Select Committee on Agriculture Minutes of Evidence



Examination of witnesses (Questions 240 - 259)

TUESDAY 21 MARCH 2000

MR PETER STEVENSON, MR DAVID BOWLES and MR CHRIS FISHER

  240. Right.
  (Mr Stevenson) It is not unreasonable to say, therefore, with imported pig meat or eggs we also want to go beyond labelling. If we have taken an ethical decision within our own territory, the EU, why should we not also be entitled to make the same judgment—

  241. Because that would be imposing our value judgments on a group of other people who do not share them.
  (Mr Stevenson) With respect, as David said earlier, we are often told "you are trying to impose your value on others", but I do not believe that is so. At the moment we have a situation where others are able to impose their values on us. We, the EU, have said we believe that battery cages are cruel—

  242. But a labelling regime would prevent them doing that or imposing their values on us because we would have the choice then with full information to distinguish between the two products and decide on that basis. That would rebut your argument.
  (Mr Stevenson) Why should we be in a situation where within our own territory we have said it is sufficiently cruel to want to prohibit it rather than just leaving it to individual consumers but vis a" vis imported produce we take the lesser step of labelling?
  (Mr Bowles) We already do that. The GMO agreement states that there will be mandatory labelling but we can still block the imports if we feel—

  243. If we can demonstrate a health ground.
  (Mr Bowles) It is not just a health ground.

  244. Or biodiversity ground.
  (Mr Bowles) It is also about consumer concern as well. The Commission has said very clearly that they accept there are two stages, the scientific risk assessment and the consumer risk assessment. They would be prepared to block imports based on the consumer risk assessment.

Mr Marsden

  245. Can I turn to alternative approaches to securing animal welfare gain. Would you urge the Government to increase existing animal welfare standards in this country unilaterally?
  (Mr Bowles) I think the example of what has happened with the pig industry means that it would be very, very difficult to ever imagine the UK unilaterally increasing its standards if the EU has not.

  246. That is not answering the question, with due respect. Would you still urge, regardless of what the UK Government thinks it could actually achieve or whether it could actually succeed at it, would you still press for improvements?
  (Mr Bowles) The RSPCA would press for improvements on an EU wide level.

  247. So not unilaterally. Okay. Can I then turn to what you said in the written evidence, this is the RSPCA. "There are already a number of international and bilateral agreements concerning animal welfare, but none of these are global in character." Specifically, what efforts do you think you and the Government should be undertaking to develop multilateral agreements on animal welfare issues?
  (Mr Bowles) I have already explained about some of the problems with the multilateral solution but, given that, the RSPCA is exploring avenues and we are actually talking to countries about setting up a meeting to look at developing a multilateral solution. We have had meetings with the UK Government over the past year to encourage them, through their Commonwealth links, to also put out feelers to other countries to do that. We think that the multilateral solution is not a solution in itself. You need to do a two-track approach. It is a parallel approach to the other things that are happening like the green box discussions, like labelling. We do not discount it but what we do not want to happen is for the WTO to say "you are going in negotiating with 100 countries on a multilateral solution, therefore we will wait until you come up with that multilateral solution" because we could be there for ten years.
  (Mr Stevenson) On the multilateral question I agree with everything that has been said. The Government is a little bit naughty about this at the moment. Standard letters that emanate from the Ministry of Agriculture talk about how the Government is thinking carefully as regards some sort of steps to begin to take these things forward on a multilateral level, the concerns about animal welfare. I do not know what those steps are. They keep saying it but I have not seen evidence of them yet. Again, we would be delighted if this Committee could put pressure on the Government, on the Ministry of Agriculture and the DTI to really begin to approach some of our key trading partners outside the European Union to try to get some sort of multilateral standards. Again, I want to emphasise that they should not be seen as a substitute for reforms to the WTO rules.
  (Mr Bowles) It does seem strange that in discussions we have had with the Government, the Government are basically saying to us "why don't you, the NGO, go out and make sure that this multilateral solution happens" and they are not actually doing anything themselves. I think the Government should take responsibility. If they are in there arguing within the EU to raise standards they should then take responsibility for the outcome of those standards.

