Wto Agreement In Agriculture

The reform of the 2003 CAP, which decoupled most of the existing direct aid, and the sectoral reforms that followed led to the deferral of most aid under the amber box and the blue box to the green box (61.6 billion euros in 2016/2017, see table below). Aid under the “amber box” (AMS) has fallen sharply, from EUR 81 billion at the beginning of the period of the agreement to EUR 6.9 billion between 2016 and 2017, even with successive waves of expansion. The European Union thus largely respects the commitments made in Marrakech (72.38 billion euros per year) for the AMS. In addition, the “blue box” reached 4.6 billion euros during the same notification period. The member transparency toolkit contains information on notification formats and a reporting manual, as well as links to members` lists with commitments and other resources to support member transparency in the agricultural sector. The CAP is also affected by land concessions granted to several multilateral and bilateral agreements under several multilateral and bilateral agreements, as well as unilateral exemptions granted under the Generalized Preference System (GSP). These preferential agreements explain the high level of EU agricultural imports from developing countries (3.2.10, Table VI). While the volume of world agricultural exports has increased significantly in recent decades, its growth rate has remained below that of industrial enterprises, resulting in a steady decline in the share of agriculture in world merchandise trade. In 1998, agricultural trade accounted for 10.5% of total merchandise trade, taking into account trade in services, while agriculture`s share of world exports was 8.5%.

However, in the field of world trade, agriculture still lays ahead of sectors such as mining products, automotive products, chemicals, textiles and clothing, or iron and steel. Among agricultural products marketed internationally, food accounts for almost 80% of the total. The other main category of agricultural products is raw materials. Since the mid-1980s, trade in processed agricultural products and other quality agricultural products has grown much faster than trade in staple foodstuffs, such as cereals. The agreement has been criticized by civil society groups for reducing customs protection for small farmers, an important source of income in developing countries, while allowing rich countries to continue subsidizing agriculture in their own countries. Before the Uruguay Round negotiations, it became increasingly clear that the causes of confusion in global agriculture went beyond the import access problems, which had been the traditional centre of gravity of the GATT negotiations.

This entry was posted in Uncategorized. Bookmark the permalink.