Opening Statement

by Jan-Erik Sundby,
State Secretary, Ministry of Agriculture, Norway

International workshop on "Non-Trade Concerns in a Multifunctional Agriculture"
9-11 March 1999, Sanner Hotel, Norway.

Welcome

On behalf of the Norwegian Ministry of Agriculture I would like to welcome you all to Norway and to Sanner Hotel in Gran. It is very pleasant, and exciting, to see so many people gathered from such different countries. As the State Secretary I think this is a unique opportunity to discuss the multifunctional character of agriculture in more detail.

WTO Reform

As it is well known for many of you, the subject on multifunctionality is of vital importance for Norway. The Government has recently discussed the upcoming WTO round on agriculture and is determined to give top priority to the safeguarding of the multifunctional character of the agricultural sector, as it was done by the previous government during the Uruguay Round.

The different non-food functions of agriculture are referred to in the current Agreement on Agriculture as non-trade concerns, and these concerns should according to Article 20 be taken into account in the WTO agricultural reform process. The complex multifunctional aspects of agriculture are likely to turn into major issues in the upcoming WTO negotiations that are scheduled to start by the end of this year. Broad and thorough analysis of these aspects is needed in order to fully understand the multifunctional character of agriculture and to have these concerns fully reflected in national policy formulation as well as in multilateral agricultural policy reform. Multifunctionality is currently discussed in the OECD and WTO, and several countries, including my own, have initiated research programs in order to examine the various non-food dimensions of agriculture and their linkages to the agricultural production.

This workshop is a follow-up to the seminar on the same issue arranged by Switzerland one year ago. I think co-operation and exchange of experiences on the matter of multifunctionality is very useful and important. Hopefully, the days ahead of us will sharpen our awareness, broaden our knowledge and give us all new and interesting perspectives on the non-trade concerns that are part of a multifunctional agriculture.

Agriculture in Norway

Since we are in Norway, I would like to give you some facts about agriculture in Norway, the northernmost country in Europe. Our mainland is about 1 750 km long, longer than the distance between Oslo and Rome. The country’s population is only 4,2 million, and the population density is only 13 people/km2, the second lowest in Europe (only Iceland has a lower density). The main productions are dairy and meat products, cereals and temperate fruits and vegetables. About three quarters of farm income is derived from livestock production and one quarter from crop production. The production is almost entirely destined for the national market and plays an important role in ensuring national food security, sustaining the viability of rural areas and safeguarding certain environmental qualities.

Our arable land represents only 3% of the total area. The average farm size is around 12ha arable land. The average field size is only 1.5 ha, and nearly 20 per cent of the agricultural area have a gradient exceeding 1:5. Dairy farms have an average herd of 12 cows. We have arctic and sub-arctic conditions that are characterised by harsh climate, low temperatures and a short growing season, which varies between 100 and 190 days, depending to a large extent on latitude. The indoor period for livestock varies from around 230 to 290 days a year. All the disadvantages stemming from the climate, long distances, a difficult topography, a low population density and a small-scale structure result in very high costs and a very low degree of competitiveness at world market prices. Some of you will maybe recognise some of these conditions from your own country.

Viability of Rural Areas - a Priority of the Government

Viability of rural communities is an important objective of the government of Norway, and is offered high priority. Viable rural areas and maintenance of human settlement in sparsely populated areas, represent important qualities of our country, and is an asset, for us and, we believe, also for the people of the countries visiting us.

In Norway, as in many other countries, it seems that culture and traditions, such as arts, architecture, music, dialects, national costumes, and food traditions, are deeply rooted in rural life and in the characteristics of specific rural areas. This cultural heritage is a part of our national identity. The agricultural sector directly and indirectly represents a substantial part of rural employment, and is the sector where forward-looking creativity and traditions go hand in hand. However, in several remote rural areas, few alternative employment opportunities exist. Thus, as we see it, conservation and further development of our cultural heritage depends on the continued viability of rural areas and its agriculture. The consequences of high unit costs that often prevail in rural agriculture are high levels of support as an indispensable element of rural agricultural policy.

Environmental Protection

Environmental benefits relating to the multifunctional agriculture includes, in particular, the agricultural landscape and biodiversity. The agricultural landscape is not only decorative scenery. Its aesthetic, historic, cultural and recreational values are closely contingent upon the landscape’s authenticity as a food producer with its own economic life. To the extent that agricultural landscape is scarce, measures to ensure its protection, involving both general policies and specific measures, are applied.

Moreover, in many countries, a substantial proportion of the threatened species depends on the agricultural landscape. Conserving bio-diversity is therefore closely related to the protection of the agricultural landscape. Increased trade in agricultural products also increases the risk of introducing alien species.

Food Security

Food security for all inhabitants in Norway now and in the future is a goal. The foundation for this must be our own agriculture. The Norwegian government see food security as a legal obligation under the International Covenant on Economic, Social and Cultural Rights, where food is specified as a human right. This covenant will soon be an integrated part of the national law in Norway. This implies, as also emphasised by the World Food Summit, that all governments should respect, protect, facilitate and fulfil the right to food. This raises the question of state obligation for its own population compared to other obligations laid down in various international agreements and treaties.

The implications of the right to food and of the governmental responsibilities to safeguard this human right are far-reaching and should have an important bearing on the multilateral policy reform process in agriculture.

The risk of a rupture in, or decreased availability of, international supplies of adequate food relates to the possibility of war and different kinds of crises in peacetime, such as extensive radioactive fallout, ecological crises and diseases on plants and animals, reduced availability of water, climate change or substantial changes in global demand. If such crises take place in or near the world most important production regions, world demand and supply may be adversely affected.

In our view, trade policies conducive to food security must allow room for domestic production in net-food importing countries. My government is judging such domestic production as essential in order to meet its obligations under international law on human rights, and on the right to food, in particular. We must also remember that production in low-potential areas is recommended by the Plan of Action endorsed by at the World Food Summit.

In certain low-potential areas, the costs of production may be several times higher than the world average. In addition, an optimal policy mix must ensure that production remains profitable, which may require a substantial part of the support to be coupled to production.

Domestic production may not, however, exclude imports of foodstuffs. A predictable and stable trading system appears to be an important element in global and national food security, and my own country is in fact importing around 50% of the foods consumed. However, from a global perspective, in our opinion, the preferable response to food insecurity probably lies in (as much) local production for local consumption (as possible).

Conclusion

The main challenge for Norway in the reform process in WTO is to get continued accept for domestic production in ensuring food security, as well as agricultural landscape, biodiversity and agriculture’s contribution to rural employment. During the two days here in Gran you will informally exchange and discuss experiences concerning the various public goods related to the multifunctional characters of agriculture. You will also discuss efficient policy measures to address multifunctionality. To me, it seems that the issue of jointness is a crucial one that needs further analysis, as such jointness has important implications for policy design.

I wish you a successful workshop and trust that we shall have interesting lectures and stimulating discussions. I hope this workshop will take form of a brainstorming exercise, which will enable us to better formulate national positions ahead of the WTO negotiations in agriculture.

Thank you very much for your attention and good luck!