./.WORLD TRADE
ORGANIZATIONWT/GC/W/238
6 July 1999
(99-2812)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Agriculture
Communication from Norway
The following communication, dated 6 July 1999, has been received from the Permanent
Mission of Norway.
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Proposal
1. Based on Article 20 and its provisions regarding the continuation of the reform process,
negotiations should aim at refining and elaborating the rules and disciplines of the Agreement on
Agriculture in order to promote the objective of a fa ir and market oriented agricultural trading system,
taking into account the need for sufficient and adeq uate food supplies, the interests of the developing
countries, and least developed in particular, and the need to meet important emerging challenges, such
as safeguarding and  promoting the non-trade concerns of a multifunctional agriculture.
2. The negotiations should be finished in a relatively short period of time.  All aspects of the
agricultural negotiations should take place in a specific agricultural negotiations committee.
Background
3. The 1994 Uruguay Round Agreement on Agriculture represented a milestone in the evolution
of the multilateral trading system.  It brought agricultural trade policies and associated domesticpolicies within the scope of a comprehensive framework of multilateral trade disciplines, and
constituted an important element in the process of agricultural policy reform.
4. Since the implementation began in 1995 substantial progress has been made in reforming
agricultural policy and market-orienting the agricultural sector.  Domestic and international policy
reform efforts have resulted in a more predictable and stable trade and policy environment withspecific disciplines in the areas of market access, domestic support and export competition and have
contributed to reduced trade distortions, to gains in economic efficiency and to a closer relationship
between developments in domestic and world markets.
5. It was recognized that policy reform needed to be an on-going process and all WTO Members
are committed to initiating negotiations for continuing the agricultural reform process on the basis ofArticle 20 of the Agreement on Agriculture.  The initial negotiating phase should be devoted to
extensive analyses and deliberations in order to specify the contents of the negotiations.WT/GC/W/238
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6. In the continuation of the reform process, and as reflected in the Preamble of the Agreement,
the interests of developing countries, in particular the least-developed and net-food importing, should
be properly addressed.  Many developing countries have not yet been able to take advantage of the
opportunities that the Uruguay Round has offered.
7. Therefore, special and differential treatment as well as technical and financial assistance to
the poorest developing countries are required in order to enable developing countries to mitigate
possible negative effects resulting from the reform process and to take advantage of opportunities that
are offered by more open markets.
8. Furthermore, increased attention is being paid to the societal role of agriculture, and the
multifunctional character of agriculture, as reflected, inter alia , by the focus on non-trade concerns, is
emerging as an important element in future policy design.  Beyond its primary function of producing
food and fibre and ensuring food security, agriculture contributes to the viability of rural areas, themaintenance 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 various non-food
dimensions as well as the safeguarding of food security, have public goods characteristics, which may
justify government intervention.  The limitations of market approaches to ensure food security and the
lack of functioning markets in case of impor tant non-food agricultural functions are basic
characteristics of the agricultural sector that imply th at agriculture, also in the future, will have to be
treated separately within the multilateral trading system.
9. Bearing in mind that the Preamble of the Agreement also emphasizes the need to take into
account the equitable sharing of commitments among all Members under the reform programme, it is
clear that a delicate balance must be struck betw een the interests of net-food importing and exporting
countries.  This symmetry of interests should form an overall framework for the reform process in
general and for the upcoming negotiations in particular.
10. The references in Article 20 to the need to take into account the experience and effects of the
reduction commitments during the implementation period, demonstrate its dynamic character.  The
policy reform requires further efforts, including meeting new challenges that are emerging.  Themajor challenge is to meet the growing demand for sufficient and adequate supplies of food in
efficient and sustainable ways.  At the same time, the multifunctional character of agriculture should
be safeguarded and promoted beyond its primary function of supplying food and fibre.  These
concerns need to be fully reflected in the continuation of the reform process.
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