The WTO s Agreement on Agriculture had incorporated three broad areas of commitments from member states, namely in market access, domestic support and export subsidies. The underlying objective was to correct and prevent restrictions and distortions in world agricultural markets. Five years later, it is now established that these measures have only protected the farmers and the farming systems of the developed countries. On the other hand, the trading regime has ensured that developing countries take time-bound initiatives to open up their domestic markets for cheap and highly subsidised imports of agricultural commodities. Tariff peaks continue to block exports from the developing countries.
Tariffs still remain very high, especially in the cases of cereals, sugar and dairy products.
Sanitary and phytosanitary measures continue to be a major barrier in diversifying exports in horticulture and meat products. Selective reduction in tariffs by the developed countries has also blocked the exports from developing countries. India has, therefore, opened its market and in turn made the farming community vulnerable to the imports of highly subsidised products. Already, cheaper imports of skimmed milk powder, edible oils, sugar, tea, arecanut, apples, coconut, etc have flooded the market. Clever manipulation of their subsidy reduction commitments has in reality increased the support to farmers in the developed countries.