Chapter 6


developing countries) and the issue of non-tariff barriers had hardly been addressed before.
These issues have been included in the last Uruguay Round Agreement, in addition to
agreement on further tariff cuts. Another important element in the Agreement is the
differential treatment of developed and developing countries, giving the latter certain
preferences as to the reduction of import duties and a longer period of transition for
implementing the policies (see Box 6.8).


Box 6.8: The GATT Uruguay Round Agreement on Agriculture

The implementation of the Agreement on Agriculture starts in 1995, and the commitments of the developed
countries to reduce support and export subsidies, to expand market access should be completed within six years,
i.e. by the year 2000, whereas the commitments of the developing countries should by completed within ten
years, by the year 2004. The least developed countries are not required to make any reductions. The commodity
coverage of the Agreement on Agriculture includes most of the products normally considered as part of
agriculture (i.e. it excludes fishery and forest products) except that it also excludes rubber, jute, sisal, abaca and
coir. The exclusion of certain products from the definition of agriculture does not imply that commitments to
improve market access are not to be made. They are covered by negotiations under industrial products.
However, domestic support measures for these latter commodities are completely excluded from reduction
commitments as there are no such commitments for industrial products. Although the negotiations on tropical
products were conducted separately from those on agriculture, in the end they have been grouped together with
other agricultural products.

Source: FAO, Committee on World Food Security, The Uruguay round Agreement and its Implications lor
Food Security, March 1994.

A first visible step of putting the Uruguay Round Agreement into practice was the
establishment of the World Trade Organization (WTO) in 1995, in replacement of the former
GATT Secretariat, with the mandate to further promote international trade and to supervise
implementation of the GATT Agreements and the trade conduct of the member states.

The Final Act of the Uruguay Round covers a wide variety of subjects which will be highly
important for the world economy and the economies of the developing countries. From a food
security perspective, the Agreement on Agriculture is most significant. The major provisions
made in the Agreement refer to the following issues:

* Market access: As an initial step, non-tariff barriers (e.g. import quotas, variable levies,
 minimum import prices, etc.) must be abolished and replaced by tariffs. Then, within six
 years starting in 1995, tariffs should be reduced by 36 percent on average by the
 developed countries, and 24 percent by the developing countries. In addition, provisions
 are made to ensure minimum access opportunities.

 Domestic support: The members of GATT are committed to reduce domestic support of
 agriculture, by 20 percent in the case of developed countries over the period 1995-2000
 and by 13.3 percent in the case of developing countries during the period 1995-2004.
 There are, however, many exemptions from this commitment, for example expenditures
 for research, training extension, marketing and promotion, infrastructure, investment
 support, regional assistance. (Comment: If a country wishes to continue with its domestic
 support policies it can probably find one or more justifications in the exemption list.).


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