{"id":1950,"date":"2024-03-30T14:11:27","date_gmt":"2024-03-30T08:41:27","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1950"},"modified":"2024-04-03T07:08:00","modified_gmt":"2024-04-03T01:38:00","slug":"q-the-terms-agreement-on-agriculture-agreement-on-the-application-of-sanitary-and-phyto-sanitary-measures-and-peace-clause-appear-in-the-ne","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-the-terms-agreement-on-agriculture-agreement-on-the-application-of-sanitary-and-phyto-sanitary-measures-and-peace-clause-appear-in-the-ne","title":{"rendered":"Q.\u00a0The terms \u2018Agreement on Agriculture\u2019, \u2018Agreement on the Application of Sanitary and Phyto-sanitary Measures\u2019 and \u2018Peace Clause\u2019 appear in the news frequently in the context of affairs of the"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>Food and Agriculture Organization<\/li>\n\n\n\n<li>United Nations Framework Conference on Climate Change<\/li>\n\n\n\n<li>World Trade Organization<\/li>\n\n\n\n<li>United Nations Environment Programme<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer:<\/strong>&nbsp;<strong>(c) World Trade Organization<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"agreement-on-agriculture\">Agreement on Agriculture:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The&nbsp;<strong>Agriculture Agreement (AoA)<\/strong>&nbsp;is a&nbsp;<strong><a href=\"https:\/\/lotusarise.com\/world-trade-organisation-wto-upsc\/\">World Trade Organisation<\/a><\/strong>&nbsp;treaty aimed at lowering agricultural support and subsidies provided by countries to domestic producers. This agreement focuses on countries lowering agricultural support and subsidies to native producers.<\/li>\n\n\n\n<li>Within the WTO, it is one of the&nbsp;<strong>most contentious agreements<\/strong>.<\/li>\n\n\n\n<li>The Agreement on Agriculture (AoA) is a World Trade Organisation (WTO) treaty that was negotiated during the&nbsp;<strong>Uruguay Round&nbsp;<\/strong>of the General Agreement on Tariffs and Trade (GATT) and ratified in&nbsp;<strong>Marrakesh, Morocco<\/strong>, in 1994.&nbsp;<strong>In 1995, the AoA came into operation.<\/strong><\/li>\n\n\n\n<li>Its rules required developing countries to meet their reduction commitments by the year 2000, and developing countries by the year 2004.<\/li>\n\n\n\n<li><strong>No reductions were required of the Least Developed Countries.<\/strong><\/li>\n\n\n\n<li>The agreement covers agricultural products,&nbsp;<strong>with the exception of forestry and fishing products<\/strong>, as well as rubber, sisal, jute, coir, and abaca.<\/li>\n\n\n\n<li>The AoA\u2019s main goal is to&nbsp;<strong>get rid of so-called&nbsp;<\/strong>\u201c<strong>trade-distorting<\/strong>\u201d agricultural subsidies.<\/li>\n\n\n\n<li>The Agreement\u2019s overall goal, according to the World Trade Organisation, is to&nbsp;<strong>\u201ccreate a fairer trading system that will promote market access and improve the livelihoods of farmers around the world<\/strong>.\u201d<\/li>\n\n\n\n<li><strong>Three pillars of Agreement on Agriculture:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Domestic Support:<\/strong>\u00a0It calls for\u00a0<strong>reduction in domestic subsidies<\/strong>\u00a0that distorts free trade and fair price.\n<ul class=\"wp-block-list\">\n<li>Under this provision, the&nbsp;<strong>Aggregate Measurement of Support (AMS) is to be reduced by 20%<\/strong>&nbsp;over a period of 6 years by developed countries and 13% over a period of 10 years by developing countries.<\/li>\n\n\n\n<li>Under this, Subsidies are categorized into: Green Box, Amber Box, and Blue Box<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Market Access:<\/strong>\u00a0Market access for goods in the WTO means the\u00a0<strong>conditions, tariff and non-tariff measures, agreed by members<\/strong>\u00a0for the entry of specific goods into their markets.\n<ul class=\"wp-block-list\">\n<li>Market access requires that&nbsp;<strong>tariffs fixed (like custom duties) by individual countries be cut progressively to allow free trade.<\/strong>&nbsp;It also required countries to remove non-tariff barriers and convert them to Tariff duties.