Question 1. What Is The Agreement On Agriculture?
The Agreement on Agriculture (AoA) came into force on 1 January 1995 and brought no longer simplest all fundamental agricultural products however also the goods derived from them below multilateral guidelines and commitments. Also included are wines, spirits, tobacco products, fibres together with cotton, wool and silk and uncooked animal skins for leather production. Fish and fish products are not covered; nor are forestry merchandise.
The AoA prescribes regulations inside the areas of market get entry to (price lists and tariff price quotas), domestic guide (production related subsidies) and export opposition (export subsidies, export credit and international meals useful resource). These 3 factors are usually referred to as the “pillars” of agricultural exchange reform. The commitments of member nations in every of the three “pillars” are contained of their man or woman schedules. The commitments have been implemented over a duration of 6 years by using advanced nations and 10 years through developing international locations beginning from 1995.
Question 2. Does The Wto Determine The Customs Tariffs On Import Of Agricultural Products?
Customs tariff is the obligation charged at the import of any excellent into the domestic territory of a country. WTO Member nations are anticipated to “bind” their customs price lists, in different words, they're anticipated to notify the ceiling quotes of price lists. The price lists which might be really imposed with the aid of the Customs government on imports into a rustic are the applied customs price lists. Each Member is free to set the implemented customs price lists. The best limit is that the carried out tariff of the Member on an agricultural product can't exceed the certain customs tariff at the product.
For example, the “sure” customs duty on wheat notified to the WTO by India at the cease of the Uruguay Round is 70%. Customs duty on wheat imposed by using India can't consequently be increased beyond 70%.
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Question three. Rules For Multilateral Trade In Agricultural Products Were Already In Place At The End Of The Uruguay Round. What Is The Purpose Of The Agricultural Negotiations Under The Doha Round?
Negotiations within the Doha Round are aimed at establishing a honest and market-oriented trading gadget via a software of fundamental reform encompassing bolstered regulations and unique commitments on help and protection a good way to correct and prevent restrictions and distortions in world agricultural markets. These objectives are to be found out through large upgrades in marketplace get right of entry to for agricultural merchandise; discount and eventual phasing out of all styles of export subsidies; and full-size discounts in change-distorting home assist.
Thus, whilst the AoA is the first multilateral settlement for introducing disciplines in appreciate of agricultural alternate, the Doha negotiations are aimed at similarly decreasing subsidies that distort agricultural markets and lowering limitations to marketplace get right of entry to.
Question four. Can We Use Non-tariff Measures On Imports Of Agricultural Products?
Market get entry to problems dealt by means of the AoA are constrained to price lists and tariff rate quotas. Before the Uruguay Round, some agricultural imports were ruled by numerous styles of quotas and different non-tariff measures (NTMs). These measures have been transformed into their tariff equivalents, i.E. They provide greater-or-less equivalent tiers of safety as did the NTMs. Conversion of the quotas and other styles of NTMs into tariffs is called “tariffication”. The AoA prohibits using non-tariff measures which can be completely for agricultural products. It effectively approach that tariffs are commonly the best border protection degree allowed. However, participants can resort to non-tariff measures under the stability-of-payments provisions and different non-agriculture particular provisions of GATT 1994 and other multilateral trade agreements which are applicable to general trade in goods (commercial or agricultural).
Question 5. Was India Required To Cut Its Tariffs On Agricultural Products As A Result Of The Uruguay Round Of Agriculture Negotiations?
Uruguay Round participants agreed that evolved countries would cut their dedicated bound tariffs with the aid of a median of 36%, in equal steps over six years. Developing countries had to lessen their sure price lists by means of 24% in 10 years.
Several growing nations like India used the option of presenting ceiling tariff quotes in place of tariffication. India opted to achieve this as it was retaining quantitative restrictions as a consequence of Balance of Payment problems, which had been eliminated in March 2001.
At the give up of the Uruguay Round, India had certain its price lists on most items, at one hundred% for primary merchandise, one hundred fifty% for processed merchandise and three hundred% for fit to be eaten oils. Bound tariffs on some products (comprising about 119 tariff strains) had been lower on account that they had been historically bound at a lower degree in the earlier Rounds of multilateral change negotiations.
Subsequently, however, negotiations have been performed below GATT Article XXVIII and the binding stages have been revised upwards in December 1999 on 15 tariff strains consisting of skimmed milk powder, spelt wheat, paddy, rice, maize, millet, sorghum, rape, colza and mustard oil, sparkling grapes and many others.
