Wto Agreement on Agroculture
The World Trade Organization (WTO) is the most influential international organizations that provide the framework for formalizing and negotiating trade agreements. Following its establishment in 1995 after the conclusion of Uruguay round bilateral trade negotiations, WTO deals with trade regulation in various countries. Studies outline that, WTO enhances transparency and coherence in trade policies through carrying out surveillance in the global economic in the policy- making (Lal Das, 1998). In this regard, it said that, the agreement on Agriculture was established in 1995 whereby, agricultural products were brought into submission of trade rules (Qureshi, 2006). Agriculture being the primary source of food, employment for majority of population; agreement of agriculture ensures that, there are rules governing trade in agriculture to endorse sustainable development and food security. In essence, there are various measures imposed in the agreement of agriculture such as permitting adjustment of competitive opportunity by imposing custom duty on imported products. In some cases, these agreements impose non-tariff measures that eventually restrict imports. In this regard, the aim of this paper is to discuss WTO agreement on agriculture through highlighting its importance to the trading systems and its impact in both developing and the developed countries.
What agreement on Agriculture does?
It is borne in mind; agreement of agriculture consists of three pillars that include market access, domestic support and export competition (Stoll & Schorkopf, 2006). With this in mind, agreement of agriculture is committed to various subjects. First, in market access, the agreement ensures that both developing and developed convert non-tariffs barriers to simple tariffs. Ensure that tariffs are not increased in certain limit. Additionally, reducing import tariffs by 36% in developed countries and reducing import tariffs by 24% in developing countries. These non-tariff measures are imposed to restrict imports.
Secondly, in export competition, agreement on agriculture permits adjustment of competitive opportunity by imposing export subsidies. For developed countries, the volume and value of export subsidies are reduced by 36% while in developing countries, by 24%. Thirdly, all domestic forms are subjected to rules of WTO through imposing protection against inequitable trade practices in agriculture.
Why the agreement necessary?
It is said that, agriculture agreement imposes procedures and conditions required for protection against inequitable trade practices in agriculture (Qureshi, 2006). In addition, the agreement is vital in governing trade in agriculture by enhancing sustainable development