Agricultural SubsidiesMany developing nations rely on their ability to trade agricultural goods with others. This trade serves as a lifeline supporting improving economic conditions and growth. Many times their only comparative advantages are the cost of labor and rich land. This provides the basis for economic growth through the export of agricultural products. Agricultural products are focused on agriculture. These products help support 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 nations impose restrictions on imported agricultural products to promote domestic industry and compete in foreign markets with their own exports (i.e. direct competitor of the developing nation). While developed nations do not have an abundance of cheap labor, they are able to control costs through improved transportation technologies and transportation networks. These advantages exploit greater economies of scale (i.e. capable of producing more units per resource consumed). Further exacerbating these challenges are export subsidies that promote exportation and overproduction within the developed nation. To help solve the problems facing developing nations and create a mutually beneficial system, numerous trade agreements have been negotiated. The father of these trade agreements is the General Agreement on Tariffs and Trade (GATTT) of 1947. The GATT was the main governing body of international trade for almost 50 years. Its goal is to create the basis for mutually beneficial agreements aimed at substantially reducing tariffs and other trade barriers and eliminating discriminatory treatment...... 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. (2014, April 10). Retrieved from http://tse.export.gov/TSE/TSEhome.aspxUSDA ERS - U.S. Agricultural Trade. (n.d.). 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. (n.d.). Office of the United States Trade Representative. Retrieved April 25, 2014, from http://www.ustr.gov/trade-agreements/wto-multilateral-affairs/wto-doha-negotiations