The Agreement on Agriculture (AoA) is a pivotal treaty that was signed as part of the Uruguay Round of negotiations of the General Agreement on Tariffs and Trade (GATT) in 1994. The AoA has been instrumental in liberalizing global agricultural trade, while also setting guidelines to support sustainable agriculture and food security. In this article, we will explore the features of the Agreement on Agriculture.
Market Access
The Market Access section of the AoA aims to improve market access for agricultural products. It promotes the reduction and elimination of tariff and non-tariff barriers to trade, giving farmers access to new markets. The AoA also seeks to prevent discrimination against imported agricultural products. This is done by setting minimum market access commitments to ensure that agricultural import quotas are not reduced below a certain level without negotiation.
Domestic Support
Domestic support is a contentious issue in global agricultural trade. The AoA establishes three types of domestic support: Green Box, Blue Box, and Amber Box. The Green Box provides subsidies that are considered to be minimally trade-distorting, such as research, development, and environmental programs. The Blue Box allows subsidies that are tied to production limitations, while the Amber Box provides subsidies that have the potential to distort trade.
Export Subsidies
Export subsidies have been a sore point in agricultural trade negotiations, as they are considered to be trade-distorting. The AoA aims to reduce and eliminate export subsidies on agricultural products. Members are required to reduce export subsidies by 36% over a six-year period. Developed countries have the additional obligation to reduce their export subsidies by 24% over the same period.
Special and Differential Treatment
The AoA recognizes the need for special and differential treatment for developing countries, least-developed countries, and net food importing countries. These countries are allowed greater flexibility in implementing the AoA’s provisions and are given more time to comply with the AoA’s market access commitments. The AoA also recognizes the importance of food security and allows developing countries to maintain their food security programs.
Dispute Settlement
The AoA provides a dispute settlement mechanism for resolving any disputes that arise between members. The mechanism allows members to resolve any disputes without resorting to retaliatory measures. The dispute settlement mechanism is designed to be fast, efficient, and transparent, ensuring that any violations of the AoA are dealt with swiftly.
In conclusion, the Agreement on Agriculture has been an important treaty in liberalizing global agricultural trade. It has been instrumental in reducing trade barriers, while also promoting sustainable agriculture and food security. The AoA’s provisions on market access, domestic support, export subsidies, special and differential treatment, and dispute settlement have been critical in ensuring that agricultural trade is fair and equitable.