Agreement On Agriculture (Aoa) Upsc

Famous for trade facilitation agreements and the peace clause As a result of these shortcomings, the WTO was created as an international organization tasked with overseeing the functioning of a rules-based multilateral trading system. The WTO is based on a series of trade agreements negotiated during the Uruguay Round (1986-1994). The Marrakesh Treaty created the WTO at the end of the Uruguay Round. It was considered essential that the four-year-old DDA negotiations make sufficient progress to conclude the Round in 2006. At that meeting, the countries agreed to end all agricultural export subsidies by the end of 2013 and to end all cotton export subsidies by the end of 2006. Other concessions to developing countries included an agreement to introduce duty-free access for products from least developed countries, following the European Union`s “Everything But Arms” initiative, but with up to 3 per cent of tariffs. Other important issues have been left for the continuation of negotiations to be concluded by the end of 2006 The agreement has been criticized by civil society groups for reducing the protection of tariffs for small farmers, an important source of income in developing countries, while allowing rich countries to continue to subsidize agriculture domestics. In WTO terminology, subsidies are generally characterized by boxes that receive the colors of the traffic lights: green (allowed), yellow (slow down, i.e. reduce), red (prohibited). In agriculture, as usual, things are more complicated.

The agriculture agreement does not have a red box, although national aid, which goes beyond reduction commitments in Amber`s box, is prohibited; And there is a blue box for subsidies related to programs that limit production. There are also exceptions for developing countries (sometimes referred to as S&D-D boxes or “development boxes”, including the provisions of Article 6.2 of the Agreement). Until the 1980s, public payments to agricultural producers in developed countries had led to large crop surpluses, dumped on the world market by export subsidies and lowering food prices. The tax burden related to safeguard measures has increased, both due to lower revenues from import duties and higher domestic expenditures. Meanwhile, the global economy had entered a cycle of recession and the perception that open markets could improve economic conditions led to calls for a new round of multilateral trade negotiations. [2] The round would open markets for high-tech services and goods and, ultimately, lead to much-needed efficiencies. To engage developing countries, many of which were “applicants” for new international disciplines, agriculture, textiles and clothing were added to the big deal. [1] On the eve of the GATT Ministerial Conference held in Punta del Este, Uruguay in 1986, the agricultural lobbies of the industrialized countries strongly opposed agricultural compromises. . . .