Monday, 5 October 2020

WTO and Global Agricultural Trade: Philosophy, Polices, Politics and Prophecy | Book Publisher International

Competition among the nations is the biggest problem within the international trading system. WTO deals with the rules of trade among countries and plays an important role for supporting global economic development. CAGR formulae, Delphi survey method and meta-analysis were used for analysis. The study analyzed the importance of WTO trade policies in the global agriculture trade. Favorable trade in the agricultural products had been noticed in the European and American continents whereas the negative trade balance has been noticed in the Asian and African continent. Europe exported and imported more agricultural products in the world. African agricultural trade was very poor. Agricultural exports growth rate was higher than imports in the Asia but reverse trend was seen in other continents. The exports price elasticity of agricultural products in Europe was marginally higher than imports. Agricultural commodities trade was shown negative growth in the Brazil and Argentina of the American continent and Angola of the African continent. USA and China imposed high tariff rates, which affect the whole global economy. This study used for policy makers, decision makers, producers, consumers and multi-stake holders.

Adam Smith (1776) is revolutionary Economic Idea is that proposed Free Trade Theory against British 
Colony Monopoly. The WTO called the farming agreement “historic”. The study is quantitative frame work of geopolitical effects of WTO measures on the most significant regional trading blocs and global agriculture. The study found that developing countries support more to agriculture when compared to developed countries. The study found that the NAFTA trading bloc consisted of the highest number of non-tariff measures such as Sanitary and Phyto-sanitary, Technical Barriers to Trade, Anti-Dumping, Countervailing & Special Safeguards. Similarly, more number of Safeguards & Quantitative Restrictions were imposed by the ASEAN trading bloc. While more number of Tariff Rate Quotas & Export Subsidies were imposed by EFTA & MERCOSUR trading blocs, respectively. The study of political economy found that, globally government is not giving priority to agriculture in budget allocation except for South Korea and Switzerland. This study significant discovery is many countries targeted to protect agriculture by trade and domestic support polices in one or other way. This necessitates further reforms to be benefited all regions. These findings have significant impact on World trade negotiations, world trading rules, designing WTO agreements or policies or programs, multilateral agreements.


Since world market economies are dynamic, the responsiveness of export quantities to changes in

international prices is of direct relevance in international economics. India has 12% share of world tea
exports and is the seventh largest coffee producer in the world (2013–2014). This study analyses the
exports and price growth rates, elasticity, instability and major global markets for Indian tea and
coffee. The study found that elasticity for coffee and tea was 61.4 and 13.5%, respectively. The
destinations which account for the major share of exports for Indian tea are developed countries
including Australia (18.7%), Russia (17.3%), and the United States (15.9%) and for coffee are Italy
(28.7%), Germany (13.8%), and Belgium (7.6%). Based on an analysis of individual country elasticity
and growth rates, India has comparative advantage to export to the Middle East, Europe, the United
States, and Australia.

Global trade of pulse crops represents about 15% of global production. Even though India is the

largest pulses producer of the world, it imports large amount of pulses from rest of the world. So, it is
important to analyze, how the inflow and outflow of pulses from India is changed over the period of
time. The study period is 1990-2017. The study observed that import markets are shifting from
developing to developed nations. The maximum export and import quantity growth rate is witnessed for
African and American region respectively. Export price of all major pulses were more than import
prices indicating that India has comparative advantage in pulses. The study found that, the total
pulses, export price elasticities for all regions is elastic, whereas the import price elasticities is also
elastic except for Asia and Oceania. India is importing from Canada, Myanmar, Australia, Russia and
USA and exporting to Sri Lanka, Pakistan, Bangladesh, Egypt and Saudi Arabia. The study suggest
that Import from inelastic countries should be exempted from any ban which would help to boost the
trade and treat under MFN status.

Agricultural prices play greater role in living Economics. Since many decades’ farmers faced declining

agricultural prices and low prices in developing countries. The specific objectives are to review various agricultural price theories, research evidences and construct the theory of agricultural price bubble and crash and their effect on macro economy and suggest measures to improve. The study reviews various agricultural price theories, concepts, policies, research gaps and do meta-analysis and formulated the theory of Agricultural prices bubble and price crash. Many countries are unable to
make successful pricing policies due to there is not enough operative methodological and theoretical
support for decision-making. “Demand channel" is the crucial factor in elucidation of commodity price
growth. Future prices moments in agriculture have fat-tailed distributions and display quick and
unpredicted price jumps. The theory of NAFTA regionalism did not lead to regionalization and not
increasing share of intraregional international trade. In EU countries land rents in modern agriculture
causing upward trend in agricultural land prices. Information friction, agricultural supports, agricultural
price & trade policies, agricultural price transmission are responsible price fluctuations. In economic
theory, asymmetric price transmission has been the subject of considerable attention in agricultural
gaps.