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Export Subsidy:<\/strong>\u00a0Subsidy\u00a0<strong>on inputs of agriculture,<\/strong>\u00a0making export cheaper or other incentives for exports such as import duty remission etc are included under export subsidies.\n<ul class=\"wp-block-list\">\n<li>These can&nbsp;<strong>result in&nbsp;dumping&nbsp;of highly subsidized<\/strong>&nbsp;(and cheap) products in other countries and damage the domestic agriculture sector of other countries.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lotusarise.com\/wp-content\/uploads\/2024\/03\/WTO-Agricultural-Subsidies-Boxes-1024x688.png\" alt=\"WTO Agricultural Subsidies Boxes\" class=\"wp-image-50406\" title=\"Upsc prelims research: indian economy 2015 1\"\/><\/figure>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"agreement-on-the-application-of-sanitary-and-phytosanitary-measures\">Agreement on the Application of Sanitary and Phytosanitary Measures<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Agreement on the Application of Sanitary and Phytosanitary Measures, also known as the&nbsp;<strong>SPS Agreement&nbsp;<\/strong>or just SPS, is an international treaty of the&nbsp;<strong>World Trade Organization (WTO)<\/strong>.<\/li>\n\n\n\n<li>It was&nbsp;<strong>negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade (GATT)<\/strong>, and entered into force with the establishment of the WTO at the beginning of 1995.<\/li>\n\n\n\n<li>Broadly, the sanitary and phytosanitary (\u201cSPS\u201d) measures covered by the agreement are those&nbsp;<strong>aimed at the protection of human, animal or plant life or health from certain risks<\/strong>.<\/li>\n\n\n\n<li>Under the SPS agreement, the\u00a0<strong>WTO sets constraints on member-states\u2019 policies relating to food safety (bacterial contaminants, pesticides, inspection and labelling) as well as animal and plant health (phytosanitation) with respect to imported pests and diseases<\/strong>.\n<ul class=\"wp-block-list\">\n<li>There are 3 standards organizations who set standards that WTO members should base their SPS methodologies on. As provided for in Article 3, they are the&nbsp;<strong>Codex Alimentarius Commission (Codex), World Organization for Animal Health (OIE) and the Secretariat of the International Plant Protection Convention (IPPC).<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The SPS agreement is closely linked to the&nbsp;<strong>Agreement on Technical Barriers to Trade<\/strong>, which was signed in the same year and has similar goals. The TBT Emerged from the Tokyo Round of WTO negotiations and was negotiated with the aim of ensuring non-discrimination in the adoption and implementation of technical regulations and standards.<\/li>\n<\/ul>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"peace-clause\">Peace Clause<\/h6>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It was&nbsp;<strong>agreed to at the WTO\u2019s Bali Ministerial meeting in December 2013<\/strong>&nbsp;that&nbsp;<strong>allowed developing countries to breach subsidy limits on food crops subject to certain conditions<\/strong>&nbsp;being met related to notifications on the PSH programmes and food security.<\/li>\n\n\n\n<li>The peace clause allows developing countries to breach the subsidy ceiling&nbsp;<strong>without being dragged into dispute by members<\/strong>, for rice. However, it comes with tough notification requirements and conditions, all of which are difficult to follow.<\/li>\n\n\n\n<li>Under the Peace Clause, WTO members&nbsp;<strong>agreed to refrain from challenging any breach in prescribed ceiling<\/strong>&nbsp;by a developing nation at the dispute settlement forum of the WTO.<\/li>\n\n\n\n<li>This clause will stay till a permanent solution is found to the food stockpiling issue.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer:&nbsp;(c) World Trade Organization Agreement on Agriculture: Agreement on the Application of Sanitary and Phytosanitary Measures Peace Clause<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[58],"class_list":["post-1950","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-58"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":58,"label":"2015"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1950"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1950\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1950"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}