The Regulation Of Agricultural Subsidies In The World Trade Organization Framework A Developing Country Perspective

The Agreement on Agriculture (AoA) was adopted to eliminate the illegitimate use of trade distorting agricultural subsidies and, thereby, reduce and avoid the negative effects subsidies have on global agricultural trade. However, the AoA has been fashioned in a way that is enabling developed countries to continue high levels of protectionism through subsidization, whilst many developing countries are facing severe and often damaging competition from imports artificially cheapened through subsidies. The regulation of subsidies by the World Trade Organisation (WTO) has been a highly sensitive issue. This is mainly due to the fear of compromising on food security, especially by developed countries. Developing countries have suffered negatively from the subsidy programmes of developed countries, which continue to subsidize their agricultural sector. This position of developing countries in the global trade system, which has been described as weak, has drawn criticism of the WTO, namely that it does not protect the interests of the weak developing nations, but rather strengthens the interests of the strong developed nations. The green box provisions which are specifically designed to regulate payments that are considered trade neutral or minimally trade distorting have grossly been manipulated by developed countries at the mercy of the AoA. Developed countries continue to provide trade distorting subsidies under the guise of green box support. This is defeating the aims and objectives of the AoA. The study examines the regulation of WTO agricultural subsidies from the developing countries’ perspective. It looks at the problems WTO member states face with trade distorting subsidies, but focuses more on the impact these have on developing states. It scrutinizes the AoA’s provisions regulating subsidies by adopting a perspective to identify any loopholes or shortcomings which undermine the interests and aspirations of developing countries. This is against the background that some of the provisions of the AoA are lenient towards the needs of developed countries at the expense of developing countries.

The publication contains an explanation of Most Favored Nation (MFN) treatment and some of the key issues that arise in its negotiation, particularly the scope and application of MFN treatment to the liberalization and protection of foreign investors in recent treaty practice. The paper provides policy options as regards the traditional application of MFN treatment and identifies reactions by States to the unexpected broad use of MFN treatment, and provides several drafting options, such as specifying or narrowing down the scope of application of MFN treatment to certain types of activities, clarifying the nature of "treatment" under the IIA, clarifying the comparison that an arbitral tribunal needs to undertake as well as a qualification of the comparison "in like circumstances" or excluding its use in investor-State cases.

Farm support is contentious in international negotiations. This in-depth assessment of the legal compliance and economic evaluation issues raised by the WTO Agreement on Agriculture presents consistent support data and forward-looking projections for eight developed and developing countries (EU, US, Japan, Norway, Brazil, China, India, Philippines), using original estimates where official notifications are not available. Variations over time in notified support in some cases reflect real policy changes; others merely reflect shifts in how countries represent their measures. The stalled Doha negotiations presage significantly tighter constraints for developed countries that provide the highest support, but loopholes will persist. Developing countries face fewer constraints and their trade-distorting farm support can rise. Pressure points and key remaining issues if a Doha agreement is reached are evaluated. Vigilant monitoring for compliance of farm support with WTO commitments will be required to lessen its negative consequences whether or not the Doha Round is concluded.

Growing evidence suggests that 'green box' farm subsidies may in fact affect production and trade, harm farmers in developing countries and cause environmental damage. This book brings together new research and analysis examining the relationship between green box subsidies and sustainable development goals, and explores options for future reform.

These conference proceedings explore why policy coherence is important, how it affects global agricultural trade, and whether it can help reduce poverty and hunger.

The volume offers to the reader a multi-faceted dialogue between noted experts from two major agricultural countries, both founding members of the Word Trade Organisation, each one with different stakes in the great globalisation game. After providing the recent historical background of agricultural policies in India and France, the contributors address burning issues related to market and regulation, food security and food safety, the expected benefits from the WTO and the genuine problems raised by the new forms of international trade in agriculture, including the sensitive question of intellectual property rights in bio-technologies. This informed volume underlines the necessity of moving beyond the North-South divide, in order to address the real challenges of the future.

'The WTO Agreement on Agriculture' provides an in-depth examination of the substantive provisions and the disputes that have arisen in each of these three areas - market access domestic support and export competition.

This study focuses on export promotion schemes that developing countries may use without violating international trade rules. It examines the rules themselves ndash; the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures for industrial goods and the Agreement on Agriculture for agricultural products ndash; and looks at schemes currently in place in the developing world.