Agreement Of Agriculture Covers Aspects
The 1947 GATT initially applied to agriculture, but was incomplete, and the signatory states (or “contracting parties”) excluded this sector from the scope of the principles set out in the general agreement. During the period 1947-1994, members were allowed to use export subsidies for primary agricultural products and to impose import restrictions under certain conditions, so that major agricultural raw materials faced trade barriers in unusual proportions in other sectors. The road to a fair, market-oriented agricultural trade system has therefore been difficult and time-consuming; and the negotiations were finally concluded during the Uruguay Round. Agriculture has a special status in WTO agreements and trade agreements (signed in 1994 and entered into force on 1 January 1995), with the sector having a specific agreement, the agriculture agreement, whose provisions prevail. In addition, some provisions of the agreement on the application of plant protection measures (SPS) also concern agricultural production and trade. The same applies to the agreement on trade-related aspects of intellectual property rights (TRIPS) with respect to the protection of geographical denominations. In addition, the provisions of the agreement on agriculture are complemented by the Agreement on Technical Barriers to Trade (OTC) and by technical assistance mechanisms. See News on Agricultural Negotiations See Cotton News Domestic support systems 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. WTO members have taken steps to reform the agricultural sector and address high subsidies and trade barriers that distort agricultural trade. The overall goal is to establish a fairer trading system that improves market access and improves the livelihoods of farmers around the world.
The WTO Agreement on Agriculture, which came into force in 1995, is an important step towards reforming agricultural trade and towards fairer and more competitive development. The Committee on Agriculture is monitoring the implementation of the agreement. 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). Although agriculture has always been under GATT, there have been some significant differences in the rules for primary agricultural products as opposed to industrial products before the WTO. The 1947 GATT allowed countries to use export subsidies for primary agricultural products, while export subsidies for industrial products were prohibited. The only conditions were that agricultural export subsidies should not be used to cover more than a fair share of world merchandise exports (Article XVI:3 of GATT).