In Brief

INDIAN PARLIAMENTARY PANEL SUPPORTS NGO CLAIM OF SOFT DRINK CONTAMINATION

On 4 February, the Indian Joint Parliamentary Committee released its report on pesticide residues in, and safety standards for, soft drinks, fruit juices and other beverages. The report supports the findings of a study by the Indian Centre for Science and Environment (CSE) released in August 2003, documenting the presence of pesticide residues in soft drinks (see BRIDGES Trade BioRes, 25 August 2003). The report states that two laboratories analysing samples of 12 brands of soft drinks have found, inter alia¸ organochlorine and organophosphorous pesticide residues -- chemicals normally used for insect control -- 1.2 to 5.22 times higher than the EU limit for total pesticide residues in drinking water. Among the soft drink found to be contaminated were also those of Coca Cola and Pepsi. Both companies have repeatedly stressed that their Indian products were "absolutely safe" and met international standards. The CSE welcomed the findings of the report. They noted that "[the report's] findings have far-reaching consequences for public health and food safety regulations in India", as the report not only supported the CSE findings but also asked the government to set several strict health and food safety standards for soft drinks.

"Pesticides Taint India's Colas, Parliamentary Panel Confirms," ENS, 5 February 2004; "JPC report sets a "reform agenda" for environmental and public health action in India," CSE, 5 February, 2004.

WORLD BANK REJECTS WITHDRAWING FROM OIL AND GAS

According to press sources, the World Bank is expected to reject key proposals of the independent Extractive Industry Review on the World Bank's finance projects in the oil and gas sector (see BRIDGES Trade BioRes, 28 November 2003. The Extractive Industry Review had proposed that the World Bank and its private sector arm, the International Finance Corporation, should withdraw from the oil and gas sector within five years and instead concentrate on financing renewable energy projects. In a draft letter to the Bank's executive board, the management of the Bank argues that ending the financing of oil projects "would unfairly penalise small and poor countries that need the revenues from their oil resources to stimulate economic growth and alleviate poverty". The review furthermore suggested that local peoples should have the right to "prior informed consent" prior to the implementation of an oil, gas or mining project. In its response, the Bank states that this might be in conflict with national laws; but that the Bank would aim to increase the transparency of oil revenues. Commenting on the review response, WWF expressed disappointment over the Bank's rejection of some of the most critical recommendations. However, WWF vowed that they would continue their efforts to convince the World Bank of the importance of implementing the recommended reforms.

"World Bank Chiefs Reject Proposal To Quit Oil And Coal Finance," FT, 3 February 2003.

SMALL ISLAND STATES ADDRESS SUSTAINABLE DEVELOPMENT ISSUES

Over 300 participants convened on 26-30 January to address progress and challenges to the sustainable development of Small Island Developing States (SIDS), where trade was a recurrent topic. Documents emerging from the meeting, including a 'Nassau Declaration' and the Alliance of Small Island States (AOSIS) Strategy Paper for the further implementation of the Barbados Programme of Action (BPOA), noted that special and differential treatment under the WTO emerged as a priority for SIDS, as access to the benefits of globalisation and integration into the global economy would be limited without these provisions. Countries further noted that inability to effectively participate in multilateral negotiations and weakening economic performance since 1994 threatened sustainable development in their regions. The AOISIS strategy paper advocates for the adoption of procedures allowing smooth transition from Least-developed Country (LDC) status and an integrated framework of technical assistance and cooperation for trade and development in SIDS to be adopted by the WTO. The paper also requests the establishment of special long-term financial mechanisms to facilitate the adjustment of SIDS to the post-Uruguay Round trading environment, the recognition by the WTO to maintain subsidy measures by SIDS, greater attention to the environmental dimensions of trade and continued examination of the trade implications of multilateral environment agreements. Regarding biodiversity resources, the paper calls for financial support from the international community for building effective partnerships; addressing island biodiversity under the CBD; controlling the introduction of alien invasive species; and developing and implementing national biosafety frameworks, including the effective implementation of the Cartagena Protocol on Biosafety which many SIDS have ratified.

