WTO and Sri Lanka’s Farm Trade

Journal of Indian School of Political Economy, Vol. 22 No. 1-4, 2010

45 Pages Posted: 26 Feb 2016 Last revised: 8 Jun 2016

Date Written: January 1, 2010


The study seeks to examine the impact of the WTO's agreement on agriculture (AoA) on Sri Lanka’s agricultural trade performance. It is found that under the AoA regime, Sri Lanka’s share in the world’s total agricultural trade has increased. The importance of farm trade in the country’s overall foreign trade has improved. Further, evidence suggests that Sri Lankan agriculture has opened in new economic environment. In new trade order, value of Sri Lankan farm exports has grown faster than that of imports resulting into significant expansion of trade surplus. The normalised trade balance in agriculture has enhanced dramatically.

Furthermore, the study finds that in the emerging liberalised farm trade order Sri Lanka’s comparative advantage is much better than other leading farm producers especially in the exports of: tea, copra, coconuts and natural rubber. For food grains Sri Lanka heavily relies on imports. In the WTO trade negotiations, Sri Lanka may press for an effective and substantial cut in developed countries protective measures and trade distorting agricultural subsidies, in order to safeguard and enhance its food production capacity.

Keywords: WTO, Agreement on Agriculture, Farm Trade, Sri Lanka, India, Pakistan, Bangladesh, Comparative Advantage, Indo-Sri Lanka Free Trade Agreement

Suggested Citation

Ohlan, Ramphul, WTO and Sri Lanka’s Farm Trade (January 1, 2010). Journal of Indian School of Political Economy, Vol. 22 No. 1-4, 2010, Available at SSRN: https://ssrn.com/abstract=2738549 or http://dx.doi.org/10.2139/ssrn.2738549

Ramphul Ohlan (Contact Author)

Maharshi Dayanand University ( email )

Rohtak, Haryana 124001

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics