UPSC Prelims 2015 Q31: Indian Economy – International Trade & WTO
The terms ‘Agreement on Agriculture’, ‘Agreement on the Application of Sanitary and
Phytosanitary Measures’ and ‘Peace Clause’ appear in the news frequently in the context of the
affairs of the
- (a) Food and Agriculture Organization
- (b) United Nations Framework Conference on Climate Change
- (c) World Trade Organization
- (d) United Nations Environment Programme
Answer: (c) World Trade Organization
Explanation
Agreement on Agriculture, SPS Agreement and Peace Clause
All three belong to the World Trade Organization (WTO).
| Term | Meaning |
|---|---|
| Agreement on Agriculture | WTO rules on farm trade; three pillars: market access, domestic support, export subsidies |
| Agreement on the Application of Sanitary and Phytosanitary Measures | Rules on food safety and animal and plant health standards, so that they are not used as hidden trade barriers |
| Peace Clause | Members agree not to challenge a country's farm subsidies at the WTO for a period |
Peace Clause and India:
| Year | Event |
|---|---|
| Bali, 2013 | Interim Peace Clause for public stockholding for food security |
| November 2014 | Made valid until a permanent solution is found |
The FAO, the UN climate convention and UNEP have no such agreements.
Answer: (c) World Trade Organization.
Why each option is right or wrong
- (a) Incorrect. The Food and Agriculture Organization advises on farming; it has no trade agreements.
- (b) Incorrect. The climate change convention has nothing to do with these terms.
- (c) CORRECT. All three terms belong to the affairs of the World Trade Organization.
- (d) Incorrect. The United Nations Environment Programme does not deal with farm trade rules.
Key point
WTO: Agreement on Agriculture (market access, domestic support, export subsidies), SPS Agreement (health standards), Peace Clause (no challenge to food stockholding subsidies).
Remember
Agriculture Agreement, SPS, Peace Clause = WTO.
Common mistakes
- Choosing the FAO because the terms mention agriculture.
- Thinking the Peace Clause is about war or security.
- Confusing SPS (health standards) with TBT (technical standards).
Exam tip
Any 'Agreement on ...' about trade rules points to the WTO.
Sources
- World Trade Organization — Agreement on Agriculture and SPS Agreement
- World Trade Organization — Bali Ministerial Decision on Public Stockholding for Food Security Purposes (2013)