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Implications of the Uruguay Round Agreement for South Asia

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Implications of the Uruguay Round Agreement for South Asia SOTASIA S o U T H A S I A R U R A L D E V E L O P M E N T S E R I E COMMODITIES Public Disclosure Authorized Implications of the Uruguay Round Agreement for South Asia Public Disclosure Authorized The Case of Agriculture Public Disclosure Authorized _w-X THE -- --K- Public Disclosure Authorized WORLD BANK ALLIED PUBLISHERS FOOD AND AGRICULTURE ORGANIZATION World Bank/FAO Workshop (Kathmandu, May 1996) Implications of the Uruguay Round Agreement for South Asia: The Case of Agriculture Edited by: Benoit Blarel Garry Pursell AlbertoVald6s The World Bank Washington, D.C. Allied Publishers New Delhi Allied Publishers Limited Regd. Off.: 15 J.N. Heredia Marg, Ballard Estate, Mumbai 400038 Prarthna Flats (2nd Floor), Navrangpura, Ahmedabad 380009 3-2-844/6 & 7 Kachiguda Station Road, Hyderabad 500027 16-A Ashok Marg, Patiala House, Lucknow 226001 5th Main Road, Gandhinagar, Bangalore 560009 17 Chittaranjan Avenue, Calcutta 700072 81 Hill Road, Ramnagar, Nagpur 440010 13/14 Asaf Ali Road, New Delhi 110002 751 Anna Salai, Chennai 600002 First Published, 1999 O 1998 by The International Bank for Reconstruction and Development/The World Bank 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. ISBN 0-8213-4275-4 ISBN 81-7023-888-9 The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. Some sources cited in this paper may be informal documents that are not readily available. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, with- out the prior permission of the copyright owner. Cover Design: Amy Meyer Phifer Library of Congress Cataloging-in-Publication Data Implications of the Uruguay Round agreement for South Asia: the case of agriculture / edited by Benoit Blarel, Garry Pursell, Alberto Valdes. p.cm. "World Bank/FAO workshop held in Kathmandu, May 1996." Includes bibliographical references and index. ISBN 0-8213-4275-4 1. Agriculture and state - South Asia. 2. Uruguay Round (1987-1994) I. Blarel, Benoit. II. Pursell, Garry. III. Valdes,Alberto, 1935-. HD2065.3.Z8144 1998 338.1'854-dc21 98-36250 CIP Published by Allied Publishers Limited, and printed at Allied Publishers Printing Division, A-104 Mayapuri, Phase-II, New Delhi - 110 064 CONTENTS xi Foreword xiii Preface 1. Overview of the Impacts of the Uruguay Round: Global and South Asian Dimensions 3 1. Overviewof the GlobalImpact of the UruguayRound and Lessons from Early Reformers Alberto Vald6s 3 I. Background 4 II. The potential changes in the global trade environment 5 III. Price trends in world food markets 8 IV.Some observations from early reformers: Latin America during the early 1990s. 13 References Is 2. A Synthesisof Assessments of the Impact of the UruguayRound on Globaland South Asian Agriculture Ramesh Sharma, Panos Konandreas and Jim Greenfield 15 I. Introduction 16 II. Incorporation of the Uruguay Round Commitments in the Models 19 III. Impact of the Uruguay Round on Agriculture 27 IV.Concluding Remarks 27 References 29 3. Some Aspects of the Liberalization of South AsianAgricultural Policies: How Can the WTO Help? Garry Pursell 29 I. Introduction 31 II. The Uruguay Round commitments of the South Asian Countries 33 III. Future policies and issues for the mini-round 43 IV.Conclusions 45 References I. The Uruguay Round Agreement:The Case of Agriculture 49 4. Commitments Limiting Subsidisation:Domestic Support Commitments Paul Shanahan 49 I. Introduction 50 II. Pre- and Post-Uruguay Round Frameworks 51 III. Commitments on Domestic Support under the Agreement on Agriculture - General Aspects 52 IV.Reduction Commitments 55 V. Domestic Support Measures not subject to Reduction 60 VI. Actionability of Domestic Support Measures other than Green Box Measures 63 5. Export Subsidy Commitments Paul Shanahan 63 I. Introduction 64. II. Main elements of the new framework .. IMPLICATIONS OF THE URUGUAY ROUND AGREEMENT FOR SOUTH ASIA: THE CASE OF AGRICULTURE 65 III. Article 3:3 of the Agreement on Agriculture - Exceptions 66 IV.Reduction Commitments 66 V. Article 10- Prevention of Circumvention of Export Subsidy Commitments 68 VI. Actionability of Export Subsidies under the Due Restraint or "Peace Clause" 68 VII. Notification Requirements 69 VIII. Export Prohibitions and Restrictions 71 6. Market Access Paul Shanahan 71 I. Introduction 71 II. The Legal Framework and Related Rule-Based Commitments 75 III. Scheduled Market AccessCommitments 77 IV.Tariff Quota Administration 81 7. Implementation:TheMultilateral Review Process and Dispute Settlement Paul Shanahan 81 I. Introduction 82 II. The Multilateral Review Process 84 III. Dispute Settlement 87 8. DomesticTaxes and Administrative and Technical Barriers to Trade on Goodsand