mechaqua
04-27-2008, 08:55 PM
The World Trade Organization on Agriculture how does it Agenda and policies effect the developing nations of the World
This was the one of the Subjects of recent essay I wrote. All of what i say comes from this essay
"Agriculture is important to the economies of developing nations. The WTO has a policy on agriculture that was established early in its existence called Agreement on Agriculture. This came out of the Uruguay rounds. AOA established three guidelines also known as the “three pillars”. These pillars are: Domestic Support, Market Access, and Export Subsidies. But what do these three pillars mean? (O'Conner)
The domestic support pillar is essentially a way for nations to protect their farmers by using subsidies. It separates into three categories known as “boxes”. One box known as the Green Box contains fixed payments to producers for environmental development programs, as long as the these programs are separated from a nations existing production levels in the agricultural sector. This particular aspect of it is not subject to AoA rules. Another box known as the Amber Box, contains guidelines about subsidies that are viewed as trade distorting. Some of these trade distorting policies include price support for a nations domestic farmers .Nations who have signed the AoA, have agreed to reduce these subsidies, but not eliminate them completely. . The Blue Box is whatever is not covered by the Green or Amber boxes. These are trade subsidy policies that do not distort trade as much as Amber Box policies. The subsidy policies in this box can be increased without any ceiling as long as they can be connected to the production limiting polices which means, that a nation can pay subsidies to its farmers to not grow as much.(O'Conner) This production is controlled and it is common practice in many rich nations. This policy affects the relationship between the rich and poor nations because the developing nations have more money to spend and this is pretty much the bottom line. On production limitations they can grant their farmers more subsidies and thus prices are controlled. Developed nations can have more subsides even though the Amber Box tries to prevent massive subsidies. The amount of wealth that some nations have over other nations is so large that even though the limitations are in place, it doesn’t matter. Developing nations do not have that much money and therefore they can’t pay their farmers yet they still have to limit crops or increase their crop production. The farmers depend on these crops but since the subsidies are so small they lose money. Because of this loss, they get poorer and poorer. If the nation’s economy is dependent on agriculture, the nation gets poorer and poorer, while the rich nations stay rich. The jealousy of the poorer nations cause the relationship between the two nations to become strained (Gilpin)
The second Pillar is the Market Access. What this does is limit tariff and non tariff barriers. It is much harder on the rich nations. Richer nations are supposed to limit their barriers so that poorer nations can import more into their nation. Any country that falls into the least developed nation category is exempt. Despite the rich nations having a much larger reduction in their tariffs, once again the amount of money that a developed nation has is so large that they can afford to do so, while developing nations cannot. Another issue is that the LDC still have either had to change non tariff barriers to an actual tariff by a process of tariffication (http://en.wikipedia.org/wiki/Tariffication) or unite their tariffs, to create a price ceiling which cannot be increased in future. ( O'Conner) If there is a radical change, such as a surplus or a famine, this policy could damage the LDCs economy brutally. There is criticism of this particular policy from different viewpoints. Structuralists believe that this exploits the developing nations. Neo Mercantilists believe limiting tariffs overall hurts the economies of all nations because they are not able to protect their native workers. Both argue that this policy hurts a nation. (McCulloch)
Export subsidies is the last pillar of the AoA. It calls upon the developed nations to decrease their export subsidies by value or volume. If reduced by value, the percentage is higher than if you reduced by volume. Volume is considered more important because the more you export the more money you could possibly receive. ( O'Conner ) Despite the intentions of this pillar, the wealthy nations can still afford to do this and it still does not decrease the gap between rich and poor. (Redclift , Lekais, and. Zanis)
Another argument that comes into play about the AoA is that who is considered a rich nation and who is considered a poor nation? Despite the intensive growth of Chinese and Indian economies, their population is still overall poor according to both UNDP human development index, but in the measurement of Purchasing Power Parity they are rich. ( Niovala )Because it is so difficult to measure the wealth of a nation, it is hard to determine what category a nation falls into. Is it a developed nation or is it a developing nation, and can it be considered a Least Developed nation? (McCulloch)"
Works Cited
Adhikari, Ramesh. Developing Countries in the World Trading System The Uruguay
Round and Beyond. Cheltenham,UK Northhampton M.A. USA: Edward Elgar, 2002.
