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WTO negotiations and repurposing agriculture subsidies for a sustainable future

Author

Listed:
  • Sachin Kumar Sharma

    (Indian Institute of Foreign Trade)

  • Paavni Mathur

    (Indian Institute of Foreign Trade)

  • Ahamed Ashiq Shajahan

    (Indian Institute of Foreign Trade)

  • Lakshmi Swathi Ganti

    (Indian Institute of Foreign Trade)

  • Alisha Goswami

    (Indian Institute of Foreign Trade)

Abstract

Agriculture subsidies are estimated to increase by US$ 2 Trillion in 2030. Many countries are critical of policies such as market price support and input subsidies due to their adverse environmental impacts, climate change, and biodiversity loss. Recently, in addition to trade distortion, environmental concerns are playing a crucial role in disciplining agriculture subsidies at the WTO. Many members and international organisations have called for a substantial reduction in the subsidy entitlement of individual members to address these concerns. The reduction is proposed to be proportionate to the size of the members’ current and future trade-distorting entitlements. The paper examines whether the proposed methodology to discipline agriculture subsidies promotes agriculture sustainability from the perspective of social, economic, and environmental concerns. The results suggest that the proposals based on proportionate methodology undermine not only social and economic sustainability but also leave the existing imbalances in the AoA unaddressed, disregard special and differential treatment, and negate the decade-long efforts made by developing country members in finding a permanent solution for public stockholding for food security.

Suggested Citation

  • Sachin Kumar Sharma & Paavni Mathur & Ahamed Ashiq Shajahan & Lakshmi Swathi Ganti & Alisha Goswami, 2024. "WTO negotiations and repurposing agriculture subsidies for a sustainable future," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 24(2), pages 349-372, September.
    • Handle: RePEc:spr:ieaple:v:24:y:2024:i:2:d:10.1007_s10784-024-09643-z
    DOI: 10.1007/s10784-024-09643-z
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    References listed on IDEAS

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    1. Anne Marie Thow & Sachin Kumar Sharma & Cut Novianti Rachmi, 2019. "An analysis of Indonesia’s shrinking food security policy space under the WTO," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(6), pages 1275-1287, December.
    2. Effland, Anne, 2011. "Classifying and Measuring Agricultural Support: Identifying Differences Between the WTO and OECD Systems," Economic Information Bulletin 291948, United States Department of Agriculture, Economic Research Service.
    3. Brink,Lars & Orden,David, 2023. "Agricultural Domestic Support Under the WTO," Cambridge Books, Cambridge University Press, number 9781316514054, January.
    Full references (including those not matched with items on IDEAS)

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