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Agriculture's 'multifunctionality' and the WTO

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  • Anderson, Kym

Abstract

Are the agricultural policy reforms embodied in the Uruguay Round consistent with meeting domestic policy objectives such as providing adequate food security, environmental protection and viability of rural areas? This article examines the claim that agriculture deserves more price support and import protection than other sectors because of the non‐marketed externalities and public goods it produces jointly with marketable food and fibre (agriculture’s so‐called ‘multifunctionality’). Do these unrewarded positive externalities exceed the negative externalities from farming by more than the net positive externalities produced by other sectors? To what extent are those farmer‐produced spillovers under‐supplied, and what are the most efficient ways to boost their production to the socially optimal levels? The article concludes that there is little trade‐off required to meet domestic policy objectives on the one hand and agricultural protection reform objectives as embodied in WTO rules on the other.

Suggested Citation

  • Anderson, Kym, 2000. "Agriculture's 'multifunctionality' and the WTO," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-20.
    • Handle: RePEc:ags:aareaj:117848
    DOI: 10.22004/ag.econ.117848
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    References listed on IDEAS

    as
    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), pages 1-20.
    2. Chao Yang Peng & Christopher Findlay & Randy Stringer, 1997. "Food Security in Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 11(1), pages 1-17, May.
    3. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, November.
    4. Ingco, Merlinda D., 1995. "Agricultural trade liberalization in the Uruguay Round : one step forward, one step back?," Policy Research Working Paper Series 1500, The World Bank.
    5. Corden, W. Max., 1997. "Trade Policy and Economic Welfare," OUP Catalogue, Oxford University Press, edition 2, number 9780198775348.
    6. Kym Anderson, 1992. "Agricultural Trade Liberalisation and the Environment: A Global Perspective," The World Economy, Wiley Blackwell, vol. 15(1), pages 153-172, January.
    7. Britten-Jones, Mark & Nettle, Richard S & Anderson, Kym, 1987. "On Optimal Second-Best Trade Intervention in the Presence of a Domestic Divergence," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 332-336, December.
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