Outcomes of the Inter-regional Preparatory Meeting for the Ten-year Review of the Programme of Action for the Sustainable Development of SIDS will be forwarded for consideration at the 12th session of the Commission on Sustainable Development. The Commission will in turn make recommendations to the International Meeting for the Ten-year Review of the Programme of Action on SIDS, to take place in Mauritius from 30 August to 3 September 2004.

"Summary of the Inter Regional Preparatory Meeting for the 10 Year Review of the Barbados Programme of Action for the Sustainable Development of SIDS," ENB, 2 February 2004.

EU OFFICIAL HINTS AT TRADE-OFF BETWEEN RUSSIAN WTO ACCESSION AND KYOTO

At a recent German parliamentary hearing, European Enlargement Commissioner Günter Verheugen suggested that there may be a trade-off on the horizon between Russia's ratification of the Kyoto Protocol and its accession to the WTO. Summing up the link between the two issues, Verheugen said, "I understand it as an attempt [by Russia] to get us to relax some of our demands for Russian WTO entry and then to compensate for that by signing the Kyoto protocol". The Russian Federation has been seeking WTO membership since 1993, with intensification of its efforts under the economic programme of Vladimir Putin's administration. The EU has considerable influence at the WTO and is Russia's principal trading partner. Russia, which accounts for 17 percent of emissions, can effectively block the Protocol's entry into force, given the US decision to abstain. To come into effect, the international treaty -- designed to reduce emissions of greenhouse gases believed to be responsible for global warming -- needs to be ratified by 55 countries accounting for 55 percent of emissions. Russia continues to have reservations about the treaty's effect on economic growth and the number of participants that will adhere to its provisions. Some European states have hinted that a review of their own emissions policies may be in order if Moscow fails to ratify the treaty, fearing a competitive disadvantage due to increased costs. EU Environment Commissioner Margot Wallström however denied any linkages between the Russian WTO Accession process and the country's signature of the Kyoto Protocol. "Our trade people are not interested in that and I don't see how it could happen," she said.

"EU's Verheugan Sees Russia WTO Entry, Kyoto Link," REUTERS, 28 January 2004; "Russia: Kyoto Pact Harms Economy," REUTERS, 2 December 2003, "European Commission Splits Over Kyoto Protocol," ENS, 2 February 2004.

EU HEARING TO BOOST ORGANIC FARMING

On 22 January 2004 the European Commission held a 'European Hearing on Organic Food and Farming Towards a European Action Plan' in Brussels. Sessions covered the place of organic farming in European agriculture and in the wider European society. The main purpose of this hearing was to gather experiences and views from the widest possible range of stakeholders. Furthermore, Franz Fischler, the EU Commissioner for Agriculture, Rural Development and Fisheries, announced that the Action Plan on Organic Farming would be published in April this year. In his speech, he outlined three priorities concerning the market, the role of public support and the role of standards. The Commissioner supported a common EU-wide label for organic food products as an "essential instrument to increase the visibility of organic produce, and increase consumer awareness". The second important set of actions that he identified was public support for organic production, including new measures such as an animal welfare measure for which organic animal husbandry methods could qualify and a new food quality chapter to help develop the demand side. He also mentioned the necessity to update standards, as organic farming must react to new scientific and technical developments and respond quickly to changes in consumer demand. The hearing raised the need to develop animal welfare, environmental and other standards not covered so far and aim "to find ways to adopt a more scientific working method, based on consulting independent and transparent expert opinion". However, an issue of concern raised by both environmental groups and organic farmers relates to the co-existence of organic and genetically modified (GM) crops. Specifically, the groups criticised that the recently released co-existence guidelines by the European Commission did not establish thresholds for GM contamination of organic crops.

The Action Plan based on the output from the hearing, will be submitted as a Communication to the European Council and Parliament.

"European Hearing on Organic Food and Farming," EU PRESS RELEASE, 22 January 2004; "Fischler pledges EU Action Plan to boost organic farming," EURACTIV, 27 January 2004.