The Agreement on Agriculture (AoA) is a treaty adopted by the World Trade Organization (WTO) in 1994. It is a comprehensive agreement that regulates all aspects of agricultural trade, including market access, domestic support, and export subsidies. The AoA was negotiated during the Uruguay Round of multilateral trade negotiations that took place from 1986 to 1994.
The AoA aims to liberalize agricultural trade by reducing trade barriers, increasing market access, and limiting domestic subsidies that distort trade. One of the key objectives of the agreement is to establish fair competition in agricultural markets by eliminating trade-distorting practices. The agreement also recognizes the importance of food security and the need to protect the environment.
Under the AoA, WTO member countries are required to make commitments in three areas:
1. Market access: This refers to the degree of openness of a country`s agricultural markets to foreign goods. Each member country must provide access to foreign agricultural products that is consistent with its commitments under the WTO. This means that countries cannot discriminate against foreign products or impose unreasonable barriers to trade.
2. Domestic support: This refers to the financial and other support provided by a country`s government to its domestic agricultural sector. The AoA sets limits on the amount of domestic support that WTO member countries can provide in order to reduce the distortion of trade. Countries must also ensure that their domestic support measures do not result in overproduction and excess capacity.
3. Export subsidies: This refers to the financial support provided by a country`s government to its exporters of agricultural products. The AoA sets limits on the amount of export subsidies that WTO member countries can provide in order to reduce the distortion of trade. Countries are also required to phase out their export subsidies over time.
The AoA has had a significant impact on global agricultural trade since its adoption in 1994. It has led to increased market access for agricultural products, reduced trade-distorting domestic support, and the phasing out of export subsidies. However, some critics argue that the agreement has not gone far enough in addressing the needs of developing countries, which often rely heavily on agriculture for their economic development.
In conclusion, the Agreement on Agriculture is an important treaty that regulates all aspects of agricultural trade for WTO member countries. It aims to liberalize agricultural trade, reduce trade barriers, and limit domestic subsidies that distort trade. Although it has had a significant impact on global agricultural trade, there are ongoing debates about its effectiveness and its ability to address the needs of developing countries.