Balancing values in the agricultural policy process

Abstract

[Introduction]: Since the introduction of agriculture into the international trade debate in the Uruguay Round of Multilateral Trade Negotiations, there has been increased focus on the nature of agricultural support policies in the developed countries. Concepts such as “multi-functionality” have drawn attention to the multiple goals that governments attempt to pursue through agricultural policy and the negotiating construct of the “Green Box” has been introduced to accommodate “legitimate” non-trade concerns such as environmental protection, regional development programs and direct income supports for farmers that are not related to production levels or prices. The Green Box is one of three “boxes” of domestic support, the other two being the Amber Box which contains support measures subject to limits under the Agriculture Agreement and the Blue Box which covers subsides that are tied to programs that limit production. The Green Box provides recognition within the international negotiations that governments use agricultural policies to achieve a variety of objectives from income support to environmental protection. This paper proposes a means for identifying the nature of the balance that is struck by governments between different values competing for support through agricultural policy settings.