Domestic support regimes for agriculture are governed by the agriculture agreement, which came into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through negotiations on promised commitments and safeguards and by defining more effective and operationally effective rules and disciplines. Agriculture is therefore special, because the sector has its own agreement, the provisions of which are given priority. In view of the General Agreement on Tariffs and Trade (GATT), signed in Geneva in 1947, and the world trade organization (WTO) agreement signed in Marrakech in 1994 (OJ L 1994, p. The European Union and its Member States act in accordance with Article 207 (Common Trade Policy) and Articles 217 and 218 (International Agreements) of the Treaty on the Functioning of the European Union (5.2.2). The CAP is also affected by land concessions granted to several multilateral and bilateral agreements under several multilateral and bilateral agreements, as well as unilateral exemptions granted under the Generalized Preference System (GSP). These preferential agreements explain the high level of EU agricultural imports from developing countries (3.2.10, Table VI). The Haberler report of 1958 stressed the importance of minimizing the impact of agricultural subsidies on competitiveness and recommended replacing price support with additional non-production-related direct payments, and expected discussions to be ongoing on green box subsidies. But it is only recently that this change has become the heart of the reform of the global agricultural system.  The 2003 CAP reform, which decoupled most of the existing direct aid, and the sectoral reforms that followed, resulted in the deferral of most aid under the amber box and the blue box to the green box (61.6 billion euros in 2016/2017, see table below). Aid under the “amber box” (AMS) has fallen sharply, from EUR 81 billion at the beginning of the period of the agreement to EUR 6.9 billion between 2016 and 2017, even with successive waves of expansion. The European Union thus largely respects the commitments made in Marrakech (72.38 billion euros per year) for the AMS. In addition, the “blue box” reached 4.6 billion euros during the same notification period.
This chapter deals with the successful conclusion of the Uruguay Round and the creation of the WTO, which have given impetus to greater liberalization and integration of the world economy. In the agricultural sector in particular, important steps have been taken towards liberalisation. This chapter examines the impact of this development on developing countries as exporters and importers. In the first part, we saw that the Uruguay Round was based on a process of gradual liberalization of world agricultural trade. This chapter first examines the extent to which commitments have been met and to what extent it has achieved a liberalisation of agriculture in the short and medium term. Many commentators say that the main liberalisation measures will come from the next rounds of negotiations. We explain the likely effects by examining the positive and negative effects on international trade, with particular attention to the prospects of raw materials of particular interest to developing countries. Objectives of this chapter In order to make you understand the links between the external trading environment and domestic agricultural policy and how the agreement will influence them. What you`ll learn Trade opportunities arising from the commitments of developed and developing countries to market access, export subsidies and domestic aid.