  248. So what you seem to be saying is there should be a lot more talking about animal welfare standards but it ultimately still has to go through the WTO in terms of formal agreement in global terms?
  (Mr Fisher) No, absolutely not. I think nobody would suggest that animal welfare standards should be set within the WTO. You do very much need to distinguish these two issues. Let us talk about political realities here. We have a big programme of multilateral discussions and any standard which is likely to be agreed will almost certainly be less than the standards we already have in Europe. You can take that as read. From the WTO point of view it does not solve any of your problems about what differences there may be in your standards and somebody else's. From an animal welfare point of view globally it could be important. However, if a standard on animal welfare is set at a somewhat global level it could also become a WTO problem because if you want to introduce a labelling scheme, or some other measure, and there is an international standard, generally WTO rules set a higher burden of proof on you to justify why you are setting your standards higher than the internationally agreed scheme. So there could even be situations where it may be in your interests not to conclude an international agreement. Again, that shows you some of the strange outcomes of WTO rules sometimes.

Mr Paterson

  249. Is it not better to have some advance at world level so you do get a world animal welfare gain than to do what the Swiss have done which is to take a radical step, have no animal welfare gain at all and 60-70 per cent, according to your submission, of eggs come in from over the border at lower standards?
  (Mr Fisher) That was true beforehand anyway. We do not advocate raising standards here if it is just going to lead to a downward welfare standard overall. However, we need to be in a situation where we as a sovereign nation, as part of the European Union, can continue to raise our standards, not just on animal welfare but on other issues too. The WTO, which is meant to be in favour of sustainable development, should facilitate that. This is why we come back to these arguments that trade rules, if applied in a different way, could facilitate the so-called win-win outcomes. The way they are set up at the moment, unfortunately, seem to be encouraging countries not to raise their standards. The idea that we sit and wait for the world to catch up is really somewhat fanciful. Let us forget Botswana, the idea of going into negotiations with the US on farm animal welfare standards and thinking that we can reach some kind of sensible agreement with them in the next five years is frankly a political non-starter. Those are the realities and, therefore, we have to find a way whereby a diversity of standards can be accepted within the WTO trading system.

Mr Jack

  250. You have wandered into the world of the dispute process so let me give you a little bit of rein to tell us how you would like to see it improved.
  (Mr Fisher) It is not so much the disputes process. Obviously, like all NGOs, we favour increased transparency. We would like the opportunity to be able to submit amicus briefs and possibly even to make representations as we have made to you here. I just compare this process with the WTO process. The WTO process is very non-transparent and those people who have legitimate viewpoints to make are not always able to make them. The WTO process would be assisted in that sense, and need not be overwhelmed but assisted in some cases. However, the fundamental question is not so much to do with the dispute settlement mechanism itself but it is to do with the WTO rules. Therefore, unless there are some changes in terms of how PPMs are looked at, how Article 20 exceptions may be interpreted, some legal guidance and political guidance given, then the likelihood is that the dispute panels will continue to produce the kinds of results that they have so far which, to paraphrase them, have typically been that everything is possible in theory, but in every particular case it has been against the rules. You can always imagine a situation where it could be done but in reality it never is done. One other point to say on the dispute settlement mechanism is that there is also this rather bizarre outcome of the sanctions that follow if there is a case which is not agreed. You have only got to look at beef hormones where, in fact, the volume of trade has now decreased as a result of the sanctions that are being put in place, plus purely innocent, totally unrelated sectors are being punished for something they have no control over and are losing money and are going out of business. These sanctions are being applied in a very political way. There is a strong argument to say that in that sense the dispute settlement mechanism is not working effectively and it is not, if you like, giving the punishment that fits the crime and is not providing an appropriate mechanism for reconciliation.
  (Mr Stevenson) I think I too would feel that the key problem is not the process of dispute settlement but the need to get some sort of reform to the rules. At the moment we have a treaty and it is the dominant piece of international law in which trade liberalisation is the only concern. Surely we are entitled to ask that there is a rethink about that treaty so that other legitimate public policy considerations are not always being wrecked by the WTO Treaty? The Council of Agriculture Ministers themselves last year said that an appropriate balance has to be struck between trade and non-trade issues. Animal welfare is one of a number of non-trade issues. I do think we need to get reforms and I do not think those reforms will really be meaningful unless they in some way relax the position on PPMs. Maybe there needs to be a revisiting of Article 20 on the general exceptions which were first created all those years ago expressly for what I have been talking about, to allow other legitimate public policy considerations some sort of breathing space within the trade liberalisation rules. Those have been interpreted in dispute panels so restrictively as to be almost meaningless.

