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Role of WTO subsidy policies on ASEAN agricultural production.
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WTO brings several important benefits to the members and its agreements helping in better market access and better policy implications. These agreements cannot tackle problems originating in developing countries due to poor domestic supply response, terms of trade changes or exogenous shocks, but opens up new markets for the member countries, efficiency gains,and growth of trade and inflow of foreign products. WTO assists commodity-producing Southeast Asian countries to improve their capacity for increasing the worth of their commodities through processing and manufacturing aswell as marketing. At the same time, developing countries 48 should press developed countries to reduce subsidy escalation and allow better market access for processed and commodity-based manufactured products, and thus help commodity producers reap better benefits from the trading system. Therefore WTO policies impact on Southeast Asian countries is positive as well as negative in some aspects. Improvement in production/marketing technology, provision or strengthening of basic infrastructural facilities such as those of packaging, transportation, storage, marketing information etc. and assured factor supplies which improve the comparative advantage can be helpful in increasing the export supply of major agricultural products i.e. coffee and tobacco. Policies and programmes which aim at reducing the yield risk in coffee and tea production will be helpful in increasing the export supply. These agreements significantly improve the stability of market access. WTO has also played a positive role in strengthening domestic policies for better management of agricultural sector crisis of Southeast Asian countries by making the healthy investment atmosphere over a longer period of time.
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Singh, Rajeev
Joshi, Amit
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WTO , Southeast Asian countries , WTO policies , Domestic policies , Agricultural sector
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Role of WTO subsidy policies on ASEAN.pdf
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