Fortnightly Research Scholar Seminar Series, Department of HSS, IIT Patna

Abstract

This presentation gives a snapshot of mainly three issues:
Firstly, How global agricultural trade has changed over the period 1990 to 2014 among different countries. Secondly, What is the present trend of NTMs in agriculture and thirdly why do restrictions prevail in agriculture?

Full text

Global Trade in Agriculture and
Non- Tari Measures
Chandan Kumar
Research Scholar
Under the supervision of Dr. Nalin Bharti

Presented at
Fortnightly Research Scholar Seminar Series
Department of Humanities and Social Sciences
Indian Institute of Technology, Patna
April 21, 2016.

Context of the study
This study mainly focuses over three issues:
I. How global agricultural trade has changed
over 1990 to 2014 among dierent countries.
II. What is the present trend of NTMs in
agriculture.
III. Why restrictions in agriculture

Introduction
Trade has instrumental role in *lling the gap of demand and
supply of agricultural products.
Countries following open trade policy realized higher farm
prices than those who restricted exports.
Agricultural trade has become heterogeneous in nature. Its
expansion leads to poverty reduction and accelerated growth.
Developing countries have bene*ted more through
participating in trade of ‘high value foods’.
Unlocking agriculture through WTO trade negotiations has
remained an important agenda.
Governments intervene in agricultural trade through dierent
policy instruments such as taris and non- tari measures.

Changing dimensions of
agricultural trade
Systematic and non-systematic issues
aect market access of agricultural trade.
 Systematic issues include subsidies which are important
part of multilateral negotiations mainly between developed
and developing countries.
 Non-systematic issues include market access issues such
as taris and non- tari measures which are negotiated
depending on the country- country basis.
WTO eorts to open up more highly distorted sector of
agriculture for the world trade as per their comparative
advantages.

Global trade in
Agriculture
Impact of NTMs on trade 3ows:
Negative impact- Complete ban,
A rise in xed or variable cost of an exporter can lead to
lower demand in the importer’s market and hence
reduction in imported good.
Positive Impact-
A minimum quality standard can reduce
informational asymmetries. The resultant reduction
in transaction costs can raise exports of those
producers that meet the standard imposed by the
importer.

Food Production (value 2004-2006
million $)

Agriculture value added (% of GDP)

Food imports

Food Exports

Major imports of agricultural
commodities
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*((((((((
+((((((((
,((((((((
-((((((((
.((((((((
Country
1000 $

Major agricultural commodity
exports in world (2011)

Cereals net trade

Fruits & vegetables net
trade
Africa
Asia
Argenna
Australia
Bangladesh
Belgium
Brazil
Canada
China
France
Germany
India
Indonesia
Malaysia
Netherlands
Pakistan
Sri Lanka
Thailand
United Kingdom
United States
#*((((
#)-(((
#)((((
#-(((
(
-(((
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)//(
*(),
country
million US dollar

Meat net trade

Dairy products net trade

NTMs initiated and in force (till
December 12, 2015)

NTMs in agriculture
sector

Problems of developing and less
developing countries
$
Developing and less developed countries suer from inappropriate policies,
institutions and investments in agriculture.
Developing countries face restricted markets due to NTMs such as food safety and
standards on value added and processed commodities.
Unfair competition from the farmers of richer countries in exports as well as in
domestic markets.
 Welfare of many developing countries is hampered by the agricultural
protectionist policies of high- income countries.
 Although developing countries have moved from the anti- agricultural policy to
increasingly pro- agricultural policy, many agricultural exporters usually restrict
agri goods to stabilize of domestic markets and redistribute potential windfall
gains to consumers.
Developing countries regularly protest against the increasing use of non- tari
barriers (NTBs) by developed countries.?

SPS
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For Example:
India- United States Agricultural Trade Restrictions
India
banned US
products
(DS
WTO DSB
US won the
case
US banned
Indian
products
What next ?
Need of
transparency,
accountability
of regulations


Thank You !1!