Agriculture Agreement Under Wto

The European Union`s bound commitments covered 1,764 tariff headings. The average bound tariff rate for food, which was 26 % at the beginning of the implementation period, was only 17 % at the end of the period. In addition, on 775 lines out of a total of 1,764, the European Union has not imposed a customs duty or a minimum duty. Only 8% of tariff headings have a customs duty of more than 50%. These customs peaks apply to dairy products, beef, cereals and cereal products as well as sugar and sweeteners. With regard to tariff quotas, the European Union has set a total of 87 quotas, of which 37 are part of “minimum access” and 44 of which are “current access”. In 2014, around 71% of agri-food imports, worth €72 billion, were imported into the EU duty-free. On the eve of the GATT Ministerial Conference held in Punta del Este, Uruguay in 1986, the agricultural lobbies of the industrialized countries strongly opposed the agricultural compromises. In this context, the idea of excluding “trade-neutral” production and subsidies from WTO commitments was first proposed by the US in 1987 and reiterated shortly thereafter by the EU. [2] By ensuring continued support for farmers, it has also neutralised resistance. In exchange for the inclusion of agriculture in WTO disciplines and a commitment to reduce trade-distorting subsidies in the future, industrialized countries would be allowed to maintain subsidies that “cause no more than minimal trade distortions” in order to achieve various public policy objectives. [1] National agricultural support schemes are governed by the Agreement on Agriculture (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term objective of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process by negotiating commitments on assistance and protection and establishing stronger and more operationally effective rules and disciplines.

Agriculture is therefore special because the sector has a separate agreement whose provisions are given priority. WTO members have taken steps to reform the agricultural sector and tackle high subsidies and trade barriers that distort agricultural trade. The overall goal is to create a fairer trading system that improves market access and improves the livelihoods of farmers around the world. The WTO Agreement on Agriculture, which entered into force in 1995, is an important step in reforming agricultural trade and making it fairer and more competitive. The Committee on Agriculture and Rural Development monitors the implementation of the agreement. (a) `aggregate measure of support and AMS` means annual cash support for an agricultural product for producers of the basic agricultural product or non-specific support for agricultural producers in general, with the exception of support under programmes considered exempt from the reduction in accordance with Annex 2 to this Agreement; The deal has been criticized by civil society groups for reducing customs protection for smallholder farmers, an important source of income in developing countries, while allowing rich countries to continue subsidizing domestic agriculture. .

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