{"id":73919,"date":"2020-12-21T18:58:06","date_gmt":"2020-12-21T13:28:06","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=73919"},"modified":"2020-12-22T12:15:27","modified_gmt":"2020-12-22T06:45:27","slug":"wto-terminologies-aoa-blue-green-amber-box-peace-clause","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/wto-terminologies-aoa-blue-green-amber-box-peace-clause\/","title":{"rendered":"WTO terminologies: Agreement on Agriculture (AoA), Blue| Green| Amber Box, Peace clause"},"content":{"rendered":"

Agreement on Agriculture (AoA)<\/h3>\n

WTO members have taken steps to reform the agriculture sector and to address the subsidies and high trade barriers that distort agricultural trade.\u00a0<\/span>\u00a0<\/span><\/p>\n

What did Uruguay Round\u00a0<\/span><\/b>do<\/span><\/b>?<\/span><\/b>\u00a0<\/span><\/p>\n

Agreement on Agriculture\u00a0<\/span>was negotiated during the Uruguay Round (1986-1994).<\/span>\u00a0<\/span><\/p>\n

The Uruguay Round achieved two things in relation to agriculture.\u00a0<\/span>\u00a0<\/span><\/p>\n

    \n
  1. It introduced specific disciplines on market access, domestic support and export subsidies.<\/span>\u00a0<\/span><\/li>\n
  2. It took away the\u00a0<\/span>traditional \u201cexception\u201d<\/span>\u00a0which agriculture had been hiding from the full force of general GATT disciplines.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    The WTO Agreement on Agriculture came into force in 1995.<\/span>\u00a0<\/span><\/p>\n

    What is the Aim of the Agreement on Agriculture(<\/span><\/b>AoA<\/span><\/b>)?<\/span><\/b>\u00a0<\/span><\/p>\n

      \n
    • The overall aim is to establish a fairer trading system that will increase market access and improve the livelihoods of farmers around the world.<\/span>\u00a0<\/span><\/li>\n
    • 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.<\/span>\u00a0<\/span><\/li>\n
    • The long-term goal of the\u00a0<\/span>AoA<\/span>\u00a0is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through the negotiations and ensuring strengthened and more operationally effective rules and discipline<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

      What\u00a0<\/span><\/b>are the<\/span><\/b>\u00a0<\/span><\/b>important provisions of\u00a0<\/span><\/b>Agreement on Agriculture?<\/span><\/b>\u00a0<\/span><\/p>\n

      The Agreement on Agriculture is fairly short, with only 21 Articles and 5 Annexes<\/span>. But\u00a0<\/span>represents a significant step towards reforming agricultural trade and making it fairer and more competitive.\u00a0<\/span>\u00a0<\/span><\/p>\n

