1 of 5

Features of WTO Agreement on Agriculture

​

​

​

​

​

​

Dr.S.NAGALINGAM,

M.Com., M.Phil., P.G.D.C.A., Ph.D.,

Assistant Professor,

PG & Research Department of Commerce,

Cardamom Planters’ Association College,

Bodinayakanur.

​

2 of 5

�FEATURES OF WTO AGREEMENT ON AGRICULTURE�

Agreement on Agriculture

The Agreement on Agriculture (AoA) is a WTO treaty that was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) and formally ratified in 1994 at Marrakesh, Morocco. The AoA came into effect in 1995.

​

3 of 5

�Agreement on Agriculture�

  1. According to its provisions, developing countries were to complete their reduction commitments by 2000 and developing countries by 2004.
  2. The Least Developed Countries were not required to make any reductions.
  3. The Agreement covers products that are normally considered part of agriculture but excludes forestry and fishery products and also rubber, sisal, jute, coir and abaca.
  4. The focus of the AoA is the elimination of what are called “trade distorting” agricultural subsidies.
  5. According to the WTO, the overall aim of the Agreement is “to establish a fairer trading system that will increase market access and improve the livelihoods of farmers around the world.” 

​

4 of 5

��The provisions of the WTO Agreement on Agriculture relate mainly to three broad categories of agriculture and trade policy, which are discussed below.�

Market Access

  1. Tariffication – implies all non-tariff barriers to be abolished and converted to tariffs. Non-tariff barriers include variable levies, minimum import prices, quotas, state trading measures, discretionary licensing, etc.
  2. Tariff reduction – Developing countries were obligated to reduce tariffs by 24% in 10 years. 
  3. Access opportunities – Minimum access equal to 3% of domestic consumption in 1986-88 will have to be established for the year 1995 rising to 5% at the end of the implementation period.
    • This head includes improving access to markets by removing trade barriers.

​

5 of 5

�Domestic Support�

    • This concerns the policy support and subsidies given by countries to enhance domestic production. WTO has classified agricultural subsidies and policies into different boxes, which are explained in a section below in detail.

Export Subsidies

    • Here, there are provisions related to member countries’ commitments to reduce export subsidies. 
    • Developed countries are mandated to reduce their export subsidy volume by 21% and expenditure by 36% in 6 years, in equal installment (from 1986 –1990 levels). 
    • Developing countries need to reduce export subsidy volume by 14% and expenditure by 24% over ten years in equal installments.

​