topic describe the main contents of the wto agreement onagriculture aoa and make six specific recommendations to thevietnamese government on agricultural policy

This agreement aimed to reform the global agriculturaltrading system by promoting three main principles, which will bementioned in the first chapter.Vietnam, a major agricultural produce

SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

MEMBER OF GROUP 2

No.NameStudent IDContribution Rate (%)1Dương Anh Duy11211672100

2Đào Thành Huy112125871003Phạm Huy Hoàng112123711004Nguyễn Quỳnh Thu112198031005Bùi Ngọc Khánh112128151006Đàm Tuấn Đạt11211214807Đặng Minh Quân11214931100

SIGNATURE

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

1.3 Negotiation Process and the Deadlock of Negotiation Process 8

CHAPTER 2 VIETNAM’S AGRICULTURE POLICIES AND

2.2 Adaptation Ability of Vietnam’s Agriculture: Before and After WTO

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

LIST OF ABBREVIATIONS

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

Agriculture has historically been a sector heavily influenced bygovernment intervention Prior to the World Trade Organization (WTO)'sestablishment, countries often employed trade barriers and domesticsubsidies to protect their agricultural sectors This created a distortedglobal market where competition was stifled and international trade wasn'tfunctioning efficiently.

Recognizing these issues, the WTO Agreement on Agriculture (AoA) wasestablished in 1994 This agreement aimed to reform the global agriculturaltrading system by promoting three main principles, which will bementioned in the first chapter.

Vietnam, a major agricultural producer and growing player in the globalfood market, joined the WTO in 2007 This presented both challenges andopportunities for the Vietnamese agricultural sector While Vietnamneeded to adjust its policies to comply with the AoA principles, it alsogained access to new markets and fairer competition on the world stage.

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

CHAPTER 1 WTO AGREEMENT ONAGRICULTURE (AOA): MAIN CONTENTS

1.1 Background

The Uruguay Round of negotiations, spanning from 1986 to 1994, laid thegroundwork for the establishment of the Agreement on Agriculture, whichcame into force in 1995 This agreement is a pivotal component of theWorld Trade Organization's efforts to foster fairer competition and reducedistortions in agricultural trade By addressing various aspects such assubsidies, market access, and domestic support, the Agreement onAgriculture endeavors to create a more level playing field for agriculturalproducers worldwide Through its provisions and regulations, it seeks topromote transparency, encourage sustainable agricultural practices, andfacilitate smoother trade relations among member nations

1.2 Key Pillars

The WTO Agreement on Agriculture (AoA) rests upon severalfundamental pillars aimed at regulating and liberalizing internationalagricultural trade.

Firstly, it addresses domestic support, which encompasses the variouspolicies and subsidies provided by governments to their domesticagricultural sectors These support measures are classified into differentboxes: the amber box includes subsidies considered to distort trade andproduction; the blue box comprises less distorting forms of support, subjectto certain conditions; and the green box encompasses policies that areminimally or non-trade-distorting, such as those promoting ruraldevelopment or environmental conservation.

Secondly, the AoA focuses on market access, which involves reducingbarriers to trade and enhancing the openness of agricultural markets Thisis achieved primarily through commitments to tariff reduction, facilitatingincreased access to foreign markets for agricultural goods.

Thirdly, the agreement prohibits the use of export subsidies, thuseliminating a significant mechanism for distorting global agricultural trade.This measure aims to create a more level playing field for agriculturalproducers worldwide.

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

Lastly, the AoA recognizes the principle of Special and DifferentialTreatment (S&D), which acknowledges the differing needs and capacitiesof developing and least developed countries (LDCs) This provision allowsthese countries certain flexibilities and exemptions from certainobligations, recognizing their developmental challenges and constraints.

1.3 Challenges and Debates

There are concerns that liberalization under the AoA may undermine foodsecurity in developing countries by exposing domestic producers toincreased competition from cheaper imports Unemployment is a cruelhardship, but starvation is fatal UN member states are bound to protectand promote the universal human right to food

The model for agricultural trade implicit in the AoA presumes thatagricultural markets are only distorted by government interference Inpractice, as researchers have increasingly documented, agricultural marketsare heavily distorted by the presence of oligopoly buyers and sellers atdifferent points in the agri-food chain Monsanto, for example, makessome 90% of the genetically modified seed in commercial use Cargill,ADM and Zen Noh control over 80% of maize sales from the US (which inturn has some 40% of the world maize market).

