IDEAS home Printed from https://ideas.repec.org/a/ags/gjagec/146508.html

Reflections on the Exceptional Treatment of Agriculture in the WTO

Author

Listed:
  • Josling, Timothy E.

Abstract

The GATT gave special treatment to agriculture by allowing quantitative import restrictions when domestic output was also controlled, and made an exception to the ban on export subsidies by allowing them for primary products, subject to somewhat weak and imprecise conditions. Both were concessions to the operation of domestic farm policies in developed countries, primarily the US and the UK and later Canada and the EU, and full advantage was taken of these legal exceptions. Subsidies in general had been treated leniently in the GATT with merely the obligation to notify if they impacted upon exports. Domestic subsidies for agricultural products had significant impacts on both imports and exports and were seen to be a significant part of the trade problem, but operated under minimal constraints. So the exceptional treatment of agriculture in the GATT had led to a dysfunctional trade regime. The Uruguay Round faced up to the inchoate conditions on world markets and the deterioration of trade relations that these exclusions allowed. The Agreement on Agriculture (URAA) specifically banned quantitative restrictions on imports, except those introduced to guarantee access and banned new export subsidies, capping and reducing existing expenditures on the programs and the volumes that could be subsidized. Domestic subsidies that were deemed to be most trade-distorting were capped and modestly reduced. The Doha Round would, if completed, eliminate export subsidies, severely limit the ability to provide trade-distorting support, and reduce the bound tariffs by a considerable extent. The URAA was negotiated at a time when the US and the EU were the main players in the agricultural policy space and it represented a way of disciplining trade to avoid conflicts and reduce protection. Domestic policies were reformed in a way that was consistent with the URAA constraints. If the Doha Round is successful, most of the special provisions for agriculture will no longer be needed. But at that stage the URAA may inadvertently hamper the process of developing trade rules that meet new challenges. Der Agrarsektor erfuhr im GATT eine Sonderbehandlung, indem quantitative Einfuhrbeschränkungen im Falle der Beschränkung der heimischen Produktion erlaubt wurden. Zudem wurde der Agrarsektor vom Verbot für Exportsubventionen ausgenommen: Sie wurden für Primärprodukte unter relativ schwachen und unpräzisen Bedingungen erlaubt. Dies waren Zugeständnisse an die Gestaltungsmöglichkeiten inländischer Agrarpolitik in Industrieländern, und die rechtlichen Ausnahmeregelungen wurden vor allem von den USA und dem Vereinigten Königreich, später auch von Kanada und der EU, intensiv genutzt. Subventionen wurden im GATT im Allgemeinen nachsichtig behandelt : Es bestand lediglich eine Notifikationspflicht, wenn sie sich auf die Exporte auswirkten. Inländische Subventionen für Agrarprodukte hatten allerdings häufig starke Auswirkungen auf den Außenhandel, dennoch gab es kaum Beschränkungen für ihren Einsatz. Somit resultierte die Sonderbehandlung des Agrarsektors im GATT in einem weitgehend dysfunktionalen Handelsregime. Die Uruguay-Runde beendete die weitgehende Regelungsfreiheit des Weltagrarhandels. Mengenbeschränkungen auf Importe wurden im Agrarabkommen (URAA) von wenigen Ausnahmen abgesehen ausdrücklich verboten. Für die Ausgaben für Exportsubventionen sowie die subventionierten Exportmengen wurden Obergrenzen eingeführt und sukzessive reduziert. Die am stärksten handelsverzerrenden inländischen Subventionen wurden ebenfalls beschränkt und reduziert. Im Falle eines Abschlusses der laufenden Doha-Runde würden Exportsubventionen ganz unterbunden, die Möglichkeiten für handelsverzerrende inländische Subventionen stark eingeschränkt und die gebundenen Zollsätze erheblich abgesenkt. Das URAA wurde zu einer Zeit verhandelt, zu der die USA und die EU die wichtigsten Akteure in der agrarpolitischen Landschaft darstellten. Es eröffnete die Möglichkeit, Außenhandel zu regeln, um Konflikte zu vermeiden und den Außenschutz zu verringern. Inländische Politiken wurden gemäß den Beschränkungen des URAA reformiert. Wenn die Doha-Runde erfolgreich ist, werden die meisten der Sonderbestimmungen des URAA für die Landwirtschaft nicht mehr gebraucht werden. An diesem Punkt könnte das URAA unbeabsichtigt die Entwicklung von Handelsregelungen, die den neuen Herausforderungen gerecht würden, behindern. Viele der Bestimmungen des URAA waren als Übergangsregeln wichtig, es stellt sich aber die Frage, an welchem Punkt wir uns vom URAA lösen sollten und welches Regelwerk wir stattdessen brauchen.

