Introduction: The Agreement on Agriculture (AoA) established by the World Trade Organization (WTO) in 1995 aims to create a fair and market-oriented agricultural trading system. This paper critically reviews the AoA's impact on global agriculture, focusing on the differences in perspectives between developed and developing countries, and the implications of various subsidies and support mechanisms.
Discussion: The AoA has been a subject of debate, with developed countries advocating for e-commerce, investment, and quality control, while developing countries emphasize food security and public stockholding. The review highlights the economic effects of domestic support subsidies, the challenges of implementing production subsidies, and the role of strategic trade policies. The paper also examines the impact of WTO's peace clause on India's subsidy practices and the complexities surrounding the Green Box subsidies.
Conclusion: There is a need for a balanced approach that considers both the liberalization of agriculture and the specific needs of developing countries. The review suggests that while the AoA has made strides in promoting fair trade, ongoing reforms are necessary to address the unique challenges faced by different economies and to ensure food security and sustainable agricultural development.