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Multifunctionality and Agricultural Trade Negotiations

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  • Philip L. Paarlberg
  • Maury Bredahl
  • John G. Lee

Abstract

Differing views of multifunctionality—attributing nonmarket benefits to agricultural production—continue to be an obstacle in World Trade Organization (WTO) negotiations. Some nations see multifunctionality as justifying subsidies to agricultural production; others see it as disguised protection. This paper shows that while multifunctionality never justifies trade interventions, it can justify production subsidies or taxes. Recognizing that the subsidies or taxes can be economically efficient policies, nations must precisely define and value the externalities in order to design policies and defend those interventions in the WTO. Trade rules are developed that accommodate domestic policy intervention while preventing disguised protection.

Suggested Citation

  • Philip L. Paarlberg & Maury Bredahl & John G. Lee, 2002. "Multifunctionality and Agricultural Trade Negotiations," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 322-335.
    • Handle: RePEc:oup:revage:v:24:y:2002:i:2:p:322-335.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00022
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    Cited by:

    1. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S., 2005. "Evaluating the Impact of Alternative Agricultural Policy Scenarios on Multifunctionality: A Case Study of Finland," ENARPRI Working Papers 25137, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    2. Lehtonen, Heikki & Lankoski, Jussi E. & Niemi, Jyrki S. & Ollikainen, Markku, 2005. "The Impacts of Alternative Policy Scenarios on Multifunctionality," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24459, European Association of Agricultural Economists.
    3. Weber, Gerald, 2003. "Internationaler Handel und multifunktionale Landwirtschaft : Ein Agrarsektormodell zur Analyse Politischer Optionen und Entscheidungsunterstutzung," Working Paper Series 18824, Humboldt University Berlin, Department of Agricultural Economics.
    4. Abler, David, 2004. "Multifunctionality, Agricultural Policy, and Environmental Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 33(1), pages 8-17, April.
    5. Blank, Steven C., 2010. "Economic Sustainability in the Evolving World: Implications for American Agriculture and Economists," Western Economics Forum, Western Agricultural Economics Association, vol. 9(1), pages 1-8.
    6. Schmid, Erwin & Sinabell, Franz, 2004. "Multifunctionality of Agriculture: Political Concepts, Analytical Challenges and an Empirical Case Study," Discussion Papers DP-08-2004, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    7. Guyomard, Herve & Le Bris, Katell, 2003. "Multifunctionality, Agricultural Trade and WTO Negotiations: A Review of Interactions and Issues," ENARPRI Working Papers 25135, European Network of Agricultural and Rural Policy Research Institutes (ENARPRI).
    8. Kym Anderson, 2005. "Agricultural trade reform and poverty reduction in developing countries," Chapters, in: Sisira Jayasuriya (ed.), Trade Policy Reforms and Development, chapter 9, Edward Elgar Publishing.
    9. Colyer, Dale, 2004. "Environmental Provisions in Trade Agreements," Conference Papers 19103, West Virginia University, Department of Agricultural Resource Economics.
    10. Moon, Wanki & Griffith, Jacob Wayne, 2011. "Assessing holistic economic value for multifunctional agriculture in the US," Food Policy, Elsevier, vol. 36(4), pages 455-465, August.
    11. Moon, Wanki & Chang, Jae Bong & Asirvatham, Jebaraj, 2016. "Identifying Factors Driving US Citizens’ Preferences about Multifunctional Agriculture," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230032, Southern Agricultural Economics Association.
    12. Chuen Khee Pek & Fang Ee & Foo, 2022. "Agricultural Multifunctionality For Sustainable Development In Malaysia: A Contingent Valuation Method Approach," Malaysian Journal of Sustainable Agriculture (MJSA), Zibeline International Publishing, vol. 6(1), pages 1-6, January.
    13. Zhang, Yingnan & Long, Hualou & Chen, Shuocun & Ma, Li & Gan, Muye, 2023. "The development of multifunctional agriculture in farming regions of China: Convergence or divergence?," Land Use Policy, Elsevier, vol. 127(C).
    14. Kym Anderson, 2003. "Trade Liberalization, Agriculture, and Poverty in Low-income Countries," WIDER Working Paper Series DP2003-25, World Institute for Development Economic Research (UNU-WIDER).
    15. Colyer, Dale, 2004. "Environmental Regulations And Competitiveness," Working Papers 19100, West Virginia University, Department of Agricultural Resource Economics.
    16. Benner, Eckhard, 2005. "Grenzen einer umwelt- und qualitätsorientierten Gestaltung der Gemeinsamen Agrarpolitik," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 40, March.
    17. FRASER Iain & WASCHIK Robert, 2010. "Agricultural Land Retirement for Biodiversity: The Australian Wool Industry," EcoMod2003 330700055, EcoMod.
    18. Jan & Zawadka & Agata & Balinska & Piotr & Gabryjonczyk, 2021. "Agritourism as a Form of Free Time Activity Among Families with Kids in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 4), pages 571-582.
    19. Callesen, Gustav Marquard & Lundhede, Thomas Hedemark & Olsen, Søren Bøye & Schou, Jesper Sølver, 2022. "Socioeconomic effects of a bottom-up multifunctional land consolidation project," Land Use Policy, Elsevier, vol. 117(C).
    20. Moon, Wanki, 2010. "Multifunctional Agriculture, Protectionism, And Prospect Of Trade Liberalization," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 33(2), pages 1-33, July.
    21. Herve Guyomard & Katell Le Bris, 2003. "Multifunctionality, agricultural trade and WTO negotiations : a review of interactions and issues [Multifonctionnalité, échanges agricoles et négociations à l'OMC : une synthèse des interactions et," Post-Print hal-02825715, HAL.
    22. Ollikainen, Markku & Lankoski, Jussi E., 2005. "Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24611, European Association of Agricultural Economists.
    23. Rude, James & Meilke, Karl D., 2005. "Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture," Commissioned Papers 24159, Canadian Agricultural Trade Policy Research Network.
    24. Colyer, Dale, 2004. "Environmental Regulations and Agricultural Competitiveness," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 5(1), pages 1-17.
    25. Colyer, Dale, 2004. "Land, Land Use and Competitiveness," Working Papers 19099, West Virginia University, Department of Agricultural Resource Economics.

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