Impact Of Domestic Support Provisions Of World Trade Organization On Sudan Exports Of Gum Arabic

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Sitnan Elrasheed Abdel Raheem
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University of Khartoum
The establishment of the World Trade Organization (WTO) was the most important factor influencing world and regional economic recent changes .WTO administrates relatively well-defined rules and commitments on international trade. A wide Varity of methodologies are utilized to estimate the impact of this Organization and its Agreements. Which covered sensitive sectors like agriculture. The internal policies for the members in the area of domestic support, market access and export subsidy are subject to the provisions and rules of the Agreement on Agriculture. Since the commitments contained in the country schedules constitute the bases for future commitments and concessions, this study aimed particularly, by using the World Trade Organization (WTO) Agreements as a guide, to tackle the situation of domestic support for the Sudanese Gum Arabic during (1995-2002) via the Aggregate Measurement of support (AMS). Gum Arabic, which is one of the Sudanese important exports, has been characterized by fluctuation in quantities produced and exported since the 1970s; this study aimed also at investigating the factors affecting Gum Arabic production and exports during (1970-2000). The study found out that, the Gum Arabic suffered from negative support, which indicate taxes levied on it. Also the study revealed that the fluctuation in supply and demand of Gum Arabic could be attributed mainly to instable policies with respect to marketing and exports, in addition to adverse environmental conditions namely drought. Also the study found that, the export price methodology of Gum Arabic which aimed at increasing returns through declaring high export prices, without considering the changes that appearing in international markets, beside taxes and fees that were levied on exports, contribute to lessening its competitiveness. The study mainly recommended that, the taxes and fees should be reduced or removed to enable the producers to benefit from exports prices and to balance between the government revenues and the producers incentives. Also in this part the study recommended to have competing export prices so as to increase the amount of Sudanese Gum Arabic exports and encourage international demand for it. WTO assumes that Least-developed countries support agriculture. In addition, the commitments within the WTO Agreement on Agriculture do not prohibit members to subsidize and protect their agricultural producers, unless otherwise committed themselves. Depending on these facts the study recommended that, the accession of Sudan should be based on the special treatment provided for LDCs. Also the levels of domestic support should be bound at the highest level allowable under WTO rules. In addition to the policies that need to be issued to enable the country to support and strengthen the agricultural sector in the context of WTO Agreements. This study has depended mainly on secondary data, which have been collected from many relevant official sources and institutions in Sudan.
A thesis Submitted to the University of Khartoum in the Partial Fulfillment for the Requirements of the degree of Master of Science in Agricultural Economics
World Trade Organization Sudan Gum Arabic Agricultural Economics University of Khartoum
Sitnan Elrasheed Abdel Raheem, Impact Of Domestic Support Provisions Of World Trade Organization On Sudan Exports Of Gum Arabic. – Khartoum : University of Khartoum, 2003. - 100 P. : illus., 28 cm., M.Sc.