Wto Agreement On Agriculture Domestic Support

Some countries say they want to check the national subsidies that are listed in the green box because they think that some of them could have an impact on production or prices under certain circumstances. Others have said that the green box should not be changed because it is already satisfactory. Some say the green box should be expanded to cover additional types of subsidies. To qualify, green box subsidies must not distort trade or, at most, lead to minimal distortions (paragraph 1). They should be funded by the state (not by higher prices for consumers) and should not include price support. Where it is not possible to calculate a product-specific MMS in accordance with the agreement, provisions for an equivalent support measure (EMS) are provided. EMS is generally calculated on the basis of the budgetary expenditure that governments spend, for example, to support a product, and not on market price support, calculated on the basis of a fixed external reference price. At the 2005 WTO meeting in Hong Kong, countries agreed to eliminate export subsidies and equivalent payments by 2013. However, Oxfam argued that EU export subsidies accounted for only 3.5% of its total aid to agriculture. The United States has eliminated cotton export subsidies, which cover only 10% of total spending. 4. The additional duty levied in accordance with paragraph 1 (a) is maintained only until the end of the year in which it was collected and can only be levied at a level not exceeding one third of the ordinary fee in force in the year in which the measure was taken.

The trigger level is set according to the following timetable, based on market access opportunities, defined as the percentage of imports of corresponding domestic consumption (3) in the previous three years for which data are available: export subsidies constitute the third pillar. The 1995 agricultural agreement required industrialized countries to reduce export subsidies by at least 36% (in value terms) or by 21% (by volume) over a six-year value. For developing countries, the agreement called for reductions of 24% (in value) and 14% (in volume) over ten years. On 18 July 2017, India and China jointly submitted a proposal to the World Trade Organization (WTO) calling for industrialized countries to eliminate the most trade-distorting form of agricultural subsidy, known as the "WTO aggregate support measure" or "Amber Box," to discuss other reforms in the domestic aid negotiations. [9] 30 WTO members have pledged to reduce their domestic support for distorting trade in the amber box (i.e. reducing the overall assessment of assistance or AMS). In the case of developing countries, members who have not made these commitments must remain at 5% of the value of production (i.e. the de minimis value). b) In the absence of a comprehensive amS commitment in Part IV of a member`s list, the member does not support agricultural producers who exceed the de minimis level provided for in Article 6, paragraph 4. (h) the overall assessment of support and the overall AMS, the sum of all domestic aid to agricultural producers; calculated as the sum of all aggregate measures of support for agricultural commodities, all aggregate measures of non-specific aid to agricultural products and all equivalent support measures for agricultural products, i.e. a) Aggregate measure of support and AMS means the annual level of aid and the MMS , expressed in monetary form , for an agricultural product for the benefit of producers of agricultural commodities or for producers of non-specific products that is generally granted to agricultural producers, with the exception of aid granted under programmes exempted from the reduction provided in Appendix 2 of this agreement, to consider that they have committed to meet specific binding commitments in each of the following areas Market access; Domestic assistance Export competition and parve

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