Band 3

In 1987, the two Institutes brought together a number of persons with considerable experience in agricultural policy from 20 countries representing both importers and exporters. They participated in 4 meetings and approved the consensus policy statement published here with the background papers developed for the meetings. These background studies include suggestions for reforming government policies worldwide; a North American and European Community approach to decoupling the policy decisions that affect production from those that are pursued on social or environmental grounds; agriculture in GATT negotiations and developing countries; and exchange rates and their role in agricultural trade issues.

This book explores the potential for policy reform as a short-term, low-cost way to sustainably enhance global food security. It argues that reforming policies that distort food prices and trade will promote the openness needed to maximize global food availability and reduce fluctuations in international food prices. Beginning with an examination of historical trends in markets and policies, Anderson assesses the prospects for further reforms, and projects how they may develop over the next fifteen years. He pays particular attention to domestic policy changes made possible by the information technology revolution, which will complement global change to deal directly with farmer and consumer concerns.

Trade liberalisation affects the pattern and structure of agricultural production, with consequences for the environment. But what are these impacts? And do agri-environmental policies affect international competitiveness? This study takes an in-depth look at the pig sector in OECD countries and draws some conclusions about the most appropriate forms of policy intervention. Further trade liberalisation is likely to strengthen market trends in the pig sector. Production is expected to slow, if not contract, in OECD European and Asian countries. In these countries, government support for pig production in the form of tariffs and/or export subsidies is generally the highest, and the environmental impacts of pig production on water and air pollution are of greatest concern. This book argues that liberalising trade is therefore likely to generate some environmental benefits. Regulatory requirements are the most important type of agri-environmental measures affecting pig production, and these mainly focus on the appropriate management of manure to reduce water pollution. Using comparative analysis, this study concludes that while manure management regulations do differ among countries, the cost effect on pig producers is not significant in explaining differences in international competitiveness.€ This is the first in a series of in-depth studies being undertaken by the OECD to investigate the linkages between agriculture, trade and the environment. Other studies examining the dairy and arable crop sectors are underway.