WTO and its implications for Pakistans 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 Applied administered price External reference price Eligible production Total Market price
Covenants signed and agro impact GATT Uruguay round Doha Round Cancun
Subsidies Direct subsidies –Subsidies on wheat (negative subsidy) Indirect subsidies Electricity Fertilizer Freight Credit Fuel (negative) Subsidies includes revenue foregone –Export subsidies
State of preparedness No knowledge of WTO at farmers 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
Measures Exempt from reduction Agriculture research Government Storage Agro marketing Extension services Plant protection Irrigation, drainage and reclamation On-farm water management
International trade Removal of direct Subsidies Indirect subsidies Pest certifications Labor laws Patent of Agro products – Basmati, Chonsa, Palla
Trade with India Indian subsidies on Electricity and other inputs Size of market Present trade through informal and indirect channels
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