Agreement On Agriculture Wto Notes

The reform of the 2003 CAP, which decoupled most of the existing direct aid, and the sectoral reforms that followed led to the deferral of most aid under the amber box and the blue box to the green box (61.6 billion euros in 2016/2017, see table below). Aid under the “amber box” (AMS) has fallen sharply, from EUR 81 billion at the beginning of the period of the agreement to EUR 6.9 billion between 2016 and 2017, even with successive waves of expansion. The European Union thus largely respects the commitments made in Marrakech (72.38 billion euros per year) for the AMS. In addition, the “blue box” reached 4.6 billion euros during the same notification period. (2) In accordance with the Mid-Term Review Agreement, which provides that direct or indirect public aid to promote agricultural and rural development is an integral part of developing country development programmes, investment subsidies generally available to agriculture in developing countries, and subsidies for agricultural inputs, which are generally available to low-income or low-income producers in developing countries, are exempt from commitments to reduce land-use aid on the national territory that would otherwise apply to such measures, as well as national aid to producers in developing countries, which are in place to diversify resources in developing countries. National aid meeting the criteria set out in this paragraph should not be taken into account in the calculation of the current AMS of the total number of Member States. Domestic support regimes for agriculture are governed by the agriculture agreement, which came into force in 1995 and was negotiated during the Uruguay Round (1986-1994). The long-term goal of the AoA is to establish a fair and market-oriented agricultural trading system and to initiate a reform process through negotiations on promised commitments and safeguards and by defining more effective and operationally effective rules and disciplines. Agriculture is therefore special, because the sector has its own agreement, the provisions of which are given priority. WTO members made important decisions on agriculture at the WTO Ministerial Conference in Nairobi, Kenya, in 2015. These include the obligation to remove agricultural export subsidies, decisions on public storage for food security purposes, a special safeguard mechanism for developing countries and trade rules for cotton. In the run-up to the 1986 GATT Ministerial Conference in Punta del Este, Uruguay, agricultural lobbies in industrialized countries have vehemently opposed agricultural trade-offs. In this context, the idea of excluding “trade-neutral” production and subsidies from WTO commitments was first proposed in 1987 by the United States and soon replicated by the EU.

[2] By guaranteeing continued support to farmers, it has also neutralized the opposition.