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Export competition and export subsidies: Provisions of Agreement on Agriculture
| Guest post by: African Development Bank |
Article Overview: Domestic support and export subsidy policies have been employed largely by developed economies to protect their agricultural sectors.
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Free Download - References: Human Capital and Economic Development By African Development Bank |
Export competition and export subsidies: Provisions of Agreement on Agriculture
Domestic support and export subsidy policies have been employed largely by developed
economies to protect their agricultural sectors. Under the Export Competition commitments,
each member undertakes not to provide export subsidies or any financial contribution other
than in conformity with the Agreement and with the commitments as specified in that
member's schedule. The financial contribution may involve a direct transfer of funds,
potential direct transfers (such as loan guarantees), the forging of revenue by the
government, or the public provision of goods and services, other than infrastructure, or the
government purchase of goods; or any form of income or price support. The Agreement
prohibits subsidies contingent upon export performance or upon the use of domestic goods
in preference to imported goods. GATT members have also entered into commitment to
reduce those classes of subsidies specified in the Agreement as actionable with accompanying target dates and a desired level of action required. The bound reduced of
export subsidies are defined in Article 9(1) of the Agreement. These are to be reduced by
24% in terms of value (budget outlays) and 14% in volume over a 10-year period by
developing countries. For developed countries, the corresponding figures are 36% and 21%
over 6 years.
African Development Bank
Economic Research Working Paper Series
Enhancing Africa’s Trade: From Marginalization
to an Export-Led Approach to Development
Milton A. Iyoha
Professor, Department of Economics & Statistics
University of Benin, Nigeria
Economic Research Working Paper
No 77 (August 2005)
Provisions of Agreement on Agriculture
Export Subsidies by Developed Countries: Barriers to African External Trade
Market access: Provisions of Agreement on Agriculture
3.1 Developments in trade negotiations II: Economic Report on Africa 2007
2.1 Growth performance IV: Economic Report on Africa 2007
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About the Author: African Development Bank RSS for African's articles - Visit African's website Click here to visit African's website   Conclusion Human Capital and Economic Development Regionalism Trade and Development in Africa Concluding Remarks Enhancing Africas Trade From Marginalization to an ExportLed Approach to Development Provisions of Agreement on Agriculture Effects of education upon health and nutrition The Indirect Effects of Investment in Human Capital |
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