wto - agriculture

7/21/2019 WTO - AGRICULTURE

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WTO – AGRICULTURE

A PROJECT COMPILED & SUBMITTED

BY

ANISHA DAMANIA ROLL NO 60MONICA MALIK ROLL NO 26

SANGEETA NACHANKAR ROLL NO 29

SMITA NAIR ROLL NO 31SAGAR KARMEKAR ROLL NO 21 VIDYA JOHN ROLL NO 16

UNDER THE GUIDANCE OPRO SUJATA JHAMB

WTO ! AGRICULTURE



Members (148)

Applied Countries

(28)

WTO M"#$"%



WTO-AoA NEGOTIATIONS WTO-AoA NEGOTIATIONS

CREATING WEALTH ROMARM GATE TO OOD PLATE



GENESISGENESIS• WTO Came into existence onWTO Came into existence on 1-1-19951-1-1995 with thewith the

conclusion of Uruguay Round ultilateral Tradeconclusion of Uruguay Round ultilateral Trade!egotiations at arra"esh on 15th #$ril 199%& to '!egotiations at arra"esh on 15th #$ril 199%& to '

( )ro*ide common institutional framewor" for)ro*ide common institutional framewor" forconduct of trade relations among mem+ersconduct of trade relations among mem+ers

( ,acilitate the im$lementation& administration and,acilitate the im$lementation& administration ando$eration of ultilateral Trade #greementso$eration of ultilateral Trade #greements

( ay down Rules and )rocedures .o*erningay down Rules and )rocedures .o*erning/is$ute 0ettlement/is$ute 0ettlement

( )ro*ide Trade )olicy Re*iew echanism)ro*ide Trade )olicy Re*iew echanism



Agreement onAgreement on

Agriculture (AoA)Agriculture (AoA)

• To establish a fair and marketTo establish a fair and market

oriented agricultural trading systemoriented agricultural trading system

through substantial progressivethrough substantial progressive

reduction in agricultural supportreduction in agricultural supportand protection resulting inand protection resulting in

correcting and preventingcorrecting and preventing

restrictions and distortions in worldrestrictions and distortions in world

agricultural marketsagricultural markets



AREAS OFAREAS OF

COMMIME!SCOMMIME!S

• Domestic Support Domestic Support

• Market Access Market Access

• Export subsidies Export subsidies



E"port SubsidiesE"port Subsidies

• Cut in vaue o! subsidiesCut in vaue o! subsidies

– Deveoped countries - "# $ %&''( - )***+ Deveoped countries - "# $ %&''( - )***+

– Deveopin, countries - ) $ %&''( - )**+ Deveopin, countries - ) $ %&''( - )**+

• Cut in subsidi.ed /uantitiesCut in subsidi.ed /uantities

Deveoped countries - )& $ %&''( - )***+ Deveoped countries - )& $ %&''( - )***+

Deveopin, countries - & $ %&''( - )**+ Deveopin, countries - & $ %&''( - )**+

%0ase 1eriod 2 %&'3# - &''*+%0ase 1eriod 2 %&'3# - &''*+

To deveop internationa4 a,reedTo deveop internationa4 a,reeddiscipines to ,overn export credits5discipines to ,overn export credits5,uarantees or insurance pro,rammes,uarantees or insurance pro,rammes



#omestic Support#omestic SupportIn $O terminolog%& subsidies in gener'l 're identiied b%In $O terminolog%& subsidies in gener'l 're identiied b%

bo"es* +,ic, 're gi-en t,e colours o tr'ic lig,ts. greenbo"es* +,ic, 're gi-en t,e colours o tr'ic lig,ts. green

(permitted)& /lue (slo+ do+n 0 ie be reduced)&(permitted)& /lue (slo+ do+n 0 ie be reduced)&

Amber ( Forbidden)Amber ( Forbidden)

• Green Box - Research,Green Box - Research,

Extension, PDS, DecoupledExtension, PDS, Decoupled

Payments etc;Payments etc;

• Blue Box - Production LimitingBlue Box - Production Limiting

SubsidiesSubsidies ;;

