The Agreement on Agriculture (AoA) is a landmark agreement that was reached at the conclusion of the Uruguay Round of multilateral trade negotiations in 1994. The AoA aims to liberalize global agricultural trade by providing a framework for reducing trade barriers and subsidies in the agricultural sector.
One of the key provisions of the AoA is the reduction of agricultural subsidies, which have long been a contentious issue in global trade negotiations. Developed countries, in particular, have been criticized for the large subsidies they provide to their farmers, which can distort global markets and undermine the competitiveness of farmers in developing countries. Under the AoA, developed countries agreed to reduce their level of agricultural subsidies, although many argue that progress in this area has been slow.
Another important aspect of the AoA is the reduction of non-tariff trade barriers in agriculture. These can include sanitary and phytosanitary regulations, which are designed to protect consumers and the environment from harmful pests and diseases. However, such regulations can also be used as a disguised form of protectionism, making it more difficult for foreign producers to access certain markets. The AoA seeks to ensure that such regulations are science-based and not used as an unjustified trade barrier.
The AoA also provides a framework for multilateral negotiations on market access for agricultural products. This involves reducing tariffs on goods traded between countries and opening up domestic markets to foreign competition. The AoA recognizes that developing countries may need more time to adjust to increased competition and provides for special treatment and safeguards for these countries.
Overall, the AoA has been praised for its ambitious goal of liberalizing global agricultural trade and providing a framework for fairer and more open competition. However, critics argue that progress has been slow and that developed countries have not done enough to reduce their level of agricultural subsidies. Nonetheless, the AoA remains an important landmark agreement in the ongoing efforts to promote free and fair trade in agriculture.