AGRICULTURE
P.Naresh Kumar
M.Sc (Q.Econ); M.Sc (Stat); M.Phil
Lecturer in Economics
SIBER
University Road
Kolhapur-416004
E-mail: naresh.peesapati@gmail.com
CONTENTS
1.
2.
3.
4.
5.
WTO
Indian Agriculture-Overview
WTO Agreements
Implications
Q&A
Pascal Lamy
Director-General
Pascal Lamy
Director-General
1.WTO
The Bretton Woods Conference(1944)
recommended the establishment of IMF, World
Bank and ITO.
GATT-Genaral Agreement on Tariffs and Trade
As a result of Uruguay round GATT transformed
in to WTO with effect from January 1995
URUGUAY ROUND
Time: September 1986
Venue: Punta del Este in Uruguay
Three basic subjects for discussion:
1.Reducing specific trade barriers & improving
market access
2.Strengthening GATT disiplines
3.Problems of liberalisation of services and TRIPs
& TRIMs
Introduction
Salient features
Product coverage
Implementation period
Peace Clause
Committee on Agriculture
Implication of the agreement
Introduction
The AoA forms a part of the Final Act of the
Uruguay Round.
It was signed by the member countries in April
1994 at Marrakesh, Morocco and came into force
on 1st January 1995
Uruguay Round agreement sought to bring order
and fair competition to the highly distorted
sector of world trade by establishment of a fair
and market oriented agricultural trading sector.
Salient Features
The AoA contains provisions in the following
three broad areas of agriculture and trade policy.
1.Market Access
2.Domestic Subsidy or domestic support
3.Export Subsidy
1. Market Access
On market access , the Agreement has two basic
elements
(i) Tariffication of non-tariff barriers
i.e. quantitative restrictions and export and
import licensing etc. are to be replaced by tariffs
to provide the same level of protection.
Tariffs to be reduced by a simple average of 36%
over 6 years in case of developed countries and
24% over 10 years in case of developing
countries.
2.Domestic Support
Provisions of the agreement regarding domestic
support have two main objectives
1.To identify acceptable measures that support
farmers.
2.To deny unacceptable, trade distorting support
to the farmers.
These provisions are aimed largely at the
developed countries where the levels of domestic
agricultural support have risen to extremely high
levels in recent decades.
Product Coverage
The Agreement defines agri.products by reference o
he harmonised system of product classification.
The definition covers not only basic agricultural
goods such as wheat, milk and live animals but the
products derives from them such as bread, butter,
other dairy products and meat, as well as processed
agricultural products such as chocolates and
sausages.
The coverage includes wines, spirits and tobocco
products, fibres such as cotton, wool and silk, and
raw materials skins destinated for leather
production. Fish and fish products are not included.
Implementation period
The implementation period for the countryspecific commitments is the six-year period
commencing in 1995.
However, developing countries have the
flexibility to implement their reduction and
other commitments over a period of up to 10
years.
Implication of Agreement
Implications of AoA differ from country to
country.
Indian agriculture is characterized by a
preponderant majority of small and marginal
farmers holding less than 2 hectares of land, less
than 35.7 % of land, is under any assured
irrigation system and for the large majority of
farmers , the gains from the application of
science and technology are yet to be realised.
Implications-short period
The share of developing countries in world exports
of food remained 44%
Raw materials increased insignificantly from 32% in
1994 to 34% in 1996.
The average growth of developed countries imports
of agricultural products increased by just 1%.
Indias share in total agricultural exports from
developing Asia is 8%, behind Chinas 19%,
Thailands 17%, Malasiyas 14%, and Indonesias
10%.
Implications-Long Term
To enjoy the gain from the application of
Science& Technology it would require
1.Infrastructural support
2.Improved technologies
3.Provision of inputs at reasonable costs
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