Negotiators from Japan and Switzerland circulated a new proposal during World Trade Organisation talks last week aimed at making it tougher for countries to restrict exports of agricultural products.
Several governments like Argentina and Egypt have restricted exports as part of their response to rising food prices for some commodities.
Japan and Switzerland are each major importers of agricultural products and said they are worried by this trend.
"The government of Japan's position is to seek a better rule for addressing export control of food items. I do not think I need to explain why that is important," Seiichiro Takahashi, Japan's principal deputy director of international press division, said.
"There are two salient points that I can emphasize: One, the distortion to the food trade and this is very serious.
"Second (is) the immediate effect it has to the shrinking supply of food around the world, so those who have the capacity to supply should be able to do so, and governments should not restrict them from engaging in the trade of food."
The proposal would require exporters to notify WTO and consult their trading partners before restricting exports.
It would also require that the restrictions be limited to what is absolutely necessary.
Where exporters and importers cannot agree on the need for the action within 60 days, the restriction would go to arbitration before imposed.
A "standing committee of experts" would decide if the restriction is warranted, an official explained.
Many governments are now struggling with soaring grain prices.
Some are opting to restrict exports of agricultural products.
International officials have suggested that this is an unwise course.
"We are urging countries not to use export bans," World Bank president Robert Zoellick said in Switzerland last week.
"These controls encourage hoarding, drive up prices and hurt the poorest people around the world who are struggling to feed themselves.
"Ukraine set a good example last week by lifting restrictions on exports of grain.
"This had an immediate effect on lowering prices in the markets, and others can do the same."
The proposal from Japan and Switzerland would stiffen language already laid out in a draft modalities agreement released in February by the man chairing the WTO agricultural talks, New Zealand Ambassador Crawford Falconer.
According to sources at the April 30 WTO meeting in Geneva, Switzerland, countries had mixed reactions to the new proposal.
Reacting to the proposal, negotiators representing the Brazil-led G-20 bloc in the WTO talks said they prefer the approach already laid out in the February text.
Some governments called the proposal "timely."
"India said developing countries would not be able to announce prohibitions and restrictions in advance," one source said.
The issue of export restrictions will continue to be debated as the WTO talks move ahead.
Mr Falconer is expected to revise his February proposal later this month.
SOURCE: Feedstuffs, USA.
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