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    Agreement On Agriculture

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    shahid khan
    The document outlines the major provisions of the Agreement on Agriculture, including commitments to increase market access, reduce trade distortions, and make specific commitments in the areas of market access, domestic support, and export competition. Specifically, it requires developed countries to reduce tariffs and domestic support by 36% and developing countries by 24% and 13.3% respectively. It establishes rules for categorizing domestic support as minimally distorting ("Green Box"), limited production-limiting payments ("Blue Box"), or trade distorting ("Amber Box") and sets reduction targets for the latter. It also reduces export subsidies by 36% for developed countries over 6 years.

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    Agreement On Agriculture

    Uploaded by

    shahid khan
    639 views6 pages
    The document outlines the major provisions of the Agreement on Agriculture, including commitments to increase market access, reduce trade distortions, and make specific commitments in the areas of market access, domestic support, and export competition. Specifically, it requires developed countries to reduce tariffs and domestic support by 36% and developing countries by 24% and 13.3% respectively. It establishes rules for categorizing domestic support as minimally distorting ("Green Box"), limited production-limiting payments ("Blue Box"), or trade distorting ("Amber Box") and sets reduction targets for the latter. It also reduces export subsidies by 36% for developed countries over 6 years.

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    Agreement on Agriculture

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    The document outlines the major provisions of the Agreement on Agriculture, including commitments to increase market access, reduce trade distortions, and make specific commitments in the areas of market access, domestic support, and export competition. Specifically, it requires developed countries to reduce tariffs and domestic support by 36% and developing countries by 24% and 13.3% respectively. It establishes rules for categorizing domestic support as minimally distorting ("Green Box"), limited production-limiting payments ("Blue Box"), or trade distorting ("Amber Box") and sets reduction targets for the latter. It also reduces export subsidies by 36% for developed countries over 6 years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    639 views6 pages

    Agreement On Agriculture

    Uploaded by

    shahid khan
    The document outlines the major provisions of the Agreement on Agriculture, including commitments to increase market access, reduce trade distortions, and make specific commitments in the areas of market access, domestic support, and export competition. Specifically, it requires developed countries to reduce tariffs and domestic support by 36% and developing countries by 24% and 13.3% respectively. It establishes rules for categorizing domestic support as minimally distorting ("Green Box"), limited production-limiting payments ("Blue Box"), or trade distorting ("Amber Box") and sets reduction targets for the latter. It also reduces export subsidies by 36% for developed countries over 6 years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Agreement on Agriculture

    Basic Provisions of the Agreement:


    Increase market orientation in agricultural trade.
    Strengthen rules to improve predictability and
    stability for importing and exporting countries.
    Make specific commitments on market access,
    domestic support, export competition, and
    sanitary and phytosanitary issues
    Consider nontrade concerns such as food
    security, environmental protection, special and
    differential treatment for developing countries,
    possible negative effects on least-developed and
    net food-importing developing countries.

    Major Provisions of the Agreement on Agriculture

    1. Market Access: The key elements of the market


    access commitments for agricultural products are: a) The
    establishment of tariffication, b) Tariff reduction, and c) Tariff
    binding.
    Reduce tariff and nontariff border measures by an average of 36%
    in developed countries (over six years) and 24% in developing
    countries (over 10 years). Least-developing countries do not need
    to reduce their tariffs. The rules also required that tariff on a
    particular product be cut by at least 15 percent by developed
    nations and 10 percent by developing nations.
    The commitments stipulate establishment of tariff quota equal to
    3 percent of domestic consumption in the 1986 - 88 (Base period),
    and raising them to 5 percent by 2001, for developed nations and
    2005 for developing nations. Lower rates, generally up to 35
    percent of the tariffied rates, were applicable to imports up to
    quota limits. The higher rates from tariffication were to apply to
    imports over the quota limits.

    Major Provisions of the Agreement on Agriculture

    2. Domestic Support: Domestic support is divided into two


    categories:
    Support with no, or minimal distortive effect on trade (often referred to
    as Green Box and Blue Box measures), and
    Trade distorting support (often referred to as Amber Box measures).
    a) Green box domestic support: These support measures have a
    minimal impact on trade and are excluded from reduction
    commitments. They include support for research, marketing
    assistance, infrastructure services, domestic food aid, etc. Among the
    additions would be programmes that reimburse additional costs arising
    from the protection of animal welfare, and special flexibility for
    developing countries tackling food security and poverty alleviation.
    b)Blue box domestic support: These are measures such as direct
    payments to farmers that are intended to limit production. These are
    considered acceptable and are not subject to reduction, too.
    c) Amber box domestic support: These are measures that are
    considered trade-distorting and are therefore subjected to reduction.
    These are support that has effect on production like price support and
    input subsidies. Subsidies categorized under the Amber Box are
    calculated using the Aggregate Measurement of Support.

    Aggregate Measurement of Support (AMS)


    AMS means the annual level of support expressed in monetary terms, provided for
    an agricultural product in favour of the producers of the basic agricultural product,
    or non-product-specific support provided in favour of agricultural producers in
    general, other than support provided under programmes that qualify as exempt
    from reduction.
    AMS is calculated on a product by product basis, using the difference between the average
    external reference price for a product and its applied and ministered price multiplied by the
    quantity of the production.
    Although AMS is calculated on a product by product basis, the commitments for reduction
    apply to the aggregate amount. This allows nations the flexibility to shift support from one
    product to another, though they are required to keep within over ceiling limits. Initial AMS
    calculations were based on the support given in the years 1986-88.
    The AoA stipulates a reduction commitment of total AMS by 20 percent for developed
    nations in six years (1995 to 2000) and by 13.3 percent by the developing nations in 10
    years (1995 to 2004). However, domestic support given to the agricultural sector up to 10
    percent of the total value of agricultural produce in the developing nations and 5 percent in
    developed nations is allowed. In other words, AMS within this limit is not subject to any
    reduction commitment.
    Other policies not included in the AMS reduction commitments are direct payments under
    production limiting programs, certain government assistance to encourage agricultural and
    rural development in developing countries, and other support that makes up only a low
    proportion of the value of production of individual products or the value of total agricultural
    production.

    Major Provisions of the Agreement on Agriculture

    3. Export Subsidies: The commitments include reducing


    the values of direct export subsidies to 36% below the
    1986.90 base period level over the six-year implementation
    period, and the quantity of subsidized exports by 21% over
    the same period. The export subsidies subject to reduction
    commitments are:
    Direct subsidies contingent on export performance.
    Government export sales or stock disposals at prices below
    domestic market prices.
    Other payments on the export of agricultural products that are
    financed by virtue of government action (including levies).
    Subsidies on agricultural products contingent on their
    incorporation in exported products, and
    Subsidies affecting marketing and transport costs of exports.
    Subject to some conditions, developing countries were not
    required to make reduction commitments during the
    agreements implementation period on this group of subsidies.

    Numerical Targets for Cutting Subsidies and Protection

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