In the past, our fresh food was produced by farmers who lived relatively nearby. This was because fresh food is perishable and it could not be transported long distances without going off.

Today, the transport of food by air, together with new methods of harvesting and storage, means that the food sold in our shops comes from all over the world.

A global market has a lot of advantages. For one, we can eat tropical fruit in the middle of a cold British winter. However, there are disadvantages too.

A global market has an effect on the livelihoods of farmers. Previously, they would compete with other local farmers to sell their produce. Now, they may have to compete with farmers from all over the world.

The global market is controlled by international trade rules. In theory, these rules follow the principle of free trade. Countries produce the goods they are best at producing, and trade their surpluses for products that they cannot produce, or are less efficient at producing.

In practice, the richer and more powerful countries subsidise their own produce and protect themselves against cheaper imports by imposing tariffs and quotas. They also dump surplus produce on poorer countries, often at prices lower than it would cost farmers there to produce them. The rich countries get away with this, because they have greater power and influence within the international institutions that regulate trade.

Many poor countries rely on loans from the rich countries or the large international organisations. The loans are given on the condition that the poor countries abide by the rules of free trade. This means that they must not subsidise farmers or protect their markets from cheap imports, including the dumped surpluses of the rich countries.

Poorer countries are not allowed to protect their markets. Richer countries can protect theirs. Thus, poorer countries are prevented from improving their situation.

To make matters worse, many poorer countries are also stung by the agricultural problem because they produce mainly agricultural goods.

Free trade
Agricultural problem
International organisations

The dumping of surplus food on poorer countries can cause many small farmers to go out of business. They cannot compete with the low prices of the imported food, even though they are producing food efficiently.

Small farmers in the rich countries are also suffering as a result of current trade practices. Smaller farms receive a much smaller slice of the subsidy cake, while larger farms receive more subsidies.

Eighty per cent of all financial support given by the European Union in the form of subsidies goes to just 20 per cent of farmers.

To find out more the lives of two small farmers, one in Wales and one in Jamaica, click on Real Lives.

Oxfam believes that current international trade rules are unfair, and is campaigning for change.
Oxfam would like to see:

• a decision by the international organisations which lend money to poor countries to stop attaching conditions which force these countries to open their markets regardless of the impact on poor people;


• a ban on agricultural export subsidies, ending the cycle of over-production which leads to dumping by the rich countries;


• the prices for primary commodities (such as food) kept at higher levels, which would give small farmers everywhere higher incomes;


• the WTO become more democratic, with poorer countries having a stronger voice


• the rich countries remove barriers which prevent imports from the poorer countries.

	Questions to think about
	What do you think? What changes would you like to see?

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