symp04 pp bravo e

Slide1: 

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

Economic specificities of agriculture: 

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: 

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: 

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: 

Multifunctionality: Joint production

Multifunctionality: Joint production: 

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: 

Different goal-systems  Each country must be allowed to pursue its specific goals

The case of Switzerland: 

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 necessities for life C. Caring for the cultivated landscape D. Decentralised land settlement  Market-related Good  non-market-related Goods

The case of Switzerland: 

The case of Switzerland Example A: Environmentally friendly farming:

The case of Switzerland: 

The case of Switzerland Example B: Livestock programmes: participation

Conclusions : 

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.