The external effects of farm production (the impact agriculture has on theenvironment, for example) pose another set of challenges to theassumption that agriculture can be left to the free market For example,research in the Philippines has shown that while green-revolutiontechnologies produce more rice per hectare than traditional methods,overall productivity on farms using green-revolution inputs is lowerbecause the pesticide-filled water in the paddy no longer supports fishstocks

Climate change is posing many new challenges for agricultural planning.Experts forecast that valuable agricultural land in Bangladesh andelsewhere will disappear under water as the world’s glaciers melt.Although warmer climates in some places may increase their agriculturalpotential, the most likely change seems to be increased instability inweather patterns.

The second half of the 20th century presented the world with a newproblem: what to do with surplus production, not just from a good year butalso from massive increases in productivity year after year At the turn of

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

the 20th century, over 25% of agricultural production was used to feed theanimals that helped till the soil and move people and goods It is vital tomanage production, not least to limit the damage caused by thetechnologies the productivity relies on It is necessary to keep an eye to thefuture, and plan for long-term food security, not just for keeping costsdown today World population growth has moderated but the world’spopulation is still increasing, while the total arable land available to theplanet is not.

1.4 Negotiation Process and the Deadlock of Negotiation ProcessThe Uruguay Round (1986-1994): This round established the AoA,

recognizing the need for agricultural reform It included provisions forreducing tariffs, export subsidies, and domestic support However, thesereductions were subject to future negotiations.

The Doha Round (2001-present): This ongoing round aimed to further

liberalize agricultural trade Developed countries pushed for developingcountries to cut tariffs, while developing countries sought reductions indomestic support provided by developed nations, arguing it distorts themarket.

Negotiations surrounding the AoA have become deadlocked due to severalfactors Developed countries providing substantial subsidies to theirfarmers creates an uneven playing field, a point fiercely contested bydeveloping nations Finding a compromise on acceptable subsidy levelshas proven difficult Additionally, developing countries are concernedabout further trade liberalization jeopardizing their food security andharming rural livelihoods They seek safeguards to shield their domesticproducers Finally, reaching consensus amongst a growing andincreasingly diverse WTO membership presents a significant challenge.These combined factors have resulted in a stalemate, hindering progresstowards a more level playing field for agricultural trade.

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

CHAPTER 2 VIETNAM’S AGRICULTUREPOLICIES AND ADAPTATION ABILITY

2.1 Vietnam’s Agriculture Policies

Vietnam's agricultural policies demonstrate a comprehensive approachaimed at addressing various key aspects of agricultural development Byprioritizing sustainable development, increased productivity, and robustfood security, the government acknowledges the importance of long-termviability in the agricultural sector Strategic reforms aligned with WTOstandards indicate a commitment to international trade regulations andcompetitiveness.

The emphasis on market-oriented approaches and private sectorparticipation reflects a recognition of the role of market forces in drivingagricultural growth Encouraging innovation within the sector furtherunderscores a commitment to adaptability and competitiveness in theglobal market.

Diversifying crops, improving irrigation systems, and promotingsustainable farming practices are essential components of ensuring theresilience and sustainability of the agricultural sector These measures notonly contribute to increased productivity but also mitigate risks associatedwith climate change and environmental degradation.

Addressing trade barriers through harmonizing regulations and enhancingproduct quality indicates a proactive approach to international trade Bymeeting global standards, Vietnam aims to strengthen its position in theWTO and enhance the competitiveness of its agricultural exports.Moreover, the integration of technology and modernization of farmingpractices underscores a commitment to social and economic development,particularly in rural areas By enhancing the livelihoods of the ruralpopulation, these policies contribute to poverty reduction and overalleconomic growth.

