What is the effect of GATT WTO-AoA on the rice industry?
The World Trade Organization-Agreements on Agriculture (AoA) were multilateral agreements made under the Uruguay Round of Negotiations of the General Agreement on Tariffs and Trade (GATT). It aimed for the establishment of a ‘fair and marketed-oriented’ global agricultural trading system. A ‘fair and marketed-oriented’ trading system was to be achieved by eliminating trade barriers and trade-distorting supports in agriculture. The liberalization of the rice industry through WTO agreements plus the AFTA have resulted in opening up of rice markets whereby farmers or producers become market partners in previously government-monopolized rice trade industry. Through AFTA, ASEAN member countries are also phasing in the Common Effective Preferential Tariff (CEPT) Scheme of gradually reducing tariff rates. AFA and AsiaDHRRA members recognize that globalization and liberalization on general may offer the possible positive effects: • maximization of economies of scale through increased access to
