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Support to Agriculture in India in 1995-2013 and the Rules of the WTO

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  • Brink, Lars

Abstract

India has submitted notifications to the World Trade Organization (WTO) on domestic support to agricultural producers in 1995-2003. This paper reviews India’s notifications and summarizes the related discussion in the WTO Committee on Agriculture of some key issues relating to the rules of the Agreement on Agriculture on domestic support. It calculates price gaps for rice, wheat, cotton and sugarcane in 1995 to 2013 under four scenarios regarding the external reference price and calculates the resulting market price support using total production and procurement quantities. It compares the associated Aggregate Measurements of Support (AMSs) to their limits based on value of production. The AMSs show large excesses above their limits over many years until 2013 for several crops under some readings of the Agreement but much less so if certain adjustments are made. This highlights the differences among alternative interpretations of the Agreement in determining compliance with a country’s obligations, in particular the understanding of the fixed external reference price and the production eligible to receive the applied administered price. The paper puts India’s administered pricing in the context of the 2013 decision of WTO ministers regarding protection under some conditions against challenge under the WTO dispute settlement mechanism.

Suggested Citation

  • Brink, Lars, 2014. "Support to Agriculture in India in 1995-2013 and the Rules of the WTO," Working Papers 166343, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatrwp:166343
    DOI: 10.22004/ag.econ.166343
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    References listed on IDEAS

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    1. Landes, Maurice R. & Jha, Shikha & Srinivasan, P.V., 2007. "Indian Wheat and Rice Sector Policies and the Implications of Reform," Economic Research Report 6386, United States Department of Agriculture, Economic Research Service.
    2. Orden,David & Blandford,David & Josling,Tim (ed.), 2011. "WTO Disciplines on Agricultural Support," Cambridge Books, Cambridge University Press, number 9781107005440.
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    Cited by:

    1. Marta Kozicka & Matthias Kalkuhl & Jan Brockhaus, 2017. "Food Grain Policies in India and their Implications for Stocks and Fiscal Costs: A Dynamic Partial Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 98-122, February.
    2. Galtier, F., 2015. "Identifying, estimating and correcting the biases in WTO rules on public stocks. A proposal for the post-Bali food security agenda," Working Papers MoISA 201505, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    3. Brink, Lars, 2016. "Support to Agricultural Producers in India and the Rules of the WTO," Conference Papers 261295, Indian Society of Agricultural Economics.

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    Keywords

    Agricultural and Food Policy; International Relations/Trade;

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