Question 6. How Are Subsidies Provided To Farmers Of Any Concern To The Wto?
The purpose why it changed into considered necessary to lessen and field home support regulations that guide home costs, or subsidize production in some different manner, is they encourage over-production. This squeezes out imports or leads to export subsidies and inexpensive dumping on international markets.
Question 7. Are Subsidies To Farmers Completely Prohibited Under The Aoa?
No. The AoA distinguishes among help programmes that stimulate manufacturing immediately, and people which can be considered to don't have any direct impact. Subsidies that are in the nature of programmes having direct consequences on manufacturing and alternate, called the “Amber Box”, have to be reduced. In the terminology utilized by the AoA, those subsidies are known as “combination measurement of aid” or “AMS”. Developed countries were required to lessen their AMS as existing in the course of 1986-88 (the “base period”) by using 20% over six years beginning in 1995. Developing nations had to reduce their AMS by means of 13.Three% unfold over a ten-yr duration. Least-developed countries have been now not required to make any cuts.
Question 8. Did India Have To Reduce Subsidies Provided To Its Farmers As A Consequence Of The Uruguay Round Negotiations?
India was no longer required to lessen any of the subsidies given to its farmers. This is because India's general AMS changed into well below the ceiling prescribed in the AoA.
Moreover, developing international locations were provided 3 extra exemptions, particularly,
investment subsidies which might be generally to be had to agriculture;
agricultural enter subsidies generally available to low-earnings or resource-bad manufacturers; and
home guide to manufacturers to encourage diversification from growing illicit narcotic crops.
Question nine. Are Subsidies On Exports Of Agricultural Products Permitted?
The AoA prohibits export subsidies until the subsidies are specified in a member's agenda of commitments. Where they're listed, the settlement requires WTO contributors to cut each the amount of money they spend on export subsidies and the portions of exports that receive subsidies. Taking averages for 1986-90 because the base stage, developed countries agreed to reduce the value of export subsidies with the aid of 36% over six years and growing countries by way of 24% over ten years starting in 1995. Developed international locations additionally agreed to reduce the portions of sponsored exports by means of 21% over the six years (14% over 10 years for growing countries). Least-advanced nations had been no longer required to make any cuts. During the six-12 months implementation length, growing nations were allowed underneath positive conditions to use subsidies to reduce the fees of advertising and marketing and transporting for exports.
Question 10. What Are Modalities?
Negotiating Groups have been constituted within the WTO on each element of the negotiations. From time to time, based totally on the views expressed by means of the WTO Members, the Chairs of those Groups convey out draft modalities containing proposals that might help recognize the objectives of the negotiations. In the agriculture negotiations, the draft modalities encompass formulas and different methods for use to lessen price lists and agricultural subsidies. The Chair of the Negotiating Group on Agriculture brought out Draft Modalities on Agriculture on 17 July 2007 ; 1 and based totally on the multilateral discussions, brought out in addition revised draft versions on 8 February , 19 May and 10 July 2008 . The revised draft text of 10 July 2008 shaped the idea of dialogue throughout the Mini-Ministerial assembly of the WTO in Geneva in July 2008. A fourth revised draft version become issued on 6 December 2008.
Question 11. Which Are The Main Coalition Groups In The Agriculture Negotiations? Is India A Member Of Any Coalition?
The most important coalition companies within the agriculture negotiations are the G-20, the G-10, the G-33, the Cairns Group, the African Group, the African-Caribbean-Pacific (ACP) Group and the Cotton-4 (Benin, Burkina Faso, Chad and Mali). Other groupings include the group of small and prone economies (SVEs), Least developed nations (LDCs) and the Tropical Products institution. India is a member of the G-20 and G-33 coalition agencies. The G-20, led by Brazil, is a coalition of growing countries urgent for ambitious reforms of agriculture in advanced nations with a few flexibility for growing international locations. The G-33, led with the aid of Indonesia, is spearheading the developing u . S . A . Attempt to reach at great modalities on Special Products and the Special Safeguard Mechanism as provided for within the mandate of the Doha Round. These measures are essential components of the unique and differential treatment provisions for growing nations.
Question 12. How Will Agricultural Tariffs Be Reduced In The Doha Round?
There are two essential elements in the market access modalities which might be at the table:
Band-wise tariff reductions; and
Flexibilities or deviations from the prescribed tariff reductions to be utilized by members (developed and developing) to deal with their special wishes.
Tariffs are proposed to be cut in keeping with a formulation, which prescribes steeper cuts on better tariffs. These discounts are to be made from sure costs.
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Question 13. Will Tariffs On All Agricultural Products Be Cut As A Result Of The Doha Round Negotiations?
The mandate of the Doha Round gives for flexibilities or deviations from the prescribed tariff reductions to be used by participants (each developed and developing) to deal with their unique wishes.
Question 14. Will India Continue To Have Adequate Policy Space To Raise Tariffs On Agricultural Products Even After The Doha Round?
The tariff cuts to be taken by growing nations could be moderated through 4 flexibilities which are constructed into the mandate of the Doha Round:
Developing countries are required to undertake no greater than a maximum normal average cut of 36%. If the band-wise cuts defined above result in an usual average reduce higher than 36%, they can take a lower cut proportionately across bands to maintain within 36%. A easy slotting of India's tariffs into the proper tariff band and the relevant reduce, results in an overall average cut of round 41%. So, we will scale back the cuts with the aid of the same factor in each band so that the general common reduce is not any greater than 36%.
Question 15. How Will India Protect The Interests Of Its Poor And Vulnerable Farmers?
The Hong Kong Ministerial Declaration of December 2005 presents that growing u . S . A . Contributors might have the power to self-designate an appropriate variety of tariff lines as “Special Products” (SPs) guided via indicators based at the criteria of meals security, livelihood safety and rural development. This is a unique and differential remedy provision that allows developing international locations some flexibility in the tariff cuts that they're required to make on these products.
Question sixteen. Will The List Of Products To Be Designated As Sps Be Decided In The Negotiations?
No, Special Products may be self-unique, that is, once the modalities are finalised, the developing u . S . A . Member will determine which of its merchandise it wants to designate as SPs. Once this is determined, the listing would be notified to the WTO as part of the Member's time table of commitments below the Doha Round.
In India's case, the listing of SPs might be decided via the Ministry of Agriculture and Cooperation, the Ministry of Food Processing Industries, the Department of Commerce and different businesses worried in consultation with State Governments.
Question 17. Will Developed Countries Be Allowed To Shield Some Of Their Agricultural Products From Full Tariff Cuts?
Members (each developed and developing) may also designate the best number of tariff lines to be handled as touchy, on which they might undertake lower tariff cuts. Even for those merchandise, however, there must be “widespread development” in marketplace get right of entry to, and so the smaller cuts would ought to be offset through tariff price quotas, as a result improving the possibilities of market get admission to. According to the draft modalities of 6 December 2008, evolved international locations can designate 4% of tariff traces as touchy products; for contributors with extra than 30% of their tariff lines within the pinnacle tariff band (seventy five+band), a higher entitlement of 6% is proposed.
Developing countries can designate one-1/3 more (5.Three% or eight%) of products, as Sensitive Products. Almost 35% of India's agriculture tariff strains are inside the pinnacle band of 130+ and therefore, the sensitive product entitlement might be 8%. In different words, India would have the flexibility to take lower cuts than would otherwise be required beneath the tariff discount formula on eight% traces, the usage of one of the alternatives for developing countries that don't require provision of get right of entry to through tariff quotas.
Question 18. Would Developing Countries Also Be Required To Provide Tariff Rate Quota Access To Compensate For The Lower Cuts On Their Sensitive Products?
For developing countries the quota growth is -thirds of the quantities for developed nations, and home intake does no longer include subsistence farmers' intake of their personal produce.
Instead of providing tariff charge quotas, growing usa Members can take the full system cuts on all their Sensitive Products however over an implementation period 3 years longer than everyday
Question 19. Did India Use The Special Safeguard Provisions Available In The Agreement On Agriculture? Will Developing Countries Have Recourse To Any Emergency Safeguard Measures In The Doha Round?
The AoA allowed Members to take special emergency moves (“unique safeguards” through manner of imposition of a further tariff) in the case of merchandise whose non-tariff restrictions have been transformed to tariffs, so as to save you rapidly falling prices or surges in imports from hurting their farmers. The right to achieve this was reserved through 38 members and for a restrained number of merchandise in each case. India turned into not entitled to accomplish that as it exercised the option of binding its price lists rather than “tariffication” of quantitative regulations (attributable to stability of payments problems).
