Question

In regards to agricultural subsidies and trade, what are the interests or preferences of developing and developed nations? And how has domestic politics affected their stances on this issue?

Answer 1

Developing countries want developed countries to remove large subsidies which they give to their farmers to protect farmers living in developed countries. Amber box, blue box, green box subsidies etc are such sub. Actually developed countries give huge subsidies to farmers. The developing countries also allege that developed countries give protection to farmers through non tariff measures like environment standards etc. Developing countries also want that they should not be forced to reduce support to agriculture which Contributes to food security. Developed countries are against it. Developing countries are against tariff escalation. Developed countries are of the view that if there are to be less barriers for agricultural trade then developing countries should reduce tariffs and other market distorting interventions in case of manufactured goods also. Domestic politics have forced developed countries to protect interests of farmers and at the same time favour industrialists. On the other hand the politics has forced to protect interests of agricultural it's. Further they are against free trade in manufactured goods in order to protect interests of domestic capitalists