08 Jun Question Agriculture is one of t
Question
Agriculture is one of the main industries most countries try to protect. The WTO’s Agriculture Agreement aims to open up agricultural trade and make policies to benefit the world market. The Agricultural Agreement allows governments some flexibility in continuing to protect domestic agricultural industries with tariffs, quotas, and subsidies, but it limits the types of protectionist policies that can be used. Consider a WTO member country with high tariffs and subsidies to protect its domestic agricultural industry. What would happen if that country lowered its tariffs on imported agricultural goods and cut back its subsidies? Name one potential benefit and one potential drawback for the country’s domestic economy.
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