Boas, Morten, and Desmond McNeill. Global Institutions & Development Framing the
World? New York: Taylor and Francis Group, 2004.
Freiden, Jeffry A., and David A Lake. International Political Economy
Perspectves of Global Power and Wealth. New York : St. Martins Press, 1995.
Gilpin, Robert, and Jean M. Gilpin. The Political Economy of International
Relations. Princeton: Princeton University Press, 1987.
Haynes, Richard. Media Rights and Intellectual Property. Edinburrgh: Edinburrgh
University Press, 2005.
May, Christopher, and Susan K Sell. Intellectual Property Rights a Critical
History. N.p.: Lynne Rienner Publishers Inc, 2006.
McCulloch, Neil, L Alan Winters, and Xavier Ciera. Trade Liberalization and
Poverty Handbook. London: Centre for Economic Policy Research, 2005.
Niovala, Pietro. Comparative Disadvantages? Social Regulations and the Global
Economy. Washington D.C.: Brookings Instituion Press, 1997.
O'Conner, Bernard. Agriculture in WTO Law. London: Cameron May, n.d.
Redclift, M.R., J.N. Lekais, and G.P. Zanis. Agriculture & World Trade
Liberalization Socio-Environmental Perspectives on the Common Agricultural
Policy. New York NY: CAB International Publishing, 1999.
"UNDERSTANDING THE WTO: THE AGREEMENTS Intellectual property: protection and
enforcement." www.wto.org (http://www.wto.org/). World Trade Organization. 24 Apr. 2008
<http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm>.
Weber, Steve, and Jenifer Bussel. Will Information Technology Reshape the
North-South Asymmetry om the Global Political Economy. Cambridge: Harvard
University Press, 2004.
This was the one of the Subjects of recent essay I wrote. All of what i say comes from this essay
"Agriculture is important to the economies of developing nations. The WTO has a policy on agriculture that was established early in its existence called Agreement on Agriculture. This came out of the Uruguay rounds. AOA established three guidelines also known as the “three pillars”. These pillars are: Domestic Support, Market Access, and Export Subsidies. But what do these three pillars mean? (O'Conner)
The domestic support pillar is essentially a way for nations to protect their farmers by using subsidies. It separates into three categories known as “boxes”. One box known as the Green Box contains fixed payments to producers for environmental development programs, as long as the these programs are separated from a nations existing production levels in the agricultural sector. This particular aspect of it is not subject to AoA rules. Another box known as the Amber Box, contains guidelines about subsidies that are viewed as trade distorting. Some of these trade distorting policies include price support for a nations domestic farmers .Nations who have signed the AoA, have agreed to reduce these subsidies, but not eliminate them completely. . The Blue Box is whatever is not covered by the Green or Amber boxes. These are trade subsidy policies that do not distort trade as much as Amber Box policies. The subsidy policies in this box can be increased without any ceiling as long as they can be connected to the production limiting polices which means, that a nation can pay subsidies to its farmers to not grow as much.(O'Conner) This production is controlled and it is common practice in many rich nations. This policy affects the relationship between the rich and poor nations because the developing nations have more money to spend and this is pretty much the bottom line. On production limitations they can grant their farmers more subsidies and thus prices are controlled. Developed nations can have more subsides even though the Amber Box tries to prevent massive subsidies. The amount of wealth that some nations have over other nations is so large that even though the limitations are in place, it doesn’t matter. Developing nations do not have that much money and therefore they can’t pay their farmers yet they still have to limit crops or increase their crop production. The farmers depend on these crops but since the subsidies are so small they lose money. Because of this loss, they get poorer and poorer. If the nation’s economy is dependent on agriculture, the nation gets poorer and poorer, while the rich nations stay rich. The jealousy of the poorer nations cause the relationship between the two nations to become strained (Gilpin)
