Question:

How can WE enforce the WTO to free trade in agriculture and ban illegal subsidies?

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The WTO is sold out to the 'West'. Third world countries have comparative advantage in agriculture. Do 'Western countries' not want to compete because they know they cannot win?

What can WE do to better the situation?

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  1. Its not that subsidies are illegal, they just favor wealthier states.  Yes, it is a disadvantage to poorer states.  But, one of the main reasons why wealthier states have subsidies is because without them they wouldn't have an agricultural system because it wouldn't be profittable enough for private enterprise.

    On the other hand, it is unfair that they have these practices.  Better yet, it is unfair that for these poorer states to be a part of the WTO, they must adopt economic practices that force them to concentrate on their comparative advantage.  It creates a highly unstable economic system.  If a state concentrates solely on cocao, what happens when the price of chocolate drops?  Or coffee?  They need diversification and investment in their infrastructure, something that WTO policies are trying to prohibit.


  2. Subsidies are not illegal. A state has every right to pay subsidies to their agricultural sector.  Absolute free trade is a myth and completely undesirable.  Certain third world countries may have a comparative advantage in agriculture, but it is important to remember that the agricultural sector has vital influence on domestic politics and national security.  States would be foolish to not protect and maintain their agricultural sector to some degree if they have the resources to do so.  It is also important to understand that while some states may have a comparative advantage in producing certain goods, their economies will have trouble improving if domestic conditions such as property rights do not change to harbor enterprise.  

    In order to take steps to 'better the situation' one needs to look more into what the situation is and understand not only the advantages of free trade, but the domestic and international repercussions and concequences of free trade for all involved parties.  One should also look deeper into what free trade is and what it really means for competition and growth.

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