Question 20. Will Members Continue To Have Recourse To The Special Safeguard (ssg) After The Doha Round?
In the Doha Round, the talk has been approximately whether or not to do away with the SSG, or lessen the range of products for which it could be invoked and to constrain it. The G-20 has always maintained that this is a transitional device and ought to be eliminated on the earliest. The EC, Switzerland, Japan and Norway need the SSG to preserve.
The Chair's 6 December 2008 text proposed that on the primary day of implementation, advanced usa Members might reduce the quantity of traces eligible for the SSG to one% of scheduled tariff traces and put off the SSG no later by means of the stop of the 7th year of implementation.
For growing us of a Members the SSG coverage would be reduced to no more than 2.5% of tariff strains on the first day of implementation. For Small and Vulnerable Economies (SVEs) the SSG insurance shall be decreased to no greater than five according to cent of traces over 12 years.
Question 21. Have Solutions Been Found To The Ssm Issues That Became Contentious During The July Mini-ministerial Meeting?
Negotiations on those issues started first informally in September 2008 and then in the WTO's Agriculture Negotiating Group from October 2008. This persisted till early December but solutions endured to elude the negotiators.
In the 6 December 2008 version of the draft modalities, the Chair has left the segment on SSM untouched. However, he has given his suggestions for a probable option to the above UR certain hassle in a separate paper (TN/AG/W/7) also introduced out on 6 December 2008.
Question 22. Apart From Caps On The Overall Trade-distorting Support, Are Caps Proposed On The Support For Individual Products As Well?
Yes, this Round also seeks to location limits on subsidies at the extent of products, with the intention to keep away from moving support among distinct merchandise. For nations other than america, the ceiling or maximum level will be the common support really provided at some stage in the Uruguay Round implementation length (1995-2000). The calculation for america would be based totally on general Amber Box assist for particular products in step with year for that period however shared amongst merchandise consistent with the common share over the years 1995-2004. Another special dispensation, implicitly for america, is they can start with a cap that is 30% higher than the scheduled limits.
Question 23. Will The De Minimis Levels Of Support Permissible Also Be Reduced In This Round? Will This Lead To India Having To Reduce Any Of Its Subsidies For Its Farmers?
De minimis guide additionally needs to be reduced within the Doha Round, with special treatment for developing nations. Developed international locations are to cut by means of 50% from day one (i.E. Cap at 2.Five% of the fee of production, from the contemporary 5%). Developing international locations with Amber Box commitments are required to reduce de minimis by means of -thirds of the evolved us of a cuts (from the current 10% of the value of manufacturing, i.E., ending up with about 6.7% of the price of production). Developing international locations, like India, without a AMS commitments will now not be required to reduce de minimis guide.
Question 24. What About Disciplines On The Non Trade Distorting Or Green Box Support Measures?
The Doha Round mandate envisaged a overview of the standards for outlining aid as “Green Box” aid and to permit effective insurance of programmes of developing nations that cause no more than minimal alternate-distortion. The draft modalities encompass proposals to tighten criteria for developed international locations and feasible revision of situations for growing nations' meals stockpiling purchases from low-income farmers or those with few assets, at expenses which can be higher than the marketplace.
Question 25. What Are Allied Activities?
Dairy farming, rooster, sheep rearing, acquaculture are some examples.
Question 26. What Types Of Crops Are Generally Grown In India?
Generally we will classify as short length and long period plants. Short period means typically much less than a year and the others will amplify past twelve months.
Question 27. What Is Green Revolution?
It referes to a sequence of research and improvement and alertness of generation and other initiatives for increased agricultural manufacturing.
Question 28. In General What Are The Methods To Increase Agricultural Production? And Also The Conditions?
Rotation of vegetation, irrigation centers, climatic situations, soil texture and following trendy techniques in farming along with software of technology.
Question 29. What Is Irrigation?
Irrigation is synthetic software of-water to the land or soil for developing crops, upkeep of land scapes and revegetation of disturbed soils in dry regions for the duration of the instances of scanty rainfall.
Question 30. Ow Irrigation Facilities Are Classified In Our Country, In Terms Of Ayacut?
Minor, medium and fundamental irrigation. In terms of ayacut it's far upto one thousand acres, one thousand to 10,000 acres and above 10.000 acres respectively.