The failure of the WTO trade talks is unfortunate and may weaken the multilateral trading system, accelerating the move to bilateral agreements. All countries, regardless of the justification of their stance, must ask if safeguard mechanisms are really the issue on which they should be playing endgame. Is that not yesterday’s battle?
Current high food prices illustrate deep-rooted problems all along the agricultural supply chain, rather than simply demand-supply imbalances. Given its inefficiencies, it is best to bypass that system and the WFP is in the enviable position of being able to do so.
The WSJ Asia is carrying an article (Metro’s new system produces India growth, subscribers only) that outlines how Metro, amongst others, is (re)inventing the agricultural supply chain in India:
Metro is the first Western retailer to tackle a fundamental problem facing Wal-mart and other retailers trying to enter India today: how to stock their huge supercenter [...]