The Impact Of World Trade Organization 's Agreement On Agriculture Essay

The development of the agriculture sector is an ongoing process to promote to Malaysia’s economy. However, the agricultural sector is facing new issues such as changes in global economy and trade liberalization. The agricultural sector requires new strategies that can address issues in order

The cultivation of rice has had an enormous impact on the natural biome. Rice has affected the natural biome that it is grown in, in a devastating way. It has caused the natural biomes to deteriorate and caused the natural way of life to collapse leaving no place for the native animals and plants. But what would happen if the cultivation of rice stopped and the natural biomes returned to their former glory? What would happen to all those people depending on rice for the next meal? Those who depend on rice to pay for and keep their families alive? This report looks at the where, effects, who and how of rice cultivation.

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

"Agriculture is undoubtedly the most important activity for the majority of the world’s poor, and at the same time it is the most protected sector in industrial countries." Agriculture continues to play an important role throughout the world, while in recent years, farmers have been negatively and positively affected by the trade agreements established by both the WTO and Fair Trade system; specifically the banana and coffee farmers. The government's role was to liberalize trade by reducing tariffs and they initiated this by introducing GATT (General Agreement on Trade and Tariffs). This was an agreement between countries that slowly expanded to include countries. Agricultural Trade was left out of the GATT due to the U.S. and European Union "banana war." This is a trade dispute between the US and EU on how the bananas are sourced and imported, even though neither one of these countries are the banana growers. The GATT was later re-established as the WTO (World Trade Organization). As Weis stated, The WTO's Agreement on Agriculture (AoA) came into effect in 1995 and constitutes a major landmark in the development of the global food economy as its set in place, for the first time, multilateral rules restricting the sovereignty of governments to establish their own agricultural policies. Their main focus was to establish a fair and market-oriented agricultural trading system. Their objective is to entrench and extend the rights of transnational capital in trade and

The 1960s pushed farming to a new low. “federal agriculture policy continued to curtail surplus production and raise farm incomes, but it placed greater emphasis on guaranteeing low food prices” (Miller, 2011). Farmers were competing with other farms just to keep their farms and homes. The government implemented additional programs like the use of food stamps and the free school lunch programs, which further deemphasized the necessity for production for the farmers.

According to AAFC (Agriculture and Agri-Food Canada, 2010) due to its extensive natural resources and geographical location, in the way of several of the world’s most important trading routes, Indonesia represents the Southeast Asia’s largest economy. On a global perspective, Indonesia is the fourth most populated country and has the largest Muslim population, besides being the world’s largest archipelago, with around 17,000 islands. The country’s GDP (Gross Domestic Product) is also showing considerable and stable growth throughout the years and unemployment rates dropped considerably (AAFC, 2011).

Rice is very dependant on water and uses 2 and a half times as much water as other crops, this means drought and water scarcity is a huge problem. Flooding is also as big as a problem as rice grows on sloping rice paddies that are vulnerable to flooding because the water flows downhill meaning erosion affects all the crops. Urbanisation is somewhat of a problem because rice can be grown in a wide variety of places and the countries that export the most rice have station the farms far enough away that it won't be a problem for a long

The agriculture field is one of the biggest employers, employing over 155 million people in the United States. What do you think about when you hear the word “agriculture?” Many people would say farming, but this is not the most common occupation in this field. Farmers make up a fraction of the agricultural jobs at 900,000, but over 2.1 million people own, rent, and claim farming as a primary source of income. The average farm size has dropped from 460 acres in 1990 to 418 acres in 2007, while the average age of this occupation rose to 57, making this one of the older workforces in the United States.

In light of this, I would like to explore research frontiers in the area of the challenges of managing food and farm businesses in a global setting of the 21st Century. In our society beleaguered by agricultural problems that ranges from economic to environmental problems such as weather and global warming, issues concerning trade and management of agricultural enterprises has been the topic of debate for the past decade. Many developing/poor countries who earn their living from agriculture continuously suffer from poverty and hunger as a result of the increasing pressures on the world's resource base. Policymakers are gripped with finding solutions to problems such as structural and technological constraints, inappropriate domestic policies and an unfavourable external economic environment. As a result, the growth of these economies has been slow, undernourishment has been increasing and the marginalization of these countries in the global economy has continued. This trend has created problems for developing countries over the past decade. Economic and financial

     International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply is globalization of the world and enables countries to obtain products and services from other countries effortlessly and expediently.

The World Trade Organization (WTO) is a global organization that helps countries and producers of goods deal fairly and smoothly with conducting their business across international borders. It mainly does this through WTO agreements, which are negotiated and signed by a large majority of the trading nations in the world. The purpose of the WTO is to ensure that global trade commences freely, smoothly and predictably while also aiming to create economic peace and stability in the world through a multilateral system. This is based and applied to member states, currently 162 countries, that have consented and ratified the rules of the WTO in their individual countries. Simply put, these documents act as contracts that provide the legal framework for conducting business among nations, integrating into a country 's domestic legal system, therefore, applying to local companies and nationals in the conduct of business internationally. For instance, if a company were to open an office or business in a foreign country, the rules of the WTO dictates how that can be done.1

Mercantilism was a sixteenth-century economic philosophy that maintained that a country's wealth was measured by its holdings of gold and silver (Mahoney, Trigg, Griffin, & Pustay, 1998). This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. The logic was transparent to sixteenth-century policy makers-if foreigners buy more goods from you than you buy from them, then the foreigners have to pay you the difference in gold and silver, enabling you to amass more treasure. With the treasure acquired the realm could build greater armies and navies and hence expand the nation’s global influence.

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

     The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. The goal is to help producers of goods and services, exporters, and importers conduct their business. The World Trade Organization came into being in 1995. One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second World War. The World Trade Organization exists to ensure that trade between nations flows as smoothly, predictably and freely as possible. It provides and regulates the legal issues which governs world trade now .

Political factors impact the agricultural sector in factors relating to regulation, distribution, and consumption of foods in a given country. Government policies and imposed regulations have a direct effect on nutritional choices that a consumer makes, and this, in turn, affects the agriculture market (KPMG, 2012). For example, policies governing food prices or the amount of information that a consumer will receive affects the choice of the consumer. Food regulation and safety measures implemented influence the supply of food products, and ultimately determines the market choice for consumers (KPMG, 2012). Economic factors have a direct effect on the agricultural industry. On one hand, the input cost such as the price of seeds, fertilizers, and cost of labor affect the productivity of the industry. The economic status of a country also affects the industry’s productivity. For example, in developing countries, the agricultural sector is less developed owing to limited resource input and poor infrastructure (KPMG, 2012).