2 - Domestic Support Disciplines of the Agriculture and SCM Agreements

Summary

This chapter examines the often-misunderstood WTO disciplines on domestic support. Limits, allowances and exemptions under the Agriculture Agreement are detailed. This includes examining members’ Bound Total AMS (BTAMS) and the calculation of Aggregate Measurements of Support (AMSs), market price support (MPS), annual Current Total AMS (CTAMS), and de minimis exclusions from CTAMS. The exemptions from limit are described through Art. 6.2 for developing countries (special and differential treatment), Art. 6.5 (blue box) production-limiting programs and Annex 2 (green box) measures addressing non-trade concerns and meeting the requirement of at most minimal trade-distorting or production effects. The different space for limited support among different groups of developed and developing countries is highlighted. Relationship of the Agriculture and SCM Agreements regarding actionable subsides, prohibited export subsidies and countervailing measures are described and 16 disputes on domestic support under these Agreements are summarized. In short, a complex set of rules govern domestic support.