A ‘Beyond WTO’ Scenario for Swiss Agriculture: Consequences for Income Generation and the Provision of Public Goods

Yearbook of Socioeconomics in Agriculture (2010, pp.361-400)

40 Pages Posted: 19 Dec 2013

See all articles by Robert Huber

Robert Huber

Swiss Federal Institute for Forest, Snow and Landscape Research WSL

Christian Häberli

World Trade Institute

Date Written: November 30, 2010

Abstract

The future agricultural policy framework seems clear. Even though the present trends do not point in this direction there is a strong probability that in the long run Swiss agriculture will have to forfeit border protection, while domestic support will be restricted to fully Green Box-compatible direct payments. We use a normative mathematical programming model to illustrate possible effects for agricultural production and the corresponding agricultural income in the medium term (2012-2018) under such a ‘beyond WTO’ scenario. We discuss the results with respect to the provision of the public goods stated in Art.104 of the Swiss constitution. The potential effects for agricultural production in Switzerland are considerable. The agricultural sector in the lowlands would be especially affected, with dairy farming remaining the most viable sector. In order to survive commercially, a further drastic reduction in production costs would be unavoidable, and efforts to realize prime premiums would have to be intensified.

Keywords: WTO, sector modelling, Swiss agricultural policy

JEL Classification: Q11, Q17, Q18

Suggested Citation

Huber, Robert and Häberli, Christian Martin, A ‘Beyond WTO’ Scenario for Swiss Agriculture: Consequences for Income Generation and the Provision of Public Goods (November 30, 2010). Yearbook of Socioeconomics in Agriculture (2010, pp.361-400), Available at SSRN: https://ssrn.com/abstract=2369704

Robert Huber (Contact Author)

Swiss Federal Institute for Forest, Snow and Landscape Research WSL ( email )

Switzerland

Christian Martin Häberli

World Trade Institute ( email )

Hallerstrasse 6/8
Berne, CH-3012
Switzerland

HOME PAGE: http://https://www.wti.org/institute/people/44/haberli-christian/

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