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Indian Journal of Law and Human Behavior

Volume  3, Issue 1, January - June 2017, Pages 53-61
 

Review Article

The Agreement on Agriculture (AoA) of WTO and Its Impact on India

Devidas G. Maley

Assistant Professor & Chairman, Department of Post-Graduate Studies & Research in Law, Gulbarga University, Kalaburagi (Gulbarga)-585106.

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DOI: http://dx.doi.org/10.21088/ijlhb.2454.7107.3117.8

Abstract

The international trade treaties especially the treaties and agreements under World Trade Organization (WTO) have challenged the very existence and livelihood of the farmers throughout the world especially in developing and least developed countries. These treaties undermined the rights of the farmers and subjugated them to the capitalist multinational farming and agri-business corporations which resulting in suicides of thousands of farmers especially in developing countries like India. Though there are multiple international conventions which uphold the rights of farmers are not sufficient to protect the human rights of the farmers as against these monstrous trade treaties especially the Agreement on Agriculture (AoA). The Agreement on Agriculture (AoA) is an international treaty of the WTO. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT),and entered into force with the establishment of the WTO on January 1, 1995. The Agreement on Agriculture has three pillars—domestic support, market access, and export subsidies. Domestic support includes the classification of subsidies into ‘boxes’ depending their effects on production and trade. Market access refers to the reduction of tariff (or non-tariff) barriers to trade by WTO members. Export subsidies are the third pillar. The 1995 Agreement on Agriculture required developed countries to reduce export subsidies. The Agreement is conceived as part of a continuing process with the longterm objective of securing substantial progressive reductions in support and protection. In this light, it calls for further negotiations in the fifth year of implementation which, along with an assessment of the first five years, would take into account non-trade concerns, special and differential treatment for developing countries, the objective to establish a fair and market-oriented agricultural trading system and other concerns and objectives noted in the preamble to the agreement. The possible welfare gains and likely beneficiaries for the facilitation of agricultural world trade formulated by the Agreement on Agriculture remains a matter of debate and concerns. Therefore, the impact of the Agreement on Agriculture on production, price structure and trade in agricultural sector needs proper introspection and evaluation from Indian perspectives. The paper attempts to evaluate and analyse the impact of the agricultural reforms brought about by the Agreement on Agriculture on the Indian agricultural economy.

Keywords: Agriculture; Trade; Production; Market; Tariff; Subsidies, Farmers.
 


Corresponding Author : Devidas G. Maley, Assistant Professor & Chairman, Department of Post-Graduate Studies & Research in Law, Gulbarga University, Kalaburagi (Gulbarga) – 585 106.