India`s laws aim to protect and empower farmers, the report says, allowing them to work with different stakeholders currently, the fragmentation of agricultural markets and weak infrastructure mean that farmers receive only a fraction of the prices paid by end-users. Most of the money goes to intermediaries and intermediaries. In addition, agricultural subsidies account for 8% of India`s GDP and half of the centre`s total subsidies are for food. In his article, Dhar discusses the domestic support regime under the Agreement on Agriculture (AoA) – a WTO treaty negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade and in force since January 1995. It compares the implementation of AoA by the US and the EU, the two largest providers of agricultural subsidies, with that of India. The former envoys pointed out that although the US, EU and UK want India to liberalise agricultural markets, several lawmakers from those countries have expressed open support for the agitation against India`s agriculture law. “Of course, you can`t have your cake and eat it. The balance between market forces and food security and farmers` well-being is delicate and it is the sovereign prerogative of governments to find that balance,” they added. Public procurement of certain crops to ensure farmers` food security and livelihoods at predetermined minimum support prices distorts and disrupts cropping and production patterns. The report says this is in favor of MSP crops such as wheat, rice, cotton and sugar, and far from those such as legumes, coarse grains and oilseeds. While developed countries have been asked to amend the WTO Agreement on Agriculture, the letter states: “India will gradually and gradually allow the market to set prices for agricultural products, not because of the WTO or because developed countries say so, but because it is in the fundamental interest of Indian farmers and will allow Indian farmers to: double their income.

The ex-envoys reiterated that this would help India and other developing countries ensure food security and end hunger. protect farmers from the effects of weather and price fluctuations on the global market “Around the world, farmers continue to suffer the consequences of keeping prices artificially low to keep economic reforms viable. India`s striking peasants understand this and that is why they are defying the new laws. The letter concluded: “The agricultural laws recently passed by the government strike this delicate balance. Developed countries, led by the US, the EU and the Cairns Group, have the opportunity to be on the right side of history here. Devinder Sharma, a food security expert and founder of Kisan Ekta (Farmers` Unit), says the unrest among Indian farmers could be the last chance to change the AoA. “If farmers succeed in getting the government to strengthen the MSP system, it could actually force the WTO to move from the ideal of trade competitiveness to protecting the livelihoods of farmers around the world,” Sharma said. In September 2020, prime Minister Narendra Modi`s pro-business government introduced three new laws in Parliament to deregulate Indian agriculture and bring it more in line with the global trading system. For products whose non-tariff restrictions have been converted into tariffs, governments can take special emergency measures (special safeguards) to prevent rapidly falling prices or increased imports from harming their farmers.

However, the agreement specifies when and how these emergency measures may be introduced (e.B. they cannot be applied to imports under a tariff quota). In light of farmers` demand for the legalization of the minimum support price (MSP), the World Trade Organization (WTO) has launched a review of India`s trade policy, in which minimum prices distort cropping patterns. Certain direct payments to farmers are also allowed where they are obliged to limit their production (sometimes referred to as Blue Box measures), certain public support programmes to promote agricultural and rural development in developing countries and other small-scale (de minimis) aid in relation to the total value of the product(s) supported (5% or less in the case of industrialised and industrialised countries). 10% or less in developing countries). “The reality, as confirmed by Dhar`s study, is that the massive agricultural support provided by the US, THE EU and other developed countries to commercially important agricultural products distorts international prices, rather than India`s subsidy system, which protects smallholder farmers and ensures food security. WTO members have taken steps to reform the agricultural sector and address significant subsidies and trade barriers that distort agricultural trade. The overall goal is to create a more equitable trading system that improves market access and improves the livelihoods of farmers around the world.

The WTO Agreement on Agriculture, which entered into force in 1995, represents an important step towards reforming agricultural trade and making it fairer and more competitive. The Committee on Agriculture and Rural Development monitors the implementation of the agreement. They also highlighted the ironic attitude of industrialized countries towards agriculture. The US and the EU have argued for more than 50 years that agriculture cannot be subject to the same General Agreement on Tariffs and Trade (GATT) rules as footwear and chemicals. However, they are now pushing for a “special status” for agriculture in developing countries. “Currently, the agreement contains clauses on domestic subsidies and special guarantees that benefit farmers in developed countries,” they added. Measures with a minimal impact on trade can be used freely, they are located in a green box (green as in traffic lights). These include government services such as research, disease control, infrastructure and food security. This includes direct payments to farmers who do not stimulate production, such as certain forms of direct income support, aid to help farmers restructure agriculture and direct payments under environmental and regional aid programmes.

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