Food, Technology, Power:Food, Technology, Power:Governing GMOs in Governing GMOs in

ArgentinaArgentina

Peter NewellPeter Newell

P.Newell@uea.ac.ukP.Newell@uea.ac.uk

Global Politics of BiotechGlobal Politics of Biotech

Contested Contested risksrisks and and benefitsbenefits: Environmental, : Environmental, social, developmentalsocial, developmental– BiosafetyBiosafety– HealthHealth– Pro-boor biotech?Pro-boor biotech?

Issues of Issues of controlcontrol and and powerpower over the technology over the technology– IPRsIPRs– Social control over the technologySocial control over the technology– Who participates and on what/whose terms?Who participates and on what/whose terms?

AimsAims Develop a Develop a political economypolitical economy of biotech governance in of biotech governance in

Argentina by focussing on government-business relations in Argentina by focussing on government-business relations in particularparticular

To look at the To look at the organisationorganisation and and mobilisationmobilisation of corporate of corporate actors in this debateactors in this debate

IdentifyIdentify and and explainexplain the dimensions and expressions of their the dimensions and expressions of their power in (i) power in (i) materialmaterial (ii) (ii) organisationalorganisational and (iii) and (iii) discursivediscursive termsterms

Through 30 key informant interviewsThrough 30 key informant interviews

Account for Account for hegemonyhegemony around acceptance and promotion of around acceptance and promotion of the technologythe technology

Contribution to debatesContribution to debates

Role of business in environmental Role of business in environmental governance: State-business relations in key governance: State-business relations in key global playerglobal player

Relationship between biotech and Relationship between biotech and development: Who benefits and how?development: Who benefits and how?

Contributes to theories of the firm:Contributes to theories of the firm:– Linking corporate strategy with political rolesLinking corporate strategy with political roles– Exploring material, organisational and Exploring material, organisational and

discursive forms of powerdiscursive forms of power

Why Argentina?Why Argentina?

Leading player in biotech globally and within Leading player in biotech globally and within Latin AmericaLatin America

Strategic role as gateway to Latin America Strategic role as gateway to Latin America and has much admired regulatory systemand has much admired regulatory system

Embraced the technology as export strategy Embraced the technology as export strategy rather than for food security potentialrather than for food security potential

Redistribution of wealth through taxation to Redistribution of wealth through taxation to finance national welfare plan: Different take finance national welfare plan: Different take on pro-poor biotechon pro-poor biotech

Overview of Biotechnology in Overview of Biotechnology in ArgentinaArgentina

Argentina is world’s 2Argentina is world’s 2ndnd largest producer and largest producer and exporter of GM cropsexporter of GM crops

Accounts for 23% of global productionAccounts for 23% of global production Third largest exporter of soy in the worldThird largest exporter of soy in the world GM soya makes up nearly 90% of the 12 million GM soya makes up nearly 90% of the 12 million

hectares of all soya plantedhectares of all soya planted 98% is exported as beans, animal feed and oil 98% is exported as beans, animal feed and oil

making up 20% of the country’s total exportsmaking up 20% of the country’s total exports

Key DebatesKey Debates

Fact majority of production is forFact majority of production is for export export, principally as , principally as animal feed, means Argentina has avoided much of the animal feed, means Argentina has avoided much of the controversy that has erupted elsewherecontroversy that has erupted elsewhere

Little focus on environmental impacts: economic merits Little focus on environmental impacts: economic merits of the technology attracted greater focusof the technology attracted greater focus

Some debate about the risks associated with an Some debate about the risks associated with an intensive intensive mono-crop strategymono-crop strategy (vulnerability to pests, (vulnerability to pests, impact on soil quality, lack of diversity if market impact on soil quality, lack of diversity if market resistance develops)resistance develops)

EffectivenessEffectiveness of regulation: seed smuggling (soja of regulation: seed smuggling (soja maradona), IPR battles (Spain, Netherlands, Denmark, maradona), IPR battles (Spain, Netherlands, Denmark, UK)UK)

Enabling conditions for biotech Enabling conditions for biotech take-offtake-off

Strong state support for soy since the early 1970s: Strong state support for soy since the early 1970s: Educational programmes on health benefits of soy (INTA)Educational programmes on health benefits of soy (INTA)

Neo-liberal agenda of Menem: re-organisation of seed Neo-liberal agenda of Menem: re-organisation of seed sector, opening of the market, removal of taxes on sector, opening of the market, removal of taxes on agricultural exports.agricultural exports.

