BELGIUM:DEVELOPING COUNTRIES risk causing a "spiral of protectionism" and aggravating food shortages when they try to combat soaring food prices by blocking their own exports, Europe's trade commissioner said yesterday.
Several developing countries have introduced measures such as export duties to keep more of their agricultural production in national markets and cool rising food prices. "By chasing an illusion of food security these policies throttle domestic production, choke off supplies to others and risk leading to a spiral of protectionism and dwindling production," European Union trade commissioner Peter Mandelson said.
Kazakhstan this week suspended wheat exports until September, and Russia and Ukraine have limited exports of wheat and barley. Argentina has blocked wheat exports.
Mr Mandelson, speaking at a trade seminar in the European Parliament, said developing countries faced political pressure to tackle food price growth.
"But as a general rule, export taxes, quotas or bans do not make economic or development sense. In the case of basic agricultural commodities, they make even less sense," he said.
Mr Mandelson also questioned the logic of rich countries subsidising farm production and exports.