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WTO and a permanent solution for food security: striving for a hunger-free world

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Abstract

Food security at the WTO remains one of the significant unaddressed demands of the developing country members. The Agreement on Agriculture has restricted the flexibility of the developing country members to administer price support backed public stockholding programmes for food security purposes, mainly due to the Amber box limit and the methodology for calculating market price support. Despite many deliberations and Ministerial mandates, no concrete solution has been found. The only option available to the developing country members is the Bali Decision on public stockholding, which is limited in product and programme coverage. For a permanent solution, this paper examines the options of addressing the flaws in the market price support calculation methodology through (a) consideration of inflation, (b) moving external reference price, (c) notifying in stronger currency, and (d) increasing the de minimis limit. Further, a solution based on the Bali peace clause has also been analysed. The paper finds that a ‘one glove fits all’ is not an appropriate approach for a permanent solution. Instead, multiple options or a combination of options should be made available according to the agricultural conditionalities of the members.

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Fig. 1
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Source: based on domestic support notifications to WTO and Index Mundi, USDA

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Data availability

The Authors declare that all data presented in this article support our claims and comply with the field standards as required by the journal policy.

Notes

  1. Refer WTO Panel Report, China – Domestic Support for Agricultural Producers, WT/DS511/R.

  2. African, Caribbean and Pacific (ACP) Group of countries.

  3. G-33 is a group of 48 developing countries.

  4. Refer WTO Appellate Body Report, Korea – Measures Affecting Imports of Fresh, Chilled and Frozen Beef, WT/DS169/AB/R.

  5. Refer WTO Panel Report, China – Domestic Support for Agricultural Producers, WT/DS511/R.

  6. The fixed External Reference Price (ERP) must, according to paragraph 9 of Annex 3 of the AoA, be based on the years 1986–1988. However, it is to be noted that the term ‘External Reference Price’, as mentioned in footnote 5 of Annex 2 of the AoA, is not qualified by word ‘fixed’.

  7. Refer WTO Panel Report, China – Domestic Support for Agricultural Producers, WT/DS511/R.

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The Authors humbly state that they have no funding from any source with regard to the publication of their original article, titled ‘WTO and a Permanent Solution for Food Security: Striving for a Hunger-Free World’ in the Food Security.

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  1. Centre for WTO Studies, Indian Institute of Foreign Trade, New Delhi, India

    Sachin Kumar Sharma & Ahamed Ashiq Shajahan

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  1. Sachin Kumar Sharma
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Sharma, S.K., Shajahan, A.A. WTO and a permanent solution for food security: striving for a hunger-free world. Food Sec. 16, 321–337 (2024). https://doi.org/10.1007/s12571-023-01426-9

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