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Himanshu Kulshreshtha
Himanshu KulshreshthaElite Author
Asked: March 19, 20242024-03-19T10:49:14+05:30 2024-03-19T10:49:14+05:30In: Agriculture Policy

Discuss the role of the World Trade Organization (WTO) in international agricultural development.

Talk about the World Trade Organization’s (WTO) contribution to global agriculture development.

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    1. Himanshu Kulshreshtha Elite Author
      2024-03-19T10:49:33+05:30Added an answer on March 19, 2024 at 10:49 am

      The World Trade Organization (WTO) plays a significant role in shaping international agricultural development through its trade rules, negotiations, agreements, and dispute settlement mechanisms. The WTO's mandate in agriculture is governed by the Agreement on Agriculture (AoA), which seeks to establish fair, transparent, and predictable rules for global agricultural trade. The role of the WTO in international agricultural development can be understood in the following ways:

      1. Market Access: The WTO promotes market access for agricultural products by reducing trade barriers, tariffs, and import quotas through multilateral trade negotiations. Agreements such as the Uruguay Round Agreement on Agriculture (URAA) and subsequent trade rounds aim to liberalize agricultural trade, expand market opportunities for farmers, and foster economic growth and development in agricultural exporting countries.

      2. Domestic Support and Subsidies: The WTO regulates domestic support measures and subsidies provided to agricultural producers to prevent distortions in international trade and competition. The AoA establishes disciplines on domestic support programs, including the Aggregate Measurement of Support (AMS) commitments, de minimis levels, and reduction commitments for trade-distorting subsidies. By limiting excessive support measures, the WTO aims to create a level playing field and promote fair competition in global agricultural markets.

      3. Export Competition: The WTO addresses export subsidies, export credits, and other trade-distorting practices that undermine market access and competitiveness for agricultural products. The AoA contains provisions to discipline and phase out export subsidies, with a view to promoting fair and sustainable trade practices and preventing price distortion in international markets.

      4. Special and Differential Treatment: The WTO recognizes the special needs and circumstances of developing countries in agricultural trade and provides for special and differential treatment (S&D) provisions. These provisions allow developing countries to implement certain trade measures, including tariff protection, domestic support, and safeguards, to support food security, rural development, and agricultural livelihoods while transitioning to more open and competitive markets.

      5. Technical Assistance and Capacity Building: The WTO provides technical assistance, training, and capacity-building support to developing countries to strengthen their trade-related infrastructure, institutions, and regulatory frameworks in agriculture. This assistance aims to enhance developing countries' participation in international trade, improve their compliance with WTO rules, and build their capacity to benefit from global agricultural markets.

      6. Dispute Settlement Mechanism: The WTO's dispute settlement mechanism provides a forum for resolving disputes related to agricultural trade issues, including market access, subsidies, sanitary and phytosanitary measures, and technical barriers to trade. The transparent and rules-based dispute settlement process helps enforce compliance with WTO agreements, resolve trade disputes amicably, and maintain stability and predictability in agricultural trade relations.

      Overall, the WTO plays a critical role in international agricultural development by promoting trade liberalization, market access, and fair competition while addressing challenges such as trade distortions, subsidies, and protectionism. By fostering a rules-based trading system, providing technical assistance, and facilitating negotiations and dispute resolution, the WTO contributes to the sustainable development of agriculture, food security, and rural livelihoods worldwide.

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