c


   
  

O Ê A moment comes, rarely in history, when we step out from the old to the new,
when an age ends, and when the soul of a nation, long suppressed, finds utterance
2 Ê

AT
  WT 


A AGR
TRE ETR
3 Ê
TR
T
 ‡ T
 T BE ERE
O GATT 2 WT 3



A AGR
TRE 4 WT A



A AGR
TRE
4 Ê GATT ‡ General Agreement on Tariffs and Trade ‡ GATT was formed in O47
and lasted until O4 ‡ was replaced by the World Trade rganization ‡ n O
January, O48 the agreement was signed by 23 countries ‡ GATT held a total of 8
rounds
5 Ê ‡ ruguay Round - O86-O3 The ruguay Round began in O86
t was the most
ambitious round to date, hoping to expand the competence of the GATT to
important new areas such as services, capital, intellectual property, textiles, and
agriculture O23 countries took part in the round
6 Ê WT ‡ World Trade rganization ‡ The WT was born out of the General
Agreement on Tariffs and Trade (GATT) ‡ Headquarters : Geneva, witzerland ‡
ormation : O January O5 ‡ embership : O53 member states ‡ Budget : O63
million 
(Approx)
7 Ê ‡
t is an international organization designed to supervise and liberalize
international trade ‡ The WT has O53 members, which represents more than 5%
of total world trade ‡ WT cooperate closely with 2 other component
 and
World Bank
8 Ê urpose ‡ WT is to ensure that global trade commences smoothly, freely and
predictably ‡ Transparency in trade policies ‡ Work as a economic research and
analysis centre
 Ê Aim ‡ To create economic peace and stability in the world through a multilateral
system based on consenting member states, that have ratified the rules of the WT
in their individual countries as well
O ÊWT s GATT GATT WT ‡
t was ad hoc & provisional ‡
t is permanent ‡
t
has legal basis because ‡
t had no provision for member nations have verified
creating an organization the WT agreements ‡
t allowed contradictions in ‡
ore authority than GATT local law & GATT agreements ‡
t doesn't allow any
contradictions in local law
OO Ê


A AGR
TRE ‡ Agriculture in
ndia has a long history dating back to
ten thousand years ‡ Today,
ndia ranks second worldwide in farm output ‡
Agriculture accounted for O6 6% of the G
 in 27, employed 6% of the total
workforce and despite a steady decline of its share in the G
, is still the largest
economic
O2 ÊER
WE ‡ Yields per unit area of all crops have grown since O5 due to
application of modern agricultural practices and provision of agricultural credit and
subsidies since Green revolution in
ndia ‡ However, international comparisons
reveal that the average yield in
ndia is generally 3% to 5% of the highest
average yield in the world
O3 Ê

T
AT
E ‡ The
ndian Agricultural Research
nstitute (
AR
), established in
O5, was responsible for the research leading to the \"
ndian Green Revolution\"
of the O7s ‡ The
ndian Agricultural tatistics Research
nstitute develops new
techniques for the design of agricultural experiments and specializes in statistical
techniques for animal and plant breeding
O4 ÊRBE The low productivity in
ndia is a result of the following factors: ‡
verregulation of agriculture has increased costs, price risks and uncertainty ‡
Government intervenes in labour, land, and credit markets
ndia has inadequate
infrastructure and services
O5 ʇ
lliteracy, general socio-economic backwardness, slow progress in implementing
land reforms ‡
nadequate or inefficient finance and marketing services for farm
produce ‡ The average size of land holdings is very small due to land ceiling acts
and in some cases, family disputes ‡ uch small holdings are often over- manned,
resulting in disguised unemployment and low productivity of labour
O6 ÊWT A



