Agricultural SubsidiesMany developing countries depend on their ability to trade agricultural products with others. This trade provides a lifeline to support improved economic conditions and growth. Often, their only comparative advantages are the cost of labor and the wealth of land. This provides the basis for economic growth through the export of agricultural products. Agricultural products are focused on agriculture. These products help maintain or improve human life. Examples include agricultural products and livestock. The dilemma for these developing countries is to find markets to export their products. Many developed countries impose restrictions on imported agricultural products to promote domestic industry and compete in foreign markets with their own exports (i.e., a direct competitor to the developing country). Even though developed countries lack an abundance of cheap labor, they are able to control costs through technological technologies. means and better transport networks. These advantages generate greater economies of scale (i.e. able to produce more units per resource consumed). These challenges are further compounded by export subsidies that promote exporting and overproduction within developed countries. To help resolve the problems facing developing countries and create a mutually beneficial system, a number of trade agreements have been negotiated. The grandfather of these trade agreements is the General Agreement on Tariffs and Trade (GATTT) of 1947. GATT served as the primary governance of international trade for almost 50 years. Its objective, to create a basis for mutually beneficial arrangements aimed at the substantial reduction of tariffs and other trade barriers and the elimination of discriminatory treaties...... middle of paper ......er Saddle River, NJ: PrenticeThe General Agreement on Tariffs and Trade. (1986, July). World Trade Organization. Retrieved April 25, 2014 from http://www.wto.org/english/docs_e/legal_e/gatt47_e.pdfTrade stats express. (April 10, 2014). Retrieved from http://tse.export.gov/TSE/TSEhome.aspxUSDA ERS - United States Agricultural Trade. (nd). USDA ERS – US Agricultural Trade. Retrieved April 25, 2014 from http://www.ers.usda.gov/topics/international-markets-trade/us-agricultural-trade.aspxWorld Trade Organization (2006). Understanding the Doha Agenda. Retrieved April 25, 2014 from http://old.citationmachine.net/index2.php?reqstyleid=2&mode=form&reqsrcid=-APAGovernmentReportWTO Doha Negotiations. (nd). Office of the United States Trade Representative. Retrieved April 25, 2014 from http://www.ustr.gov/trade-agreements/wto-multilateral-affairs/wto-doha-negotiations