Many developing countries face pressure from the WTO to remove trade barriers and stop supporting their farmers. At the same time, wealthy nations continue to provide large subsidies to their own agricultural sector. Analyse the consequences this situation has for farmers in developing countries. Do you think WTO rules are being applied fairly in this context? Justify your answer.
Generated by claude-sonnet-4-6 · 2026-06-26 13:28 · grounding rag
Model Answer
Consequences for farmers in developing countries:
- Developing countries are forced by WTO to remove trade barriers and stop government support to their farmers.
- Meanwhile, wealthy nations (e.g., USA) give massive subsidies to their farmers, enabling them to sell farm products at abnormally low prices.
- These cheap surplus products are dumped in developing country markets, adversely affecting local farmers who cannot compete at such low prices.
- Farmers in developing countries lose income and livelihoods as their produce gets undercut.
Are WTO rules being applied fairly?
No, WTO rules are not being applied fairly. WTO was started at the initiative of developed countries. While it forces developing countries to liberalise, developed countries have unfairly retained trade barriers and subsidies. This is a double standard — developing countries have followed WTO rules, but developed nations have not. True free trade requires equal rules for all members.
Source: World Trade Organisation, chapter 4
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Explanation
- The examiner looks for: (1) clear consequences — barriers removed, subsidies by rich nations, cheap imports harming local farmers; (2) a clear judgement on fairness with justification from the text.
- Always use the textbook's own language: "abnormally low prices," "massive sums of money," "unfairly retained trade barriers" — these signal you've studied the chapter.
- The question asks you to "justify," so a bare yes/no is not enough — give 1–2 reasons from the passage.