Services Thomas Friedheim 87 I. Overview 87 II. Domestic Taxes and Administrative Barriers to Trade on Goods 94 III. Technical Barriers to Trade 99 IV.Administrative and Technical Barriers to Trade on Services 101 9. ImpactofWTO on CodexAlimentarius and its Implicationsfor the SouthAsia Region Richard J. Dawson 101 I. Introduction 102 II. The Codex Alimentarius Commission 102 III. The reason for a Codex Alimentarius 102 IV.The way the Codex Alimentarius Commission operates 103 V. Codex and quality control 104 VI. How can Codex help? 105 VII. Conclusion Ill. Implications of the Uruguay Round for Selected Agricultural Commodities 109 10. The Impactof the UruguayRound Agreement on Agricultureon the World RiceEconomy and SouthAsia Chan Ling Yap 109 I. Introduction 109 II. The main provisions of the Agreement relevant to rice 112 III. Implications for the world rice economy 118 IV.Implications for South Asia 119 V. Conclusions iv CONTENTS 123 11. A New Era inWorld SugarTrade: Implications for SouthAsian Countries Brent Borrell 123 I. Introduction 124 II. The Uruguay Round provides a good springboard for other reforms 124 III. Why the pressures for more liberal trade will not go away 129 IV.World prices will reflect production costs in efficient exporting countries 129 V. Implications for South Asian countries 136 VI. Conclusions 137 12. The Abolitionof the Multi-fibreArrangement and its Implicationsfor Fibre Markets Will Martin 137 I. Introduction 138 II. The Nature of the Multi-Fibre Arrangement 140 III. The MFA and Other Liberalization Under the Uruguay Round 145 IV.Implications for fibre markets 148 V. Policy options for South Asia 149 VI. Conclusions 150 References IV. National Implicationsof the UruguayRound in SouthAsia 155 13. BangladeshAgriculture and the UruguayRound: Policies, Commitmentsand Prospects Nuimuddin Chowdhury,Habibur Rahman and Sajjad Zohir 155 1.Bangladesh Agriculture: an Overview 157 II. The structure of Bangladesh's import and export trade for agricultural goods 158 III. Policy evolution pertaining to agriculture in Bangladesh 162 IV.Bangladesh's offer to the Uruguay Round 163 V. Post-Uruguay Round Bangladesh agriculture 164 References 167 14. IndianAgricultural Trade Liberalizationand the UruguayRound Agreement Anil Sharma 167 I. Introduction 167 II. Current agricultural policiesl 169 III. Agriculture and the Uruguay Round 174 IV.Intellectual Property Rights (IPRs) 174 V. Sanitary and Phytosanitary (SPS) Measures 174 VI. Safeguard Provisions - Anti-dumping 175 VII. The Uruguay Round and State-Trading Enterprises 175 VIII. Summary 176 References 177 IS. Nepal:AgriculturalTrade Policiesand Programmes ThakurNath Pant 177 I. Introduction 178 II. Agriculture in Nepal 179 III. Current status of Nepalese agricultural trade V IMPLICATIONS OF THE URUGUAY ROUND AGREEMENT FOR SOUTH ASIA: THE CASE OF AGRICULTURE 180 IV.Policy framework for agricultural trade 183 V. The Uruguay Round Agreement and its implications for Nepal 185 VI. The potential impact of the Uruguay Round Agreement 186 VII. Conclusion 187 References 189 16. Impact of Uruguay Round Agreement on Pakistan'sAgri-ulture Sector, Dr. Sarfraz Khan Qureshi 189 I. Introduction 191 II. Domestic and trade policies for agricultural commodities and the Uruguay Round commitments 193 III. The impact of the Uruguay Round on agriculture in Pakistan 200 IV.Compliance of Pakistan's agricultural policies with the provisions of the Uruguay Round Agreement on agriculture and structural adjustment programmes 200 References 203 17. Agricultural Trade Liberalization in the Uruguay Round: Implications for Sri Lanka Prema-ChandraAthukorala and SamanKelegama 203 L Introduction 203 II. Agriculture in the Sri Lankan economy 204 III. Agricultural policy 210 IV.Sri Lanka and the Uruguay Round 212 V.The Implications for Sri Lanka of Market AccessProvisions at the Global Level 213 References 215 Endnotes Tables Chapter I 6 Table 1. Price Trends: Predicted percentage changes in real world prices of temperate zone products (year 2000 relative to base year) 6 Table 2. Price Trends: Predicted percentage changes in real world prices of tropical products (years 2000 and 2005 relative to base year) 10 Table 3. Current Status on Tariffsand Quantitative Restrictions on Agricultural Trade, 1994 11 Table 4. Base and Bound Tariffsof Selected Countries and Selected Agricultural Productsa, b (percent, unless otherwise specified) 14 Annex Table 1. Decomposition of RelativeAgricultural Prices of Exportables in Latin America, 1986-93 (cumulative percentage change over the period) Chapter 2 17 Table 1. Main features of the models reviewed 18 Table 2. Changes in world market prices of agricultural products due to the Uruguay Round (percentage change from benchmark levels at the end of implementation period) 20 Table 3.
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