The Agreement on Agriculture (AoA) is a vital trade agreement signed by members of the World Trade Organization (WTO) that governs agricultural trade and subsidies. The agreement was signed under the Uruguay Round of negotiations in 1994 and came into effect in 1995.
The AoA was established with the goal of liberalizing agricultural trade by reducing market-distorting subsidies and tariffs. It seeks to create a fair and open trading system that benefits both developing and developed countries.
Under the AoA, countries are required to reduce agricultural subsidies and open their markets to foreign agricultural products. This is done through a system of tariff reductions, which gradually decreases tariffs to a predetermined level over time. The AoA also includes provisions for reducing non-tariff barriers, such as import quotas and licensing requirements.
The AoA covers various aspects of agricultural trade, including export subsidies, domestic support, and market access. It sets out specific rules for the trade of agricultural products, including rules for the sanitary and phytosanitary (SPS) measures used to protect human, plant, and animal health.
One of the most significant outcomes of the AoA was the establishment of the Special Safeguard Mechanism (SSM), which allows developing countries to impose additional tariffs on imported agricultural products in the event of sudden surges in imports or price declines.
The AoA has been subject to criticism, with some arguing that it has favored the interests of developed countries at the expense of developing countries. Critics have pointed to the fact that developed countries are still able to provide significant agricultural subsidies, while developing countries are expected to open their markets to foreign agricultural products.
Despite these criticisms, the AoA has been credited with helping to reduce trade barriers and increase global food security. It has also paved the way for future negotiations on agricultural trade and subsidies.
Overall, the Agreement on Agriculture under WTO includes a range of provisions aimed at promoting fair and open trade in agricultural products. While it has been subject to criticism, it remains a vital agreement that has helped to increase global food security and reduce trade barriers.
