AGRI COACHING CHANDIGARH

⚖️ Tariff Wars & Double Standards in Agriculture Trade


1️⃣ What is a Tariff War?

🔁 A tariff war happens when countries raise import duties to protect their own industries.
🌾 In agriculture, this leads to unfair global trade, especially for countries like India.



2️⃣ Unequal Subsidy System:

💸 Developed nations like USA & EU give farmers huge subsidies (>$80,000 per farmer).
🇮🇳 In India, average farmer subsidy/support is below $500.
❗Still, when India supports farmers through MSP, fertilizer, or PM-KISAN — it's labelled as "trade distorting" by WTO.


3️⃣ Non-Tariff Barriers (NTBs):

🚫 Apart from tariffs, rich nations use hidden trade barriers:

❌ Strict food safety & quality standards (e.g., aflatoxin in groundnut exports)

🧪 Bans on certain pesticides, GMOs

📋 Complex certification & packaging rules
➡️ These hurt Indian agri exports like Basmati, mango, groundnut, etc.


4️⃣ Past Global Trade Disputes:

🐔 Chicken War – EU vs. US (example of food standard-based trade conflict)
🍌 Banana War – EU gave preference to Caribbean nations over Latin America
🥩 Beef Hormone Dispute – EU banned hormone-treated beef from US
✅ All show how developed nations protect their farmers, not free trade.


5️⃣ Why WTO Rules Are Unfair to India:

⚖️ WTO allows huge subsidies in developed countries under “Green Box”
🇮🇳 India’s MSP procurement is challenged under “Amber Box” as trade-distorting
🔄 Rich countries enjoy flexibility; developing countries face restrictions


6️⃣ India’s Concerns:

🧑‍🌾 Large number of small & marginal farmers
💰 Needs to support them via MSP, subsidies, PM-KISAN
🛡️ WTO rules and global pressure limit policy space
➡️ This affects food security & rural economy


7️⃣ What India Demands at WTO:

✅ Peace clause to protect food procurement programs
✅ Flexibility in public stockholding
✅ Reform in subsidy calculation methods
✅ Level playing field in global agriculture trade

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15.8K viewsedited  Apr 10 at 03:19

⚖️ Tariff Wars & Double Standards in Agriculture Trade


1️⃣ What is a Tariff War?

🔁 A tariff war happens when countries raise import duties to protect their own industries.
🌾 In agriculture, this leads to unfair global trade, especially for countries like India.



2️⃣ Unequal Subsidy System:

💸 Developed nations like USA & EU give farmers huge subsidies (>$80,000 per farmer).
🇮🇳 In India, average farmer subsidy/support is below $500.
❗Still, when India supports farmers through MSP, fertilizer, or PM-KISAN — it's labelled as "trade distorting" by WTO.


3️⃣ Non-Tariff Barriers (NTBs):

🚫 Apart from tariffs, rich nations use hidden trade barriers:

❌ Strict food safety & quality standards (e.g., aflatoxin in groundnut exports)

🧪 Bans on certain pesticides, GMOs

📋 Complex certification & packaging rules
➡️ These hurt Indian agri exports like Basmati, mango, groundnut, etc.


4️⃣ Past Global Trade Disputes:

🐔 Chicken War – EU vs. US (example of food standard-based trade conflict)
🍌 Banana War – EU gave preference to Caribbean nations over Latin America
🥩 Beef Hormone Dispute – EU banned hormone-treated beef from US
✅ All show how developed nations protect their farmers, not free trade.


5️⃣ Why WTO Rules Are Unfair to India:

⚖️ WTO allows huge subsidies in developed countries under “Green Box”
🇮🇳 India’s MSP procurement is challenged under “Amber Box” as trade-distorting
🔄 Rich countries enjoy flexibility; developing countries face restrictions


6️⃣ India’s Concerns:

🧑‍🌾 Large number of small & marginal farmers
💰 Needs to support them via MSP, subsidies, PM-KISAN
🛡️ WTO rules and global pressure limit policy space
➡️ This affects food security & rural economy


7️⃣ What India Demands at WTO:

✅ Peace clause to protect food procurement programs
✅ Flexibility in public stockholding
✅ Reform in subsidy calculation methods
✅ Level playing field in global agriculture trade

BY AGRI COACHING CHANDIGARH