Agri-Environment and Rural Development in the Doha Round

This executive summary analyzes the use of agri-environmental and rural development measures within the World Trade Organization (WTO) framework, specifically focusing on the 'Green Box' of the Agreement on Agriculture (AoA). It examines the practices of the 'Quad' countries (EU, Canada, US, and Japan) and evaluates the potential impacts of the Doha Round negotiations on developing countries' ability to support food security and rural development.

• The WTO Agreement on Agriculture (AoA) categorizes domestic support into four 'boxes': the Amber Box (trade-distorting subsidies), the Blue Box (production-limiting payments), the Special and Differential Treatment (S&D) Box (specific to developing countries), and the Green Box. The 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."
• The 'Quad' countries utilize various Green Box measures for rural and environmental goals: the EU uses a dedicated 'pillar' in its Common Agricultural Policy (CAP) for rural development and agri-environment; Canada employs the Canadian Adaptation and Rural Development (CARD) program; the U.S. focuses on converting erodible cropland and protecting wetlands; and Japan supports irrigation, drainage, and sustainable practices to reduce fertilizer and pesticide use.
• Doha Round negotiations have split members into three groups: the 'cautious' group (EU and other Northern countries) wanting to maintain the current AoA concept and recognize non-trade concerns (NTCs); the 'ambitious' group (U.S. and Cairns Group) seeking significant market access and limits on Green Box spending; and the 'special consideration' group (Like-Minded and African Groups) demanding flexibility to protect food security and rural development.
• The Like-Minded Group (LMG) has proposed a new 'Development Box' in the AoA to protect low-income and resource-poor (LI/RP) farmers and 'food security crops' (FSCs). This would allow developing countries to exempt these crops from reduction commitments and maintain high tariffs, a proposal opposed by the 'ambitious' group who argue it would hinder 'South-to-South' trade.
• The author forecasts three likely negotiation outcomes: (1) a deal between 'ambitious' and 'special consideration' camps cutting general support but keeping specific flexibilities for developing countries; (2) a deal between 'cautious' and 'special consideration' groups creating generous flexibilities for all; or (3) a compromise that cuts Amber Box support and export subsidies while leaving the Green Box largely un-capped but strengthened and clarified.
• The Cairns Group proposes that environmental payments should be "less than the extra costs" of compliance and not based on production volume. This contrasts with EU practice, which provides "income foregone," "additional costs," and "financial incentive" to farmers.

APA

Werth, A. (2003). Agri-Environment and Rural Development in the Doha Round. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_ruraldev_doha_sum.pdf

Chicago

Werth, Alexander. Agri-Environment and Rural Development in the Doha Round. International Institute for Sustainable Development, 2003. https://www.iisd.org/system/files/publications/tkn_ruraldev_doha_sum.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=June 2003 |url=https://www.iisd.org/system/files/publications/tkn_ruraldev_doha_sum.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{werth2003agrienvironment, author = {Werth, Alexander}, title = {{Agri-Environment and Rural Development in the Doha Round}}, institution = {International Institute for Sustainable Development}, year = {2003}, month = jun, url = {https://www.iisd.org/system/files/publications/tkn_ruraldev_doha_sum.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }