The Plight Of Developing Countries Under The WTO Agriculture Subsidies Rules And Its Strategies In Response

Agriculture trade has been put under WTO regime since the Uruguay Round; However, when comparing with the Agreement on Subsidies and Countervailing Measures (SCM) of WTO, which strictly prohibits subsidies on industrial products, the Agreement on Agriculture allows subsidies on agriculture to continue;it only asks for their reduction. Under these rules, the developed countries get to maintain their comparative advantage on both trade in Industrial goods and agriculture goods. The thesis is composed of three sections.Firstly, with the introduction of agricultural subsidies under WTO regulation, discusses how to governing the agriculture subsidies issues among Agreement on Agriculture (AoA), Agreement on Subsidies and Countervailing Measures (SCM) and the GATT provisions of 1994.Secondly, by the analysis of two recent agriculture subsidy-related trade disputes, one is United States-Subsidies on Upland Cotton; The other is European Communities- Export Subsidies on Sugar, to understanding of the question of legitimacy of agricultural subsidy and its limit.Thirdly, with the discussing of the progress of Doha Round and the different stands between developed and developing states. To analysis the conflicts between developed and developing states caused by complicated and intricate interests of the countries concerned.Finally, this dissertation focuses on policies and practices on agriculture subsidies or supports by P.R.C., China having become WTO member, and tries to articulate possible future strategies on agriculture subsidies of the two world trading members.What happened is that agricultural trade has long been distorted. Under the current WTO regime, the developed states have forced developing states to open up market for their agricultural produce without reducing domestic support for their own agricultural sector in return. Naturally, developing states strongly demand an alteration of such unfair AoA under WTO by requesting the termination of agricultural subsidies by developed states and the restriction of dumping of agriculture produce by developed states into developing states. The success or failure of talks on AoA will determine the final outcome of the Doha round, and the question of agricultural subsidies is the Doha round and the question of agriculture subsidies has become the key issue among all states concerned with talks on agriculture. Consequently, a study of the legal regime of agricultural subsidies is important and practical.Based on the above-mentioned, it is obvious reveal to the plight of developing countries under the WTO Agriculture Subsidies Rules, the thesis try to provide forward suggestive strategies in response.