Globally, Legumes are vital crops for achieving food and nutritional security. This study analyzes

global legumes growth and developments. The study period was 1990-91 to 2017-18. The compound
annual growth rates, terms of trade, price elasticity’s, trends and instability analysis used. Globally
and continent wise, soybean took the first position in area and production among selected legumes
except groundnut in the African continent. Globally, TOT were found to be increased for beans,
groundnut, and soybean. In Asia, during 1990-91 to 2017-18, the exports price of beans, chickpea,
groundnut, peas, and soybean was more than imports price except lentil. Globally, the export price
elasticity of chickpea, lentil, and peas were found to be marginally higher than imports in the world.
The import price elasticity of all legume crops were found to be marginally higher compared to exports
in Asian continent but reverse trend noticed in other continents in some crops. The export price of
soybean and peas witnessed more or less linear trends in the world. The study suggests that
multilateral trade relationship with high CAGR regions would help in smooth trade of legume crops.

Globally, the oilseed production has continued to increase. This increasing production calls for the

need to have a thorough research in the area. The study is based on analyzing the domestic as well
as global policies that affect the production and consumption pattern of oilseeds in an economy. The
methodology employed is the estimation of CAGR, Instability Index, elasticity and terms of trade of
oilseeds. The study period is 1990-91 to 2017-18. The results showed that Soybean has the highest
CAGR. Groundnut and Niger Seeds have higher terms of trade. The terms of trade of India’s oilseeds
were found to have increased for all oilseeds except mustard crop. During the period 1990-91 to
2015-16, the export import price elasticity’s of all oilseeds were found to be positive except imports
price elasticity of soybean (-0.45 %) crop. The study found that the exports price elasticity of Soybean, Mustard, Safflower, Sesamum and Sunflower were found to be marginally higher than compared to imports giving a comparative advantage in to India in this regard. These observations can help in remodeling the policies which can accompany the changing policies under WTO.

2017-18. The current study analysed the growth rate, elasticity and instability of export quantity, prices

of selected legumes and their export destinations in the Indian and global market. The study found
that Indian peas have more demand in overseas market. Export price of chickpea was more than
other legumes in India. The export prices of Indian legumes were stable. India should export their
beans to Brazil, China and Australia for making profits in the international markets. India exported
more quantity of chickpea to Canada followed by Argentina and USA. Export price of chickpea was
more in Mexico, Australia and Argentina. Canada, Mexico, Ethiopia and UAE were stable in export
quantity of chickpea. India should expand lentils exports by making appropriate strategies in global
markets because some of the exporting countries realized instability of export prices. The export price
of beans, chickpea and peas were stable in all countries. Indian legumes should export to the highly
demanded countries such as Argentina, Canada and USA in an overseas market. The major
destinations are Brazil, Japan and UK for beans; Pakistan, Bangladesh and Spain for chickpea;
Turkey, Sri Lanka and Bangladesh for lentils; and China, Belgium and Bangladesh for peas. India
should seek for new developed markets for the legume crops.

In world, coffee and tea are the most enjoyable consumer beverages. Drinking coffee and tea reduce

the risk of several diseases. This is based on the foreign trade research study during the period from
1990-91 to 2017-18. CAGR, price elasticity’s, instability and trends of exports and import price
analysis were employed for the study analysis. The study found that MERCOSUR and SAFTA are the
major producers of coffee and tea, respectively in the world. Globally import prices of coffee and tea
were higher than export prices. The terms of trade of coffee and tea were favored in the European
Union, NAFTA, COMESA, SAFTA and Pacific Alliance. MERCOSUR would get benefited from other
countries due to the higher export prices of coffee. Similarly, EFTA, NAFTA, COMESA and Pacific
Alliance trading blocs would be profited for tea. Globally, Export price elasticity’s of coffee in
MERCOSUR and COMESA were marginally higher than imports price elasticity. Export price
elasticity’s of coffee was found to be marginally higher than imports in the Germany, Italy and
Netherlands (EU); Norway (EFTA); Canada and USA (NAFTA); Venezuela (MERCOSUR); Australia
(ASEAN); Egypt (COMESA); India (SAFTA); and Chile and Peru (Pacific Alliance). Export price
elasticity’s of tea was found to be marginally greater than the imports in the Italy (EU), Norway and
Switzerland (EFTA), USA (NAFTA), Australia, Indonesia and Thailand (ASEAN), and Chile and Peru
(Pacific Alliance). This foreign trade study is very helpful for multi-stake holders, producers, traders
and consumers of coffee and tea.

Author (s) Details

M. B. Dastagiri
ICAR-National Academy of Agricultural Research Management, Rajendranagar, Hyderabad- 500030, India.

P. V. Naga Sindhuja
ICAR-National Academy of Agricultural Research Management, Rajendranagar, Hyderabad- 500030, India.

View Book :-
https://bp.bookpi.org/index.php/bpi/catalog/book/275

No comments:

Post a Comment