WTO provisions related to international trade are now similarly applicable to agriculture which was brought within the fold of GATT in the Uruguay Round of. Agreement (SPS) of WTO and Its. Implications for India. 23 – 5. India & World Trade Organization (WTO): WTO Agreement on Agriculture. Special articles ___. WTO and Viability of Indian. Agriculture. The experience of the s clearly demonstrates that far from trade liberalisation dampening the.


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The applied tariffs cannot ordinarily exceed the bound customs tariffs in the WTO Member countries. Special Products This is a special and differential treatment provision that allows developing countries some flexibility in the tariff wto and indian agriculture that they are required to make on a designated number of products.

Wto and indian agriculture is critical for countries such as India to meet their food and livelihood security concerns and rural development needs. Special Safeguard Mechanism This is another special and differential treatment provision exclusively for developing countries that gives them the right to have recourse to a Special Safeguard Mechanism SSM based on import quantity and price triggers.


The SSM is important for developing countries in order to protect their poor and vulnerable farmers from the adverse effects of an import surge or price fall. The safeguard duties wto and indian agriculture the proposed SSM would be triggered by either an import quantity trigger or a price trigger.

The trigger for invoking the SSM determines when the safeguard duty can be imposed. Tariff Capping This is primarily a developed country concern, particularly some countries belonging to the G, namely, Japan, Iceland, Switzerland and Norway.

These countries impose prohibitively high tariffs on their agricultural products. Tariff capping would bring down these very high tariffs, over and above what would be required by the tariff reduction formula.

Ministry of Commerce and Industry

These countries use a large number of non-ad valorem NAV tariffs on their agricultural imports. Developing countries, on the other hand, rely predominantly on ad valorem AV duties. NAV duties act as an additional layer of non-transparent protection.

Wto and indian agriculture is for these reasons that seeds were freely importable even now. The agreement on trade related intellectual property rights TRIPs provides the signatory countries with the option to exclude plants and animals from the scope of patentability.

  • GATT, WTO and Indian Agriculture
  • WTO Agreement on Agriculture
  • Impact of WTO on Indian Agriculture
  • Presentation on theme: "Impact of WTO on Indian Agriculture"— Presentation transcript:
  • GATT, WTO and Indian Agriculture

This provision shall be reviewed wto and indian agriculture years after the entry into force of this agreement.

Thus, it is quite clear that the agreement did not impose any compulsion regarding patenting of seeds or other propagating material. If the plant varieties were to be protected by patents, the farmers having bought the protected seeds would not be able to keep back a part of harvested material to be used for sowing in successive crops.

The committee also expressed in its report on Dunkel draft that these safeguards should find specific mention in the GATT.

Impact of WTO on Indian Agriculture - ppt video online download

The new GATT agreement has stipulated that countries with an aggregate subsidy of more than 10 per cent of the value of total agricultural produce will have to reduce them.

Reduction of subsidy to agriculture under the agreement applied to developing countries like India, only if the value of subsidies exceeded 10 per cent of the value of their total agriculture production. In India, the aggregate value of agricultural subsidies was not only far below the 10 per cent limit but also negative.

Currently, the agricultural subsidy in India is ruling at the rate of 5 per cent of the value of agricultural produce compared with far higher rates in Japan and E. Clubbing of product and wto and indian agriculture agricultural subsidies will allow much greater flexibility to provide subsidies for agricultural production.

Thus, the Dunkel plan would in no way prevent India to subsidies its farmers in non-product specified subsidies like fertilizers, water, seeds, credits and pesticides wto and indian agriculture they do not exceed five per cent in India.


In case of product-specific subsidies such as minimum support price, official estimates show that for 17 out of 20 items subsidies in India remain negative.

Only in case of sugarcane, groundnut and tobacco, subsidies remain positive but were still lower than 10 per cent threshold.

Thus, under the new agreements, all major wto and indian agriculture support programmes were exempted from subsidy reduction commitments. These included research, plant protection and disease control, extension services, training, provision of infrastructure, regional assistance programmes, environmental programmes, income support programmes, public stock holding for food security purposes, domestic food aid, crop insurance schemes, investment subsidies and input subsidies for low income and poor farmers.

Moreover, under the new agreement, consumer subsidies under the public distribution system PDS for the rural and urban poor are legitimate and are thus permitted. Thus, there is an explicit provision for exempting public distribution system from the agreement. Accordingly, PDS in India can therefore be continued.


Thus, from the Indian perspective the Dunkel Draft on agriculture is a kind of mixed bag with the plus points outweighing the minus.

The Agreement also specifies that for products not subject to export subsidy reduction commitments, no such subsidies can be granted in the future. Of course, for some agricultural wto and indian agriculture like skimmed milk powder, maize, rice, spelt wheat, millets etc.

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