INTRODUCTION:

In the 21^st century it had been noticed that developing countries grown faster than industrialized countries and start giving competition to advanced countries, one newly formed developing countries block is BIRCS groups. BRIC come in to exist after Goldman Sachs introduce this group in the world, it has Brazil, Russia, India and China in 2010 South Africa join this group and it becomes BRICS. This five nation has potential to compete with world powerful countries like US and European countries who dominate world farm market countries and BRICS nation have the capability to reshape the global economy.

Together BRICS nation has largest consumer market and have almost 40% of world population with that have efficient labour and emerging market. They have potential to increase world GDP and generate 20% of world GDP and it has been noticed that it will drive world economy and this increases the world economy size of BRICS countries. Economy of BRICS nation is increasing and the trade between within BRICS nation also helps to grow member country economies and increase in per capita income. In BRICS nation India, China, South Africa and Brazil farm sector play an important role in an economy and increases trade significantly and inter trade has also accelerated. The Russian economy doesn’t depend on the farm sector, but slowly in creeping rate it’s increasing especially China play an important role to represent BRICS in world markets and boost trade, its macroeconomic policies have potential to shape global economic order. The annual submit of BRICs starts from 2009 till now it has 7 submit and 8^th submit will held in India 2016. The main area of BRICS countries depends among them are traded in three sectors, FDI, helping each other in industrial development, help in infrastructure development, transportation facilities, development in financial market, sharing knowledge in technical, food security, research and development almost all areas to promote trade and global stability and prosperity and expanding their role not only in BRICs but also in global affair. BRICS nation has now had its own bank NDP (New Development Bank) with $50billion International Capital and created $100 billion as CRA (Contingency Reserve Arrangement) to support emerging market and add financial strength to developing and least developed countries. From the mid to end of the 20^th century after great negotiations (1947-1994) of GATTS, the establishment of a permanent international organization a formal institution replacing the previous treaty structure, on 1st January 1995 WTO comes into force in order to administer the world trade organization agreement. WTO agreement is a capstone agreement containing various sub- agreements that all WTO members must accept. WTO comes with the bulk of the agreement for the member countries one of the important burning and negotiating agreement is the Agreement on Agriculture (AoA) which signed in 1994 and implemented on 1st January 1995. Agriculture was not the subject of General Agreement on Trade and Tariff (GATT) but in WTO main stream negotiation basically on agriculture. The agricultural trade related provisions of AoA has three main categories and divided into three broad areas which are the pillars of AoA on which international trade of agricultural commodities take place. They are (i) Domestic support (Articles 6 and 7), (ii) market access (Article 4) and (iii) Export subsidies (Articles 8 to 12). These three weapons play a vital role to control trade distortion of developed countries.

Fabio Bertoni, Stefano Elia and Larissa Rabbiosi (2008) found that International competitiveness increases with an increase in investment in BRICs countries and global production and market expands. Ramphul (2006) explored that in India the farm trade decreases and net terms of trade in agriculture are worse affected in WTO phase and the share of export to finance import is also very less. It implies that deterioration in the specialization of agricultural product as a whole. Bhattacharya (2004) find out in study that there is a high growth of nontraditional agricultural commodities in export then traditional commodities. Bhalla (2004) finds out high growth of import then the export from the agricultural sector. Rajashri and Nagaraj (2014) explore that there is a decline in percentage share of agriculture export from 1991-92 to 2009-10 and change in structure of group of commodities.

OBJECTIVE :

1) To find out the impact of the Agreement on Agriculture (AoA) on export performance.

2) To identify the decomposition of BIRCS nation agriculture export growth.

SOURCE OF DATA AND METHODOLOGY:

The source of data is secondary, the data of India’s agricultural export and import has been taken from various volumes of Food and Agriculture Organization (FAO) of the UN trade year book and Economic Survey of India. The study, based on secondary data and the time span from 1986-95 to 2002-2011, in this pre and post WTO era of ten years. The study mainly focuses on BRICS agricultural trade structure and their export performance.

Decomposition of export growth:

G=(R-1), R=F1*F2*F3=X1/X0 (1)

[Source- World Bank, 1997, p.259, GATT 1966, p.23 and Ramphul, 2010, p.58].

