Developing Countries in the World Trade in Agriculture: Bangladesh Perspective.
1. Introduction.
Agriculture directly or indirectly, is the main source of livelihood of most of the people all over the world. It provides a considerable portion of the national GDP of all developing countries and for the poor countries it provides the main portion of GDP. However, the World Trade Organisation (WTO) is the key organisation for controlling the world trading system and of which agriculture is one of the key concerns. The WTO Agreement on Agriculture (AoA) is the sole instrument controlling the world trade in agriculture and agricultural products.
The object of the agreement is to “establish a fair and market-oriented
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Recognising that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, developing the full use of the resources of the world and expanding the production and exchange of goods.
However, among all of the principles embodied in the said instrument some majors were, General Most-Favoured-Nation Treatment, National Treatment on Internal Taxation and Regulation, Freedom of Transit, Anti-dumping and Countervailing Duties, Valuation for Customs Purposes, Fees and Formalities connected with Importation and Exportation, Marks of Origin, Publication and Administration of Trade Regulations, General Elimination of Quantitative Restrictions, Restrictions to Safeguard, Exceptions to the Rule of Non-discrimination, Subsidies, Governmental Assistance to Economic Development, etc. These principles were the rules to regulate the international trade.
In addition, the GATT, 1947 had lack of a strong mechanism in case of any violation of the rules embodied here. There was no dispute settlement authority which would
A country needs to export more than import in order to maintain a good working economy. Wealth and power equal more export than import in a country’s trading system
"Agriculture is undoubtedly the most important activity for the majority of the world’s poor, and at the same time it is the most protected sector in industrial countries." Agriculture continues to play an important role throughout the world, while in recent years, farmers have been negatively and positively affected by the trade agreements established by both the WTO and Fair Trade system; specifically the banana and coffee farmers. The government's role was to liberalize trade by reducing tariffs and they initiated this by introducing GATT (General Agreement on Trade and Tariffs). This was an agreement between countries that slowly expanded to include countries. Agricultural Trade was left out of the GATT due to the U.S. and European Union "banana war." This is a trade dispute between the US and EU on how the bananas are sourced and imported, even though neither one of these countries are the banana growers. The GATT was later re-established as the WTO (World Trade Organization). As Weis stated, The WTO's Agreement on Agriculture (AoA) came into effect in 1995 and constitutes a major landmark in the development of the global food economy as its set in place, for the first time, multilateral rules restricting the sovereignty of governments to establish their own agricultural policies. Their main focus was to establish a fair and market-oriented agricultural trading system. Their objective is to entrench and extend the rights of transnational capital in trade and
At the Third United Nations Conference on the Law of the Sea, The United States and the Soviet Union insisted on free passage through straits, in effect giving straits the same legal status as the international waters of the high seas. By the late 1960s, a trend to a 12-mile territorial sea had gradually emerged throughout the world, with a great majority of nations claiming sovereignty out to that seaward limit. (UN) Another important point that Wilson addressed was the importance of removal of trade barriers. Trade barriers can consist of import or export fees and tariffs, any of which would slow down the economy and reduce the trade between countries. From 1948 to 1994, the General Agreement on Tariffs and Trade (GATT) provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce.
World trade organization is an international governing body which deals with trade between countries. In regard to various nations which are under the World Trade Organization, the goal is to help producers of supplies of services, exporters and importers conduct their activities. The WTO has decreased the level of tariffs, but a boost in non tariff measures in rural areas which is obstructing trade. This will be discussed furthermore in the assignment.
As trade became more widespread, it became evident that there was an opportunity to expand and grow markets. Great Britain, for example, was a nation that took advantage of such opportunities to grow its economy. They not only used trade to expand, but also assisted foreign countries in doing the same. India is an excellent example, where Great Britain provided them with better education, technology, and infrastructure to enhance their potential as a trade partner with other countries. This resulted in not only their development but also the growth of India's economy.
There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.
World Trade Organization ( WTO Eng . World Trade Organization (WTO) - an international organization founded January 1, 1995 for the purpose of international trade liberalization and regulation of trade and political relations between the Member States. WTO established under the General Agreement on Tariffs and Trade (GATT) .WTO is responsible for the introduction of new parts as well as enforces the members of the organization of all agreements signed by most countries and ratified by their parliaments. WTO bases its activities on the basis of decisions taken in the years 1986-1994 in the framework of the Uruguay Round and earlier GATT agreements. As of July 2012 , there are different groups of negotiations in the WTO system to address current issues in terms of agriculture, which leads to stagnation in the negotiations themselves .WTO headquarters is in Geneva , Switzerland. WTO chief ( CEO ) - Roberto Carvalho de Azevedo , in the state of the organization about 640 people. On March 2, 2013 the WTO consisted of 159 countries .
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3. Government and NGOs have been conducting regular training programs in developing a skilled manpower for this industry.
Australia and New Zealand has been in the trade business since a long time and aim at increasing the economic and social benefits through increase in