Press Release from the Norwegian Ministry of Agriculture Every country has a sovereign right to pursue non-trade objectives such as strengthening the socio-economic viability and development of rural areas, food security and environmental protection. These objectives cannot be achieved by market forces alone. This was recognised at a Conference on Non-Trade Concerns in Agriculture attended by 40 countries and economies, which was held in Ullensvang, Norway, from July 1-4, 2000.
In the WTO negotiations on trade in agriculture there is therefore the need to acknowledge and secure the continued existence of various types of agriculture based on each country's specific production conditions and potential and historical and cultural background.
The broad objective of the conference was to provide a forum for discussion among developing and developed countries on non-trade concerns (NTCs). Subjects treated covered the specific and multifunctional characteristics of agriculture, agriculture's contribution to rural development, food security, environment and cultural diversity, and the need for flexibility in national policy design to address non-trade concerns, both from a developed and developing country perspective.
The European Commission and the governments of Japan, Mauritius, Norway, the Republic of Korea and Switzerland hosted the conference, which was attended by another 34 developing and developed countries and economies in transition, including least-developed countries and small island developing states. The discussions initiated at this conference will be pursued in further meetings during the WTO negotiations on agriculture.
Chairmen's Summaries of the Discussion Conference participants examined 6 discussion papers. All six papers, the programme and a list of participating countries are available at this link.
The first paper, presented by Switzerland, covered the specific characteristics of agriculture and the need to treat agriculture separately within WTO. According to Mr. Sverre Kvakkestad, Chairperson of this Session, participants recognised the specific characteristics of agriculture. It was recognised that the special situation of agriculture is related to the fact that food is a unique and most essential commodity in every society. In addition to food security, agriculture plays a key role in ensuring the viability of rural areas, biological and cultural diversity and other important policy objectives. Each country has a right to preserve an agricultural sector necessary to meet these objectives. It was acknowledged that these specific and multifunctional characteristics of agriculture must be taken into account in further trade reform within WTO.
The second paper, presented by the European Commission, examined agriculture's contribution to rural development. Mr. Masanori Hayashi, Chairperson of this Session, found the discussion very stimulating. Participants stressed that farming is an essential part of rural society from not only an economic but also social and other diverse viewpoints in many countries and in many regions in developed and developing countries as well as in countries in transition. Countries should have the right to pursue rural development policies in which agriculture plays a key role. The need for necessary flexibility was stressed given the diverse nature of agriculture.
The third paper, presented by Japan and the Republic of Korea, covered food security and the role of domestic agricultural production. In the view of Mr. Luzius Wasescha, Chairperson of this Session, the debate on food security illustrated the diversities of agricultural situations and policies in least developed countries, developing countries, small island developing states, economies in transition and developed countries. Food security has to ensure at least the supply of essential commodities and can be best obtained by a combination of domestic production, imports and stockholding. In this context the impact of new production methods and possibilities for transfer of technology should be examined also in a WTO context. Given the challenge of demographic evolution in many countries, a dynamic approach to the issue of food security is required.
The fourth paper, introduced by the European Commission, covered agriculture's contribution to environmentally and culturally related non-trade concerns. According to Mr. Yong Kyu Choi, Chairperson of this Session, participants stressed that today's agricultural systems can promote environmental value by maintaining valued landscapes, conserving biodiversity, protecting people from the effects of certain natural disasters and protecting historical features. The provision of these environmental services is unlikely to be assured by market forces alone. Therefore, WTO rules should give flexibility to governments to implement appropriate policies. These policies should be targeted, have clear objectives, be administered in a transparent manner, and they should also be, at most, no more than minimally trade-distorting.
The fifth paper, presented by Mauritius, examined developing countries and non-trade concerns. According to Mr. David F. Roberts, Chairperson of this Session, the key points arising in the paper and the discussion were that policies in agriculture and in particular trade liberalisation have to be viewed in the context of all the multilateral commitments entered into by sovereign nations. Non-trade concerns are vital for developing countries and least developed countries. Annex II (the Green Box) is affordable to the developed world but not to all developing countries who may therefore have to have access to other appropriate measures.
The sixth paper, introduced by Norway, covered the need for flexibility in national policy design to address non-trade concerns. Mr. Dhurmahdass Baichoo, Chairperson of this Session, emphasised in his summary that in the WTO agricultural policy reform process based on Article 20, all Members, both developing and developed, must be given sufficient flexibility and room for manoeuvre in national agricultural policy design to ensure a viable domestic agricultural sector with domestic production required to properly address NTCs. In doing so, the specific situation of each country, including national priorities and production conditions, must be duly taken into account. With respect to policy measures, it was stressed that, in many cases, Green Box measures alone will not be sufficient to address NTCs. For instance, border measures are often needed. Moreover, in case of developing countries, market access, including preferences, is important. Furthermore, technical and financial assistance to overcome supply side constraints is required.:
