Please discuss and explain how the Uruguay Round and the Doha Development Agenda impacts agricultural subsidies.
The Uruguay Round was the 8th round of trade negotiations starting from 1986 to 1994. The Doha is the immediately succeeding round that started in 2001. Both were aimed at liberalizing trade including the agriculture sector. Both the Uruguay Round and the Doha Development Agenda call for a reduction in agricultural subsidies and lowering of tariff on agricultural products.
Information from Food and Agriculture Organization (FAO), and other sources (Elliot, 2006; Anderson & Martin, 2005) were retrieved and showed the following details:
The Uruguay Round mandates that all agricultural subsidies and all quantitative restrictions on agricultural imports be phased out over a period of ten years.
It was also unanimously agreed to propose a substitution for a certain amount of domestic price support with direct payments to agricultural producers, as compensation for lower farm prices.
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FAO Corporate Document Repository (n.d.). The implications of the Uruguay Round Agreement ...
The solution discusses the the impact of the Uruguay Round and the Doha Development Agenda on agricultural subsidies.
Its immediate impact are reduction of domestic support to agriculture and reformulation of agricultural supports, export subsidies were capped and reduced both in terms of value and volume, increase in market prices for basic food commodities, earnings in agricultural export and decline in the value of total food imports.