The document discusses the impact of the World Trade Organization (WTO) on Indian agriculture. It provides background on the establishment of the WTO in 1995 and its key differences from GATT. The WTO Agreement on Agriculture contains provisions for market access, domestic support, and export subsidies. While WTO membership has increased agricultural exports and foreign investment for India, it also exposes domestic farmers to global competition and requires reforms to subsidy programs. The document suggests steps India could take to further boost agricultural exports, such as improving coordination between departments, protecting farmer interests, developing new markets, and increasing infrastructure and quality standards.

1. 1
WTO AND IT’S IMPACT ON INDIAN
AGRICULTURE
Speaker- Avikal Kumar
I.D. No- 31997

2. INTRODUCTION OF WTO
 WTO was formed on 1st Jan , 1995
 It took over GATT (general agreement on tariffs
and trade). In 8th round of GATT, popularly
known as Uruguay round, members nation of
GATT decided to set up a new organization,
‘World Trade Organization’ in place of GATT.
2

3. 3

4. World Trade Organisation
 Established on 1.1.1995
 160 members
 97% of world trade
 Geneva Switzerland
Decision making body – (Ministerial Conference)
 General council
Trade Policy review body
Dispute settlement body
 Council for Trade in Goods
 Council for Trade in services
 Council for TRIPS
4

5. WTO Vs GATT
5
GATT WTO
IT WAS AD HOC AND
PROVISIONAL
IT IS PERMANENT, MORE
AUTHORITY THAN GATT
IT HAS NO PROVISION FOR
CREATING AN ORGANIZATION.
IT HAS LEGAL BASIS BECAUSE
MEMBER NATIONS HAVE
VERIFIED THE WTO
AGREEMENTS
IT ALLOW CONTRADICTION IN
LOCAL LAW AND GATT
AGREEMENTS.
IT DOSEN’T ALLOW ANY
CONTRADICTION IN LOCAL LAW.
DEALS WITH TRADE IN GOODS DEALS IN TRADE IN SERVICES
AND INTELLECTUAL PROPERTY
AS WELL
DISPUTE SETTLEMENT LESS
EFFICIENT
FASTER AND MORE AUTOMATIC

6. OBJECTIVES OF
WTO
6
to implement the new world
trade agreement.
promote multilateral trade
improve the level of living and
speed up economic
development
promote free trade
enhance competitiveness
increase the level of
production and productivity
with employment
expand and utilize world
resources
development of poorest
nation

7. Functions of
WTO
7

8. 8
Scope
of WTO
Trade in goods
Trade related
investments
Measures
(TRIMs)
General
Agreements
on Trade in
Services
(GATS)
Trade Related
Intellectual
Property
Right’s
(TRIPs)

9. ARGUMENTS IN
FAVOUR OF WTO
9
Increase in inflow of foreign
investment
Increase in agricultural export
Increase in foreign trade
Benefits for clothing and textile
industry
Improvement in services
Inflow of better technology and
better products

10. WTO AGREEMENTS
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11. GATT
11
 It all began with trade in goods. From 1947 to 1944, GATT
was the forum for negotiation lower customs duty rates and
other trade barriers, the text of general agreement spelt out
important rules, particularly non-discrimination.
 Since 1995, the updated GATT has become the WTO’s
umbrella agreement for trade in goods.
 It has annexes dealing with specific sectors such as
agriculture and textiles, and with specific issues such as
state trading, product standards, subsidies and actions
taken against dumping.

12. 12
1
• Cross–border supply
2
• Consumption abroad
3
• Commercial presence
4
• Presence of natural person
Four modes of supply

13. Trade related investments measures
Measures prohibited by TRIM’S agreement
 Local content requirement
 Trade balancing requirement
 Foreign exchange restriction
 Export restriction
 Exceptional provisions of TRIM’s agreement
 Transitional period
 Exception for developing countries
 Equitable provisions
13

14. TRIPs
 The WTO’s intellectual property agreement
amounts to rule for trade and investment in
ideas and creativity.
 The rule state how copy rights, patents,
trademarks, geographical names used to
identify products, industrial designs and
undisclosed information such as trade secrets –
”intellectual property” – should be protected
when trade is involved.
 In nutshell, the TRIPs Agreement covers 7
categories of intellectual property.
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Article27.3 :
Parties may exclude from patentability:
a)diagnostic, therapeutic and surgical methods forthe treatment of
humansoranimals
b)plants and animals other than microorganisms, and essentially
biological processes for the production of plants or animals other
than non-biological andmicrobiologicalprocesses.
Parties shall provide for the protection of plant varieties either by
patents or by an effective sui generis system or by any combination
thereof.
TRIPs

16. Dispute settlement system
16
 When Dispute Arises ?
 Dispute settlement
 The WTO’s procedure for resolving trade quarrels
under the Dispute Settlement Understanding is vital
for enforcing the rules and therefore for ensuring
that trade flows smoothly. Countries bring disputes
to the WTO if they think there rights under the
agreements are being in fringed. Judgments by
specially-appointed independent experts are based
on interpretations of the agreements and individual
countries commitments.

17. HOW ARE DISPUTE SETTLED ?
How long to settle a dispute?
These approximate periods for each stage of a dispute settlement
procedure are target figures — the agreement is flexible. In addition, the
countries can settle their dispute themselves at any stage. Totals are also
approximate.
60 days Consultations, mediation, etc
45 days Panel set up and panellists appointed
6 months Final panel report to parties
3 weeks Final panel report to WTO members
60 days
Dispute Settlement Body adopts report (if
no appeal)
Total = 1 year (without appeal)
60-90 days Appeals report
30 days
Dispute Settlement Body adopts appeals
report
Total = 1y 3m (with appeal)
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Source:Understanding the WTO: Settling Disputes - A unique contribution

18. WTO and Indian Agriculture
18
 Introduction
After over 7 years of negotiation the Uruguay
Round multilateral trade negotiations were
concluded on December 1993 and were
formally ratified in April 1994 at Marrakesh,
Morocco.
The WTO agreement on agriculture was one of
the main agreements which were negotiated
during the Uruguay round.

19. Agreement on Agriculture
 The WTO Agreement on Agriculture
contains provisions in three broad areas
of agriculture
1. Market access.
2. Domestic support.
3. Export subsidies.
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20. Market access
20
 This includes tariffication, tariff reduction and
access opportunities.
 Tariffication means that all non-tariff barriers
such as….
1. Quotas
2. Variable levies
3. Minimum import prices
4. Discretionary licensing
5. State trading measures

21. AoA provisions on market
access
 Prohibition of quantitative restriction on
import
 Tariff binding and reduction
 Bound versus Applied tariffs
 Tariff Rate Quota
 Special safeguard measures
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22. Domestic Support
 WTO uses a traffic light analogy to
group program
Green box (non-trade distorting)
Blue box (production limiting)
Amber box (market distorting)
Prohibited(i.e. red box)
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23.  Measure be placed in green box
1. It must be publicly funded govt. program and
does not involve transfers from consumers.
2. It must not have the effect of price support to
producer
Or it must comply to these criteria
 A general service e.g. pest and disease control, training,
extension, advisory services, health, safety etc.
 Stockholding of product for food security
 Domestic food aid
 Income insurance or income safety program
 For natural disaster relief etc.
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24.  Measure be placed in blue box
◦ Be based on fixed area and yield
◦ Be made of 85% or less of the base level of
production
◦ If livestock payments, be made on fixed no of
head
 Amber box
◦ Product specific domestic support
◦ Non-product specific domestic support
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25.  En export subsidy reduce the price paid by
foreign importer, which mean domestic
consumer pay more than foreign consumer
 Export subsidy in Agricultural Sector
Direct export subsidies contingent on export performance
Sale of non-commercial product on less prices than
domestic market
Producer financed subsidy
Cost reduction measures
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26.  Some of agricultural product under 23 product
groups, such as wheat, coarse grain, sugar,
beef, cheese and oilseeds.
 Rates of cut
◦ Developed countries
 21% by volume
 36% corresponding budgetary outlay
 Over 6 years
◦ Developing countries
 14% by volume
 24% corresponding budgetary outlay
 Over 10 years
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Year India's Total Annual Agri- Annual % share of Agri-
Exports (Rs. Growth exports Growth Exports in Total
Crore) Rate (%) (Rs. Crore) Rate (%) Exports
1990-91 32553 17.7 6317 16.5 19.4
1991-92 44041 35.3 7894 24.9 17.9
1992-93 53688 21.9 9082 15.0 16.9
1993-94 69751 29.9 12632 39.1 16.1
1994-95 82674 18.5 13269 5.0 16.0
1995-96 106353 28.6 20344 53.3 19.1
1996-97 118817 11.7 24362 19.8 20.5
1997-98 130100 9.5 24626 1.1 18.9
1998-99 139752 7.4 25387 3.1 18.1
2000-01 203571 27.6 27288 12.3 13.4
2001-02 209018 2.7 28144 3.1 13.4
2002-03 255137 22.1 32473 15.4 12.7
2003-04 293367 15.0 34615 6.6 11.7
2004-05 375340 27.9 38078 10.0 10.1
2005-06 456418 21.6 45220 18.8 0.9
2006-07 571779 25.3 57392 26.9 10.8
2007-08 655864 14.7 76006 32.4 11.5
2008-09 840755 28.2 80648 6.1 9.5
2009-10 845534 0.6 85211 5.6 10.0
2010-11 1142649 35.1 113116 32.7 9.8
TRENDS IN INDIA'S AGRICULTURAL EXPORTS DURING 1990-91 TO 2010-11
Source: 1. Govt. of India, Economic Survey- 2011-12, P. A 80.
2. Govt. of India, Ministry of Agriculture, Agricultural Statistics At a Glance- 2010.

28. 28
ANNUAL COMPOUND GROWTH RATES (ACGR) OF INDIA'S TOTAL
EXPORTS
AND AGRICULTURAL EXPORTS

29. INDIA'S % SHARE IN TOTAL WORLD AGRI- EXPORTS
29

30. Trends in India's trade (1995-96 t0
2009-10) Rs. In crores
30

31. HURDLES IN THE WAY OF
AGRICULTURAL EXPORT
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32. SUGGESTIONS
Based on the above discussion the following steps may be
relevant to boost the space of growth of Agri-exports from
India in near future.
1. Lack of co- ordination among various department engaged
in the promotion of agricultural exports has created number
of problems. Hence, there is an urgent need to establish
efficient co-ordination among these departments.
2. In the wake up new economic policy of liberalization and
WTO rules special care should be taken by the government
to protect the interest of exporting farmers.
3. It is also necessary to create the awareness among the
exporting farmers with regards to sanitary and phyto-
sanitary standards imposed by developed countries.
4. Agri-exports need to organize themselves untidily to face
global competition instead of each exporter trying to export
in small quantities in an unorganized manner.
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33. 5.At present, new emerging markets like Eastern Europe, China, UAE,
African countries have a lot of potential for absorbing more Agri-
exports. Hence, the efforts should be made to tap the potential of
there markets
6. The apex marketing agency like APEDA should intensify and speed-
up the export procedure of quality agricultural product.
7. High rate of interest for export finance make India's exports non-
competitive. Therefore, the rate of interest changed by financial
intuitions is reasonable.
8. The government should come forward to invest on basic
infrastructure. In this regard a complete cold chain facility needs
to be created on urgent basis.
9. Sincere and dedicated efforts are also needed to increase the
quality of exportable fruits and vegetables because there is
immense scope for increasing exports of fruits and vegetables in
India.
10. The proper branding of agricultural products needs to be
promoted as the branded products gets higher prices in comparison
to unbranded items.
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34. Conclusion
 India as a developing economy, has been
benefitted being a founding member of
World trade organization. The country at
large has seen many significant changes
which have taken place after the
formation of WTO. There are some issues
which are yet to be sorted out with the
WTO and but by and large things are
falling in shape for the Indian Economy.
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