Where F1 is a passive expansion for countries agricultural export it has a ratio of agricultural import of the world in the current year and initial year; (W1/W0). F2 is an active expansion it has a ratio of country’s agriculture export current and initial year upon F1. The share of agricultural export in market share expands ;( T1/T0) / (W1/W0). F3 is show diversification of non agricultural commodity; it has a ratio of country agricultural export of initial year and total export of initial year upon the ratio of country agricultural export of current and total export of current year; (T0/X0) / (T1/X1), G= Export growth rate, 0 and 1 express initial and current year of the period under analysis.

Composition of BRICS agricultural trade:

The Brazil agriculture sector expanded its production and productivity after 20^th century with that modernization with technological change and better technology under green revolution. Brazil exports coffee, soybeans, sugar, oilseeds and sugarcane which dominates world farm trade market, but the share of agricultural sector declined with the growth of service and industrial sector despite that, this sector remains an important sector of Brazil and large number of population working in agriculture and agri- business sector. The major agricultural product Brazil export’s Sugar centrifugal, Sugar refined, Soybeans, Soybean oil, Soybean cake, Coffee green extracts, Cotton lint, Tobacco unmanufactured, Meat cattle boneless and Meat, chicken. Russia Federation farm reform has proved to be a tough challenge for them during its transition to market economy after its split of the USSR. Russia exports the major agricultural commodities are wheat, wheat flour, malt, virgin olive oil, pears, wine, cotton lint, rice, soybeans and rubber natural dry with that development of food processing and agro based industries. India farm sector is the backbone of Indian economy and most of the people employed in agriculture sector. In the past three decade the share of agriculture sector in GDP reduced due to increase in share of agriculture sector with that percentage share in world trade plummeted. The major agriculture product India export are rice- total (rice milled equivalent), sugar raw centrifugal and refined, cashew nuts shelled, soybeans cake, castor beans oil, coffee green and extract, tea, cotton lint and tobacco unmanufactured. China has largest consumer market of farm goods and export major farm products are maize, beans dry, garlic, tea, cigarettes, vegetables dehydrated, meat chicken, fruits prepared nes, food prep nes and tobacco products nes. China not only export, but also import large amount of agriculture product in the world and largest consumer of rice and sugar. South Africa GDP share is almost negligible in the farm sector, its major farm export products are subtropical and deciduous fruits, few grains like maize and dairy product with that sugar (raw, centrifugal and refined), oil (soybean and sunflower), nuts nes and wine.

Decomposition of BRICS total Merchandise export growth:

In table 1, equation (1) was used to calculate (G), where active and passive expansion of agricultural product and non agricultural product as a diversification used as a different factors or indicators to measeare export growth rate of BRICS countries export growth rate. It is clear from table, in Brazil, the export growth rate increased from 107.7 to 322 in pre to post WTO phase. In Russia, the export growth rate was negative but later in post WTO phase it surged drastically from -6.15 to 415.6. In India, the export growth rate increased and the export growth was almost double from 254.7 to 462 in pre to post WTO era. In China, the export growth rate was very less or negligible from 296.9 to 300 in pre to post WTO era. In South Africa the export growth rate increased and the export growth was more than double from 52.1 to 226.3 in pre to post WTO era.

Table 1. Export Growth Rate

Factor	Over all periods	Pre WTO phase (1992-1995)	Post WTO phase (2008-2011)
Brazil (G)	1036.4	107.7	322
Russia (G)	649.9	-6.15	415.6
India (G)	2959.4	254.7	462
China (G)	2325.4	296.9	300
South Africa (G)	426.4	52.1	226.3

CONCLUSION:

With focus on trade, an attempt was made in this paper to study the trade performance of BRICS countries in before and after WTO regime. In absolute term, the export value of most of the commodities had increased from BRICS nation, except China and India, it is because of this two countries export large variety of agricultural product. On the basis of the overall study trade performance in AOA regime it had been noticed that, the export growth rate in BRICS countries over all suggests that during the post WTO phase the bulk of total export growth is mainly supported by diversification of non agricultural product, the expansion of world agricultural markets and increase in share of active expansion of the market, increased in farm export value in post WTO phase and in post phase more export of commodities then before implication of AoA. There is positive impact on the WTO’s aggrement on agriculture in post WTO era in BRICS countries, the over all export growth rate was positive.

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Received on 18.04.2016 Modified on 22.05.2016

Int. J. Ad. Social Sciences 4(2): April- June, 2016; Page 61-63