A AGR
TRE ‡
ntroduction After over 7 years of
negotiations the ruguay Round multilateral trade negotiations were concluded on

ecember O3 and were formally ratified in April O4 at arrakesh, orocco ‡
The WT Agreement on Agriculture was one of the main agreements which were
negotiated during the ruguay Round
O7 ʇ The WT Agreement on Agriculture contains provisions in 3 broad areas of
agriculture O arket access 2
omestic support 3 Export subsidies
O8 Êarket access ‡ This includes tariffication, tariff reduction and access
opportunities ‡ Tariffication means that all non-tariff barriers such as O quotas
2 variable levies 3 minimum import prices 4 discretionary licensing 5 state
trading measures
O Ê
ET
 RT ‡ or domestic support policies, subject to reduction
commitments, the total support given in O86-88, measured by the Total Aggregate
easure of upport (total A)
2 ÊEXRT B


E ‡ The Agreement contains provisions regarding members
commitment to reduce Export ubsidies ‡
eveloped countries are required to
reduce their export subsidy expenditure by 36% ‡ or developing countries the
percentage cuts are 24%
2O Êpecial and
ifferential Treatment O These include purchases for and sales from
food security stocks at administered prices provided that the subsidy to producers
is included in calculation of A 2
eveloping countries are permitted
 untargeted subsidised food distribution to meet requirements of the urban and rural
poor
22 Ê


A¶ 
TET ‡ As
ndia was maintaining Quantitative Restrictions
due to balance of payments reasons(which is a GATT consistent measure), it did
not have to undertake any commitments in regard to market access ‡
ndia does
not provide any product specific support other than market price support
23 ʇ
n
ndia, exporters of agricultural commodities do not get any direct subsidy

ndirect subsidies available to them are in the form of-: ‡ (a) exemption of export
profit from income tax under section 8-HH of the
ncome Tax ‡ (b) subsidies on
cost of freight on export shipments of certain products like fruits, vegetables and
floricultural products
24 ÊWHAT WE WAT ‡
ndia¶s basic objectives in the ongoing negotiations are: ‡ (a)
To protect its food and livelihood security concerns and to protect all domestic
policy measures taken for poverty alleviation, rural development and rural
employment ‡ (b) To create opportunities for expansion of agricultural exports by
securing meaningful market access in developed countries
25 Ê


A & AA ‡ Except in rice market ,
ndia is negligible force in global market ‡

omestic subsidies of rich nation will not effect
ndia ‡ any
ndian products are
cost effective in domestic market ‡ o, no fear of cheap import flooding
ndian
market
26 Ê

t will be ³just´ to highlight one issue each where the R
H
countries and poor countries need to be honest et us be honest to understand that
dominance of politics over economics and fair play will never render justice
27 ʇ ³With malice toward none ,charity for all with firmness in right as god has given
us to see the right, let us strive on to achieve adjust and prosperous nation among
all other nation´





The WT agreement on agriculture provides for:

MÊ reduction of domestic subsidies,

MÊ reduction in export subsidies,
 MÊ tariff reduction, and
MÊ bindings to provide market access

Activists cry foul that
ndian agriculture, already reeling under severe drought and
fall in cash crop prices, will die once the import curbs are removed and free flow of
food items are allowed into
ndia

"There is going to be 'madness' in the agriculture sector armers will be hit hard
by the WT regime What happens to our vegetable oils, rice, rubber, coconuts
and fruits, if similar items can be imported cheaply from other countries," asks K
undaran, a social activist espousing farmers causes in outh
ndia

He says currently there is a massive distortion in the international trade in

agriculture
ndustrialised countries have been giving huge domestic subsidies to
their agricultural sector that there is excessive production, import restrictions and
dumping of agri-products in international markets

But despite the concerns of farmers, many believe the WT rules will not
adversely affect the
ndian agriculture as it is made out

eveloped nations have committed to the WT that they would reduce subsidies
and tariff o then better overseas markets will be available for
ndian agricultural
products

That will further improve the country's rural employment and safeguard the food
security Another advantage for
ndia is that the subsidy reduction requirement
under WT is not applicable to the country As per the WT rules, countries
having less than $O, per capita income annually do not fall under the subsidy
reduction requirement

http://www rediff com/money/2O/mar/3wto htm

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