Presentation on theme: "HEAD: Roberto Azevêdo (Director-General) WHEN : 1 st JANUARY 1995 WHERE : GENEVA,SWITZERLAND WITH : 159 MEMBER COUNTRIES, TAJAKISTAN INDUCTED IN MARCH."— Presentation transcript:
HEAD: Roberto Azevêdo (Director-General) WHEN : 1 st JANUARY 1995 WHERE : GENEVA,SWITZERLAND WITH : 159 MEMBER COUNTRIES, TAJAKISTAN INDUCTED IN MARCH 2013 MEANS : 200 MILLION SWISS FRANCS CREATED BY: Uruguay Round negotiations (1986-94) MR PRASCAL LAMY GENEVA
The World Trade Organization — the WTO — is the international organization whose primary purpose is to open trade for the benefit of all. FUNCTIONS: Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations
Introduction Salient features Product coverage Implementation period Implication of the agreement Committee on agriculture Issues Recent news on AOA
The AoA(agreement on agriculture) 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. The WTO’s Agriculture Agreement was negotiated in the 1986–94 Uruguay Round and is a significant first step towards fairer competition and a less distorted sector. WTO member governments agreed to improve market access and reduce trade-distorting subsidies in agriculture.
The AoA contains provisions in the following three broad areas of agriculture and trade policy: Market Access Domestic Subsidy or domestic support Export Subsidy
1.) Market Access Tariffication of non-tariff barriers 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. The only commitment India has undertaken is to bind its tariffs -on primary goods at 100% - on processed foods at 150% and - on edible oils at 300% 2.) Domestic support Provisions of the agreement regarding domestic support have two main objectives: To identify acceptable measures that support farmers. To deny unacceptable, trade distorting support to the farmers. All domestic support is quantified through the mechanism of total Aggregate Measurement of Support(AMS) AMS is a means of quantifying the aggregate value of domestic support or subsidy given to each category of agricultural product.
3 ) Export subsidy The AoA lists several types of subsidies to which reduction commitments apply. However, such subsidies are virtually non-existent in India as exporters of agricultural commodities do not get direct subsidy. Even exemption of Export profits from income tax under Section 80-HHC of the Income Tax Act is not among the listed subsidies.
The Agreement defines agriculture products by reference of the harmonised system of product classification. The definition covers: Agricultural goods such as wheat, milk etc. and the product derive from animal such as butter, meat and other dairy products. As well as processed agricultural product such as chocolates and sausages. It also cover wines, spirits, tobacco products, fibers such as cotton,Wool and silk and raw material skins destined for leather production.
The implementation period for the country-specific 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.
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 of the AoA for India should thus gauged from the impact it will have on the following: Whether the Agreement has opened up markets and facilitated exports of our products. Whether we would be able to continue with our domestic policy aimed at improving infrastructure and provision of inputs at subsidised prices for achieving increased agricultural production.
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%. India’s share in total agricultural exports from developing Asia is 8%, behind China’s 19%, Thailand’s 17%, Malasiya’s 14%, and Indonesia’s 10%.
To enjoy the gain from the application of Science& Technology it would require Infrastructural support. Improved technologies. Provision of inputs at reasonable costs.
The Agreement on Agriculture is overseen by the Committee on Agriculture which reviews progress in the implementation of commitments mentioned above. The Agreement also calls for further negotiations to be initiated before the end of the fifth year of implementation. The Agreement is thus, coming up for review at the end of 1999. India has not undertaken any commitments under the Uruguay Round Agreement on Agriculture (AoA) which constrain us from following our developmental policy with regard to agriculture or which entail any action on our side immediately. We would, however, need to study the implications of removal of quantitative restrictions on market access, subsidy to farmers and tariffs on imports. The structure of the Agreement on Agriculture as it exists today seems to be slightly imbalanced, since it enables countries subsidising the agriculture sector heavily to retain a substantial portion of their subsidies up to the end of the implementation period while those countries which were not using these measures earlier are prohibited to use these measures in future beyond the de-minimis limit.
India argued for additional flexibility by appropriate adjustments to the provisions of the AoA, in order to enable us to pursue our legitimate non- trade concerns. India believes that a focused discussion on the subject will contribute to increased awareness to the non-trade concerns such as food security and rural employment.
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