RESTRICTEDWORLD TRADE
ORGANIZATIONG/AG/NG/S/17
16 October 2000
(00-4271)
Committee on Agriculture
Special Session
NON-TRADE CONCERNS
Issues Raised by Members in AIE Papers and Pre-Seattle Submissions
A Compilation by the Secretariat
I. INTRODUCTION
1. At the second Special Session of the Committee on Agriculture on 29-30 June 2000, it was
agreed that the Secretariat would provide, inter alia, a background paper containing "a compilation of
issues relating to non-trade concerns based on relevant AIE papers and pre-Seattle submissions"(paragraph 7(a) of G/AG/NG/2 refers).  The present paper provides this information.
2. Part II of this paper briefly indicates the main issues raised by those Members which have
made written submissions in the AIE and pre-Seattle context.  For a full appreciation of the points
made by the respective Member concerned, the original documents should be consulted.  It should be
noted that each comment on the various issues listed in Part II of this paper reflects the position of theMember concerned.  The paper is without prejudice to the views of other Members on any or all of
the issues to which it refers.
3. The Annex to this paper includes a list of the relevant documents submitted by Members to
the Analysis and Information Exchange (AIE) proc ess and in the preparations for the Ministerial
Conference in Seattle.
4. In the presentation a number of categories have been used to classify different non-trade
concerns.  Two of these categories (food security and the need to protect the environment) arespecifically mentioned in the Preamble to the Ag reement on Agriculture.  Additional issues were
raised in the AIE process and in the preparations for the third Ministerial Conference.  These issues
have been classified into a number of categories for presentation purposes.  The order of their
presentation is not meant to convey any indication of precedence or to suggest any degree of
acceptance or rejection by Members.
5. In addition to the different policy objectives listed as non-trade concerns by some Members a
number of other Members also raised concerns about the ways in which these policy objectives are  or
should be pursued.  These concerns are listed in the "General" category as the countries raising these
issues were referring to many or all of the policy objectives listed by others as non-trade concerns.
Other issues are listed in the categories in which they appeared to fit.
6. The discussions of the issues raised in the AIE process were reported to the Committee on
Agriculture by the Chairman.  The reports by the Chairman are included in the Secretariat summary
reports of the Committee meetings (G/AG/R/11 - R/ 20 and G/L/322).  These reports should also be
examined for a better appreciation of the issues  raised and of  the discussion between Members.G/AG/NG/S/17
Page 2
II. ISSUES RAISED BY MEMBERS IN THE PROCESS OF ANALYSIS AND INFORMATION EXCHANGE AND THE
PREPARATORY PROCESS FOR THE THIRD MINISTERIAL CONFERENCE
Issue Country Comment
A. GENERAL
Argentina, United
StatesSubsidies for production and export distort international prices and influence decisions on investment, production,
international trade and consumption.  Consumers in the subs idising country and farmers in third countries are adversely
affected by the resulting distorted message from the markets.  (AIE/32 and 64)
Australia, NewZealand, United StatesBroad general policy measures, like production supports, are unlikely to achieve specific objectives and are more likely to
cause harm in other areas and in other countries.  In catering for non-trade concerns WTO Members should try to
minimize the trade effects of their policies.  This could be done by identifying specific objectives and using targeted
policies that are decoupled from production.  The range of fiscal policy instruments that should be considered could
include fines and taxes as well as subsidies.  (AIE/28, 34, 36 and 64)
Cuba, Dominican
Republic, El Salvador,
Honduras, Nicaraguaand PakistanUnder the heading of non-trade concerns of developing countries , in particular those with small and vulnerable economies,
a package of measures should be drawn up aimed at improving the national food security situation, maintaining the living
standards of the rural population and preserving the environment; such measures should be exempted from reductioncommitments.  (WT/GC/W/120 and 163)
European Communities The OECD Committee on Agriculture meeting at  ministerial level in 1998 emphasised the multifunctional chara cter of
agriculture and role of public policy where there is an absence of effective markets.  (AIE/40)
To secure the provision of public goods, and to ensure that the functions of agriculture other than the production of foodand fibres will be undertaken, public intervention is necessary.  Given the interdependence between the various functionsof agriculture supporting the non-production related function s cannot be completely separated from the production
function.  (AIE/40)G/AG/NG/S/17
Page 3Issue Country Comment
It is essential to ensure that progress on trade issues does not damage the ability of those employed in agriculture to supply
public goods, in particular as regards the environment (including combating desertification) and the sustained vitality ofrural areas.  Direct aid measures with no or minimal trade impact have an important role to play in this context.
