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The MFCAL Approach and "Multifunctionality"
The Agreement on Agriculture and Non-Trade Concerns
The FAO/NL Conference on the Multifunctional Character of Agriculture and Land (MFCAL) and the MFCAL approach itself are distinct from ongoing debates on "multifunctionality" in the context of the World Trade Organization.
"Multifunctionality" has become one of the buzzwords of contemporary agricultural policy debates. The term has become closely associated with discussions relating to the continuation of the reform process in agriculture. In particular "multifunctionality" has been tied to the issue of "non-trade concerns" (NTCs) as referred to in Article 20 of the Uruguay Round Agreement on Agriculture (AoA) which focuses on the "the long-term objective of substantial progressive reduction in support and protection resulting in fundamental reform...[and]...taking into account...non-trade concerns".
At present, the only NTCs specifically mentioned in the AoA are the need to protect the environment and food security. Current WTO-centred discussions are directed at both fixing precise definitions of NTCs and to registering appropriate policy responses to these NTCs.
The MFCAL Approach does not engage in these debates. It is conceptually and technically distinct. Nor does the MFCAL Approach imply any position within ongoing debates within the World Trade Organisation and related fora. Similarly, it neither invokes nor defends trade-distorting policies and practices. Instead, it fully recognises the importance of the principles and rules laid down in the Uruguay Round Agreement on Agriculture directed at establishing "a fair and market-oriented agricultural trading system" and the so-called "Green Box" measures listed in Annex 2 of the Agreement which are predicated on "the fundamental requirement for the exclusion of such policies from reduction commitments is that they have no, or at most minimal, trade distorting effects or effects on production."