WTOAgriculturalNegotiationsAddressingfarmersneeds.pptVIP

*WTO Agricultural Negotiations WTO Agricultural Negotiations: Addressing farmers needs Whereby the agriculture differs from the other sectors? Dr. Heidi Bravo – Swiss Farmers Union 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 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 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 Multifunctionality: Joint production Production Process INPUT: land, labour, ... market-related goods [milk, wheat, meat, ...] Non-market- related goods species and eco-system diversity animal welfare land conservation rural viability food security cultural heritage … OUTPUT Multifunctionality: Joint production x2 non-market-related goods Market-related goods x1 Wheat, Milk, …: satisfy the consumers demand for the market-related-goods Food security, animal welfare …: satisfy the societies demand for the non-market-related-goods economies of scope Different goal-systems ? Each country must be allowed to pursue its specific goals The case of Switzerland Weighting of the prime objectives of agriculture on the level of constitution (1996) A. Secure provision of food B. Preservation of the natural necess