WTO – AGRICULTURE A PROJECT COMPILED & SUBMITTED BY ANISHA DAMANIA ROLL NO 60 MONICA MALIK ROLL NO 26 SANGEETA NACHANKAR ROLL NO 29 SMITA NAIR ROLL NO 31 SAGAR KARMEKAR ROLL NO 21 VIDYA JOHN ROLL NO 16 UNDER THE GUIDANCE OF PROF SUJATA JHAMB WTO - AGRICULTURE
Members (148) Applied Countries (28) WTO Members
WTO-AoA NEGOTIATIONS CREATING WEALTH FROM FARM GATE TO FOOD PLATE
WTO Came into existence on 1-1-1995 with the conclusion of Uruguay Round Multilateral Trade Negotiations at Marrakesh on 15th April 1994, to :
Provide common institutional framework for conduct of trade relations among members
Facilitate the implementation, administration and operation of Multilateral Trade Agreements
Lay down Rules and Procedures Governing Dispute Settlement
Provide Trade Policy Review Mechanism
Agreement on Agriculture (AoA)
To establish a fair and market oriented agricultural trading system through substantial progressive reduction in agricultural support and protection resulting in correcting and preventing restrictions and distortions in world agricultural markets
AREAS OF COMMITMENTS
Cut in value of subsidies
Developed countries - 36 % (1995 - 2000)
Developing countries - 24 % (1995 - 2004)
Cut in subsidized quantities
Developed countries - 21 % (1995 - 2000)
Developing countries - 14 % (1995 - 2004)
(Base Period : (1986 - 1990)
To develop internationally agreed disciplines to govern export credits, guarantees or insurance programmes
Domestic Support In WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), Blue (slow down — i.e. be reduced), Amber -( Forbidden)
Green Box - Research, Extension, PDS, Decoupled Payments etc;
Blue Box - Production Limiting Subsidies ;
Amber Box - AMS-subject to reduction commitments , Viz.
Product specific (MSP)
Non product specific (input subsidies-fertilizer, Power,
Anomaly in WTO Provision
Developed countries still continue to heavily subsidize their agriculture.
As per the World Trade Organisation provision these countries were required to reduce their subsidy considerably, so that the developing countries could get a chance to export their products to these countries.
RESULTS OF THESE ANOMALIES
There were three problems with the AoA –
it ignored the realities of global agricultural markets,
it reinforced industrial agriculture at the expense of sustainable agriculture, and
It failed to acknowledge the widely differing needs of countries at different levels of development.
Agricultural Subsidies Source: OECD
Agricultural subsidies have affected developing country farmers both by
denying access to rich markets and allowing farmers from advanced countries
to sell to developing countries at suppressed prices.
This is particularly relevant to India because agricultural products account
for nearly 20% of Indian exports.
Agricultural Support in the US ($US million)
Protecting our food and livelihood security by having sufficient flexibility for domestic policy measures.
Protecting domestic producers from the surge in imports or significant decline in import prices.
Substantial reduction in export subsidies and domestic support to agriculture in the developed countries for greater market access to products of developing countries.
Finally, a more equitable & fair trading framework for
MARKET ACCESS ISSUES CAN NOT BE SEEN IN ISOLATION TO SUBSIDY REGIME
The negotiations on domestic support should include the following elements:
Substantial reductions in all forms of domestic support should be undertaken by the developed countries.
Subsidies excluded from the discipline introduced by the AoA, i.e. those appearing in the “Blue Box” and the “Green Box”, need to be re-assessed, particularly from the point of view of their influence on production.
The Peace Clause “Article 13 (a) and 13 (b)” shall not be extended beyond implementation period.
Export Subsidies The negotiations on export subsidies should include the following issues: Countries using export subsides should phase out this form of farm support within two years of implementation of the revised disciplines to be followed by countries in the agricultural sector. Export subsidies discipline should include all forms of spending that enhances the capacities of exporters to increase trade, e.g. export credit, guarantees and insurance programmes. The Peace Clause “Article 13 (c)” shall not be extended beyond implementation period.
Present Stage of Negotiations
The Cancun Ministerial failed to arrive at any agreement on modality for agriculture.
There was no willingness on part of developed countries to recognize the genuine concerns of the developing countries, especially in agriculture
The US & EU attempted to drive their own agenda, at the expense of Doha Declaration
The concerns of the developing countries were expressed by a group viz. G-20 at Cancun.
Why much of the focus must be on agriculture…
Even though it provides less than 4% of global GDP
and 9% of int’l merchandise trade
OECD manufacturing tariffs have fallen by 9/10ths
over the past 60 years to <4%, while agricultural protection has risen, Agric. applied (bound) tariffs
now average nearly 5 (10) times manufactures tariffs globally
Also, the vast majority of the world’s poor rely on farming for a living, and may be hurt by agric
protection policies of rich countries
Why focus on agriculture
True, the harm to some DC farmers from
rich-country agricultural protection is reduced via non-reciprocal preference schemes such
as the ACP’s Lome Agreement, EBA and
But those schemes contravene the core WTO rule of non-discrimination
In particular, they exclude numerous populous D.C’s (e.g. Brazil, China, India, Indonesia, Pakistan, Vietnam)
Hence they may harm more poor farmers (through trade diversion) than they help.
0 10 20 30 40 50 60 70 USA EU Japan Developing countries Disputes in WTO: total 194 1) As complainant As defendant
0 5 10 15 20 25 30 Antal SPS/TBT Agriculture Textiles TRIMS TRIPS GATS Which agreements are subject to disputes?
Developing countries cannot afford to be silent spectators.
THE DEVELOPING COUNTRIES MUST COLLECTIVELY TAKE A STAND ON THE FOLLOWING:-
"Zero-tolerance" on agricultural subsidies
Restoration of Quantitative Restriction:
Multilateral Agreement Against Hunger:
WHAT WE ALL NEED TO REMEMBER IS THE FACT THAT : Pre-Independence India suffered repeated famines, drought and food shortages. But following the Green Revolution in the ’60s, yields and food stocks rose manifold. Now, 40 years later, Indian farmers have realised the follies of their tryst with intensive agriculture. Despite 70 per cent of the population being engaged in agriculture and allied activities, declining food grain production and access to food remain the two biggest problems confronting the country. Liberalisation has made things worse: commercial crops are eating into the fertile land tracts meant for essential food grains. And ELEVEN years after the World Trade Organisation came into existence; the anticipated gains for India from the trade liberalisation process in agriculture are practically zero.