Food
Fight
French Resistance
To Trade Accord
Has Cultural Roots
WTO Talks Promise Benefits
But Farmers Retain Hold
On the Nation's Stomach
Wall Street Journal, May 16, 2006; Page A1
POITIERS, France -- Earlier this year, British sheep farmers
Ruth and Richard Thomas left their struggling farm in Wales for what they saw
as the promised land of agriculture. They moved to France.
Across the English Channel, the Thomases are earning two to
three times what they used to get in the United Kingdom. Joining a small exodus
of British farmers setting up shop in France, they qualified for a $23,000
"Here, people care about food and the system takes care of
farmers," said Mr. Thomas, stroking a sheep dog in front of his old stone
barn in this region of green rolling hills in central France.
France's passion for food culture and its policy of coddling
farmers lies at the heart of a current deadlock in the World Trade
Organization's global trade talks. The so-called Doha round of talks, which
began in 2001, were designed to boost developing nations; among other things,
they want lower barriers to their agricultural exports. France has vowed to
veto any deal that doesn't protect its farmers. A pivotal missed deadline April
30 has led to predictions the talks could die by summer if countries including
France don't change their stance.
The standoff shows how cultural and emotional factors can
combine with politics to stifle free-trade goals that most economists believe
would provide a net benefit to the world. The tariff cuts envisioned by Doha
would not only help developing countries sell their minerals and food products,
but would also lower barriers to the industrialized world's exports of goods
and services. The World Bank calculates that Doha would boost the global
economy by around $100 billion.
Even in agriculture, France can be a formidable competitor,
notably in products such as wine and cheese. Its brand is well-known the world
over. And its farms are increasingly home to capital-intensive agribusiness
companies, not just small family producers. Most of the $11.5 billion in
European Union subsidies that France receives each year goes to the largest,
most commercially viable farms.
WTO chief Pascal Lamy, a Frenchman, says he doesn't understand
France's position. "As an efficient farm producer, the strategy should be
to reduce subsidies and prices, because others won't be able to compete with
you," he said in a recent interview.
But taking on small farmers -- who are most vulnerable to
imports -- is anathema for French politicians. Farmers were for centuries
nurtured by the French monarchy as a stable, conservative segment of society,
less prone to revolution than city dwellers. Even after the French revolution,
Napoleon needed farmers to man and feed his massive land armies. So while the
U.K., a sea power with an empire to feed it and a small standing army, cut
price supports that protected English corn from cheap imports in 1846, France
continued protecting itself with walls of high tariffs. When the European
Community, precursor to the EU, was formed in 1957, France made sure a common
program to support farming was written into the founding treaty.
Claude Soude, who handles international affairs at France's
biggest farm union, boasts that on any given Saturday morning, his union can
put a farmer on the doorstep of every member of the country's 577 member
legislature, the National Assembly. But farming is such a sacred cow in French
politics that the union rarely has to use that muscle. "Politicians are
frightened," said Christine Chauvet, France's trade minister in the
mid-1990s.
Paris's annual farm show, the Salon International de l'Agriculture,
is the French political equivalent of the opening of the baseball season in the
U.S. This spring, French President Jacques Chirac stroked cows and nibbled
roast chicken at a booth for young farmers, and then clasped hands with visitor
Peter Mandelson, the EU's top trade negotiator. With cowbells clanging in the
background and the aroma of a particularly well-cured cheese hanging in the
air, Mr. Chirac thanked Mr. Mandelson for defending European trade interests.
Bernard Layre, who grows seed corn, green beans, peas and kiwi
fruit on his farm in the southwest of France, says he believes that without
trade protections French farmers would be unable to compete with their low-cost
Brazilian counterparts. "The WTO is a 'disorganization.' What we need is
an organization that provides rules."
The WTO and globalization in general have been favorite targets
for France's greatest celebrity farmer, José Bové, an activist who raises
sheep. In the late 1990s he trashed a McDonald's restaurant near his home in
France; he has also destroyed fields of genetically modified crops, protests
that have played widely in the French media.
France boasts 26,000 local farmers markets, where twice a week
food growers sell their wares. The U.K. -- a leading proponent of cutting farm
subsidies within the EU -- has 500. Paris has twice as many Michelin three-star
restaurants as New York and London combined. One of France's biggest TV hit
series in recent years was a reality show in which celebrities were parachuted
onto a 19th century farm to see how they coped.
