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"WTO Agricultural Negotiations: Addressing farmers' needs"

This article explores the unique characteristics of the agricultural sector and the importance of addressing farmers' needs in WTO Agricultural Negotiations. It discusses the economic specificities of agriculture, the production process, the supply of public goods, and the concept of multifunctionality. The case of Switzerland is presented as an example. Key conclusions highlight the need for national flexibility and the simultaneous satisfaction of consumer and societal demands.

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"WTO Agricultural Negotiations: Addressing farmers' needs"

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  1. "WTO Agricultural Negotiations: Addressing farmers' needs" • Whereby the agriculture differs from the other sectors? Dr. Heidi Bravo – Swiss Farmers Union WTO Agricultural Negotiations

  2. Economic specificities of agriculture • Agricultural products are most essential commodities •  high emotional component •  Humanitarian Aspect •  Food security is an normative issue • Long agricultural production process •  short-term supply of agricultural products are price inelastic •  Large price fluctuations WTO Agricultural Negotiations

  3. Economic specificities of agriculture • Natural conditions as determinants for the competitiveness of the agriculture •  Not influenceable characteristics • Production of exchangeable raw materials •  No possibility of product-differentiations without a system for declaration and identification of origin WTO Agricultural Negotiations

  4. Economic specificities of agriculture • Supply of public goods, multifunctional agriculture •  non-market related goods, which must be produced at location • Joint production of public and private goods •  No isolated treatment of public an private goods possible • Different weighting of the multiple functions of agriculture •  Different goal systems for agriculture WTO Agricultural Negotiations

  5. Multifunctionality: Joint production market-related goods [milk, wheat, meat, ...] OUTPUT Production Process • Non-market- • related goods • species and eco-system diversity • animal welfare • land conservation • rural viability • food security • cultural heritage • … INPUT: land, labour, ... WTO Agricultural Negotiations

  6. Multifunctionality: Joint production x2 Wheat, Milk, …: satisfy the consumers demand for the market-related-goods Market-related goods x1 economies of scope non-market-related goods Food security, animal welfare …: satisfy the societies demand for the non-market-related-goods WTO Agricultural Negotiations

  7. Different goal-systems  Each country must be allowed to pursue its specific goals WTO Agricultural Negotiations

  8. The case of Switzerland Weighting of the prime objectives of agriculture on the level of constitution (1996)  Market-related Good A. Secure provision of food B. Preservation of the natural necessities for life C. Caring for the cultivated landscape D. Decentralised land settlement  non-market-related Goods WTO Agricultural Negotiations

  9. The case of Switzerland Index environmentally friendly farming (1993 = 100) Environmentally friendly farming Index organic farming (1993 = 100) Organic farming Example A: Environmentally friendly farming: WTO Agricultural Negotiations

  10. The case of Switzerland extra animal friendly stable regular outdoor access for livestock Example B: Livestock programmes: participation WTO Agricultural Negotiations

  11. Conclusions • Economic specificities of agricultural sector need to be recognised in agricultural negotiations. • In a number of countries the function of agriculture is much more than to make a contribution to the GDP. • A widely national flexibility is necessary, so that every country can pursue its specific goals. • It must be possible that every agriculture is able to satisfy simultaneous the consumers demand for market-related goods and the societies demand for public goods. WTO Agricultural Negotiations

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