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Abstract
Current agricultural negotiations in the World Trade Organization are grappling on how
to fully integrate agriculture within the general rules for trade in goods. The notion of
multifunctionality of agriculture has been suggested as a reason to justify special
treatment for that sector, including the continuation of its protection and subsidization.
Many developing countries are still analyzing whether the idea has something to offer
them in terms of their negotiating positions and policy framework.
While multifunctionality has been invoked for supporting agriculture in developed
countries, a similar idea, although not called so at the time, was clearly behind support for
industry in developing countries. Again in this case, the policy implication was that
government intervention was required (through trade protection, subsidies, and other
special policies) to develop an industrial base that contributed to society more than what
market valuations alone would suggest.
The debate on industrialization in developing countries was part of a broader discussion
regarding nation-building, economic development, and social modernization. The current
arguments around multifunctionality are similarly embedded in a larger economic,
political and social matrix. This paper, although it does not present a full account of
either debate, discusses some of the intriguing parallelisms in their theoretical
frameworks, policy implications and economic and social impacts. The main objective
is to clarify current policy issues for the agricultural sector in developing countries,
highlighting possible consequences for the negotiating position of developing countries in
the WTO process.