4)The provisions of Agreement on Agriculture relating to subsidies are impractical for developing countries particularly India. Examine(250 words)

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TOPICEffects of liberalization on the economy

4)The provisions of Agreement on Agriculture relating to subsidies are impractical for developing countries particularly India. Examine(250 words)

Financial express

Why this question

United States (US) submitted a document in the World Trading Organization (WTO) questioning the compatibility of India’s agricultural subsidies with the relevant provisions of the Agreement on Agriculture (AoA). Hence the provisions need to be examined

Key demand of the question

The question demands answers to the following points:

  • The provisions have to be explained
  • The pragmatism of these policies, particularly for developing countries needs to be examined
  • The stand of developed and developing countries need to be mentioned
  • How should India respond is to be brought out

Directive word

Examine – When you are asked to examine, you have to probe deeper into the topic,  get into details, and find out the causes or implications if any . in the above case, the discussion has to be centred around the points outlined above.

Structure of the answer

Introduction – Stress on explaining that this is an oft repeated controversy, highlight the recent case and outline the debates that it raises

Body

  • Explain the provisions and why is there a controversy on this issue
  • Explain the perspective (in brief) of developed countries
  • While outlining the perspective of developing countries like India – explain how it is impractical for India to limit itself to the 10% limit based on 1986-88 prices due to reasons of food security, livelihood protection etc
  • Examine India’s stand on the issue and way forward

Conclusion – Mention the need for modification in the subsidy regime to ensure that there is greater buy in from the developing countries when it comes to WTO policies.