GLOBILISATION OF AGRICULTURE AND WTO.pptx

This refers to the integration of agricultural markets, production processes, and supply chains on a global scale. It involves the increasing interconnectedness of agricultural producers, consumers, and markets worldwide.

1. GLOBILISATION OF AGRICULTURE AND WTO SHIVALIKA

2. Globalization of Agriculture This refers to the integration of agricultural markets, production processes, and supply chains on a global scale. It involves the increasing interconnectedness of agricultural producers, consumers, and markets worldwide.

3. Drivers of Agricultural Globalization Technological advancements: Innovations in transportation, communication, and agricultural technology have facilitated the global exchange of agricultural goods and information. Trade liberalization: Reductions in trade barriers such as tariffs and quotas have promoted the international flow of agricultural products. Market demand: Growing populations, changing dietary preferences, and increased urbanization have fueled demand for diverse agricultural products, driving globalization. Investments and multinational corporations: Large agribusinesses and multinational corporations play a significant role in globalizing agricultural production and distribution .

4. Advantages of Globilization on Agriculture Market Diversification: Globalization allows farmers to access diverse international markets, reducing reliance on domestic demand and enabling them to tap into markets with higher demand and better prices. Increased Efficiency: Globalization promotes the adoption of modern agricultural technologies and practices, enhancing productivity and efficiency in farming operations. Technological Innovation: Access to global markets encourages investment in research and development, leading to innovations in agricultural technologies, seeds, and farming methods. Economic Growth: Globalization fosters economic growth in the agricultural sector by attracting foreign investment, creating employment opportunities, and stimulating agricultural trade. Access to Inputs: Globalization facilitates the access to agricultural inputs such as seeds, fertilizers, and machinery from international markets, providing farmers with a wider range of options at competitive prices .

5. Knowledge Sharing: Globalization encourages the exchange of knowledge and expertise among farmers, researchers, and policymakers worldwide, leading to the dissemination of best practices and the adoption of sustainable farming methods. Infrastructure Development: Globalization often leads to improved infrastructure in rural areas, including roads, transportation networks, and storage facilities, which benefits agricultural production and distribution. Value Addition: Access to global markets allows farmers to add value to their products through processing, packaging, and branding, increasing their competitiveness and profitability. Diversification of Income: Globalization enables farmers to diversify their income streams by producing high-value crops or specialty products for export markets, reducing the risks associated with reliance on a single commodity. Cultural Exchange: Globalization facilitates cultural exchange through the trade of agricultural products, promoting understanding and appreciation of different food cultures and culinary traditions worldwide .

6. Disadvantages Market Volatility: Globalization exposes farmers to volatile international markets, where prices fluctuate due to factors such as currency exchange rates, trade policies, and global supply and demand dynamics. Increased Competition: Globalization intensifies competition among farmers, both domestically and internationally, leading to price pressures and potential loss of market share for less competitive producers. Dependency on Imports: Globalization may lead to increased dependency on imported agricultural products in certain regions, undermining domestic food security and self-sufficiency. Environmental Degradation: Intensive agricultural practices driven by globalization, such as monoculture farming and use of agrochemicals, contribute to soil degradation, water pollution, deforestation, and loss of biodiversity. Loss of Traditional Farming Practices: Globalization may result in the displacement of traditional farming practices and indigenous knowledge systems, as farmers adopt modern, high-input agricultural methods favoured by global markets .

7. Social Disparities: Globalization can exacerbate social inequalities within the agricultural sector, leading to land concentration, displacement of smallholder farmers, and exploitation of labor in large-scale commercial farming operations. Food Safety Risks: Globalization increases the complexity of food supply chains, making it challenging to trace and regulate food products, which can raise concerns about food safety, contamination, and outbreaks of food borne illnesses. Marginalization of Small Farmers: Globalization often benefits large-scale commercial farmers and agribusiness corporations at the expense of smallholder farmers, who may lack the resources and infrastructure to compete in global markets. Loss of Agricultural Diversity: Globalization promotes the production of uniform, high-yielding crop varieties favoured by global markets, leading to a loss of agricultural biodiversity and resilience to pests, diseases, and climate change. Cultural Homogenization: Globalization can lead to the homogenization of food cultures and culinary traditions, as globalized food systems prioritize standardized products and consumer preferences over local food traditions and diversity .

8. Role of WTO Trade Rules: The WTO establishes rules and agreements governing international trade, including trade in agricultural products. The Agreement on Agriculture ( AoA ) is a key WTO agreement that addresses issues such as market access, domestic support, and export subsidies in agriculture. Market Access: The WTO aims to promote fair and open access to agricultural markets through negotiations on tariff reductions, tariff-rate quotas, and other market access measures. Domestic Support: The WTO regulates domestic support measures provided to agricultural producers, aiming to prevent distortions in trade and competition. This includes limits on subsidies that distort production and trade .

9. Export Subsidies: The WTO seeks to reduce and ultimately eliminate export subsidies for agricultural products, which can distort international trade and disadvantage farmers in importing countries. Dispute Settlement: The WTO provides a forum for resolving disputes related to agricultural trade issues. Member countries can bring complaints against trade practices that violate WTO agreements, including those concerning agriculture. Capacity Building: The WTO supports capacity-building efforts to help developing countries participate more effectively in international trade, including in the agriculture sector. This includes technical assistance, training programs, and support for trade-related infrastructure development. Special and Differential Treatment: The WTO recognizes the special needs and circumstances of developing countries in agricultural trade. Special and differential treatment provisions allow developing countries more flexibility in implementing WTO agreements and adjusting to global trade dynamics .

10. S chemes and initiatives related to globalization Export Promotion Schemes : These schemes are designed to promote exports and enhance the competitiveness of Indian products in the global market. Examples include: Export Promotion Capital Goods (EPCG) Scheme : Allows import of capital goods for pre-production, production, and post-production at zero customs duty. Merchandise Exports from India Scheme (MEIS) : Provides rewards to exporters based on their export turnover for specified goods. Foreign Trade Policy (FTP) : The FTP is a comprehensive policy framework formulated by the Government of India to promote foreign trade and boost exports. It includes various schemes and incentives to support exporters and enhance India's trade competitiveness. Special Economic Zones (SEZs) : SEZs are designated areas with special economic regulations aimed at attracting foreign investment, promoting exports, and boosting economic growth. They offer tax incentives, streamlined customs procedures, and other benefits to businesses operating within the zone.

11. Make in India Initiative : Launched by the Government of India, the Make in India initiative aims to promote domestic manufacturing and attract foreign investment in key sectors to make India a global manufacturing hub. It includes measures to simplify regulatory processes, improve infrastructure, and enhance the ease of doing business. Invest India : Invest India is the national investment promotion and facilitation agency of the Government of India. It provides assistance to foreign investors seeking to invest in India, including guidance on regulatory procedures, investment opportunities, and business environment. Bilateral and Multilateral Trade Agreements : India has entered into various bilateral and multilateral trade agreements with other countries and trading blocs to promote trade liberalization and economic cooperation. Examples include the Comprehensive Economic Partnership Agreement (CEPA) with countries like Japan and South Korea, and participation in regional trading blocs like ASEAN and SAARC. Startup India Initiative : While not directly focused on globalization, the Startup India initiative aims to promote entrepreneurship and innovation in India, which can lead to the development of globally competitive startups and businesses.

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