The second Pillar is the Market Access. What this does is limit tariff and non tariff barriers. It is much harder on the rich nations. Richer nations are supposed to limit their barriers so that poorer nations can import more into their nation. Any country that falls into the least developed nation category is exempt. Despite the rich nations having a much larger reduction in their tariffs, once again the amount of money that a developed nation has is so large that they can afford to do so, while developing nations cannot. Another issue is that the LDC still have either had to change non tariff barriers to an actual tariff by a process of tariffication (http://en.wikipedia.org/wiki/Tariffication) or unite their tariffs, to create a price ceiling which cannot be increased in future. ( O'Conner) If there is a radical change, such as a surplus or a famine, this policy could damage the LDCs economy brutally. There is criticism of this particular policy from different viewpoints. Structuralists believe that this exploits the developing nations. Neo Mercantilists believe limiting tariffs overall hurts the economies of all nations because they are not able to protect their native workers. Both argue that this policy hurts a nation. (McCulloch)
Export subsidies is the last pillar of the AoA. It calls upon the developed nations to decrease their export subsidies by value or volume. If reduced by value, the percentage is higher than if you reduced by volume. Volume is considered more important because the more you export the more money you could possibly receive. ( O'Conner ) Despite the intentions of this pillar, the wealthy nations can still afford to do this and it still does not decrease the gap between rich and poor. (Redclift , Lekais, and. Zanis)
Another argument that comes into play about the AoA is that who is considered a rich nation and who is considered a poor nation? Despite the intensive growth of Chinese and Indian economies, their population is still overall poor according to both UNDP human development index, but in the measurement of Purchasing Power Parity they are rich. ( Niovala )Because it is so difficult to measure the wealth of a nation, it is hard to determine what category a nation falls into. Is it a developed nation or is it a developing nation, and can it be considered a Least Developed nation? (McCulloch)"
Works Cited
Adhikari, Ramesh. Developing Countries in the World Trading System The Uruguay
Round and Beyond. Cheltenham,UK Northhampton M.A. USA: Edward Elgar, 2002.
Boas, Morten, and Desmond McNeill. Global Institutions & Development Framing the
World? New York: Taylor and Francis Group, 2004.
Freiden, Jeffry A., and David A Lake. International Political Economy
Perspectves of Global Power and Wealth. New York : St. Martins Press, 1995.
Gilpin, Robert, and Jean M. Gilpin. The Political Economy of International
Relations. Princeton: Princeton University Press, 1987.
Haynes, Richard. Media Rights and Intellectual Property. Edinburrgh: Edinburrgh
University Press, 2005.
May, Christopher, and Susan K Sell. Intellectual Property Rights a Critical
History. N.p.: Lynne Rienner Publishers Inc, 2006.
McCulloch, Neil, L Alan Winters, and Xavier Ciera. Trade Liberalization and
Poverty Handbook. London: Centre for Economic Policy Research, 2005.
Niovala, Pietro. Comparative Disadvantages? Social Regulations and the Global
Economy. Washington D.C.: Brookings Instituion Press, 1997.
O'Conner, Bernard. Agriculture in WTO Law. London: Cameron May, n.d.
Redclift, M.R., J.N. Lekais, and G.P. Zanis. Agriculture & World Trade
Liberalization Socio-Environmental Perspectives on the Common Agricultural
Policy. New York NY: CAB International Publishing, 1999.
"UNDERSTANDING THE WTO: THE AGREEMENTS Intellectual property: protection and
enforcement." www.wto.org (http://www.wto.org/). World Trade Organization. 24 Apr. 2008
<http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm>.
Weber, Steve, and Jenifer Bussel. Will Information Technology Reshape the
North-South Asymmetry om the Global Political Economy. Cambridge: Harvard
University Press, 2004.