(WT/GC/W/273)
India Developing countries should be given the required flexibility to pursue their legitimate non-trade concerns.  Developing
countries need to be allowed to provide domestic support in the agricultural sector to meet the challenges of food securityand to preserve the viability of rural areas.  (AIE/30 and WT/GC/W/152 and 342)
The hypothesis that liberalisation alone will improve food security does not take account of the problems faced by anumber of developing countries.  For these countries a "marke t plus" approach is necessary to take account of certain non-
trade concerns such as food security and maintenance of the livelihood of the agrarian peasantry.  (AIE/30 andWT/GC/W/152 and 342)
Jamaica A special safeguard mechanism for developing countries is essential to render libera lisation acceptable among developing
countries.  Such a mechanism would be an important elemen t of the special and differential provisions for developing
countries, particularly as it relates to their food security and genuine non-trade concerns.  (WT/GC/W/370)
Japan, Korea Agricultural policies are determined not only by trade but also by also by geographic, political, economic, social,  cultural
and other factors.  These factors are not taken into account in a systemic manner in the Agreement on Agriculture.
(AIE/25 and 39)
Japan The World Food Summit in 1996 emphasised the multifaceted nature of food security and the OECD Agriculture
Ministers' meeting in 1998 emphasised the importance of the multifunctional nature of agriculture.  (AIE/25)
As well as producing agricultural products, agriculture also contributes to food security, to the environment, to the
landscape and to local communities.  All of these roles are known as the "multifunctionality" of agriculture. Most aspects
of multifunctionality are regarded as economic externalities an d it is difficult to reflect their values properly in market
prices.  Though it is closely related to production, it cannot be subject to trade.  Furthermore, market mechanisms alonecannot lead to the realization of an agricultural production method that will embody the multifunctionality of agriculture.Therefore, certain types of policy intervention are indispensa ble to place domestic agricultural production as a basis for
food supply and to fulfill the multifunctional roles of agriculture.  (WT/GC/W/220)G/AG/NG/S/17
Page 4
Issue Country Comment
Korea The Agreement on Agriculture does not fully take into account the non-trade concerns and the special requirements of
small-scale subsistence agriculture and lacks balan ce between the interests of developed/developing and
exporting/importing countries.  To alleviate the difficultie s of developing net food-importers' non-trade concerns,
especially multifunctionality of agriculture and food security, should be fully taken into account in continuing the reform
process.  (WT/GC/W/170)
New Zealand All economic activity creates externalities.  For agriculture the production framework creates both positive and neg ative
externalities some of which can affect other countries such as pollution and subsidies associated with production.Continued trade liberalisation is not incompatible with pursuing different objectives, in fact in many cases it may
contribute towards their attainment.  A more open trading system will lead to more rational and sustainable use of
resources on a global scale in agriculture as in other sectors.  (AIE/28)
Norway All non-trade concerns could be characterised as positive external effects of agriculture production and subsidies are
needed to correct the market failure in order to internalise the externality.  Negative externalities could be corrected by
taxes and other appropriate measures.  (AIE/22)
The different non-trade concerns can be characterised by (i) having public good characteristics, (ii) are often specific to theagriculture sector and (iii) are, to a large extent, provided as joint products of agricultural production activity.  In lowpotential areas the cost of production is much higher than in high potential areas.  In order to ensure that many non-trade
concerns continue to be provided by agriculture production may need to be supported.  For Norway, returns to farmers at
world market prices would not be sufficient to enable farmer s to remain in production.  Measures targeted at non-trade
concerns under a world market scenario would not be prac tically feasible and would probably involve unacceptably high
administration and control costs.  (AIE/68)
Agriculture contributes to the viability of rural areas, the main tenance of agricultural landscapes and the cultural heritage,
the preservation of agri-biological diversity and the maintenance of a good plant, animal and public health.  These non-
food dimensions, as well as the safeguarding of food security, have public goods characteristics which many justify
government intervention.   (WT/GC/W/238)
Switzerland An agricultural sector which has not only to produce food and fibre but also to respond to non-trade concerns is les s
competitive than a sector in a country where there is less or no sensitivity for non-trade concerns.  (AIE/67)
The concept of multifunctionality and trade liberalisation ar e not exclusive, both are means to enhance global and national
welfare.   In the Uruguay Round it was recognised that support and incentives to direct agricultural policies towards arecognition of non-trade concerns are acceptable as long as they have no, or minimal, impacts on production and trade.G/AG/NG/S/17
Page 5Issue Country Comment
The question is whether or not the present instruments are sufficient to cover all non-trade concerns or whether additional
instruments are needed.  Criteria that could be used to asse ss the measures used to address non-trade concerns could be
transparency, specificity (targeting concerns and decoupling from production), proportionality (transfers sufficient to
achieve desired outcome), flexibility and equity.  The Committee on Agriculture could monitor such national measures.
(AIE/67)
The importance and weight attached to a given non-trade concern may vary between countries, depending on their
particular situation and the level of pu blic awareness.  Accordingly solutions should be found which enable all these
concerns to be taken into account, in particular by exte nding the measures allowed under Annex 2 of the Agreement on
Agriculture.  For Switzerland food security, the needs of a scattered rural population, protection of the environment and
landscape conservation are important tasks assigned to agricultural policy.   (WT/GC/W/261)
United States The Green Box of the Agreement on Agriculture alread y covers many of the issues that are raised under non-trade
concerns.  (AIE/34 and 64)
The relevant issue for consideration is not the set of policy objectives but rather the impact upon production and trade of
instruments designed to implement policy objectives.  (AIE/64)
Uruguay All human activities are multifunctional.  Policies to addr ess the multifunctional character of agriculture and land wit hin
the framework of sustainable agriculture and rural developm ent should be targeted, transparent and cost-effective and
should not distort production and trade.  Furthermore, policies in one country must not undermine the social, rural
development and environmental objectives of other countries.  (AIE/74)
It is necessary to make every effort to ensure that policy measures do not unfairly limit market-access nor distort marketsfor food and agricultural exports, especially for developing countries for their development and implementation ofsustainable agriculture policies. (AIE/74)
A number of instruments can be used to achieve objectives including participation and leadership by rural communities;co-operation between different stakeholders to address con cerns about agriculture and land-use;  the existence of an
enabling national policy environment;  efficient and transparent flow of information between all levels;  wide availability
of relevant research;  scientific and technical information;  improvements in economic instruments;  the need to address
insecure access to land and land tenure;  and related issues su ch as eradication of poverty, inheritance, education, gender
issues, etc; and capacity building. (AIE/74)G/AG/NG/S/17
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Issue Country Comment
The FAO/Netherlands Conference on Multifunctionality identified a number of issues for future action at national,
regional and international level.-  The participants recalled the reconfirmation at the Speci al Session of the United Nations General Assembly of the
financial commitments and targets for Official Development Assistance, made by industrialized countries at the Earth
Summit and called for intensified efforts to reverse the downward trend in Official Development Assistance.-  The participants underlined the conclusions of the Special Session of the United Nations General Assembly that theinternational community and governments must continue or increase investments in, and funding for, sustainableagriculture, especially in agricultural research, extension services and technology transfer.  Adequate financial support isneeded to implement sustainable agriculture at the local leve l.  Innovative financing mechanisms include capacity building
of stakeholders; diversifying rural incomes, public/private partnerships, and financial instruments in conformity with
international agreements.-  The participants underscored the development of framew orks to assist countries to undertake participatory land
management planning and systems to improve security of land tenure. (AIE/74)
B. FOOD SECURITY
Australia Food security concerns are best addressed through well functioning markets free of distortions.  Diverse sources of su pply
are more reliable than self sufficiency as droughts or crop failures mean imports will be needed.   (AIE/35)
Support and protection for agricultural production in wealthy countries has a negative impact on developing countriesefforts to enhance food security as it depress prices and re duce the viability of rural areas in other countries.  (AIE/35)
India A liberal trade regime would not give sufficient food secu rity without access to the foreign exchange necessary to buy the
food and many developing countries do not have sufficient reserves.  (AIE/44) In addition in some cases demands for
imports could have a major impact on world prices and hence on other food insecure countries.  (WT/GC/W/342)
In many developing countries most farms are small and marginal with, therefore, limited scope to increase output.  Most
production is for consumption by the farm household with little left for sale.  The only way in which agricultural growth
can be sustained and food security attained is through increased government support in the use of inputs, infrastructuraldevelopment, market support, etc.  (AIE/44 and WT/GC/W/152)
India, Japan, Mauritius,NorwayThe 1996 World Food Summit emphasised the importance of food production in both high and low potential areas:  "we
will pursue participatory and sustainable food, agriculture, fisheries, forestry and rural development policies and practicesin high and low potential areas, which are essential to adequate and reliable food supplies at the household, national,G/AG/NG/S/17
Page 7Issue Country Comment
regional and global levels, and combat pests, drought and desertification, considering the multifunctional character of
agriculture".   In other places the Rome Declaration and the Plan of Action also emphasised the role of national productionalong with food imports, reserves and international trade, in strengthening food security.  (AIE/22, 25, 44, 51, 57)
Japan Stockpiling and imports, though necessary, are only part of food security.  Stockpiling is only a short-term solution whil e
imports can be threatened by a number of factors including export restrictions in supplying countries, increasing short termfood supply instability and rising demand for food.  Japan is the world's largest net food-importer with a self-sufficiencyratio of only 41 per cent, a very low level of crop land per person and declining area of farmland.  A further decline infood supply capability cannot be allowed.  (AIE/61 and WT/GC/W/220)
Kenya Agricultural liberalisation advocated by the Agreement cannot by itself overcome the problems of food security for
developing countries with sizeable rural populations.  It is therefore extremely important that a certain degree of flexibilitybe provided to developing countries for the adoption of domestic policies with the intention of providing continued foodsecurity and employment to a large segment of the population.  (WT/GC/W/233)
Korea Trade volumes in some products remain very small relative to total production and trade cannot be relied upon as the
ultimate solution to food security.  Korea has experienced difficulties in securing rice on the world market in times of poordomestic harvests.  In times of currency devaluation agricultural imports are much more expensive and domesticproduction and stockpiles are vital.  (AIE/39)
Norway Reducing public support to farming in low potential areas  will probably result in lower production and impaired national
food security.  In addition, high production costs require pr oduction coupled supports.  A small reduction in support might
be absorbed through structural adjustment but that would result in lower farm population, more centralised production
structure and degradation of marginal arable land.  (AIE/22)
Food security policy is made up of a number of elements including; protection of arable land, national food production;
human resources and maintaining a decentralised production structure.  Food security requires a multifaceted approach
and should be characterised by (i) the capacity to produce, store and import food, (ii) maximum autonomy and self-determination (without implying self-sufficiency), (iii) minimise variations in access, (iv) ecological sustainability and(v) equity.  (AIE/22 and AIE/57)
The right to adequate food is endorsed in the UN Declaration on Human Rights and the World Food Summit 1996 called
for clarification of this right.  The exact obligations of individual states have not been clarified but governments should
take the steps necessary to meet relevant food-related obligations.  Each state should be given flexibility to optimise thecombination of different measures and methods that are available to achieve food security.  (AIE/57)G/AG/NG/S/17
Page 8
Issue Country Comment
The agriculture production system is very complex with a number of long-term characteristics.  If production were
drastically reduced for a prolonged period it may take seve ral decades to restore produc tivity and overall production.
Threats to food security can arise from political crises (wars and embargoes) or from ecological crises (radiation fallout,
disease, water availability or climate change).  (AIE/57)
Policy measures aimed at food production to safeguard national food security should generally be allowed, if subject tocertain mutually agreed principles.  (AIE/57)
South Africa Export subsidies used by richer countries constrain production in developing countries because of lower world price s
which also affects upstream and downstream industries.  With a large proportion of the population living in rural areas anddependent on agriculture the effect of depressed incomes is very widespread and damages food security.  (AIE/26)
Export subsidies help to concentrate production of food in countries that can afford to pay them and that do not have acomparative advantage in production.  This increases the variability of production, the variability of prices and instability
of global supplies.  (AIE/26)
While export subsidies may reduce import prices for low-income food-deficit countries many of these countries keep
domestic prices below world prices anyway.  Furthermore, supplies of food aid to least developed countries have beenclosely linked to the level of surplus food stocks held by developed country governments.  (AIE/26)
United States Liberalised global agricultural trade will be benefici al to food security.  Stronger disciplines are needed on exp ort taxes.
Temporary export taxes imposed on agricultural commodities during shortages artificially raise the prices faced by netfood-importing developing countries while export subsidies implemented during periods of excess supply lower returns tofarmers around the world.  (AIE/47)
Food self-sufficiency is not food security.  Real food security is enhanced by having many sources of supply, notdependence on only one source.  Trade liberalisation in general increases purchasing power and, in agriculture inparticular, ensures access to multiple sources of food.  Many countries depend on imports of agricultural inputs such asfertilizer, fuel and other inputs for the intensive cultivation common in self-sufficiency programmes, where such inputs areimported self-sufficiency is an illusion.  (AIE/64)G/AG/NG/S/17
Page 9Issue Country Comment
Annex 2 provisions covering research, extension, training, infrastructure, public stockholding and domestic food aid can
be used to address food security and other provisions can be used to counter the effects of natural disasters and resourcedepletion.  For those countries that do not have the resources to make full use of Annex 2 provisions their food needs may
need to be addressed within the international framework on food aid.  (AIE/64)
C. ENVIRONMENT
1. General
Argentina Environmental resources can be under-priced either by subsidies that reduce the costs or increase the rewards of
overexploitation or by the failure of markets to take the environmental cost fully into account.  In agriculture, it is
necessary to first remove the subsidies before taking the second step of considering market failures.  (AIE/32)
Australia Agriculture may be beneficial for the environment but production based subsidies do not mean a better environment.  In
fact, more production can damage the environment.  The best way to achieve environmental objectives is through specific
policies targeted at specific objectives.  (AIE/36)
EuropeanCommunities, NorwayWhile farmers can be made to comply with rules under the po lluter pays principle there are also a range of environmental
benefits from land use for which the provider should be rewarded  (the provider gets principle).  (AIE/22, 40, 48, 68 and73)
European Communities The high cultural and nature values of the farmed landscape can be harmed by both the intensification of ag riculture and
the marginalization or abandonment of agricultural land.  The polluter pays principle requires that compliance costs fall onthe farmers, however, in cases where society demands more than good agricultural practice, for instance preservation oflandscape features or enhancement of biodiversity, the provision of the public goods would need policy intervention.  In
the EC the agri-environmental payments cover only the income foregone or the cost incurred.  The limits to the payments
and the production constraints usually imposed to qualif y for the payments reduce any production incentive effect.
(AIE/73)
Japan The 1998 OECD Ministerial established a set of policy principles about agriculture and the environment which included
"action to ensure the protection of the environment and sustainable management of natural resources in agriculture by
encouraging good farming practices, and cr eate the conditions so that farmers take both environmental costs and benefits
from agriculture into account in their decisions".  (AIE/25)G/AG/NG/S/17
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Issue Country Comment
New Zealand Subsidies that encourage production can damage the en vironment by causing deforestation, waste disposal problems and
the inappropriate use of marginal land.  (AIE/28)
Norway While high usage of pesticides, fertilizers and high le vels of animal waste can be damaging to the environment the
evidence linking them with high levels of supports is weak.  Other environmental non-trade issues related to agricultureare soil erosion, water use, energy consumption and changes in transport volumes with possible associated environmental
effects.  (AIE/48)
South Africa Agricultural trade liberalisation may well reduce environmental damage by relocating production from marginal land in
high subsidising (often high chemical input) countries, to more productive lands in low subsidising (often low chemical
input) countries.  Further trade reform which encourages exports of labour intensive crops instead of staples will help
reduce pressure on indigenous vegetation and forests from the encroachment of subsistence farming.  Any damageresulting from increased production caused by liberalisation wi ll probably be more than offset by environmental gains in
areas that decrease production plus the welfare ga ins arising from trade liberalisation.  (AIE/41)
United States Annex 2 contains a number of specific provisions to mitigate agriculture's impact on the environment.  Production
subsidies or trade restrictions are more likely to encourage more intensive and more environmentally damagingagricultural practices.  (AIE/64)
Uruguay Several major environmental conventions, in particular the Convention on Biological Diversity, the United Nations
Framework Convention on Climate Change and the Convention on the Combat against Desertification have direct
implications for sustainable agriculture and rural development and strengthen the attention to the environmental impactsincluding costs and benefits and functions of agriculture.  (AIE/74)
2. Landscape
European Communities The agricultural landscape was created by centuries of human activity, the driving force being economic nec essity and the
level of farming technology used at that time.  As agricult ural techniques have moved on the farmer whose choice is only
driven by economic concerns would have to sacrifice many traditional features.  (AIE/40)
Japan The landscape of many areas is the result of agricultural activities.  A preserved and maintained landscape provides the
local residents and visitors with a sense of beauty and nostalgia,  together with that of the history and culture of a district.
(AIE/60)G/AG/NG/S/17
Page 11Issue Country Comment
Norway The agricultural landscape was created over thousands of y ears of farming.  The value society attaches to the landscape
arises from its recreational value, its aesthetic, cultur al and historic qualities and its biological and ecological
characteristics.  Although made up of a many elements the value of the landscape is more than a simple sum of each of
them and is closely related to its primary function of producing food and fibre.   (AIE/22)
3. Ecology
Australia The issue of environmental hazards embodied in agricultur al trade is best addressed through effective quarantine polic es
under the SPS Agreement.  (AIE/36)
European Communities There are many environmentally sensitive site s in the EC were agriculture should be encouraged, as abandonm ent would
lead to erosion, soil degradation and a loss of biodiversity.  If cultivated land is abandoned it will not revert to wilderness .
It will simply become run-down.  (AIE/40)
Japan Agriculture plays a vital role in land conservation by preventing floods (drainage control by paddy fields), soil erosion and
landslides.  The financial value of this role is very high.  Fostering of water resources is greatly helped by croplands andthe paddy field system of rice production which results in large volumes of water being held underground.  (AIE/60)
Agriculture has an important role in the preservation of the natural environment through the management of organic waste,
decomposition of polluted matter, maintenance of biodiversity and absorption of polluting gases and carbon dioxide.