• mber Box - !S-sub"ect to mber Box - !S-sub"ect to

reduction commitments , #i$%reduction commitments , #i$%

( Product speci&ic '!SP(Product speci&ic '!SP(

( )on product speci&ic 'input)on product speci&ic 'input

subsidies-&ertili$er, Po*er,subsidies-&ertili$er, Po*er,

irrigation(irrigation(



A'(#)*+ ,' WTO P%(-,,('

•#e-eloped countries still continue to ,e'-il%

subsidi3e t,eir 'griculture

•As per t,e $orld r'de Org'nis'tion pro-ision

t,ese countries +ere reuired to reduce t,eirsubsid% consider'bl%& so t,'t t,e de-eloping

countries could get ' c,'nce to e"port t,eir

products to t,ese countries



RESULTS O THESE ANOMALIES

There were three problems with the AoA –

1. it ignored the realities of global agricultural markets,

2. it reinforced industrial agriculture at the expense ofsustainable agriculture, and

3. t failed to acknowledge the widel! differing needs ofcountries at different le"els of de"elopment.



#gricultural 0u+sidies

Source: OECD

•Agricultural subsidies have affected developing country farmers both byAgricultural subsidies have affected developing country farmers both by

denying access to rich markets and allowing farmers from advanced countriesdenying access to rich markets and allowing farmers from advanced countries

to sell to developing countries at suppressed pricesto sell to developing countries at suppressed prices•!his is particularly relevant to "ndia because agricultural products account!his is particularly relevant to "ndia because agricultural products account

for nearly #$% of "ndian e&portsfor nearly #$% of "ndian e&ports

Agricultural Support in the US ($US million)Agricultural Support in the US ($US million)



INDIA SEE6S

•Protecting our &ood and li+elihood security by ha+ing su&&icientProtecting our &ood and li+elihood security by ha+ing su&&icient

&lexibility &or domestic policy measures%&lexibility &or domestic policy measures%

•Protecting domestic producers &rom the surge in imports orProtecting domestic producers &rom the surge in imports or

signi&icant decline in import prices%signi&icant decline in import prices%

•Substantial reduction in export subsidies and domestic supportSubstantial reduction in export subsidies and domestic support

to agriculture in the de+eloped countries &or greater maretto agriculture in the de+eloped countries &or greater maret

access to products o& de+eloping countries%access to products o& de+eloping countries%

• inally, a more e.uitable / &air trading &rame*or &orinally, a more e.uitable / &air trading &rame*or &oragricultural commoditiesagricultural commodities

!R0E1 22ESS 3SS4ES 2) )51 BE SEE) 3) 3S5L135) 15!R0E1 22ESS 3SS4ES 2) )51 BE SEE) 3) 3S5L135) 15

S4BS3D6 REG3!E S4BS3D6 REG3!E



Domestic supportDomestic support

•The negotiations on domestic support should include the followingThe negotiations on domestic support should include the followingelements:elements:

• Substantial reductions in all forms of domestic support should be Substantial reductions in all forms of domestic support should be

undertaken by the developed countries.undertaken by the developed countries.

• Subsidies excluded from the discipline introduced by the AoA, i.e. Subsidies excluded from the discipline introduced by the AoA, i.e.

those appearing in the “lue ox! and the “"reen ox!, need to bethose appearing in the “lue ox! and the “"reen ox!, need to be

re#assessed, particularly from the point of view of their influence onre#assessed, particularly from the point of view of their influence on

production. production.

• The $eace %lause “Article &' (a) and &' (b)! shall not be extendedThe $eace %lause “Article &' (a) and &' (b)! shall not be extended

beyond implementation period.beyond implementation period.



Export SubsidiesExport SubsidiesThe negotiations on export subsidies should include the followingThe negotiations on export subsidies should include the following

issues:issues:

%ountries using export subsides should phase out this form of%ountries using export subsides should phase out this form of

farm support within two years of implementation of the farm support within two years of implementation of the

revised disciplines to be followed by countries in therevised disciplines to be followed by countries in theagricultural sector.agricultural sector.

*xport subsidies discipline should include all forms of *xport subsidies discipline should include all forms of

spending that enhances the capacities of exporters tospending that enhances the capacities of exporters to

increase trade, e.g. export credit, guarantees andincrease trade, e.g. export credit, guarantees andinsurance programmes.insurance programmes.

