Prospects for Developing Countries in Horticultural Exports: Some Emerging Issue Under WTO Regime

Abstract

Under new market environment, various developing countries are expected to face different situation and challenges in their agricultural sector, which may well result in different group of developing countries emphasizing upon different issues. First, there is a number of developing countries with relatively low protection of agriculture who are major exporters of agricultural commodities. These countries might face two major challenges in exporting their agricultural products: (a) the continued presence of high tariffs and substantial Aggregate Measure of Support (AMS) by developed countries which restrict market access, (b) developed countries export subsidies which make it difficult for them to compete in third country market. Second, there is another group of countries which includes the traditional net food importing developing countries (NFIDCs) and other with substantial protection of agriculture which, are concerned that export subsidy reduction by the developed countries will increase their import bills. These countries, therefore, have been seeking to obtain an increased amount of food aid through the recently renegotiated Food Aid Convention.