Washington Insider--Monday

By DTN's Washington Insider

Here's a quick monitor of Washington farm and trade policy issues from DTN's well-placed observer.

Prospects for Increased Trade with Cuba May not be as Rosy as Originally Imagined

Last December's announcement by Cuban President Raul Castro and U.S. President Obama that the two nations would begin the process of normalizing relations quickened the pulse of every business that saw in the announcements the prospect of a greatly expanded pool of consumers for every imaginable product and service. But a closer look at the details indicates that ideas about greatly expanded sales to Cuba may have been premature.

The Washington Post reported last week that the enthusiasm for increased business opportunities in Cuba are bumping up against the stubborn realities of Cuba's limited economic capacity and uncertainty about what is permitted under both U.S. and Cuban law. At a day-long conference last week on business opportunities in Cuba, attendees heard encouraging forecasts about the island's long-term potential, tempered by sober warnings not to expect too much too soon. For example, Cubans earn an average of just $20 per month, according to the Post, and just about everyone is employed by the government.

The United States already is among the top ten countries exporting to Cuba, with frozen chicken being the largest agricultural item shipped to the island nation. But before U.S. businesses are able to sell more to Cuba, obstacles involving credit, banking and financing will need to be overcome, and the Cuban government will have to provide more economic opportunities for its people.

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South Korea Likely to Join Trans-Pacific Partnership

The 12 nations currently participating in Trans-Pacific Partnership (TPP) negotiations have given their approval for South Korea to join the regional free trade talks, according to a senior trade official. "The 12 countries participating in the TPP negotiations welcome South Korea's participation," Deputy Trade Minister Woo Tae-hee said at a news conference last week. South Korea will "choose the timing and method" of joining the TPP negotiations, Woo said.

Woo said South Korea is weighing a decision as to whether it should join before or after the conclusion of the TPP agreement, or even after the TPP takes effect. "We will join at a time of our choosing for our best interests."

South Korea already has bilateral or multilateral free trade agreements with 49 countries around the world. The International Monetary Fund ranks South Korea as the world's 13th largest economy, with a gross domestic product approaching$1.5 trillion. Including it in the Pacific Rim free trade area will provide a significant boost for the proposed agreement.

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Washington Insider: Challenges for Science

There have been several recent efforts to pass state referendums that would require labels for genetically modified food products. Most have failed, and their supporters have been quick to claim that this is the result of an avalanche of cash. However, deeper analysis suggests it is the result of advocates' lack of focus on what the labels should say, along with the fact that they have also failed to articulate a credible reason to worry about GMOs.

This is partly the result of enormous gap in perceptions — one that concerns and seems to baffle policymakers. The Washington Post noted last week that some 88 percent of scientists polled by the Pew Research Center in January said genetically modified food is generally safe to eat. At the same time, only 37 percent of the public shared that view.

A major result of this is a movement to require genetically modified food products to be labeled — a situation the Post says both reflects and exploits this divergence between informed opinion and popular anxiety.

Then, in a somewhat surprising move, the urban Post came out against mandated labels on the grounds that they would deter the purchase of genetically modified food when the evidence calls for no such caution. And, it says that Congress is right to be moving toward a more sensible policy that allows companies to label products as free of GM ingredients but preempts states from requiring such labels. In addition, it is far from clear how the states or localities that allow such labels would police their use, says the Post.

The newspaper points out that lawmakers and voters in some states have recently considered requiring GM labeling, but that few have chosen to label, and none has yet started.

That's good, the Post says, because the GM-food debate is a classic example of activists overstating risk based on fears of what might be unknown and on a distrust of corporations. The paper might have singled out some blatant examples like the New York Times food writers who sometimes even admit that there is no documented health threat from GMOs, but who favor labels that might hurt food corporations. Not good policy, the Post says.

People have been inducing genetic mutations in crops all sorts of ways for a long time, the paper notes. For example, by bathing plants in chemicals or exposing them to radiation. We also have all sorts of genetic turbulence in traditional selective plant breeding and constant natural genetic variation.

Still, it is the products that result from selective gene splicing, which are scrutinized before coming to market that are being singled out as high threats. If they were threatening, one would expect experts to have identified unique harms to human health in the past two decades of GM-crop consumption. They haven't. Unsurprisingly, institutions such as the National Academy of Sciences and the World Health Organization have concluded that GM food is no riskier than other food.

Then, the Post takes aim at the frequent claim that consumers deserve transparency about what they're eating even if there is no threat. It notes that labels advocates seem to prefer could be extremely misleading to consumers — like "Frankenfood" — if they were permitted "implying strong government safety concern where one does not exist."

This isn't just a matter of saving consumers from a little unnecessary expense or anxiety, the paper says. If GM food becomes an economic nonstarter for growers and food companies, the world's poorest will pay the highest price. GM crops that flourish in challenging environments without the aid of expensive pesticides or equipment can play an important role in alleviating hunger and food stress in the developing world — if GM technologies are allowed.

A House bill introduced before the current congressional recess would facilitate a voluntary labeling system and prevent states and localities from going any further to indulge the GM labeling crowd. It also would empower the Food and Drug Administration to require labels on GM products that materially differ from their non-GM cousins in ways that can affect human health. Yes, food industry interests back the bill. That doesn't make it wrong, the Post asserts.

There's another aspect to this debate and others like it. We need to examine how it is that science is held in such low regard. There are several reasons including the fact that urban culturists and opinion leaders find that marketing an elitist lifestyle is highly profitable — and, that the counterculture that emerged during the Vietnam War has promoted this, to the delight of the foodie authors.

Still, the Post has an uphill climb in its effort to promote facts and analyses concerning diets and food especially in the urban media. But, it is interesting that the paper is willing to try, Washington Insider believes.

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