The $eace %lause “Article &' (c)! shall not be extended The $eace %lause “Article &' (c)! shall not be extended

beyond implementation period.beyond implementation period.



5resent St'ge o5resent St'ge o

!egoti'tions!egoti'tions• 1he 2ancun !inisterial &ailed to arri+e at any1he 2ancun !inisterial &ailed to arri+e at anyagreement on modality &or agriculture%agreement on modality &or agriculture%

• 1here *as no *illingness on part o& de+eloped1here *as no *illingness on part o& de+elopedcountriescountries to recogni$e the genuine concerns o&to recogni$e the genuine concerns o&

the de+eloping countries, especially inthe de+eloping countries, especially inagricultureagriculture

• 1he 4S / E4 attempted to dri+e their o*n1he 4S / E4 attempted to dri+e their o*nagenda, at the expense o& Doha Declarationagenda, at the expense o& Doha Declaration

• 1he concerns o& the de+eloping countries *ere1he concerns o& the de+eloping countries *ereexpressed by a group +i$% G-78 at 2ancun%expressed by a group +i$% G-78 at 2ancun%



9hy much o& the &ocus must be on

agriculture:

•E-"' ./(/ ,. %(-," *" ./)' 45 ( *($)* GDP)' 95 ( ,'.7* #"%8/)'," .%)"

•OECD #)')8.%,' .)%, /)-" )**"' $+ 910./(-"% ./" ). 60 +")% .( :45; </,*" )%,8*.%)*

%(."8.,(' /) %,"'; A%,8= )*," >$('? .)%,'(< )-"%)" '")%*+ @ >10? .,#" #)')8.%" .)%,*($)**+

• A*(; ./" -). #)(%,.+ ( ./" <(%*7 ((% %"*+ (')%#,' (% ) *,-,'; )' #)+ $" /%. $+ )%,8%(."8.,(' (*,8," ( %,8/ 8('.%,"



9hy &ocus on agriculture

• True& the harm to some /C farmers from

rich-country agricultural $rotection is reduced *ia non-reci$rocal $reference schemes such

as the #C)s ome #greement& 23# and

#.O#

• 3ut those schemes contra*ene the core WTO rule of non-discrimination

• 4n $articular& they exclude numerous $o$ulous /Cs 6eg3ra7il& China& 4ndia& 4ndonesia& )a"istan& 8ietnam

• :ence they may harm more $oor farmers 6through tradedi*ersion than they hel$



6

16

26

76

46

6

96

:6

;SA E; <'p'n #e-eloping

countries

#isputes in $O. tot'l 1=41)

As compl'in'nt As deend'nt



6

16

1

26

2

76

Ant'l

S5S>/ Agriculture e"tiles RIMS RI5S ?AS

$,ic, 'greements 're sub@ect to disputes



OUR RECOMMENDATIONS

•#e"eloping countries cannot afford to be silent spectators.

•T$% #%&%'()*+ (-*T%/ 0-/T (''%T&%'TA% A /TA*# (* T$% (''(4*+56

•"%(!.(*"%)'8" (' )%,8*.%)* $,,"

•Restor'tion o Bu'ntit'ti-e Restriction.

•Multil'ter'l Agreement Ag'inst unger.



$A $E ADD !EE# O REMEM/ER IS E FAC

A '

)re-4nde$endence 4ndia suffered re$eated famines& drought

and food shortages 3ut following the .reen Re*olution in the;<s& yields and food stoc"s rose manifold !ow& %< years

later& 4ndian farmers ha*e realised the follies of their tryst with

intensi*e agriculture /es$ite =< $er cent of the $o$ulation

+eing engaged in agriculture and allied acti*ities& declining

food grain $roduction and access to food remain the two

+iggest $ro+lems confronting the country i+eralisation hasmade things worse' commercial cro$s are eating into the

fertile land tracts meant for essential food grains

And EDEE! %e'rs 'ter t,e $orld r'de

Org'nis'tion c'me into e"istence t,e 'nticip'ted

g'ins or Indi' rom t,e tr'de liber'lis'tion processin 'griculture

're pr'ctic'll% 3ero

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