Wto Agreement On Agriculture Boxes
Domestic support regimes for agriculture are governed by the agriculture agreement, which came into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through negotiations on promised commitments and safeguards and by defining more effective and operationally effective rules and disciplines. Agriculture is therefore special, because the sector has its own agreement, the provisions of which are given priority. In view of the General Agreement on Tariffs and Trade (GATT), signed in Geneva in 1947, and the world trade organization (WTO) agreement signed in Marrakech in 1994 (OJ L 1994, p. The European Union and its Member States act in accordance with Article 207 (Common Trade Policy) and Articles 217 and 218 (International Agreements) of the Treaty on the Functioning of the European Union (5.2.2). The WTO Information Office says opponents of the blue box want it removed because payments are only partially decoupled from production, or they want an agreement to reduce the use of these subsidies. “Others say that the blue box is an important tool to support and reform agriculture and achieve certain “non-commercial” objectives, and argue that it should not be restricted because it distorts trade less than other types of support.” In addition to special and differentiated treatment under the green box, the types of aid that fall into the “development” category are direct or indirect measures of support for agricultural and rural development that are an integral part of developing countries` development programmes. These include investment subsidies generally available to agriculture in developing countries, subsidies to agricultural contributions generally available to low-income and low-resource producers in developing countries, and national assistance to producers in developing countries to encourage diversification through the cultivation of illicit plants. The 1947 GATT initially applied to agriculture, but was incomplete, and the signatory states (or “contracting parties”) excluded this sector from the scope of the principles set out in the general agreement. During the period 1947-1994, members were allowed to use export subsidies for primary agricultural products and to impose import restrictions under certain conditions, so that major agricultural raw materials faced trade barriers in unusual proportions in other sectors.
The road to a fair, market-oriented agricultural trade system has therefore been difficult and time-consuming; and the negotiations were finally concluded during the Uruguay Round.