Agreement On Agriculture

Agreement on Agriculture in Global Commerce Policy

In this regard, agreement on agriculture is: one of the outcomes of the Uruguay Round. The entries on trade policy are here. It provides the first effective multilateral framework for the long-term reform and liberalization of agricultural trade. The Agreement establishes new rules and commitments in market access, domestic support and export competition (i.e. the handling of subsidies). The entries on trade policy are here. It encourages the adoption of domestic support policies that are less trade-distorting, and it allows actions aimed at easing domestic adjustment burdens. Some of the measures required by the Agreement are (a) a reduction by developed countries in export subsidy expenditures by 36% over six years in equal instalments, and a 24%-reduction over ten years for developing countries; (b) a cut by developed countries in the volume of subsidized exports by 21% over six years, 14% for developing countries over ten years; domestic subsidies, as calculated through the aggregate measure of support, have to be cut by 20% over six years, calculated from 1986-88 as the base period; and (d) all existing non-tariff measures have to be converted into tariffs and bound, followed by a reduction by an unweighted average of 36% over six years in equal tranches, again with 1986-88 as the base period. For developing countries the cut is 24% over ten years. The Agreement entails minimum access commitments where markets were closed before, and special safeguards under strictly defined conditions to deal with import surges after tariffication. Members have some limited flexibility in the implementation of commitments as long as they meet the agreed end-points. Negotiations aimed at further liberalization of agricultural trade resumed in 2000. See also agriculture and the multilateral trading system, amber box, blue box, green box, continuation clause and peace clause.[1]

Agreement on Agriculturein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Agreement on Agriculture” entry (OAS)

See Also