Uruguay Round Agreement On Agriculture

These agreements provide some flexibility in implementation by developing countries as well as for WTO members (special and differentiated treatment) and least developed countries (LDCs) and net food-importing developing countries (special provisions). State intervention in agriculture has distorted agricultural production in many countries and produced a high level of inefficiency. Strong support for farmers in industrialized countries has led to large surpluses, which have been sold on the world market through the use of export subsidies, which has often severely depressed the world price of many agricultural raw materials. The effect has been to distort the international production models of those that have been dictated by comparative advantages. Domestic support regimes for agriculture are governed by the agriculture agreement, which came into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through negotiations on promised commitments and safeguards and by defining more effective and operationally effective rules and disciplines. Agriculture is therefore special, because the sector has its own agreement, the provisions of which are given priority. These regions eventually became the three main pillars of the final agricultural agreement. But before that happens, the negotiators would have to set the level of concessions to be made, and that lasted another two years of difficult negotiations. In late 1991, the Director General of the GATT presented a comprehensive draft of the final act, the so-called “Dunkel” project, in the hope of bringing the cycle closer together. The project covered agriculture and all the other areas that will be negotiated during the cycle.

It included the first comprehensive text on agriculture, which presented quantitative proposals for concessions in each of the three main disciplines. The agreement also recognized that there were circumstances in which strict adherence to these principles would be inappropriate. The GATT therefore provided for exceptions and exceptions. In particular, although the EC gave formal approval in May 1992 to the implementation of the MacSharry plan, some obstacles to the GATT agreement remained. The EC was still hesitant to significantly reduce export subsidies and the question remained whether the offsets for CAP reform should be contingent on domestic aid reduction commitments. In principle, agriculture is subject to all WTO agreements and agreements on trade in goods, including the 1994 GATT agreements and WTO agreements on issues such as tariff assessment, import authorisation procedures, due diligence, emergency measures, subsidies and technical barriers to trade. However, in the event of a conflict between these agreements and the agricultural agreement, the provisions of the agreement on agriculture apply. WTO agreements on trade in services and trade aspects of intellectual property rights also apply to agriculture.

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