As global food prices once again increased sharply, World Trade Organisation director-general Pascal Lamy reiterated that trade could play an important role in addressing the rise in food prices, and tackling food insecurity.

“Trade is part of the solution, and not part of the problem,” said Lamy, stressing the need to eliminate trade barriers, which brought unexpected turbulence in agricultural markets.

Export restrictions play a major role in food crises, he stated.

Some analysts considered export restrictions to be the main cause of the food price rise in 2008, as restrictions were causing panic in markets when different actors saw prices rising at stellar speed.

A current example emerged as Côte d'Ivoire President Alassane Ouattara called for a month-long ban on cocoa exports from the country, which would likely cause a steep increase in cocoa futures prices. Côte d'Ivoire produces about one third of the world's cocoa.

Lamy said that the 2010/11 price rise for cereals had much to do with the export restrictions of Russia and Ukraine, which were imposed after both countries were hit by severe drought.

“These restrictions hurt net-food-importing countries; and could actually starve them. Not to mention that they can prevent the World Food Programme from fulfilling its role, depriving it of the food with which it can help others,” Lamy said.

He argued that stakeholders should at least explore the exemption of humanitarian food aid from export bans.

Export restrictions were just one element of the trade barriers preventing efficient agricultural markets from emerging, and Lamy said that the Doha Round of trade negotiations could contribute to the medium-to-long term response to food price crises, by removing many of the restrictions and distortions that have harmed the supply-side picture.

Successful conclusion of the Doha Round would greatly reduce rich world subsidies that have obstructed the developing world's production capacity and which have, in certain commodities, cornered it completely out of the market.

“The worst kinds of subsidies - which are export subsidies - would be completely eliminated. It would also bring down tariffs, although with certain ‘flexibilities’, thereby increasing consumer access to food,” said Lamy.

The desired result from the Doha round would be more food being produced where this could be done more efficiently.

Reconciling the specificity of agriculture, with the benefits of trade opening was what lay at the core of the Doha negotiations.

Lamy also reiterated that there was a need for greater investment in agriculture, a sector which has battled under-investment for a while. In particular, there was a need to prepare agricultural system for the impending climate change impacts that would affect the supply side.

“I would also add greater reflection on our biofuels policies. Social safety nets for our consumers and farmers. More robust food aid systems. And strong support for the World Food Program,” continued Lamy.

Lamy was addressing attendees at the Berlin Agriculture Ministers’ Summit.