Developing Countries in the World Trade in Agriculture: Bangladesh Perspective.

Topics: World Trade Organization, International trade, General Agreement on Tariffs and Trade Pages: 54 (19103 words) Published: October 19, 2008
Developing Countries in the World Trade in Agriculture: Bangladesh Perspective.

Agriculture directly or indirectly, is the main source of livelihood of most of the people all over the world. It provides a considerable portion of the national GDP of all developing countries and for the poor countries it provides the main portion of GDP. However, the World Trade Organisation (WTO) is the key organisation for controlling the world trading system and of which agriculture is one of the key concerns. The WTO Agreement on Agriculture (AoA) is the sole instrument controlling the world trade in agriculture and agricultural products.

The object of the agreement is to “establish a fair and market-oriented agricultural trading system” and it contains rule regarding three broadly categorised groups, a) market access, b) domestic support, and c) export competition. Has it so far managed to establish a fair and market-oriented agricultural trading system? This is the main concern for the developing countries and especially for the least developing countries (LDC). The text does not properly reflect the will and aspirations of the developing countries, rather it contains some rules which are inconsistent with the interest of the developing countries. It seems that the agreement is more intent to defend the interest of the developed countries.

However, as a signatory party of WTO Agreement on Agriculture, Bangladesh have a lot of concerns on the agreement in order to gain its own interest. Bangladesh is crucially facing the high price rate of food in world market. It cannot effort to feed 150 millions of people by importing from the world market at a higher price, where the rice price is now double than one year before. In order to provide food to our people we have to increase production of food and at the same time Bangladesh as well as other developing countries need to have equal opportunities to export their agricultural products in the world market. But we have lack of technology, research methodology and indeed easy access to fertiliser which are must to increase food production. This paper shall discuses the problems and prospects of the agreement and the interests of Bangladesh in world trade in agriculture shall also be critically analysed. Referring to the multilateral trading system, Martin Wolf of the Financial Times noted: The multilateral trading system at the beginning of the twenty-first century is the most remarkable achievement in institutionalised global economic cooperation that there has ever been. Through out this article, we will discuss whether the multilateral trading system makes a level playing field for the developing countries in the world trading system or not.

This paper consists of six separate chapters. Following the introductory first chapter, the second chapter is a brief of the General Agreement on Tariffs and Trade, 1947. The third chapter is the most important part of the paper as it scrutinises the WTO ‘Agreement on Agriculture’ from different point of views and its positive sides as well as its lacks along with the governing principles of the WTO. However, the fourth chapter deals with the interests of the developing countries in the world trade in agriculture and it also contains a separate part on Africa. The fifth chapter analyses agriculture of Bangladesh from different point of views. It tries to find out the reasons why Bangladesh is lacking behind in comparison with other countries in agricultural sectors. It also speaks of the on going WTO negotiations and how we can defend our interest in future negotiations. Finally the concluding chapter ends with some recommendations how Bangladesh can compete with the world trade in agriculture in future.

2.‘The General Agreement on Tariffs and Trade (GATT 1947)’ International trade needs some guiding mechanisms to benefit the people allover the world. In order to control the world trade in...

Bibliography: 1. Anderson, K., and W.Martin, 2006b. “Agriculture, Trade Reform, and the Doha Agenda.” K. Anderson and W.Martin, eds., Agricultural Trade Reform and the Doha Development Agenda. Washington, DC: World Bank.
2. Anderson, K. 1999. Cairns Group Perspective: Getting Ready for the Millennium Round— 2020 Focus I. Washington, DC: International Food Policy Research Institute.
3. Ambassador Nathan Irumba, Mission of Uganda and Representative of the Least Developed Countries (LDC) at the WTO. Speech delivered on 11 April, Geneva, cited in South Bulletin 33, 15 April, 2002.
4. Bossche, Peter Van den, The Law and Policy of the World Trade Organization, (Cambridge University Press, Cambridge,2005) pp.41-42.
5. Constantine Michalopoulos, Developing Countries in the WTO, 7-16 (2001).
8. De Gorter, H., and E. Kliauga. 2006. “Reducing Tariffs versus Expanding Tariff Rate Quotas.” In K. Anderson and W. Martin, eds., Agricultural Trade Reform and the Doha Development Agenda. New York: Palgrave Macmillan with the World Bank.
9. Hossain M. & Dev U. Kumar, 2003, Trade Liberalisation and the Crop Sector in Bangladesh, CPD. Dhaka.
12. Ingco, M., and J. Nash. 2004. Agriculture and the WTO: Creating a Trading System for Development .Washington, DC: Oxford University Press and the World Bank.
13. Jean, S., D. Laborde, and W. Martin. 2006. “Consequences of Alternative Formulas for Agricultural Tariff Cuts.” In K. Anderson and W. Martin, eds., Agricultural Trade Reform and the Doha Development Agenda. Washington, DC: World Bank.
14. Jensen, H. G., and H. Zobbe. 2006. “Consequences of Reducing Limits on Aggregate Measurements of Support.” In K. Anderson and W.Martin, eds., Agricultural Trade Reform and the Doha Development Agenda. New York: Palgrave Macmillan with the World Bank.
15. Josling, T. 1998. Agricultural Trade Policy: Completing the Reform. Washington, DC: Institute for International Economics.
16. Josling, T., and A. Rae. 1999. “Market Access Negotiations in Agriculture.” Paper prepared for the World Bank Conference on Developing Countries and the New Agricultural Negotiations, Geneva, October 1–2.
17. Josling T, 2007, An Overview of the WTO Agricultural Negotiations. In A. F. McCalla and J. Nash, eds., Reforming Agricultural Trade for Developing Countries. Vol. ONE, THE WORLD BANK, Washington, DC.
18. Meilke, K. D., M.Wensley, and M. Cluff. 2001. “The Impact of Trade Liberalisation on the International Oilseed Complex.” Review of Agricultural Economics 23 (1): 2–17.
19. M. Wolf, ‘What the World Needs from the Multilateral Trading System; in G. Sampson(ed.) The Role of the World Trade Organisation in Global Governance (United Nations University Press,2001),182.
20. OECD (Organisation for Economic Co-operation and Development). 2000. “An Analysis of Officially Supported Export Credits in Agriculture.” COM/AGR/TD/WP(2000)91/FINAL, OECD, Paris.
22. Steinberg, Richard H., and Timothy E. Josling. 2003. “When the Peace Ends: The Vulnerability of EC and US Agricultural Subsidies to WTO Legal Challenge.” Journal of International Economic Law 6 (2): 369–417.
23. Wainio, J., P. Gibson, and D.Whitley. 2001. “Background Paper on Options for Reducing Agricultural ariffs.” In “Agricultural Policy Reform in the WTO: The Road Ahead.” Report ERS-E01-001, U.S Department of Agriculture, Washington, DC.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Role of World Trade Organization Essay
  • Global Agricultural Trade and Developing Countries Essay
  • World Trade Organization and Regional Trade Agreements Essay
  • Essay on International Trade and Developing Countries
  • wto “World Trade Organization” Essay
  • World Trade Organisations Essay
  • Essay about World Trade Organization
  • World Trade Organization Principles Essay

Become a StudyMode Member

Sign Up - It's Free