Abstract
This article examines the relationship of free trade with agriculture in view of agriculture’s distinctive features in the following three ways. First, agriculture produces a wide array of local and national nonmarket goods and services (in addition to market commodities) collectively known as multifunctionality of agriculture. Second, agriculture is intimately associated with global public goods of grave importance to humanity such as climate change, sustainability, and food security (poverty/hunger) in developing countries that require transnational cooperation to minimize free-rider and consequent under-provision problems. Third, embodying the first and second problems, agriculture plays distinctively different roles across countries. Specifically, this article views the global agriculture as consisting of four broad groups of countries with widely divergent needs from agriculture. This article concludes that the above agriculture-related problems are too diverse and complex to be left to free trade. When the global community is too much preoccupied with the illusive mission of agricultural trade liberalization, the great danger is that such preoccupation may distract it from effectively addressing the agriculture-related problems of the 21st century in a timely manner that pose imperative challenges to humanity. The governance for global agriculture should prioritize managing/taming such global problems rather than squandering time for unworkable liberalization of agricultural trade. © 2011 Elsevier B.V. All rights reserved.
Generated Summary
This journal article examines the relationship between free trade and agriculture. It employs a multifaceted approach, considering agriculture’s unique characteristics and its impact on global public goods. The study argues that agriculture, unlike other industries, produces a wide array of non-market goods and services, is intricately linked to global public goods like climate change and food security, and plays distinctively different roles across various countries. The research aims to explore whether free trade is compatible with agriculture, particularly in light of the World Trade Organization’s (WTO) efforts to liberalize agricultural trade. The methodology involves a critical analysis of existing literature, trade agreements, and the historical context of trade liberalization, focusing on the distinctive features of agriculture and its implications for global governance. The scope encompasses an examination of agricultural protectionism, the role of the WTO, and the challenges of global public goods.
Key Findings & Statistics
- The monetary magnitude of farm protection in OECD countries amounted to $253 billion in 2009.
- The share of agriculture in international commerce shifted from 22% in the 1960s to less than 10% in the 2000s.
- FAO estimates that nearly 1 billion people suffer from under-nourishment.
- The global agricultural production (largely from soils and livestock) accounts for about 10-12% of global GHG emissions.
- When emissions from fuel use in agricultural production, fertilizer production and land use changes (e.g., deforestation) are considered, the estimate increases to about 30%.
- It is estimated that climate change may produce an additional 70 million people at risk of hunger in Africa.
- China has increased its soybean import from 4 million metric tons in 1999 to 38 million metric tons in 2008 in order to meet its rapidly growing demand for feed grains from livestock industries.
Other Important Findings
- The study finds that agriculture is at the forefront in managing a wide range of natural resources and is deeply associated with the nature of public goods at the local, national, and global levels.
- The article highlights the persistent need for WTO member countries to use farm subsidies or border protection to address public good and developmental aspects of agriculture.
- The research emphasizes the necessity to effectively tackle the global challenge of increasing food production in an ecologically sustainable manner.
- The global community is in want of an improved system of agricultural governance at the global level that would weigh transnational cooperation substantially more than the WTO currently does.
- Agricultural protectionism has grown largely unchecked until adverse consequences of excessive government intervention got unbearable, culminating in the export subsidy war between the US and the EU by the mid-1980s.
- The study suggests that agricultural protectionism can be broken up into legitimate and illicit components.
- The article examines the relation of free trade with agriculture and categorically shows why free trade has been contested when it comes to agriculture.
- The study emphasizes the role of free trade in addressing agricultural sustainability, climate change, and food security in LDCs.
Limitations Noted in the Document
- The study does not provide empirical data or original research; it relies on existing literature, and historical analysis.
- The research is primarily focused on the perspective of developed countries and does not fully address the diverse needs of all countries.
- The analysis is based on the assumption that the global community is in want of an improved system of agricultural governance.
- The study is limited by the scope of the WTO’s influence and does not fully consider other international forums.
- The analysis relies on estimates and projections that may have considerable uncertainties.
Conclusion
The central argument is that agriculture is incompatible with free trade because of its role in managing ecological and natural resources, and the uneven playing field created by differing national treatments and protectionist policies. The WTO’s focus on trade liberalization is seen as misaligned with the complex challenges of agriculture. The article advocates for a shift in global governance, prioritizing the management of agriculture-related problems over trade liberalization. Key takeaways include the recognition of agriculture’s unique role in producing public goods, the limitations of free trade in addressing sustainability and food security, and the need for global cooperation and better governance. The study emphasizes that the global community needs to prioritize tackling agriculture-related problems rather than pursuing trade liberalization. It underscores the significance of creating a global forum for countries to collaborate on research and develop strategies to adapt to changing climates. The study supports the idea that trade should be a tool to match food surpluses and shortages but should not overshadow efforts to enhance agricultural sustainability, address food insecurity, and reduce greenhouse gas emissions.