Presented By: Brij Kishore Bansal Sayantan Patra Sandeep Maharana Sneha Kumari PM Jayakrishnan Ipsita Padhi Aniket

Das

GATT WTO INDIAN AGRICULTURE WTO AND INDIAN AGRICULTURE

GATT was formed in 1947 and lasted until 1994.

On 1 January, 1948 the agreement was signed by

23 countries.

GATT was replaced by the World Trade Organization after the Uruguay Round.

GATT held a total of 8 rounds.

Uruguay Round - 1986-1993 The Uruguay Round began in 1986. This round led to the creation of WTO. The objective of this round was to expand the competence of the GATT to new areas such as services, capital, intellectual property, textiles, and agriculture. 123 countries took part in

the round.

India & World Trade Organization: On April 15,1994, a basis for a new world institution, WTO (World Trade Organization) was laid. It has started function from early 1995. It has replaced GATT (GENERAL AGGREMENT ON TARIFFS & TRADE)

GATT dealt with trade in goods. WTO covers services and intellectual property as well.
WTO dispute settlement is faster, more automatic than GATTs. Its rulings cannot be blocked. WTO reach into domestic areas that where previously immune from external pressures. GATT agreements temporary, WTO agreements are permanent, the agreements themselves describe how the WTO is to function

Free Trade: The basic aim of WTO has been to make international trade free from all barriers. The Gains: These arises from increase in world output/income, increase in world trade & increase in employment . Facilitating Trade expansion: The WTO right from inception has been instrumental in rapid expansion of international trade . Long-term Objective: To establish a fair and market oriented system by substantial progressive reductions in agricultural support and protection.

 Fair and market oriented trading system

Commitments on support and protection

reduction Operationally effective GATT Rules & Disciplines Commitment to Equitable Trade Reform process Greater opportunities and Terms of Access to Developing Countries Concern for LDCs and NFIDCs Concern on Non-trade issues such as Food Security, environment, health, etc.

Agriculture in India has a long history dating back to ten thousand years. Today, India ranks second worldwide in farm output. Agriculture accounted for 17.1% of the GDP in 20092010, employed 52% of the total workforce and despite a steady decline of its share in the GDP, is still the largest economy.

Yields per unit area of all crops have grown since 1950 due to application of modern agricultural practices and provision of agricultural credit and subsidies since Green revolution in India. However, international comparisons reveal that the average yield in India is generally 30% to 50% of the highest average yield in the world.

The Indian Agricultural Research Institute (IARI), established in 1905, was responsible for the research leading to the "Indian Green Revolution" of the 1970s. The Indian Agricultural Statistics Research Institute develops new techniques for the design of agricultural experiments and specializes in statistical techniques for animal and plant breeding.

The low productivity in India is a because of the following factors: The overregulation of agriculture has increased costs, price risks and uncertainty in the sector. Government intervention in labour, land, and credit markets have created problems. Also, India has inadequate infrastructure and services

Illiteracy, general socio-economic backwardness and slow progress in implementing land reforms. Inadequate or inefficient finance and marketing services for farm produce is also a concern. The average size of land holdings is very small due to land ceiling acts. Such holdings are sometimes over-manned, which results in disguised unemployment and low productivity of labour Natural calamities.

The WTO Agreement on Agriculture was one of the main agreements which were negotiated during the Uruguay Round Uruguay Round multilateral trade negotiations were concluded on December 1993 and were formally ratified in April 1994 at Marrakesh, Morocco.

 The WTO Agreement on Agriculture contains

provisions in 3 broad areas of agriculture:

1.

Market Access

2.

Domestic Support
Export Subsidies

3.

1.

2. 3. 4. 5.

This includes tariffication, tariff reduction and access opportunities. Tariffication means that all non-tariff barriers such as... Quotas. Variable levies. Minimum import prices. Discretionary licensing. State trading measures.

This issue is linked to provide state support to farmers in farm production. AMBER BOX BLUE BOX GREEN BOX

The Agreement to reduce Export Subsidies. Developed countries are required to reduce their export subsidy expenditure by 36%. For developing countries are required to reduce their export subsidy expenditure 24%.

To protect its food and livelihood security concerns Protect all domestic policy measures taken for poverty alleviation, rural development and rural employment.

To create opportunities for expansion of agricultural exports.

Reduction in tariffs and non tariff barriers

Amendment in Patent Act

Sui-Generis system

Copyright, Trademark and Industrial designs

Geographic indications

Trade related investment measures (TRIMS)

General agreement on tariffs and trade (GATT)

Except in rice market ,India is negligible force in global market. Domestic subsidies of rich nation will not effect India. Many Indian products are cost effective in domestic market. So, no fear of cheap import flooding Indian market.

It will be just to highlight one issue each where the RICH countries and poor countries need to be honest.
Let us be honest to understand that dominance of politics over economics and fair play will never render justice.