  251. In terms of Seattle, what roles respectively did Compassion in World Farming and the RSPCA play? Did you go to Seattle yourselves?
  (Mr Bowles) Both Chris and I were in Seattle. I think it is very important to stress that we were working towards Seattle for about a year beforehand building up the arguments on animal welfare with the Commission and with the Member States. I think the impetus from the Commission's position occurred during the Finnish Presidency, who we had extensive meetings with, and also with, as it was then, DGVI, which decided to take this seriously. We have elaborated our concerns and our solutions both with the political people and obviously we were in Seattle talking to the three European Commissioners and the UK delegation that was there.

  252. You have not, for example, been to see the WTO itself in Geneva?
  (Mr Bowles) Yes, we have, many times.
  (Mr Fisher) Including the Director General.
  (Mr Bowles) Including the ex-Director General and we have a meeting arranged with the current Director General as well.

  253. Did you talk to any of the other major groupings, for example the Cairns Group, about your concerns?
  (Mr Fisher) Both in Seattle and outside as well, particularly with the US and with the Cairns Group. That is what I based my comments on about issues such as the green box. I do not see any fundamental opposition to some of these, it is just a question that they doubt the political motive. We should have reason to doubt the political motives of the Americans in the Cairns Group as well, so there is mistrust on all sides. I think the key new thing which came out of Seattle was this question of developing countries. This was given as the reason as to why the issue could not be discussed in Seattle and why the words "animal welfare" had to be removed from the text. When you actually scraped beneath the surface this was not the result of many, many developing countries beating their path to the door of the chairman of the committee but the chairman of the committee took the view that it was the straw that broke the camel's back in terms of the atmosphere that was going on in those particular discussions and, therefore, advised the European Union that it would be best to remove the words "animal welfare" in the knowledge that they could raise it at a later stage when the negotiations began. However, I think post-Seattle we have recognised that we not only now have to convince European policy makers, we have to put some of our own efforts, and only this week I was with the agriculture attache of Brazil in Brussels chatting with him, into having a dialogue with some of these other countries to see where they stand on these issues, particularly the developing countries. I am clear in my own mind that while there may be some specific points to consider in terms of developing countries, the real issue is what the US and what the Cairns Group think on these matters.

  254. In your ability, both organisations, to get your message across it sounds as if you have pretty good access to the key opinion formers as far as the WTO level and indeed at the Commission level. Would that be a correct assessment?
  (Mr Bowles) I think it is a correct assessment to say that we have had reasonable access at a Commission and a Member State level. The whole process has been one of a catch up process. Chris mentioned earlier that he thought the Commission and the EU went into the negotiations quite ill-prepared because there had not been enough discussion in the pre-meetings in Geneva and I think that is also true with us. Our objective was to get the EU to take animal welfare on seriously and our objective now is to go to the Cairns Group, to go to the developing countries, to the USA and discuss it with them as well.

  255. One final question. Mr Fisher obviously demonstrates an expertise and I note he is down there on the list as "consultant". Mr Fisher, where did you acquire your knowledge about the WTO?
  (Mr Fisher) It is a much abused term, "consultant". It usually means that you know just that little bit more than your clients. My background is animal welfare, and has been for the last 15 years. I acquired my expertise on WTO the hard way, by learning from scratch. I am not a lawyer, I am a policy person. I have started at the beginning with the famous book and all the other things and worked my way up over the last five years of gathering knowledge.

Mr Mitchell

  256. When it comes to developing countries we are still open to the jibe that we care more about the welfare of our animals than their people in the sense that maximising living standards is more difficult if there is this kind of discrimination.
  (Mr Fisher) That is an easy jibe to give and whether it holds any water depends on how we and how the European Union conducts itself in its negotiations. There are lots of fine words about developing countries, much of it is, what do they amount to in trade terms?

Chairman

  257. One sentence.
  (Mr Stevenson) You have totally thrown me by saying that.

Mr Jack

  258. That is a sentence.
  (Mr Stevenson) Many of our supporters, most of our supporters, care as much about developing countries as about animals. I do not believe that what we are talking about would damage developing countries. Indeed, intensive agriculture is not a helpful system for them as it threatens not just the environment and human health but poverty alleviation for those countries, it is really not the right way forward.

Chairman

  259. A good point. Thank you very much indeed. The definition of a "consultant" is somebody who is there to tell the business to do the things it knows it must do but only believes it if somebody else tells it.
  (Mr Fisher) That is probably quite true.

  Chairman: Thank you very much indeed.


 
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