Agreement on agriculture


The term “Agreement on Agriculture” typically refers to the agreement established under the World Trade Organization (WTO) known as the Agreement on Agriculture (AoA). The AoA is a significant international agreement that aims to liberalize and regulate global agricultural trade. The Agreement on Agriculture was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) and was incorporated into the establishment of the WTO in 1995. Its main objective is to create a fair and market-oriented agricultural trading system while also addressing various trade-related concerns in the agricultural sector. The AoA covers three main areas: 1. Market access: This aspect focuses on reducing trade barriers such as import tariffs and quotas, aiming to provide improved access to markets for agricultural products. WTO members agreed to progressively reduce tariffs and establish tariff-rate quotas to facilitate trade. 2. Domestic support: The AoA addresses domestic support measures that can distort agricultural trade. It categorizes subsidies into different “boxes” based on their trade-distorting nature. Green box measures, which are minimally trade-distorting or non-trade-distorting, are allowed without limits. Blue box measures are considered minimally trade-distorting, but with certain constraints. Amber box measures are considered trade-distorting and are subject to reduction commitments. 3. Export competition: The agreement seeks to address the use of export subsidies and other forms of trade-distorting practices in agricultural exports. Members agreed to gradually reduce export subsidies and limit their use to specific agricultural products. The Agreement on Agriculture has been subject to ongoing negotiations and discussions since its establishment. It has been a topic of debate among WTO member countries, with differing views on issues such as market access, domestic support, and the impact on developing countries’ agricultural sectors. It’s important to note that the specifics of any recent developments or changes in the Agreement on Agriculture would depend on the current state of international negotiations and the most up-to-date information available. As my knowledge is based on data up until September 2021, I may not have the latest details on any recent agreements or modifications made to the Agreement on Agriculture.

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