The French population's food obsession is also partly a result
of the country's varied geography and climate, says celebrated chef Alain
Ducasse. Olives thrive in the hot, dry climate along the Mediterranean, wine
grapes throughout central France and wheat in the east. In the cool, wet
northern plains, dairy cattle produce some of the country's most-famous
cheeses. "The exchanges between each region, with everyone comparing and
competing to be the best, most likely encourages quality," Mr. Ducasse
said.
There's a word in French for this regional focus: terroir.
Farmer Philippe Monnet is the living embodiment of the concept. He cares for 60
Montbeliarde cows on the lower slopes of the Alps near the Swiss border. Only
milk from a cow of that breed, raised in that region, can be used to make
certified Comte cheese, which is noted for a slight hazelnut taste. "When
you take a bit of Comte and close your eyes, you should be able to see the
mountains, smell the air," he says.
That's a pitch that French consumers buy. Christine Lagarde,
France's trade minister, says that before she returned to Paris last year from
Chicago, where she had been a high flyer at law firm Baker & McKenzie, she
didn't pay much attention to local food tags. But once back in Paris, she again
started lingering in grocery-store aisles in search of regional labels; she's
proud that her children do the same. "We French all have a little farmer
inside us," she says.
French devotion to its own farm products sometimes forces the
transplanted British farmers to rethink how they raise livestock.
Shortly after they settled on their farm in January, Mr. and
Mrs. Thomas, the Welsh sheep farmers, were surprised to get a knock on their
door from the local Poitou Ovin farm co-operative, which buys their sheep,
slaughters them and sells them on to retailers. The man offered advice on how
to deal with French consumers' insistence on eating local French lamb all year
round. He took Mr. Thomas and his daughter, a veterinary student, out to the
barn to show them how to use a hormone treatment to trick ewes into thinking it
was the mating season. The technique allows French farmers to produce lamb meat
year-round. Back in England, many farmers tend to let nature take its course. Out
of season, British consumers just eat more imported lamb, mainly from New
Zealand.
About half an hour's drive from the Thomas farm, fellow Britons
Roger and Annie Leadbeater say they too were pleasantly surprised by the
approach of the local co-operative when they arrived here three years ago. At
his old farm in Gloucestershire, Mr. Leadbeater sold his cattle in multiple
lots at large auctions. In France, his local co-op representative travels to
his farm to grade and price each animal individually. "They are looking
for quality here in a way that the Brits don't," said Mr. Leadbeater.
The Leadbeaters now have a herd of 80 cattle on their farm in
France. Although they arrived with little French, the couple has improved to a
conversational level and have nothing but praise for French agriculture. In
Britain, said Mr. Leadbeater, he raised crossbred cattle, which are cheaper
than purebreds and mainly what supermarkets, which dominate meat sales in the
U.K., are looking for. In France, he raises only Limousin cattle, for which the
region in which he now lives is famous. He gets about twice the price per head
that he used to get in England.
The French rural tradition, however, is changing. Between 1993
and 2004, the number of arable farms fell by nearly a third. Wide swaths of
neglected land are now home to unsightly scrub, and the farms people see as
they drive down France's immaculate highways are often parts of major business
enterprises. Oxfam says as much as 60% of subsidies went to the richest 15% of
French farmers in 2004, the latest figures available.
Oxfam believes the EU's tariffs and farm subsidies, which total
over €40 billion annually, are harmful to the world's poorest countries. High
customs duties keep products from poor nations out of the wealthy EU market. At
the same time, EU farmers overproduction is dumped cheaply abroad, driving down
global prices and harming farmers in the developing world.
The EU counters that it has already made a profound change:
Since 2003, many EU countries are changing what farmers must do to receive
state aid, shifting from production-linked payments to payments for fulfilling
other criteria, such as protecting the environment. The amount of money the EU
spends on farmers has not fallen, but it has been capped and is being shared
between more farmers now that the bloc has expanded to 25 countries from 15.
The European Commission last autumn proposed reductions to many of its farm
tariffs, but wants to exempt nearly 200 "sensitive products" -- those
with strong political backing, such as dairy and meat -- from the deepest cuts.
France isn't the only stumbling block to an accord. Brazil and
India have refused to make fresh proposals to cut tariffs on manufactured
goods. Japan keeps a tariff on rice of nearly 500%. The U.S., too, is under
pressure to make further offers to cut farm subsidies.
Pressure on the EU and France to do more is intense. While other
countries say they could be tempted to make concessions, Ms. Lagarde, the
French trade minister, says there is no way that France would allow any cuts to
EU farm subsidies beyond what is already on the table. She says further
concessions would endanger the future of European farming. "We are not
going to accept that, it's as simple as that," she said.