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GATT Law, agricultural trade, and developing countries: lessons from two case studies

By: Contributor(s): Material type: ArticleArticleLanguage: English Description: 1(4):595-618Subject(s): LOC classification:
  • 42249
In: World Bank Economic ReviewSummary: Se examino la aplicabilidad de las legislaciones del Acuerdo General sobre Tarifas y Comercio (GATT) en cuanto a 2 problemas especificos enfrentados por Tailandia: las negociaciones de un acuerdo voluntario de restriccion de exportacion de yuca con la CEE y el incremento de los subsidios del arroz dados por EE.UU. en el acta de seguridad alimentaria de 1985. En el caso de la yuca, Tailandia parece tener algunos puntos de las legislaciones del GATT a su favor, pero el gobierno ha sido reacio a usarlas para su propio beneficio. Esta renuencia se debe principalmente a los procedimientos poco claros establecidos por el GATT para hacer uso efectivo de estas ventajas legales. Por el contrario, en el caso del subsidio del arroz, la ley sustantiva no es clara y proporciona proteccion limitada a los exportadores en competencia. Con base en los 2 casos, las legislaciones del GATT pueden ser modificadas y reevaluadas, para que tanto en los paises desarrollados como en los en desarrollo participen mas activamente dentro del sistema GATT. Esto sera necesario si las legislaciones del GATT han de ser instrumentos utiles dentro de las negociaciones bilaterales de paises en desarrollo con las partes contratantes, las cuales son economicamente mas pujantes. (RA-CIAT)Summary: This article examines the relevance and applicability of the law of the General Agreement on Tariffs and Trade (GATT) to two specific problems faced by Thailand: the negotiations of a voluntary export restraint agreement on cassava with the European Economic Community and the increased subsidies on rice given by the United States under the Food Security Act of 1985. In the case of cassava, Thailand appears to have had parts of GATT law on its side, but the government was very reluctant to use the law to its own advantage. This reluctance was due to unclear procedures under GATT as to how to make effective use of these legal advantages. On the rice subsidy issue, conversely, the substantive law is unclear and provides limited protection for competing exporters. The wider lesson drawn from the two cases is that GATT's law should be modified and its role reevaluated so that both developed and developing countries can participate more fully in the GATT system. This will be necessary if the GATT's laws are to become useful instruments in the hands of developing countries in their bilateral negotiations with contracting parties which are the more powerful economically. (AS)
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Se examino la aplicabilidad de las legislaciones del Acuerdo General sobre Tarifas y Comercio (GATT) en cuanto a 2 problemas especificos enfrentados por Tailandia: las negociaciones de un acuerdo voluntario de restriccion de exportacion de yuca con la CEE y el incremento de los subsidios del arroz dados por EE.UU. en el acta de seguridad alimentaria de 1985. En el caso de la yuca, Tailandia parece tener algunos puntos de las legislaciones del GATT a su favor, pero el gobierno ha sido reacio a usarlas para su propio beneficio. Esta renuencia se debe principalmente a los procedimientos poco claros establecidos por el GATT para hacer uso efectivo de estas ventajas legales. Por el contrario, en el caso del subsidio del arroz, la ley sustantiva no es clara y proporciona proteccion limitada a los exportadores en competencia. Con base en los 2 casos, las legislaciones del GATT pueden ser modificadas y reevaluadas, para que tanto en los paises desarrollados como en los en desarrollo participen mas activamente dentro del sistema GATT. Esto sera necesario si las legislaciones del GATT han de ser instrumentos utiles dentro de las negociaciones bilaterales de paises en desarrollo con las partes contratantes, las cuales son economicamente mas pujantes. (RA-CIAT)

This article examines the relevance and applicability of the law of the General Agreement on Tariffs and Trade (GATT) to two specific problems faced by Thailand: the negotiations of a voluntary export restraint agreement on cassava with the European Economic Community and the increased subsidies on rice given by the United States under the Food Security Act of 1985. In the case of cassava, Thailand appears to have had parts of GATT law on its side, but the government was very reluctant to use the law to its own advantage. This reluctance was due to unclear procedures under GATT as to how to make effective use of these legal advantages. On the rice subsidy issue, conversely, the substantive law is unclear and provides limited protection for competing exporters. The wider lesson drawn from the two cases is that GATT's law should be modified and its role reevaluated so that both developed and developing countries can participate more fully in the GATT system. This will be necessary if the GATT's laws are to become useful instruments in the hands of developing countries in their bilateral negotiations with contracting parties which are the more powerful economically. (AS)

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