Article 12 of the Agreement on Agriculture refers to the issue of export subsidies and their impact on the global agricultural market. This article was introduced as a part of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) negotiations which aimed to liberalize trade in agriculture.
The purpose of Article 12 was to reduce the use of export subsidies by developed countries. These subsidies were seen as a way for developed countries to unfairly compete in the global market by artificially lowering the cost of their exports. This was harmful to developing countries, which were unable to compete with these artificially low prices.
The Agreement on Agriculture requires developed countries to reduce their export subsidies. The European Union (EU) had been one of the largest users of export subsidies in the past, but the agreement required reductions in their use. The agreement also required that developing countries be given preferential access to markets in developed countries, in order to help these countries grow their own agricultural industries.
Overall, Article 12 of the Agreement on Agriculture has been seen as a success in reducing the use of export subsidies and helping to level the playing field in the global agricultural market. However, there are still concerns about the impact of other trade barriers, such as tariffs, and the unequal distribution of power in global trade negotiations.
In conclusion, Article 12 of the Agreement on Agriculture is an important part of global efforts to create a fair and equitable agricultural market. It has helped to reduce the use of export subsidies, which were seen as a significant barrier to fair competition in the global market. However, there is still work to be done to address other trade barriers and ensure that all countries are able to benefit from global trade.