WTO Agriculture Negotiations and South Asian Countries

Abstract

As mandated by Article XX of the Uruguay Round, negotiations for next round of the Agreement on Agriculture (AOA) began in 1999 and are now in an advanced stage. It is quite important now for South Asian countries (SACs) to join hands based on mutual interest and geographic considerations, and push a common agenda in the negotiations on the AOA. These countries have a lot in common in their economic situation, agricultural concerns and interest in the global market. Taking a common position in the negotiations will increase the bargaining strength of SACs and help in getting better deal for the region. The South Asian agenda for a new round of negotiations on agriculture in the WTO needs to be somewhat offensive. The popular opinion in SACs is such that any deal that secures freedom from commitment and provides protection against imports is a great achievement. In a liberalized economy, protection and freedom from commitment granted to other countries is equally, and sometimes more, important. Sometimes it is beneficial to go for a trade-off between, say, making a commitment to reduce subsidies and reducing protection in own market if it results in enough gain in market access in other countries. South Asian agriculture has some strength and SACs need not be extremely defensive and inward looking. This paper suggests a common agenda for SACs for genuine protection of the domestic market and to take advantage of the external one.

Keywords

Agriculture Trade Liberalization Exports Imports Tariff-cutting Formula July Package

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