Appraisal of Wto Agreement on Agriculture

The World Trade Organization (WTO) Agreement on Agriculture (AoA) was introduced in 1995 with the objective of liberalizing global agricultural trade. The agreement aimed to promote a fair and market-oriented agricultural system, reducing subsidies, and protecting small farmers` livelihoods in developing countries.

The appraisal of the AoA, since its introduction, has been mixed. While some argue that the agreement has been successful in liberalizing global agricultural markets, others believe that it has failed to deliver on its promises.

One of the primary criticisms of the AoA is that it has been detrimental to small farmers in developing countries. The agreement has led to increased competition from large agricultural producers, making it difficult for small farmers to compete. Additionally, the reduction in subsidies has meant that small farmers have not received the support they require to stay in business. As a result, many farmers have been forced to leave agriculture, leading to food insecurity and poverty in developing countries.

Another issue with the AoA is that it has allowed developed countries to continue to subsidize their agricultural industries. The agreement only requires developed countries to reduce subsidies, but not eliminate them entirely. This has led to criticism that the agreement is not fair for developing countries, who are expected to compete on an uneven playing field.

Despite these criticisms, the AoA has had some positive impacts. It has led to increased market access for agricultural products in developing countries, allowing them to benefit from increased trade. It has also led to a reduction in the use of trade-distorting subsidies, leading to a more level playing field for all agricultural producers, including small farmers.

In conclusion, the WTO Agreement on Agriculture has been both praised and criticized since its introduction in 1995. While it has had some positive impacts, such as increasing market access and reducing subsidies, it has been criticized for being unfair to small farmers in developing countries and allowing developed countries to continue to subsidize their industries. As a result, further reforms are needed to ensure that the agreement delivers on its promise of a fair and market-oriented agricultural system.