Agreement on Agriculture: What’s in it for India?

Recently, there has been a lot of buzz around the Agreement on Agriculture (AoA) and its impact on India. To understand this, let’s first understand what AoA is all about.

AoA was signed in 1994 as part of the World Trade Organization (WTO) agreement to bring agriculture under the ambit of the multilateral trading system. Its three key objectives are: to improve market access for agricultural products, to reduce agricultural subsidies and to promote fair competition in agriculture.

So, what does this mean for India?

Market Access: Developing countries like India were expected to benefit from better market access for their agricultural products. However, this has not happened as expected because of non-tariff barriers like sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT). Developed countries have used these measures to restrict the import of agricultural products from developing countries, including India.

Subsidies: Developed countries have provided massive subsidies to their farmers, which has resulted in the overproduction of agricultural products. This excess production is then dumped in developing countries like India, leading to a decline in the price of local agricultural produce. The AoA was supposed to reduce these subsidies, but this hasn’t happened as expected. The developed countries have found loopholes to continue providing subsidies to their farmers.

Fair Competition: India has been pushing for fair competition in agriculture, but this has been a challenge due to the unequal playing field. Developed countries have used non-tariff barriers and subsidies to their advantage, which has made it difficult for developing countries like India to compete.

So, what needs to be done?

India and other developing countries need to push for better implementation of the AoA. This can be done by addressing the issues of non-tariff barriers, subsidies and fair competition. There is also a need to push for reforms in the WTO to make it more inclusive and responsive to the needs of developing countries.

In conclusion, the AoA has not delivered as expected for developing countries like India. However, there is still hope if the issues of non-tariff barriers, subsidies and fair competition are addressed. It is time for India and other developing countries to take the lead in pushing for better implementation of the AoA and for reforms in the WTO.