The implications of societal concerns for the international policy framework

1. The implications of societal concerns for the international policy framework Irma Keijzer, Ministry of Economic Affairs / Trade Policy department for OECD/NL Food Economy Conference, 18 October 2007

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3. Globalisation, welfare and societal concerns Globalising production generates positive welfare, under certain conditions Societal expectations rise with income > disparity OECD-developing countries Public support for trade liberalisation dependent on effective accomodation of �non trade concerns�.

4. Government role Negotiate international treaties, agreements and standards Dialogue with developing countries where international agreement not yet exists, providing capacity building where implementation or compliance fails Raise awareness on specific sustainability issues by Round tables* for stakeholders Stimulate sustainable production and consumption (e.g. public procurement, making subsidies dependent on criteria for sustainability) * CSR & Trade: informing consumers about social and environmental conditions�of globalised trade, pp 55-59, http://www.olis.oecd.org/olis/2006doc.nsf/linkto/td-tc-wp(2006)17-final

5. Policy considerations Non-international regulation not very effective for solving problems of sustainability in developing countries (diversity in regulation, trade diversion) WTO prohibits discrimination of �like products� for good reasons (i.a. different production methods in developing countries) Policy challenge: enhance sustainability, while not hampering foreign trade & investment International agreement requires long breath

6. Business: CSR & developing countries CSR: utilize scope of business influence on production conditions� �helps to fill gap between endorsement & enforcement of international social and environmental standards in developing countries Growing interest under consumers for CSR, picked up by some supermarkets, offers opportunities Private standards can work out trade distortive

7. Government & business, different responsibilities Both under societal pressure to come up with stringent standards, restricting time for consultation and negotiation with stakeholders and experts Governments: seek and find international agreement on standards for sustainability and limit their number, in the interest of achieving sustainbility in the countries where the problem occurs, and facilitate a world market for sustainable production. What if governments stimulate or adopt private standards, pending international agreement? OECD suitable international forum to discuss this

8. National debate untill spring 2008 Societal dialogue on �non trade concerns� to review policy options that help expand world market for sustainable production, rather than limiting it to OECD countries. Economic & Social Council�s advice on globalisation (social policy and scope of supply chain responsibility) Policy advice OECD is always more than welcome! Thank you