Suggested Citation

  • Josling, Timothy E., 2010. "Reflections on the Exceptional Treatment of Agriculture in the WTO," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(Supplemen), pages 1-14, December.
  • Handle: RePEc:ags:gjagec:146508
    DOI: 10.22004/ag.econ.146508
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/146508/files/3_Josling.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.146508?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Irwin,Douglas A. & Mavroidis,Petros C. & Sykes,Alan O., 2008. "The Genesis of the GATT," Cambridge Books, Cambridge University Press, number 9780521515610.
    2. Timothy E. Josling & Stefan Tangermann & T. K. Warley, 1996. "Agriculture in the GATT," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37890-2, September.
    3. repec:wbk:wbpubs:9436 is not listed on IDEAS
    4. Orden,David & Blandford,David & Josling,Tim (ed.), 2011. "WTO Disciplines on Agricultural Support," Cambridge Books, Cambridge University Press, number 9781107005440.
    5. Anderson,Kym (ed.), 2010. "The Political Economy of Agricultural Price Distortions," Cambridge Books, Cambridge University Press, number 9780521763233.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Whalley, John, 2013. "Regional Agreements: A Stocktaking Based on WTO Notifications," Commissioned Papers 156228, Canadian Agricultural Trade Policy Research Network.
    2. Timothy E. Josling & Stefan Tangermann, 2015. "Transatlantic Food and Agricultural Trade Policy," Books, Edward Elgar Publishing, number 15889.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timothy E. Josling & Stefan Tangermann, 2015. "Transatlantic Food and Agricultural Trade Policy," Books, Edward Elgar Publishing, number 15889.
    2. Josling, Timothy E., 0. "Reflections on the Exceptional Treatment of Agriculture in the WTO," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 59.
    3. Sachin Kumar Sharma & Adeet Dobhal & Surabhi Agrawal & Abhijit Das, 2021. "Demystifying Blue Box Support to Agriculture Under the WTO: Implications for Developing Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 22(2), pages 161-185, September.
    4. Kym Anderson, 2016. "Contributions Of The Gatt/Wto To Global Economic Welfare: Empirical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 30(1), pages 56-92, February.
    5. David De Remer, 2013. "The Evolution of International Subsidy Rules," Working Papers ECARES ECARES 2013-45, ULB -- Universite Libre de Bruxelles.
    6. Henrik Horn & Petros C. Mavroidis, 2014. "Multilateral environmental agreements in the WTO: Silence speaks volumes," International Journal of Economic Theory, The International Society for Economic Theory, vol. 10(1), pages 147-166, March.
    7. Cornelius Hirsch & Harald Oberhofer, 2017. "Bilateral Trade Agreements and Trade Distortions in Agricultural Markets," FIW Working Paper series 176, FIW.
    8. Singh,J.P., 2019. "How Do Cultural Differences Affect Trade Reciprocity between Developed and Developing Countries?," Research and Policy Briefs 142846, The World Bank.
    9. Sojun Park & Lauren C. Konken, 2025. "Exploiting treaty ambiguity: Public health exceptions in the WTO TRIPS agreement," The Review of International Organizations, Springer, vol. 20(3), pages 547-574, September.
    10. Susan Ariel Aaronson & M. Rodwan Abouharb & K. Daniel Wang, 2015. "The Liberal Illusion Is Not a Complete Delusion: The WTO Helps Member States Keep the Peace Only When It Increases Trade," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 15(4), pages 455-484, December.
    11. Simla Tokgoz & Danielle Alencar Parente Torres & David Laborde & Jikun Huang, 2014. "The role of U.S., China, Brazil's agricultural and trade policies on global food supply and demand," FOODSECURE Working papers 19, LEI Wageningen UR.
    12. Huang, Kaixing & Yan, Wenshou & Huang, Jikun, 2020. "Agricultural subsidies retard urbanisation in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(04), January.
    13. Vicente E. Montano, 2024. "Is there Price Distortion in the Philippine Rice Market: A Bayesian Discrete Wavelet Transform Analysis," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(15), pages 275-287, December.
    14. Rolf J. Langhammer, 2010. "Unordnung in der internationalen Handelsordnung: Befunde, Gründe, Auswirkungen und Therapien," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 11(1), pages 75-98, February.
    15. Jacques Blanchet & Alain Revel & Alexandra Linglin & Nathalie Kosciusko-Morizet & Véronique Wormser, 1997. "L'intégration des PECO à la nouvelle PAC. Une double révolution inachevée," Économie rurale, Programme National Persée, vol. 240(1), pages 49-58.
    16. Petros C. Mavroidis & Robert Wolfe, 2016. "Private Standards and the WTO: Reclusive No More," RSCAS Working Papers 2016/17, European University Institute.
    17. Schrader, Jörg-Volker, 1998. "Agrarpolitische Irrwege zur Bewahrung von Bodenrenten? Von Butterbergen zu Ökotälern," Kiel Discussion Papers 325, Kiel Institute for the World Economy.
    18. Glauber, Joseph W., 2017. "Agricultural insurance and the WTO:," IFPRI book chapters, in: Bouët, Antoine; Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 10, International Food Policy Research Institute (IFPRI).
    19. Petros C. Mavroidis & Merit E. Janow, 2017. "Free Markets, State Involvement, and the WTO: Chinese State Owned Enterprises (SOEs) in the Ring," RSCAS Working Papers 2017/13, European University Institute.
    20. Kym Anderson & Ernesto Valenzuela, 2021. "What impact are subsidies and trade barriers abroad having on Australasian and Brazilian agriculture?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 265-290, April.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:gjagec:146508. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iahubde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.