      The important provisions include:<\/span>\u00a0<\/span><\/p>\n

        \n
      • The\u00a0<\/span>Agreement on Agriculture\u00a0<\/span><\/b>mentions that it will\u00a0<\/span>appl<\/span><\/b>y<\/span><\/b>\u00a0to agricultural products<\/span><\/b>.\u00a0<\/span>
        \nThe term Agricultural products not only\u00a0<\/span>cover the basic products\u00a0<\/span><\/b>such as wheat, milk and live animals but also covers the<\/span>\u00a0deri<\/span><\/b>ved products\u00a0<\/span><\/b>such as bread, butter, oil and the\u00a0<\/span>processe<\/span><\/b>d<\/span><\/b>\u00a0products\u00a0<\/span><\/b>such as\u00a0<\/span>chocolate,\u00a0<\/span>yog<\/span>urt, wines, spirits and tobacco products, fibres such as cotton, wool and silk etc.<\/span>\u00a0<\/span><\/li>\n
      • The Agreement on Agriculture has three major\u00a0<\/span>pillars<\/span>. They are<\/span>:\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n
          \n
        1. \n
            \n
          1. Market access<\/span>\u00a0<\/span><\/li>\n
          2. Domestic support (subsidies)\u00a0<\/span>\u00a0<\/span><\/li>\n
          3. Export subsidies\/competition<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n
              \n
            • The\u00a0<\/span>Agriculture Committee\u00a0<\/span><\/b>oversees<\/span>\u00a0the<\/span>\u00a0implementation of the Agreement.<\/span>\u00a0The committee is made up of WTO members and usually meets three or four times a year.<\/span>\u00a0<\/span><\/li>\n
            • The<\/span>\u00a0commitment under the<\/span>\u00a0agreement\u00a0<\/span>are<\/span>\u00a0based on\u00a0<\/span>special and differential treatment\u00a0<\/span><\/b>(Giving\u00a0<\/span>flexible and<\/span>\u00a0different timeline for developing and Least developed countries in implementing the terms<\/span>)<\/span>\u00a0<\/span><\/li>\n
            • The Agreement also has a\u00a0<\/span>Special Safeguard Mechanism (SSM).\u00a0<\/span><\/b>\u00a0SSM means t<\/span>here\u00a0<\/span>is an option available for countries to impose additional<\/span>\u00a0temporary<\/span>\u00a0duties\u00a0<\/span>on<\/span>\u00a0imports<\/span>\u00a0when there is a surge in imports at\u00a0<\/span>a\u00a0<\/span>lower price.<\/span>
              \n<\/span><\/p>\n

              1. What is Market Access?<\/span><\/b><\/h3>\n<\/li>\n<\/ul>\n

              Market access\u00a0<\/span>means\u00a0<\/span>the right which exporters have to access a foreign market.<\/span>\u00a0<\/span>In simple terms<\/span>,<\/span>\u00a0this provision calls for access to imported agricultural goods in the member countries.<\/span>\u00a0<\/span><\/p>\n

              Market Access includes provisions on tariffication, tariff reduction and trade facilitation in agriculture.\u00a0<\/span>\u00a0<\/span><\/p>\n

              Tariffication<\/span><\/b>:<\/span><\/b>\u00a0<\/span><\/p>\n

              Tariffication is the process of conversion of all non-tariff market protection measures\u00a0<\/span>such as quotas<\/span>, sanitary requirements, licences etc\u00a0<\/span>into the tariff equivalents<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

              Tariff reduction:<\/span><\/b>\u00a0<\/span><\/p>\n

              After the tariffication,\u00a0<\/span>T<\/span>ariff reduction\u00a0<\/span>provision mentions the amount of tariff reduction\u00a0<\/span>required<\/span>\u00a0<\/span>from countries.<\/span>\u00a0<\/span><\/p>\n

                \n
              • Developed countries have to reduce tariffs by 36% from tariffication with\u00a0<\/span>the\u00a0<\/span>minimum rate of<\/span>\u00a0<\/span>tariff\u00a0<\/span>reduction of 15% for each item over a\u00a0<\/span>6-year<\/span>\u00a0period.<\/span>\u00a0<\/span><\/li>\n
              • But the D<\/span>eveloping countries\u00a0<\/span>we<\/span>re required to reduce tariffs by 24% from tariffication\u00a0<\/span>over the\u00a0<\/span>next 10 years.<\/span>\u00a0<\/span><\/li>\n
              • Least-developed country Members were required to bind all agricultural tariffs, but not to undertake tariff reductions.<\/span>\u00a0<\/span><\/li>\n
              • Tariff concessions for imports to be maintained at 1986-1988 level at least (\u2018existing\u2019 market access);\u00a0<\/span>\u00a0<\/span><\/li>\n<\/ul>\n

                Trade facilitation:<\/span><\/b>\u00a0<\/span><\/p>\n

                This provision called for\u00a0<\/span>a\u00a0<\/span>certain\u00a0<\/span>percentage o<\/span>f agricultural products should be met from the imported agricultural products<\/span>\u00a0in domestic consumption.<\/span>\u00a0<\/span><\/p>\n