Greening Agricultural Subsidies – Understanding the WTO Debate
Agricultural subsidies can play a critical role in advancing certain public policy objectives when applied appropriately. However, adverse spillover effects of subsidies have led to a growing debate on subsidies’ contribution to sustainability.
To support and inform the discussion on how subsidies could address sustainability issues within the World Trade Organization (WTO) context, the FAO Liaison Office in Geneva and the Geneva Trade Platform (GTP) organized a hybrid event titled “Greening Agricultural Subsidies – Understanding the WTO Debate.” This was the fourth event of the FAO/GTP Dialogues series, that explored the role of the multilateral trading system in sustainable agricultural transition.
Marco Sanchez Cantillo, FAO Deputy Director of the Agrifood Economics Division (ESA), gave an overview of FAO’s work on subsidies and how agricultural support has been addressed in recent reports from other organizations. He presented how agricultural public support could contribute to food security, nutrition, and climate outcomes. He also discussed how FAO is working in Ethiopia to simulate reforms to agricultural support in pursuing multiple development goals.
Doaa Abdel Motaal, WTO Senior Counsellor, highlighted how sustainability is fundamental to the issues addressed by WTO, the need to work on obstacles to trade beyond agricultural subsidies, the complexity of issues that accompany sustainability in agricultural trade, and the purpose of the green box in agricultural support. She noted concerns about environmental measures turning into non-tariff barriers to trade and that environmental protections could lead to food insecurity or hinder progress on other legitimate goals.
Alice Tipping, Sustainable Trade Lead of the International Institute for Sustainable Development (IISD), outlined the support categories under the WTO Agreement on Agriculture and how these are used. She suggested that there may be concerns about opening discussions on environmental sustainability in agricultural support because it could lead to expanded subsidy use.
Continuing multilateral dialogue to raise awareness of environmental issues with support programmes, increasing transparency and providing technical assistance and capacity building for domestic reform processes were identified as the contributing factors to progress on greening agricultural subsidies.
FAO and Geneva Trade Platform
FAO and the Geneva Trade Platform (GTP) have partnered to organize a series of events themed around the role of the multilateral trading system, supporting innovative approaches to strengthening agricultural sustainability. Previous events covered how trade, sustainability and agriculture can further be integrated into the multilateral policy discussions, the needs of LDCs, and digital transition in this context.
Related links
Recording of the event: link
Contact:
Pinar Karakaya, FAO Economist
Geir Ulle, FAO Liaison Specialist