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WTO and it’s implications for Pakistan’s Agriculture

WTO and it’s implications for Pakistan’s Agriculture. By Syed Naveed Qamar, MNA. WTO impact on Agriculture. Covenants signed Removal of all support to agriculture Opportunities vs. disasters Applicable even if not exporting MFN status. Domestic Support Pricing Issues. Measure type

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WTO and it’s implications for Pakistan’s Agriculture

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  1. WTO and it’s implications for Pakistan’s Agriculture By Syed Naveed Qamar, MNA

  2. WTO impact on Agriculture • Covenants signed • Removal of all support to agriculture • Opportunities vs. disasters • Applicable even if not exporting • MFN status

  3. Domestic Support Pricing Issues • Measure type • Applied administered price • External reference price • Eligible production • Total Market price

  4. Covenants signed and agro impact • GATT • Uruguay round • Doha Round • Cancun

  5. Subsidies • Direct subsidies • Subsidies on wheat (negative subsidy) Indirect subsidies Electricity Fertilizer Freight Credit Fuel (negative) Subsidies includes revenue foregone • Export subsidies

  6. State of preparedness • No knowledge of WTO at farmer’s level • Farmers organizations not involved in any negotiation rounds • No study on individual crops for comparative advantage or disadvantage • No input from legislators in any round since joining

  7. Measures Exempt from reduction • Agriculture research • Government Storage • Agro marketing • Extension services • Plant protection • Irrigation, drainage and reclamation • On-farm water management

  8. International trade • Removal of direct Subsidies • Indirect subsidies • Pest certifications • Labor laws • Patent of Agro products – Basmati, Chonsa, Palla

  9. Trade with India • Indian subsidies on Electricity and other inputs • Size of market • Present trade through informal and indirect channels

  10. Some Possible Solutions • Cannot beat them so join them • Media blitz in easy terms • Heavy legislative update efforts • Fiscal adjustments to provide advantage or cut disadvantage • Massive marketing efforts abroad • Patenting of local produce • Processing plants and credit availability

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