Balancing exports with domestic food security highlights the government'srecognition of the importance of ensuring access to food for its citizenswhile also capitalizing on export opportunities.

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

2.2 Adaptation Ability of Vietnam

2.2.1 Adaptation Ability of Vietnam’s Agriculture: Before and AfterWTO Membership

Pre-WTO Membership

Before Vietnam's accession to the WTO, its agricultural sector facedsignificant challenges Market access was restricted by tariffs and quotas inkey export markets, hindering the growth potential of Vietnameseagricultural products and limiting the income and resources available forinvestment in adaptation measures Moreover, the agricultural landscapewas dominated by subsistence farming practices, characterized by areliance on traditional methods and a lack of adoption of moderntechnologies and practices This focus on subsistence agriculture furtherconstrained the sector's ability to adapt to changing market dynamics andenvironmental challenges Overall, the pre-WTO membership period wasmarked by limited market opportunities and a lack of modernization inVietnam's agriculture sector, highlighting the need for reforms to enhancecompetitiveness and resilience.

Post-WTO Membership

Following Vietnam's accession to the WTO, significant transformationsoccurred within the agricultural sector One of the most notable changeswas the expansion of market access, facilitated by Vietnam's newfoundstatus as a member of the global trade organization This enhanced marketaccess opened doors to major international markets, creating opportunitiesfor increased agricultural exports and subsequently generating substantialincome streams

In addition to improved market access, the post-WTO era witnessed aremarkable uptick in the adoption of modern technologies and practiceswithin Vietnam's agricultural landscape With increased trade and foreigninvestment, farmers and agricultural enterprises were incentivized toembrace innovation The integration of advanced crop varieties andsophisticated irrigation systems not only bolstered agricultural output butalso positioned Vietnam's farmers to better navigate the challenges posedby climate change and evolving market demands.

Furthermore, recognizing the pivotal role of agriculture in the country'seconomic development, the Vietnamese government prioritized allocatingresources to support its growth and adaptation Increased public fundingfacilitated the development of essential infrastructure, such as rural roads

Lecturer: Assoc Prof Ngô Thị Tuyết Mai

and irrigation networks, which bolstered the resilience of agriculturalcommunities and improved market access for farmers Moreover,heightened investment in agricultural research and development initiativescontributed to the advancement of adaptation strategies tailored to theunique needs and challenges faced by Vietnam's agricultural sector.With the advent of WTO membership, Vietnam experienced a notablesurge in the adoption of advanced agricultural technologies, particularly inthe realms of crop cultivation and irrigation management Enhanced cropvarieties engineered for superior yields, resilience to environmentalstresses, and improved nutritional profiles gained widespread acceptanceamong farmers nationwide Concurrently, there was a pronounced uptickin the deployment of modern irrigation systems aimed at optimizing waterusage efficiency and bolstering agricultural productivity, which not onlypropelled Vietnam's agriculture sector towards greater efficiency andsustainability but also empowered farmers to confront the challenges posedby climate variability and resource constraints head-on.

Over the two-decade period from 2000 to 2020, government expenditureon agriculture surged from representing 10% of the national budget to anotable 20% This marked escalation in financial support underscores thegovernment's steadfast commitment to fostering the growth and resilienceof the agricultural industry The increased investment was channeled into adiverse array of initiatives aimed at enhancing agricultural infrastructure,research and development, extension services, and farmer education andtraining programs.

2.2.2 Vietnam's implementation of the AOA agreement according toWTO requirements

Vietnam has undertaken tariff reductions and subsidy eliminations ascommitted to under the AoA However, this process has been gradual,following a negotiated and agreed-upon schedule.

Vietnam has implemented tariff reductions for the majority of agriculturalproducts, in accordance with its obligations under the Agreement onAgriculture (AoA) Detailed information regarding the specific tariffadjustments for individual products can be found in Vietnam's import andexport tariff schedule These reductions were rolled out gradually over aperiod of time, from 1995 to 2018, as part of Vietnam's phased approach toaligning its trade policies with international standards For instance, theaverage applied tariff rate for agricultural products decreased from 27.6%in 2001 to 15.3% in 2019.