Dempsey at Large: Trump can't have this beef and eat it too

In international agricultural trade terms, we have tied ourselves up in knots.

The surest sign is the irrelevance into which the World Trade Organisation (WTO, formerly GATT) has sunk.

It was essentially torpedoed by the United States of America, ironically under Barack Obama, when they lost two trade dispute cases taken against them.

They then refused to appoint new judges to hear cases and essentially, the organisation has morphed into irrelevance.

We can see this most clearly in US President Donald Trump’s actions where he has simply disregarded all previous supposedly binding international trade agreements and is proposing to impose new tariffs at a level he considers appropriate.

If any other country tried to do this, they would simply be laughed at but he clearly considers that “might is right”.

EU trade

Meanwhile, the European Union is proceeding as if everything is normal.

Trade deals are being completed with countries such as Vietnam and Korea. Mercosur seems as if it will inevitably be passed.

But existing anomalies are being ignored.

China has declared itself a developing country and manages its agricultural policy as it sees fit.

India is becoming a major dairy and cereal exporter and while Russia may be subject to sanctions in its oil business, it has no problem in exporting its grain or fertiliser, though EU farmers will now be subject to paying a new levy on Russian fertiliser imports. Ukranian grain as well as North and South American produce will continue to come freely into the EU to compete with EU producers.

I was interested to read in one of the accounts of the recent agricultural ministerial meeting that a number of ministers made the point that European cereal producers were competing with farmers outside Europe that were allowed use plant protection products that were banned in Europe, yet their grain was allowed into Europe.

The logic of the argument is accepted but nothing happens.

President Trump complains that chlorine-washed chicken and hormone-treated beef are banned from Europe, but the ban stands. Why the same logic should not apply to grain imports escapes me.