Millions of poor farmers are dependent on commodities and on the price they receive for their harvest. But between 1970 and 2000, prices for many of the main agricultural exports of developing countries, such as sugar, cotton, cocoa and coffee, fell by 30 to 60 percent (EC Commodities Action Plan, 2004). According to the European Commission, today producers “live an unpredictable existence because the prices for a wide range of commodities are very volatile and in addition follow a declining long-term trend” (ibid,pp.4f). While Fair Trade can offer a solution for many producers, millions of farmers are suffering the consequences of low and unstable prices.
A solution to this problem is urgently needed. But the problem of commodity prices has long been ignored in international forums. In summer 2006, the African Group suggested to bring this issue back on the agenda of the World Trade Organisation (WTO) (no. TN/AG/GEN/18). 57 non governmental and Fair Trade organisations and 16 individuals, from 18 countries on four continents have so far supported this proposal in a common statement, asking for reductions in the levels of tariff escalations, a legal instrument to authorise joint actions by producing countries to attain stable, fair and remunerative prices as well as for technical assistance for the implementation of these arrangements (Position Paper: English, French)
SUGAR