Explanation – The main objective of the WTO’s Agreement on Agriculture (AoA) is to reduce trade distortions in the agricultural sector. It provides a framework for the long-term reform of agricultural trade and domestic policies, with the aim of leading to fairer competition and a less distorted sector. The overall aim is to establish a fairer trading system that will increase market access and improve the livelihoods of farmers around the world. The agreement will create a level playing field for farmers around the world, particularly those in poor countries and cannot compete with rich countries that artificially boost their exports through subsidies. The Agreement on Agriculture has three major pillars: Market access, Domestic support (subsidies), Export subsidies/competition.

Source: Forum IAS