(AIE/60)
Norway In Norway about 10-20 per cent of threatened species depend  on the agricultural landscape.  Structural adjustment can
have an adverse impact through either more intensive production or through land abandonment.  Therefore, it appears thatbio-diversity would be favoured by policies aimed at structural stability and preserving the status quo.  All of the
seventeen countries defined as megadiversity countries based on their biodiversity are low-support countries.  The
expansion of agriculture in low-support countries is therefore likely to have a negative impact on biodiversity.  (AIE/40and AIE/48)
Increased trade increases the risk of introducing infectio us animal, plant and human diseases which means a cautious
approach is needed especially with respect  to live animals, meats and eggs.  (AIE/22)G/AG/NG/S/17
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Issue Country Comment
D. RURAL DEVELOPMENT
Australia Agriculture is the back-bone of rural communities in most countries but it cannot be isolated from change.  In fact po licies
of market support and protection have been ineffective in preventing a decline in farmer numbers.  (AIE/36)
European Communities In some remote rural areas there are few possibilities for economic diversification and agriculture remains  the main
activity.  Maintaining agriculture in these areas is necessary to prevent depopulation and to ensure that human activitiesand presence are well-balanced throughout the territory.  (AIE/28)
Production supports allowed production in areas with high costs but with further reductions in price support farming inthese areas could come under severe pressure.  Supports are needed to ensure agricultural activities continue along with itsenvironmental and rural functions.  The supports should be designed to prevent the disappearance of agricultural land andassociated rural livelihoods and not to increase agricultural production.  (AIE/73)
India Agricultural self reliance is a vital underpinning for the economic growth of agrarian developing economies as good
agricultural production provides purchasing power.  (AIE/30 and WT/GC/W/152)
Japan The 1998 OECD Ministerial noted the role of agriculture in  the economic life of rural areas and the need for governments
to provide the appropriate framework to ensure that the agro-food sector contributed to the socio-economic developmentof rural areas. In many rural areas agriculture contributes to the balanced development of the national land through social
and local continuation in the area.  (AIE/25 and AIE/60)
Rural areas have maintained and transmitted cultural inherita nce and are an important amenity to urban dwellers and other
visitors.  (AIE/60)
Norway Agriculture is the backbone of many rural economies be ing the main source of employment.  Maintaining a minimum
population level is necessary to ensure service institutions can remain.  However, remote rural areas often have high
production costs which makes support necessary.  (AIE/22)
South Africa Trade liberalisation, particularly the removal of export subsidies will enhance economic activity, rural employment ,
income growth and subsequently improve purchasing power in developing countries.  (AIE/41)G/AG/NG/S/17
Page 13Issue Country Comment
United States The goals of maintaining rural communities and having economically sustainable small towns and villages are best
achieved by measures that facilitate the creation of sustainable economic activity – both agricultural and non-agricultural –such as opportunities to earn off-farm incomes.  Annex 2 contains a number of provisions that can be used to address these
concerns such as education, training, resource retirement and structural adjustment programmes.  (AIE/34)
E. SMALL ISLAND DEVELOPING STATES
Mauritius Small island developing states tend to rely on agriculture for a large part of their economic activity but are only ab le to
produce a small number of different crops.  For Mauritius sugar cane is the main crop which makes up a large share of
