches to maximize the ability of trade and market policy options to facilitate targeted AKST to increase the agricultural sector's ability to deliver multiple public goods functions. There are important synergies and tradeoffs between policy options that merit special consid­eration. Potential liberalization of biofuels trade is a clear example, presenting tradeoffs between food security, green­house gas (GHG) emission reductions, and rural livelihoods which need to be carefully assessed for different technolo­gies and regions, and is addressed at the end of this section [SRPartII:Bioenergy].

International trade policy options
Trade policy approaches to benefit developing countries in­clude, among other measures, the removal of barriers for products in which they have a comparative advantage; re­duced tariffs for processed commodities; deeper preferential access to markets for least developed countries, and tar­geted AKST research, development and dissemination for the small farm sector to advance development and sustain­ability goals.
     Policy flexibility to allow developing countries to desig­nate "special products," crucial for food security, livelihood and development needs as special products for which agreed tariff reductions will not be fully applied, are critically im­portant to advance development and sustainability goals. This gives developing countries an important tool to protect these commodities from intensified import competition, un­til enhanced AKST, infrastructure and institutional capacity can make the sector internationally competitive. Similarly the special safeguard mechanism [SSM], designed to counter depressed prices resulting from import surges, is an impor­tant trade policy tool to avoid possible damage to domestic productive capacity. At the household level depressed prices can mean inability to purchase AKST, the need to sell pro­ductive assets or missed school fees [ESAP; Global]. World Trade Organization country categories that better reflect the heterogeneity of developing countries' food security situa­tions could help ensure that no food insecure country is de­nied use of these mechanisms.
     The elimination or the substantial reduction of subsidies and protectionism in industrialized countries, especially for commodities in which developing countries compete such as sugar, groundnuts and cotton is important for small-scale farm sectors around the world. Similarly, plurilateral com­mitments from major exporting countries to ensure that there is no trade at prices below the full cost of production have been put forward as an option to discipline dumping (which can cause significant damage to small-scale produc-

 

ers). There is need for increased attempts to find alternate uses for these commodities, e.g., fruit coating with lac, or bio-fuel from palm oil.  International commodity agree­ments and supply management for tropical commodities, with improved governance mechanisms to avoid problems of free-riding and quota abuse are receiving renewed con­sideration to address price-depressing structural oversupply. International trade and domestic policies need to manage orderly shifts in production centers, enabling producers in high-cost centers to shift, without the destitution that can be brought about by pure market-induced transitions. Elimina­tion of escalating tariffs in industrialized countries would help encourage value-added agroprocessing to help create off-farm rural jobs and boost rural livelihoods. It would also assist in diversifying fisheries production and exports toward value-added processing, reducing fishing pressure on dwindling stocks.
     Increasing support for public sector research to deliver public goods AKST outputs is important to meet develop­ment and sustainability goals, along with implementation of farmers' rights to seeds to enhance conservation of agricul­tural biodiversity and associated informal AKST. Adminis­tering effective mechanisms to protect traditional and local knowledge remains a challenge [ESAP Chapter 3; Global; LAC.
     Replacing revenues lost as a result of reduced import tar­iffs is essential to advance development agendas. If countries are not able to make up the revenue difference with other taxes (i.e., consumption taxes that are economically more efficient but can be administratively and politically difficult to collect) the pace of tariff reduction could be reconsidered. Increased Aid for Trade and development assistance commit­ments will also be necessary. Priorities should be determined on an individual country basis, including AKST targeted to improve competitiveness; strengthen institutional capacity for trade policy analysis and negotiation; and cover costs of adjustment for measures that have already been imple­mented. (Industrialized countries have a right and an obliga­tion to compensate their own losers as well.)

National trade and market policy issues
National agricultural trade policy to advance sustainability and development goals will depend upon the competitive­ness and composition of the sector. Advice to developing countries has tended to focus on promoting opportunities

Figure SR-TM5a. Price change of selected retail foodstuffs