Concentration on crops of interest to major global playersConcentration on crops of interest to major global players National firms and their commercial lines bought by MNCs, National firms and their commercial lines bought by MNCs,

licensing agreements signed.licensing agreements signed. By late 1990s, Argentina had 2By late 1990s, Argentina had 2ndnd largest seed market in Latin largest seed market in Latin

America.America. ‘‘Siembra directa’ (no-till harvesting techniques), combined Siembra directa’ (no-till harvesting techniques), combined

well with biotechnology with herbicide resistant soybeans.well with biotechnology with herbicide resistant soybeans. Grew from 4 to 15 million hectares between 1997 and 2002 Grew from 4 to 15 million hectares between 1997 and 2002

(AAPRESID).(AAPRESID).

Crisis as turning pointCrisis as turning point

December 2001, Argentina defaulted on its US$ 140 billion December 2001, Argentina defaulted on its US$ 140 billion national debt devaluationnational debt devaluation

Trader at time: ‘The IMF should be very happy with us. Trader at time: ‘The IMF should be very happy with us. Without agribusiness and oil, Argentina would never meet Without agribusiness and oil, Argentina would never meet the surplus they are demanding’the surplus they are demanding’

Taxes on exports of GM soy used to subsidise internal Taxes on exports of GM soy used to subsidise internal markets for food (6% of all government revenue)markets for food (6% of all government revenue)

Key Regulatory StepsKey Regulatory Steps

CONABIACONABIA: Evaluates agricultural and : Evaluates agricultural and environmental impacts through trialsenvironmental impacts through trials

SENASASENASA: Food safety evaluation: Food safety evaluation

DNMADNMA: Evaluates potential commercial impact : Evaluates potential commercial impact focussing on export marketsfocussing on export markets

CONABIACONABIA makes final report makes final report

GM EvaluationsGM Evaluations

GM TraitsGM Traits

Commercially Authorized GM CropsCommercially Authorized GM Crops

SoySoy NideraNidera 25/3/9625/3/96

MaizeMaize Ciba-GeigyCiba-Geigy 16/1/9816/1/98

MaizeMaize AgrEVOAgrEVO 23/6/9823/6/98

CottonCotton MonsantoMonsanto 16/7/9816/7/98

Maize Maize MonsantoMonsanto 16/7/9816/7/98

CottonCotton MonsantoMonsanto 25/4/0125/4/01

Maize Maize NovartisNovartis 27/7/0127/7/01

Maize Maize MonsantoMonsanto 13/7/0413/7/04

MaizeMaize Dow SciencesDow Sciences 15/3/0515/3/05

Maize Maize SyngentaSyngenta 22/8/0522/8/05

MaizeMaize MonsantoMonsanto 28/8/0728/8/07

Key features of regulatory systemKey features of regulatory system

Power heavily concentrated in Secretary of Power heavily concentrated in Secretary of AgricultureAgriculture

Minor role for Environment SecretaryMinor role for Environment Secretary Product-based + substantial equivalenceProduct-based + substantial equivalence Weakly embedded Weakly embedded legal naturelegal nature: Resolutions : Resolutions

based on administrative regulation, non-based on administrative regulation, non-enforceable. Can avoid resort to Congress and enforceable. Can avoid resort to Congress and ExecutiveExecutive

Mirror policyMirror policy with EU: Only approving those with EU: Only approving those events already approved in key export marketsevents already approved in key export markets

The Organisation and Mobilisation The Organisation and Mobilisation of Industryof Industry

ACA ACA (Asociación de Cooperativas (Asociación de Cooperativas Argentinas)Argentinas)

ArgenBIOArgenBIO ASA (ASA (Asociación de Semilleros Asociación de Semilleros

Argentinos)Argentinos) CAS CAS (C(Cámara ámara Argentina de Semilleros)Argentina de Semilleros)

FAB FAB (Foro Argentino de Biotecnología)(Foro Argentino de Biotecnología)

ArPOV ArPOV (Asociación Argentina de (Asociación Argentina de Protección de las Obtenciones Vegetales) Protección de las Obtenciones Vegetales)

Intra and Inter-capital conflictsIntra and Inter-capital conflicts

MNCsMNCs v v Local firmsLocal firms: IPRs : IPRs Place in supply chain: Place in supply chain: Commodity tradersCommodity traders (Cargill etc) (Cargill etc)

v v Technology developersTechnology developers: Segregation, labelling, : Segregation, labelling, mirror policymirror policy