total exports, and employment.  Diversification is not possible for a number of reasons.  Cane also contributes toelectricity generation reducing dependence on fossil fuels and contributing to the environment.    (AIE/51 and 65)
F. OTHER
Food safety
and qualityEuropean Communities While WTO dispute cases have confirmed that non-discriminatory science based measures to achieve the level of safety
determined by Members are in conformity with the SPS Agreement it might be useful to confirm this in a more generalmanner in order to assure consumers that the WTO will not be  used to force onto the market products about whose safety
there are legitimate concerns.  As regards food quality, in any review of the TRIPs, the provision of improved protectionfor products whose reputation for quality is linked to their geographical origin will be a major concern.  (WT/GC/W/273)
Animal
WelfareEuropean Communities In order to address increasing public concern about the conditions in which animals are kept many WTO Membe rs have
adopted detailed provisions to meet this legitimate moral requirement.  Consensus should be sought on how toaccommodate within WTO rules trade measures taken pursuant to any multilateral agreement that might be reached onwelfare standards.  (WT/GC/W/273)G/AG/NG/S/17
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ANNEX
Documents Submitted by Members
AIE Process
AIE/22; 2 June 1998, Norway, "Non-Trade Concerns in a Multifunctional Agriculture – Implications
for Agricultural Policy and the Multilateral Trading System"
AIE/25; 2 June 1998, Japan, "Non- Trade Concerns on Agriculture"
AIE/28; 9 June 1998, New Zealand, "Side Effect s of Agricultural Policies and Production"
AIE/30; 23 June 1998, India, "Issues of  Interest to Developing Countries"
AIE/32; 27 July 1998, Argentina, "Non-Trade Concer ns in the next Agricultural Negotiations"
AIE/34; 2 Sept 1998, United States, "Non-Trade Concerns and Agriculture"
AIE/36; 4 Sept 1998, Australia, "Non-Trade Concerns"
AIE/39; 22 Sept 1998, Korea, "Non-Trade C oncerns in Net Food-Importing Countries"
AIE/40; 28 Sept 1998, European Communities, "T he Multifunctional Character of Agriculture"
AIE/41; 26 Oct 1998, South Africa, "The Negati ve Effects of Export Subsidies on Developing
Countries"
AIE/44; 16 Nov 1998, India, "Food Security – An Important Non-Trade Concern"
AIE/47; 2 March 1999, United States, "Food Security – The Impact of Export Taxes"
AIE/48; 2 March 1999, Norway, "Environmental Effects of Trade Liberalisation in the Agricultural
Sector"AIE/51; 10 March 1999, Mauritius, "Multifunctional Role of Agriculture in Small Island Developing
States"
AIE/57; 7 June 1999, Norway, "Food Security and the Role of Domestic Agricultural Food
Production"
AIE/60; 21 June 1999, Japan, "Multifunctionality in Japan"AIE/64; 22 June 1999, United States, "The "Multifunctional" Character of Agriculture, Food Security
and other Non-Trade Concerns"
AIE/65;  9 July 1999, Mauritius, "Agriculture in Small Island Developing States"
AIE/67; 17 Sept 1999, Switzerland, "The Mu ltifunctional Dimension of Agriculture"
AIE/68; 17 Sept 1999, Norway, "Appropriate Policy Measure Combinations to Safeguard Non-Trade
Concerns of a Multifunctional Agriculture"
AIE/73; 28 Sept 1999, European Communities, "Safeguarding the Multifunctional Role of EUAgriculture:  Which Instruments?"
AIE/74; 28 Sept 1999, Uruguay, "The Multifun ctional Character of Agriculture and Land"
Preparatory Process for the Third Ministerial Conference of the WTO
WT/GC/W/120; 4 Dec 1998, Cuba, Dominican Republ ic, El Salvador, Honduras and Nicaragua
WT/GC/W/152; 8 March 1999, India
WT/GC/W/163; 9 April 1999, Cuba, Dominican Re public, El Salvador, Honduras, Nicaragua and
PakistanWT/GC/W/170; 16 April 1999, Korea
WT/GC/W/220; 28 June 1999, Japan
WT/GC/W/233; 5 July 1999, Kenya
WT/GC/W/238; 6 July 1999, Norway
WT/GC/W/261; 20 July 1999, SwitzerlandWT/GC/W/273; 27 July 1999, European Communities
WT/GC/W/342; 29 Sept 1999, India
WT/GC/W/370; 13 Oct 1999, Jamaica
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