The Development Box

This briefing by the International Institute for Sustainable Development describes the 'Development Box' (DB), a proposed mechanism within the World Trade Organization (WTO) to provide developing countries with enhanced special and differential treatment (S&D) measures in agriculture. The proposal seeks to address negative outcomes of the Agreement on Agriculture (AoA) by prioritizing food security and the livelihoods of poor farmers over strict trade liberalization.

• The Development Box (DB) is proposed by developing country governments as a tool to register enhanced special and differential treatment (S&D) measures to mitigate the negative effects of the WTO's Agreement on Agriculture (AoA). Proponents identify five priority areas: protecting domestic food production of staple crops, sustaining rural poor livelihoods, increasing flexibility for small farmer support, protecting poor farmers from subsidized imports and price fluctuations, and improving the movement and sale of surplus production.
• The DB represents a conceptual shift in trade rule design by placing food security and development needs at the center of negotiations. It proposes that S&D and graduation from it be based on development benchmarks rather than arbitrary timelines, that S&D be a permanent part of WTO rules rather than an exception to the Most Favoured Nation principle, and that rules distinguish between social groups rather than just between countries.
• Developing countries express frustration that the AoA's Green and Blue Boxes primarily benefit wealthy nations and are unaffordable for developing countries. They cite factors such as tariff peaks, tariff escalation, anti-competitive practices, and the failure to implement the Marrakech decision as barriers to the benefits of liberalization. This is further exacerbated by the U.S. farm bill and the slow reform of the European Common Agricultural Policy.
• The Like-Minded Group (LMG), supported by the South Centre and including members such as India, Indonesia, Kenya, and Pakistan, argues that developing countries need greater flexibility in domestic agriculture policies to ensure productivity, higher incomes, and reduced vulnerability to price fluctuations. The LMG focuses specifically on food security and low income and resource-poor (LI/RP) farmers.
• Opponents of the DB, most notably the U.S. and Cairns Group members like Chile and Argentina, argue that it creates a 'two track AoA' that undermines the principles of the trading system. Other objections include the claim that the DB is a cover for protecting farm lobbies, that existing AoA flexibility is sufficient, that it could harm South-South trade, and that it could increase consumer prices in developing countries.
• An Oxford Policy Management (OPM) study commissioned by the U.K. Department for International Development suggests several new S&D instruments for a new AoA. These include S&D safeguard instruments for food security crops, slower tariff reductions for those crops, allowing short-term stockpiling during low world prices, and permitting countries to account for inflation and currency fluctuations when calculating domestic support.
• The impact of the DB varies by economic status: Least-Developed Countries (LDCs) would be able to raise tariffs and domestic support above bound rates and avoid pressure for reduction commitments on food security crops. Middle-Income Countries are identified as the primary beneficiaries, as they are best positioned to use the flexibilities to protect small farmers from dumped products from the EU and U.S., though some may fear impacts on South-South trade. Transition Economies would be ineligible as they joined the WTO with developed country status.

APA

International Institute for Sustainable Development (n.d.). The Development Box. https://www.iisd.org/system/files/publications/investment_sdc_may_2003_5.pdf

Chicago

International Institute for Sustainable Development. The Development Box. n.d. https://www.iisd.org/system/files/publications/investment_sdc_may_2003_5.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=The Development Box |url=https://www.iisd.org/system/files/publications/investment_sdc_may_2003_5.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentnddevelopment, author = {{International Institute for Sustainable Development}}, title = {{The Development Box}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/investment_sdc_may_2003_5.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }