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Implications Of The Agreement

The share of developing countries in world agriculture trade is relatively small (25% of world exports in 1992), but their increasing share in world imports of agricultural raw materials is greater. The commitments made in the agreement are expected to have a significant impact on this development, with the greatest impact on the commitments made by industrialized countries to reduce export subsidies. If commitments are implemented in each of the following three areas, in accordance with the letter and spirit of the agreement, they should, in principle, help broaden market prospects at the global level. This chapter deals with the successful conclusion of the Uruguay Round and the creation of the WTO, which have given impetus to greater liberalization and integration of the world economy. In the agricultural sector in particular, important steps have been taken towards liberalisation. This chapter examines the impact of this development on developing countries as exporters and importers. In the first part, we saw that the Uruguay Round was based on a process of gradual liberalization of world agricultural trade. This chapter first examines the extent to which commitments have been met and to what extent it has achieved a liberalisation of agriculture in the short and medium term. Many commentators say that the main liberalisation measures will come from the next rounds of negotiations. We explain the likely effects by examining the positive and negative effects on international trade, with particular attention to the prospects of raw materials of particular interest to developing countries. Objectives of this chapter In order to make you understand the links between the external trading environment and domestic agricultural policy and how the agreement will influence them. What you`ll learn Trade opportunities arising from the commitments of developed and developing countries to market access, export subsidies and domestic aid.

To what extent the commitments made during the round will have an impact on global agricultural liberalization. The impact of declining preferential access to exports from developing countries to markets in industrialized countries. The impact of the agreement on certain agricultural raw materials. The impact of the new external business environment on food security. 4.1 Agricultural liberalization and the obligations of the agriculture agreement The Punta Del Este Ministerial Declaration indicates the urgent need to give more discipline and predictability to world agricultural trade by correcting and avoiding restrictions and distortions, including limited surpluses, in order to reduce uncertainty, imbalance and instability in global agricultural markets. In this section, we will look at the extent to which the agriculture agreement would achieve this.