Differences in Differences in political strategiespolitical strategies and and lobbying styleslobbying styles Differences in Differences in accessaccess and and resourcesresources Divergent degrees of Divergent degrees of ‘globality’‘globality’ Associations and coalitions reflect these diverse Associations and coalitions reflect these diverse

interests in their policy positionsinterests in their policy positions Able to achieve common ground on broader Able to achieve common ground on broader

objectivesobjectives

Corporate Power in the Politics of Corporate Power in the Politics of Biotechnology in ArgentinaBiotechnology in Argentina

Material Power: Material Power:

Property RightsProperty Rights– Conflicts between breeders’ rights and patent lawsConflicts between breeders’ rights and patent laws– Lack of enforcement of property rights’ claims; black market in seeds (now 80%-90% of Lack of enforcement of property rights’ claims; black market in seeds (now 80%-90% of

market): State strategy?market): State strategy?– Objections of US soybean growers associationsObjections of US soybean growers associations– Legal conflicts, strategic litigation: blockades of cargo shipsLegal conflicts, strategic litigation: blockades of cargo ships– Control of product and processControl of product and process

TradeTrade – WTO case with Miami group against EUWTO case with Miami group against EU– Soja Maradona: Illegal seed trade to Brazil and ParaguaySoja Maradona: Illegal seed trade to Brazil and Paraguay– Mercosur and biosafety: Argentina vetoMercosur and biosafety: Argentina veto– Monsanto push to challenge China on dumping of glysophateMonsanto push to challenge China on dumping of glysophate

Corporate Power in the Politics of Corporate Power in the Politics of Biotechnology in ArgentinaBiotechnology in Argentina

Institutional PowerInstitutional Power

Formal access to key Formal access to key committeescommittees through umbrella groups (ASA, through umbrella groups (ASA, FAB): CONABIA (6 govt, 6 private sector, 1 civil soc)FAB): CONABIA (6 govt, 6 private sector, 1 civil soc)

Formal and informal Formal and informal consultationsconsultations around regulations and policy around regulations and policy controversiescontroversies

Industry-led Industry-led dialoguesdialogues: Biotech breakfasts: Biotech breakfasts Revolving doorRevolving door and lucrative job offers for bureaucrats and lucrative job offers for bureaucrats Different coalitions have different degrees of access and influence Different coalitions have different degrees of access and influence

with each Ministrywith each Ministry Distinct Distinct bureaucratic culturesbureaucratic cultures of of

engagement with businessengagement with business

Corporate Power in the Politics of Corporate Power in the Politics of Biotechnology in ArgentinaBiotechnology in Argentina

Discursive PowerDiscursive Power

GovernmentGovernment: Speeches, policy documents, : Speeches, policy documents, publicity, seminarspublicity, seminars

Media: RuralMedia: Rural and and CampoCampo sections of two leading sections of two leading national dailies: Enormous advertising revenuenational dailies: Enormous advertising revenue

Media sponsorship of agribusiness exposMedia sponsorship of agribusiness expos Extensive coverage given to policy demandsExtensive coverage given to policy demands Virtual absence of critical reporting (Pagina 12)Virtual absence of critical reporting (Pagina 12)

Resistance?Resistance? Pockets of resistance around: Deforestation, Pockets of resistance around: Deforestation,

violent land dispossession, health and bio-safety violent land dispossession, health and bio-safety concernsconcerns

Centrality of GM as an accumulation strategy Centrality of GM as an accumulation strategy means it continues to be marginalmeans it continues to be marginal

Global market access likely to continue to be a Global market access likely to continue to be a stronger shaperstronger shaper

Producing new coalitions: Opponents in trade Producing new coalitions: Opponents in trade case now allies in legal challengecase now allies in legal challenge

ConclusionsConclusions

Unconventional story of biotech and developmentUnconventional story of biotech and development Demands nuanced understanding of firms as Demands nuanced understanding of firms as

market, political and social actorsmarket, political and social actors Links within, between and across firmsLinks within, between and across firms Connecting micro-politics of private agency with Connecting micro-politics of private agency with

broader structures of powerbroader structures of power Interesting case study of business power and its Interesting case study of business power and its

limitations from global trade conflicts to use of limitations from global trade conflicts to use of seeds in farmers’ fieldsseeds in farmers’ fields