The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phyto-sanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of affairs of the
[UPSC Civil Services Exam – 2015 Prelims]
(a) Food and Agriculture Organization
(b) United Nations Framework Conference on Climate Change
(c) World Trade Organization
(d) United Nations Environment Programme
- The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the World Trade Organisation.
Agreement on Agriculture
- The Agreement on Agriculture, which became effective on January 1, 1995, aims to establish a fair and market-oriented agricultural trading system.
- It includes commitments to reduce support and protection in areas such as domestic support, export subsidies, and market access.
- The agreement considers non-trade concerns like food security and environmental protection. It also provides special treatment for developing countries, including improved access and terms for agricultural products that are important for their exports.
- The Agreement on Agriculture includes a provision called the “peace clause,” which governs the application of other WTO agreements to subsidies related to agricultural products.
- According to this clause, domestic support measures categorized under the Green Box cannot be subjected to countervailing duty action or other subsidy-related actions under the WTO Agreement on Subsidies and Countervailing Measures.
- These measures are also exempt from actions based on the non-violation nullification or impairment of tariff concessions under the GATT, as long as the support provided to individual products does not exceed the levels set in the 1992 marketing year.
- Export subsidies that adhere to the Agreement on Agriculture are also covered by corresponding provisions. The peace clause remains valid for a period of nine years.