Which domestic support measures fall under the purview of the Agreement on Agriculture for WTO member countries? Examine the “peace clause” clause in this particular context.
Despite the advancement that has been made in India towards attainment of the millennium development goal two of ending poverty, income and wealth have remainedMENU a major concern in the county. This is evident in several key areas: -Income Inequality: It noted, for instance, that the ratio of earnRead more
Despite the advancement that has been made in India towards attainment of the millennium development goal two of ending poverty, income and wealth have remainedMENU a major concern in the county. This is evident in several key areas:
-Income Inequality: It noted, for instance, that the ratio of earnings between those at the top and bottom of the income distribution has been increasing. While the median of the income is held by the 1% of the total people in the country, half of the population remains deprived of most opportunities and resources available in the nation.
-Wealth Inequality: Income inequality is far worse than wealth concentration because it is easier to achieve the latter because only a few people possess large sums of money. Much of the wealth in the country resides in the hands of a relatively few people and families.
-Rural-Urban Divide: The rural and urban population contrasts clearly, but the poor provide little access to education, health care, and employment.
-Gender Inequality: The ranks of women remain vulnerable to low wages, unemployment and lack of access toyas, and access to resources.
-Caste-Based Inequality: Nonetheless, caste discrimination is still exhibited in the country hence affecting education, employment, and social opportunity of the people as provided in the constitution.
All these have major impacts such as social, political violeces and negative impacts to the economy. These problems can be met with coordinated sequential social program, reasonable taxation policy, as well as education and health care.
See less
The Agreement on Agriculture (AOA), was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), and entered into force with the establishment of the WTO in 1995. It is the first international treaty to recognise a close link between domestic measures and trade policRead more
The Agreement on Agriculture (AOA), was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), and entered into force with the establishment of the WTO in 1995. It is the first international treaty to recognise a close link between domestic measures and trade policies. One of the key objectives of AoA has been to reduce domestic support, but leaving scope for governments to design domestic agricultural policies.
Types of Domestic Support Measures under AoA
Amber Box: (Production or trade distorting measures)
Blue Box: (‘Amber box with conditions”)
Green Box: (measures with no or minimal trade distortive effects)
Development Box: [S&DT (Special and Differential Treatment) box]
An important provision of the Agriculture Agreement is Due Restraint or ‘Peace Clause’, which was adopted in the 2013 Bali Conference and reaffirmed in the 2015 Nairobi meet by making it perpetual (until a permanent solution is mutually reached). It holds that no member can drag any developing country to the Dispute Settlement Mechanism of WTO for violation of De- minimis limits in AoA, provided that the concerned developing country is:
Issues surrounding Peace Clause
Recently, India has invoked the Peace Clause for exceeding the 10% ceiling on the value of production for rice farmers, marking the first time any country has used this clause.
See less