Agricultural Subsidies

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Agricultural Subsidies
Many developing nations rely on their ability to trade agricultural goods with others. This trade serves as a lifeline in support of improved economic conditions and growth. Many times their only comparative advantages are labor cost and rich lands. This provides the foundation for economic growth through exportation of agricultural products. Agricultural products are centered on farming. These products help to sustain or improve human life. Examples include farmed goods and livestock. The dilemma for these developing countries is finding markets to export their products. Many developed nations place restrictions on imported agricultural goods to promote domestic industry and compete in foreign markets with their own exports (i.e. direct competitor of the developing nation).
While developed nations lack the abundance of cheap labor, they are able to control cost through technological means and better transportation networks. These advantages leverage greater economies of scale (i.e. capable of producing more units per resource consumed). Further compounding these challenges are export subsidies which promote exportation and overproduction within the developed nation. To help solve issues facing developing nations and create a system that is mutually beneficial, a number of trade agreements have been negotiated. The grandfather of these trade agreements is The General Agreement on Tariffs and Trade (GATTT) in 1947.
GATT served as the primary governance surrounding international trade for almost 50 years. Its objective, create a foundation for mutually advantageous arrangements directed to the substantial reduction of tariffs and other trade barriers and to the elimination of discriminatory trea...

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The General Agreement on Tariffs and Trades. (1986, July). World Trade Organization. Retrieved April 25, 2014, from http://www.wto.org/english/docs_e/legal_e/gatt47_e.pdf
Trade stats express. (2014, April 10). Retrieved from http://tse.export.gov/TSE/TSEhome.aspx
USDA ERS - U.S. Agricultural Trade. (n.d.). USDA ERS - U.S. Agricultural Trade. Retrieved April 25, 2014, from http://www.ers.usda.gov/topics/international-markets-trade/us-agricultural-trade.aspx
World Trade Organization, (2006). Understanding the doha agenda. Retrieved April 25, 2014, from http://old.citationmachine.net/index2.php?reqstyleid=2&mode=form&reqsrcid=-APAGovernmentReport
WTO Doha Negotiations. (n.d.). Office of the United States Trade Representative. Retrieved April 25, 2014, from http://www.ustr.gov/trade-agreements/wto-multilateral-affairs/wto-doha-negotiations

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