Agriculture and Pakistan

[THe SiLenT KiLLeR]

Agriculture and Pakistan

The WTO’s Agriculture Agreement was negotiated in the 1986–94 Uruguay Round and is a significant first step towards fairer competition and a less distorted sector. It includes specific commitments by WTO member governments to improve market access and reduce trade-distorting subsidies in agriculture. WTO members agreed to initiate negotiations for continuing the agricultural trade reform process one year before the end of the implementation period, i.e. by the end of 1999. These talks began in early 2000 under the original mandate of Article 20 of the Agriculture Agreement. At the November 2001 Doha Ministerial Conference, the agriculture negotiations became part of the single undertaking.

Agriculture is one of the most contentious issues in the DDA negotiations as the major WTO member countries have vast differences mainly on the issues of Domestic Support (subsidies) and Market Access (tariffs). Developing countries want reduction/removal of various forms of subsidies and reduction in tariffs so that the prices in international markets are not distorted and developing countries get reasonable market access in the developed markets.

Pakistan is member of the Cairns Group (an alliance of 18 countries looking for ambitious outcome in the Market Access areas), G-20 (group for safeguarding interest of developing countries in agriculture negotiations) and the G-33 (group of developing countries and LDCs aiming to get preferential terms in Market Access and Special and Differential treatment)

[THe SiLenT KiLLeR]

Why does Agriculture matter for Pakistan?

Agriculture continues to be the single largest sector, a dominant driving force for growth and the main source of livelihood for 66 percent of the country’s population. It accounts for 20.9 percent of the GDP and employs 43.4 percent of the total work force. As such agriculture is at the center of the national economic policies and has been designated by the Government as the engine of national economic growth and poverty reduction. Agriculture contributes to growth as a supplier of raw materials to industry as well as a market for industrial products and also contributes substantially to Pakistan’s exports earnings. Thus any improvements in agriculture will not only help country’s economic growth to rise at a faster rate but will also benefit a large segment of the country’s population.

[THe SiLenT KiLLeR]

Production of various Agricultural commodities: Pakistan’s ranking in the World (Source: FAO STATS)
Sr. No Commodity World Rank 1 Buffalo Milk 2
2 Chick-Peas 2
3 Indigenous Buffalo Meat 2
4 Indigenous Goat Meat 2
5 Roots and Tubers nes 2
6 Okra 3
7 Apricots 4
8 Goat Milk 4
9 Mangoes 4
10 Dates 5
11 Onions, Dry 5
12 Pimento, Allspice 5
13 Spices nes 5
14 Sugar Cane 5
15 Pulses nes 6
16 Fruit Tropical Fresh nes 7
17 Sesame Seed 7
18 Cauliflower 8
19 Oilseeds nes 9
20 Spinach 9
21 Wheat 9
22 Indigenous Sheep Meat 10
23 Pistachios 10
24 Tobacco Leaves 10
25 Berries nes 11
26 Rapeseed 11
27 Eggplants 12
28 Oranges 12
29 Rice, Paddy 12
30 Tang.Mand.Clement.Satsma 12
31 Jute-Like Fibres 13
32 Lentils 13
33 Wool, Greasy 13
34 Almonds 14
35 Cantaloupes&oth Melons 14
36 Eggs, excluding Hen 14
37 Peas, Green 14
38 Sunflower Seed 14
39 Fruit Fresh nes 15
40 Pumpkins, Squash, Gourds 15
41 Castor Beans 16
42 Cow Milk, Whole, Fresh 17
43 Jute 17
44 Millet 17
45 Peas, Dry 18
46 Safflower Seed 18
47 Vegetables Fresh nes 18
48 Garlic 20
49 Nuts nes 20
50 Walnuts 20

F = FAO estimate | * = Unofficial figure