UPSC Prelims 2015 Question:

The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the

Explanation:

• ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the affairs of the World Trade Organisation.
  
  

WTO ‘Agreement on Agriculture’ (AoA)

• Domestic agricultural support systems are governed by the Agriculture Agreement (AoA), which entered into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The AoA's long-term goal is to establish a fair and market-oriented agricultural trading system, as well as to initiate a reform process through the negotiation of support and protection commitments, as well as the establishment of strengthened and more operationally effective rules and discipline. Agriculture is thus unique in that it has its own agreement, the provisions of which take precedence.
• The implementation of the Agreement on Agriculture started with effect from 1.1.1995. As per the provisions of the Agreement, the developed countries were to complete their reduction commitments within 6 years, i.e., by the year 2000, whereas the commitments of the developing countries were to be completed within 10 years, i.e., by the year 2004. The least developed countries were not required to make any reductions.
• The products which are included within the purview of this agreement are what are normally considered as part of agriculture except that it excludes fishery and forestry products as well as rubber, jute, sisal, abaca and coir.

Agreement on the Application of Sanitary and Phytosanitary Measures

• The Agreement on the Application of Sanitary and Phytosanitary Measures (the "SPS Agreement") entered into force with the establishment of the World Trade Organization on 1 January 1995. It concerns the application of food safety and animal and plant health regulations. 
• It sets out the basic rules for food safety and animal and plant health standards. It allows countries to set their own standards. But it also says regulations must be based on science.

The peace clause

• Article 13 (“due restraint”) of the Agriculture Agreement protects countries using subsidies which comply with the agreement from being challenged under other WTO agreements. 
• Without this “peace clause”, countries would have greater freedom to take action against each others’ subsidies, under the Subsidies and Countervailing Measures Agreement and related provisions. 

Therefore, option (3) is the correct answer.  

Subject: Economics | Economic Organisations and Conventions