Agri-Environment and Rural Development in the Doha Round

This research paper examines agri-environmental and rural development programs within the WTO framework, specifically focusing on the 'Green Box' of the Agreement on Agriculture (AoA). It analyzes the practices of the 'Quad' countries (EU, US, Canada, and Japan) and evaluates how the Doha Round negotiations might impact the ability of developing countries to implement similar sustainable agriculture policies.

• The European Union's Common Agricultural Policy (CAP) utilizes a 'second pillar' exclusively for rural development and agri-environment, with measures such as agri-environment, early retirement, and afforestation all notified under the WTO Green Box.
• The United States focuses its agricultural environmental policy on converting erodible cropland to conservation uses, reconverting farmland to wetlands, and cost-sharing for practices that reduce environmental problems, as seen in programs like the Wetlands Reserve Program (WRP) and the Environmental Quality Incentives Program (EQIP).
• Canada implements the Canadian Adaptation and Rural Development (CARD) program, which includes the Agricultural Environmental Stewardship Initiative (AESI) targeting soil health, biodiversity, and greenhouse gas emissions.
• Japan's agri-environmental policies emphasize reducing fertilizer and pesticide use, improving soil quality via composting, and providing direct payments to farmers in hilly and mountainous areas to prevent land abandonment.
• The WTO Green Box is the primary tool for agri-environmental and rural development because it allows for unlimited spending on measures that are 'at most minimally trade-distorting,' placing developed and developing countries on an equal footing regarding these specific types of support.
• During the Doha Round, three main negotiation groups emerged: a 'cautious group' (EU, Japan, Norway) advocating for non-trade concerns (NTCs) and multifunctionality; an 'ambitious group' (Cairns Group, US) seeking significant trade liberalization and caps on Green Box spending; and a 'special consideration group' (Like-Minded Group, African Group) seeking flexibility for development needs.
• The Like-Minded Group of developing countries has proposed a 'Development Box' to provide enhanced flexibilities for low-income and resource-poor farmers and to secure supplies of food security crops, though this is opposed by the ambitious group.
• The Cairns Group has proposed tightening Green Box rules, specifically suggesting that environmental payments should be less than the extra costs of compliance and not based on production volume, which may target current EU practices.
• The author forecasts that the most likely outcome of the Doha Round is a compromise where the Green Box remains largely uncapped but is strengthened and clarified, while developing countries gain more flexibility for food security and rural development.
• Developing countries are presented with three domestic policy options: focusing exclusively on safeguarding poor farmers via production-linked support; taking a systemic long-term approach using decoupled programs based on Quad country templates; or a hybrid approach prioritizing food security while embedding measures in a broader Green Box-compatible strategy.

APA

Werth, A. (2002). Agri-Environment and Rural Development in the Doha Round. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_ruraldev_doha.pdf

Chicago

Werth, Alexander. Agri-Environment and Rural Development in the Doha Round. International Institute for Sustainable Development, 2002. https://www.iisd.org/system/files/publications/tkn_ruraldev_doha.pdf.

Wikipedia

{{cite report |last1=Werth |first1=Alexander |title=Agri-Environment and Rural Development in the Doha Round |publisher=International Institute for Sustainable Development |date=August 2002 |url=https://www.iisd.org/system/files/publications/tkn_ruraldev_doha.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{werth2002agrienvironment, author = {Werth, Alexander}, title = {{Agri-Environment and Rural Development in the Doha Round}}, institution = {International Institute for Sustainable Development}, year = {2002}, month = aug, url = {https://www.iisd.org/system/files/publications/tkn_ruraldev_doha.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }