WORLD TRADE
ORGANIZATIONTN/AG/W/1
17 February 2003
(03-0962)
Committee on Agriculture
Special Session
NEGOTIATIONS ON AGRICULTURE
FIRST DRAFT OF MODALITIES FOR THE FURTHER COMMITMENTS
Introduction
1. Under the programme adopted by the Special Session of the Committee on Agriculture on
26 March 2002, the Chairman is required to prepare the first draft of modalities for further
commitments for circulation in advance of the Special Session to be held on 24-28 February 2003
(TN/AG/1 refers).  In accordance with this requirement, the Chairman submits herewith this first draft
on his own responsibility.
2. The draft is based on the work carried out during the series of formal and informal Special
Sessions of the Committee on Agriculture and related intersessional and technical consultations
conducted in accordance with the mandate provided by Ministers at Doha and the programme
thereunder as adopted by the Special Session on Agriculture on 26 March 2002.  Paragraphs 13 and
14 of the Doha Ministerial Declarati on provide (WT/MIN(01)/DEC/1 refers):
"13. We recognize the work already undertaken in the negotiations initiated in
early 2000 under Article 20 of the Agreement on Agriculture, including the large
number of negotiating proposals submitted on behalf of a total of 121 Members.  We
recall the long-term objective referred to in the Agreement to establish a fair and
market-oriented trading system through a programme of fundamental reform
encompassing strengthened rules and specific commitments on support and protection
in order to correct and prevent restrictions and distortions in world agricultural
markets.  We reconfirm our commitment to this programme.  Building on the workcarried out to date and without prejudging the outcome of the negotiations we commit
ourselves to comprehensive negotiations aimed at:  substantial improvements in
market access;  reductions of, with a view to phasing out, all forms of export
subsidies;  and substantial reductions in trade-distorting domestic support.  We agree
that special and differential treatment for developing countries shall be an integralpart of all elements of the negotiations and shall be embodied in the Schedules of
concessions and commitments and as appropriate in the rules and disciplines to be
negotiated, so as to be operationally effective and to enable developing countries to
effectively take account of their development needs, including food security and rural
development.  We take note of the non-trade concerns reflected in the negotiatingproposals submitted by Members and confirm that non-trade concerns will be taken
into account in the negotiations as provided for in the Agreement on Agriculture.
"14. Modalities for the further commitments, including provisions for special and
differential treatment, shall be established no later than 31 March 2003.  Participants
shall submit their comprehensive draft Schedules based on these modalities no laterthan the date of the Fifth Session of the Ministerial Conference.  The negotiations,
including with respect to rules and disciplines and related legal texts, shall be
concluded as part and at the date of conclusion of the negotiating agenda as a whole."TN/AG/W/1
Page 2
3. This draft should also be seen against the background of the Chairman's recent references to
the difficulty participants have so far had in bu ilding bridges between widely divergent positions and
to the consequent lack of guidance on approaches to solutions.  It therefore represents no more than a
first attempt to identify possible paths to solutions.  It does not claim to be agreed in whole or in any
part and is without prejudice to the positions of participants.
4. Square brackets are used in a number of places for a variety of purposes, such as to put
forward figures for indicative purposes, to suggest alternatives, or possible formulations.  Where text
is not in square brackets, this does not convey any degree of acceptance.  In a few areas, the text has
not been fully elaborated and any resulting unevenness may need to be ironed out.  Based on the third
sentence of paragraph 14 of the Doha Ministerial Declaration, not all of the elements of the draft and
its attachments may need to be finalised in detail by 31 March 2003, bearing in mind that negotiations
will continue well beyond that date.  Further consultations on these matters will be arranged.
5. It is the Chairman's earnest hope that this first draft will stimulate further and immediate,
meaningful and serious negotiations between participan ts, so as to enable an improved second draft to
be prepared in March.
General Provisions and Terms
6. Unless otherwise specified below, the following general provisions and terms shall apply:
(a) Product coverage
The product coverage as specified in Annex 1 of the Agreement on Agriculture shall apply (hereafter
referred to as "agricultural products").
(b) "Year"
"Year" in relation to the specific commitments of a Member refers to the calendar year, financial or
marketing year specified in the Schedule relating to that Member.
(c) "Commitment"
The term "commitment" includes concessions.(d) Starting-point of reduction commitmentsThe starting-point for the first instalment of the reduction commitments in all areas shall be the
beginning of year 1 of the respective implementation periods.  Subsequent reductions shall be made at
the beginning of each of the following implementation years.
Market Access
Tariffs
7. Tariffs, except in-quota tariffs, shall be reduced by a simple average for all agricultural
products subject to a minimum reduction per tariff line.  The base for the reductions shall be the final
bound tariffs as specified in the Schedules of Members.  Except as provided in paragraph 14 below,the tariff reductions shall be implemented in equal annual instalments over a period of [five] years,
applying the following formula:TN/AG/W/1
Page 3
(i) For all agricultural tariffs greater than [90 per cent ad valorem ] the simple average
reduction rate shall be [60] per cent subject to a minimum cut of [45] per cent per
tariff line.
(ii) For all agricultural tariffs lower than or equal to [90 per cent ad valorem ] and greater
than [15 per cent ad valorem ] the simple average reduction rate shall be [50] per cent
subject to a minimum cut of [35] per cent per tariff line.
(iii) For all agricultural tariffs lower than or equal to [15 per cent ad valorem ] the simple
average reduction rate shall be [40] per cent subject to a minimum cut of [25] per cent
per tariff line.
In applying this formula, where the tariff on a processed product is higher than the tariff for the
product in its primary form, the tariff reduction for the processed product shall be higher than that for
the product in its primary form.
8. Where participants apply non- ad valorem  tariffs, the allocation of any tariff item in categories
(ii) and (iii) above shall be based on tariff equivalents to be calculated by the participant concerned ina transparent manner, using representative average [1999-2001] external reference prices or data.  Full
details of the method and data used for these calculations shall be included in the tables of supporting
material for the draft Schedules and shall be subject to multilateral review.
Special and Differential Treatment
9. In implementing their market access commitments, developed country Members should take
fully into account the particular needs and conditions of developing country Members by providing
for greater improvement of opportunities and terms of access for agricultural products of particular
interest to these Members, including the fullest libe ralization of trade in tropical products, whether in
primary or in processed form, and for products of particular importance to the diversification of
production from the growing of illicit narcotic crops, or crops whose non-edible or non-drinkableproducts, while being lawful, are recognized [by WHO] as being harmful for human health.
10. Developing countries shall have the flexibility to declare up to [  ] agricultural products at the
[6-digit] HS level as being strategic products with  respect to food security, rural development and/or
livelihood security concerns and designate these products with the symbol "SP" in Section I-B of
Part I of their Schedules (hereafter referred to as "SP products").  For all agricultural products otherthan SP products, the reduction commitments of developing countries shall be implemented applying
the following formula:
(i) For all agricultural tariffs greater than [120 per cent ad valorem ] the simple average
reduction rate shall be [40] per cent subject to a minimum cut of [30] per cent per
tariff line.
(ii) For all agricultural tariffs lower than or equal to [120 per cent ad valorem ] and
greater than [20 per cent ad valorem ] the simple average reduction rate shall be
[33] per cent subject to a minimum cut of [23] per cent per tariff line.
(iii) For all agricultural tariffs lower than or equal to [20 per cent ad valorem ] the simple
average reduction rate shall be [27] per cent subject to a minimum cut of [17] per centper tariff line.
11. Where participants apply non- ad valorem  tariffs, the provisions of paragraph 8 above apply.TN/AG/W/1
Page 4
12. The simple average reduction rate for all SP products shall be [10] per cent subject to a
minimum cut of [5] per cent per tariff line [, except for SP products for which a developing country
opts to have access to the special safeguard provisions under paragraph 24 below].
13. In all cases, the base for the reductions shall be the final bound tariffs as specified in the
Schedules of Members.  The reduction commitments shall be implemented in equal annual
instalments over a period of [ten] years.
Preferential Schemes
14. In implementing their tariff reduction commitments, participants undertake to maintain, to the
extent possible, the nominal margins and other terms and conditions of tariff preferences they accord
to their developing trading partners.  As an exception to the modality under paragraph 7 above, tariff
reductions affecting long-standing preferences in respect of products which are of vital export
importance for developing country beneficiaries of such schemes may be implemented in equal
annual instalments over a period of [eight] instead of [five] years by the preference-grantingparticipants concerned.  The products concerned shall account for at least [25] per cent of the total
merchandise exports of any beneficiary concerned on average of the most recent three years for which
data are available.  Interested beneficiaries shall notify the Committee on Agriculture, Special Session
accordingly and submit the relevant statistics.  In addition, any in-quota duties for these products shall
be eliminated.
Tariff Quotas
Tariff Quota Volume
15. Final bound tariff quota quantities or values as specified in Members' Schedules (hereafter
referred to as "tariff quota volume") which are equivalent to less than [10] per cent of "current"domestic consumption of the product concerned shall be expanded to that level.  However, for up to
one-quarter of the total number of tariff quotas concerned a Member may opt for binding the tariff
quota volume at a level  equivalent to [8] per cent of that consumption, provided that the volumes for
a corresponding number of tariff quotas concerned are expanded to [12] per cent.
16. In calculating domestic consumption participants shall use, where applicable, the same
definitions and method applied when establishing the Uruguay Round base levels. "Current" domestic
consumption means the average consumption of the period 1999-2001 or of the most recent three-
years period for which data are available.  Full details of the method and data used for the calculations
of domestic consumption for the products concerned shall be included in the tables of supporting
material for the draft Schedules and shall be subject to multilateral  review.
17. The expansion of tariff quota volumes shall be implemented in equal instalments over a
period of [five] years.  The starting-point for implementing the expansion of tariff quotas shall be the
beginning of year 1 of the implementation period.  Additional market access opportunities provided
by the expansion of tariff quotas shall be on an MFN basis.
Special and Differential Treatment
18. Developing countries shall not be required to expand tariff quota volumes for SP products.
For other agricultural products, final bound tariff quota volumes as specified in Members' Schedules
which are equivalent to less than [6.6] per cent of "current" domestic consumption of the product
concerned shall be expanded to that level.  However, for up to one-quarter of the total number of tariff
quotas concerned a Member may opt for binding the tariff quota volume at a level equivalent to
[5] per cent of that consumption, provided that the volumes for a corresponding number of tariffquotas concerned are expanded to [8] per cent.TN/AG/W/1
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19. The modalities in paragraphs 16 and 17 above apply, except that the commitments by
developing countries shall be implemented over a period of [ten] years.
In-quota Tariffs
20. There shall be no requirement to reduce in-quota tariffs, except that in-quota duty free access
shall be provided for tropical products, whether in primary or in processed form, and for products of
particular importance to the diversification of production from the growing of illicit narcotic crops, orcrops whose non-edible or non-drinkable products, while being lawful, are recognized [by WHO] as
being harmful for human health.
Special and Differential Treatment
21. Developing countries shall not be required to reduce in-quota tariffs.
Tariff Quota Administration
22. The administration of tariff quotas shall be subject to disciplines as outlined for further
consideration in Attachment 1 to this document.
Special Safeguard Provisions
Article 5 of the Agreement on Agriculture
23. The provisions of Article 5 of the Agreement on Agriculture shall cease to apply for
developed countries [at the end of the implementation period for the further tariff reductions] [[two]
years after the end of the implementation period for the further tariff reductions].
Special and Differential Treatment
24. For SP products [subject to tariff reductions in accordance with paragraph 10 above],
developing countries shall have the flexibility to apply a special safeguard mechanism to be based on
the provisions of Article 5 of the Agreement on Agriculture.  This right shall be reserved by
designating in their Schedules with the symbol "SSM" the products concerned.  Only products
designated in this way in the Schedule, as well as items already currently covered and designated withthe symbol "SSG", shall be eligible for measures under Article 5.
25. Participants undertake to review the provisions of Article 5 of the Agreement on Agriculture
with a view to ensuring that these provisions are operationally effective and enable developing
countries to effectively take account of their development needs, including food security, rural
development and livelihood security concerns.  This review shall take into account the variousproposals on possible safeguard mechanisms submitted by developing countries in the negotiations
under the Doha Development Agenda and shall be completed no later than [   ].
State Trading Import Enterprises
26. State trading import enterprises shall be subject to disciplines as outlined for further
consideration in Attachment 2 to this document.
Other Market Access Issues
27. Participants will further consider the non-trade concerns and other market access issues
identified in paragraph 28 of document TN/AG/6 dated 18 December 2002 and the extent to which
these issues should be taken into account in the modalities to be established and/or subsequent work.TN/AG/W/1
Page 6
Export Competition
Export Subsidies
28. The basis for the further commitments on export subsidies shall be the final bound budgetary
outlay and quantity commitment levels as specified in Members' Schedules.
29. For a set of agricultural products representing at least [50] per cent of the aggregate final
bound level of budgetary outlays for all products subject to export subsidy commitments, final bound
levels of budgetary outlays and quantities as specified in Members' Schedules shall be reduced over
[five years (n = 5)] using the following formulae with the constant factor c equal to [0.3]
(Attachment 3 to this document provides an illustration of the operation of these formulae):
(1)   B j = B j-1  -  c · B j-1   with j = 1, ….. , n
(2)   Q j = Q j-1  -  c · Q j-1  with j = 1, ….. , n   
with
B = budgetary outlays    Q = quantities    c = constant factor     j = implementation year
and B 0  and Q 0  being the base levels, respectively .
30. At the beginning of [year 6], budgetary outlays and quantities shall be reduced to zero.
31. For the remaining products, final bound levels of budgetary outlays and quantities as
specified in Members' Schedules should be reduced over [nine years (n = 9)] using the formulae (1)
and (2) above.  However, for these products the constant factor c shall equal [0.25].  At the beginningof [year 10], budgetary outlays and quantities for these products shall be reduced to zero.
Special and Differential Treatment
32. For a set of agricultural products representing at least [50] per cent of the aggregate final
bound level of budgetary outlays for all products subject to export subsidy commitments, final bound
levels of budgetary outlays and quantities as specified in developing country Members' Schedulesshall be reduced over [ten years (n = 10)] using the formulae (1) and (2) above, with the constant
factor c equal to [0.25].  At the beginning of [year 11], budgetary outlays and quantities shall be
reduced to zero.
33. For the remaining products, final bound levels of budgetary outlays and quantities as
specified in developing country Members' Schedules should be reduced over [twelve years (n = 12)]using the formulae (1) and (2) above.  However, for these products the constant factor c shall equal
[0.2].  At the beginning of [year 13], budgetary outlays and quantities for these products shall be
reduced to zero.
34. The exemptions for developing countries under Article 9.4 for the transport and marketing
subsidies set out in Article 9.1(d) and (e) of the Agreement on Agriculture shall be maintained for the
time of the implementation period of the further export subsidy commitments to be undertaken by
developing countries.
Export Credits
35. Export credits and export credit guarantees and insurance programmes shall be subject to
disciplines as outlined for further consideration in Attachment 4 to this document.TN/AG/W/1
Page 7
Food Aid
36. International food aid shall be subject to disciplines as outlined for further consideration in
Attachment 5 to this document.
State Trading Export  Enterprises
37. State trading export enterprises shall be subject to disciplines as outlined for further
consideration in Attachment 6 to this document.
Export Restrictions and Taxes
38. Except as provided for in paragraph 2(a) and 2(b) of Article XI and Articles XX and XXI of
GATT 1994, the institution of new export prohibitions, restrictions or taxes on foodstuffs shall be
prohibited.
Special and Differential Treatment
39. For developing countries, the disciplines of Article 12 of the Agreement on Agriculture and
the relevant provisions of GATT 1994 [and of other relevant WTO agreements] shall continue to
apply.
Domestic Support
Annex 2 of the Agreement on Agriculture (Green Box)
40. The provisions of Annex 2 of the Agreement on Agriculture shall be maintained, subject to
possible amendments as outlined for further consideration in Attachment 7 to this document.
Special and Differential Treatment
41. Possible amendments of Annex 2 of the Agreement on Agriculture are outlined for further
consideration in Attachment 8 to this document.
Article 6.2 of the Agreement on Agriculture
42. The provisions of Article 6.2 of the Agreement on Agriculture shall be maintained and
enhanced as outlined for further consideration in Attachment 9 to this document.
Article 6.5 of the Agreement on Agriculture (Blue Box)43. Direct payments under production-limiting programmes provided in accordance with the
provisions of Article 6.5 of the Agreement on Agriculture (Blue Box payments) [shall be capped at
the average level notified for the implementation years [1999-2001] and bound at that level in
Members' Schedules.  These payments shall be reduced by [50] per cent.  The reductions shall be
implemented in equal annual instalments over a period of [five] years.] [shall be included in aMember's calculation of the Current Total Aggregate Measurement of Support (AMS)].
Special and Differential Treatment
44. For developing countries users of such direct payments, the commitment shall be
implemented in equal annual instalments over a period of [ten] years, with the rate of reduction being
[33] per cent.TN/AG/W/1
Page 8
Amber Box
45. The final bound Total AMS shall be reduced by [60] per cent in equal annual instalments over
a period of [five] years.
46. Article 6.3 of the Agreement on Agriculture shall be amended so as to ensure that the AMS
for individual products shall not exceed the respective levels of such support provided on average of
the years [1999-2001].
Special and Differential  Treatment
47. For developing countries, the final bound  Total AMS shall be reduced by [40] per cent in
equal annual instalments over a period of [ten] years.
Other matters
Inflation
48. Scheduled Total AMS commitments may be expressed in national currency, a foreign
currency or a basket of currencies.  In case a foreign currency or a basket of currencies is used and the
final bound Total AMS in a Member's Schedule is expressed in national currency (or another foreign
currency) and a participant wants to avail itself of this option, the final bound Total AMS shall be
converted using the average exchange rate(s) as reported by the IMF for the year at issue.
49. The provisions of Article 18.4 shall be maintained.
Article 6.4 of the Agreement on Agriculture (de minimis)
50. The de minimis level of 5 per cent under subparagraph (a) of Article 6.4 of the Agreement on
Agriculture shall be reduced annually by [0.5] pe rcentage point over a period of [five] years.
Special and Differential Treatment
51. The de minimis level of 10 per cent under subparagraph (b) of Article 6.4 of the Agreement
on Agriculture shall be maintained.
52. [Developing countries shall have the flexibility to credit any negative product-specific support
to the non-product-specific de minimis support.]
Least-developed Countries
53. In addition to the special and differential treatment provisions above, least-developed
countries shall not be required to undertake re duction commitments.  [However, they are encouraged
to consider making commitments commensurate wi th their development needs on a voluntary basis.]
54. Developed countries should provide duty- and quota-free access to their markets for all
imports from least-developed countries.
Others
Recently Acceded Members
55. [Members that have recently acceded to the WTO shall have the flexibility to begin the
implementation of the further commitments regarding tariffs, tariff quotas, export subsidies and trade-TN/AG/W/1
Page 9
distorting domestic support [two] years following the expiry of the full implementation of their
accession commitments under the Agreement on Agriculture.  The respective implementation periods
shall be adjusted accordingly.]
Others
56. Participants will further consider the possible introduction of additional forms of flexibility
for certain groupings (e.g. SIDS, vulnerable developing countries, transition economies) which havemade specific proposals to this effect (TN/AG/6 refers).
Final Note
57. In accordance with the agreed work programme, this draft will be revised in the light of the
further negotiations at the Special Session of the Committee on Agriculture to be held on
24-28 February 2003.  The revised draft will be circulated to participants before the Special Session to
be held on 25-31 March 2003 on which occasion, in  accordance with paragraph 14 of the Doha
Ministerial Declaration, the modalities for the further commitments, including provisions for special
and differential treatment, are to be established.TN/AG/W/1
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Attachment 1
Tariff Quota Administration
Draft for further consideration of possible disciplines regarding tariff quota administration
1. Tariff concessions in Part I of a Member's Schedule which are limited to specified quantities
or values of a product or products ("tariff quota commitments") shall be administered in conformity
with the provisions of this Article and, subject to these provisions, in accordance with other relevant
WTO provisions, including those of the Agreement on Import Licensing Procedures.
2. Tariff quota commitments shall be administered in a manner which ensures that the market
access opportunities represented by such commitments are made fully and effectively available.  To
this end the following general requirements shall be complied with:
(a) Tariff quota commitments shall be administered in a transparent and predictable
manner and, to maximum practicable extent, in the same way as other tariffconcessions.
(b) Domestic purchasing requirements or other measures having the same effect shall not
be imposed, directly or indirectly, on or in connection with importation of tariff quota
products.
(c) Except as specifically described in Schedules, no seasonal restrictions shall be
imposed on imports under tariff quotas.
(d) A tariff quota commitment shall not be administered in a manner which precludes the
importation of any product within the tariff description of the commitment, or which
restricts importation of such products in processed form or for sale to final
consumers.
(e) Methods of tariff quota administration shall not be employed which result in the
attribution to importers of commercially non-viable allotments.
(f) Only imports of tariff quota products from mfn suppliers shall be credited as imports
against tariff quota commitments.
(g) Export or re-export requirements shall not be imposed in connection with the
importation of tariff quota products.
(h) An importer shall be treated no less favourably than another on the basis of degree of
foreign affiliation or ownership.
(i) No charges, deposits or other financial requirements shall be imposed, directly or
indirectly, on or in connection with the administration of tariff quota commitments or
with importation of tariff quota products other than as permitted under the GATT
1994.
3. The following specific requirements shall apply to the methods of tariff quota administration
referred to hereunder ("year" in this context refers  to the calendar, marketing or other annual basis to
which the commitment relates as specified in a Member's Schedule):TN/AG/W/1
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(a) In the case of tariff-only methods of administration and methods not requiring import
licences as a condition of importation:  access opportunities shall be made available
from the beginning of the year concerned and timely advance public notice shall be
given of any suspension of the opportunity to import at the in-quota rate of tariff.
(b) In the case of methods of administration under which import licences are a
requirement:
(i) The total quantity or value of a tariff quota shall be allocated to importers
sufficiently in advance of the year to  which they relate so as to enable
imports to be effected from the beginning of that year and to facilitate
imports from developing countries and distant suppliers.
(ii) No restrictions shall be applied with respect to retail distributors and other
end-users applying for and being allotted shares of tariff quotas.  Nor shall
conditions or formalities be imposed which would prevent any importer from
utilising fully the share which has been  allocated to it within the period of
validity of the corresponding import licence.
(iii) Tariff quota licences shall be valid for a period of [eight] months and shall
not be transferable without the concurrence of the administering authority.
(iv) The quantity or value of any tariff quota commitment which remains unused
following the expiry of the period of validity of the licences initially issued in
connection with that tariff quota shall be reallocated in time to enable
importation before the end of the year concerned.
(c) In the case of allocation of tariff quota shares to supplying countries:  where an
allocated country-specific share remains unused or is consistently under-utilised, such
unused or under-utilised share shall be re-allocated to non-traditional suppliers.
4. The provisions of this Article shall apply to tariff quota commitments that are administered by
or through state trading enterprises.
5. In addition to the requirements of Article X:1 of GATT 1994 relating to publication,
Members administering tariff quota commitments shall establish Internet Web-sites on which all
relevant information relating to their administration of tariff quota commitments can be accessed,
including information regarding administrative requirements and procedures, the business and E-mail
addresses of importers to whom tariff quota shares have been attributed, and current tariff quota fill
rates.  Developing country Members shall have the option of establishing centralised enquiry pointsinstead of Web sites.
6. Special and differential treatment:  developed country Members shall accord special and
differential treatment to products from developing country Members in connection with the allocation
of expanded access under existing or new tariff quotas resulting from the negotiations under the DohaDevelopment Agenda.  For the purposes of Article XIII of GATT 1994, where a tariff quota has been
allocated in full or in part among developing country suppliers the individual country allocations shall
be as specified in the Schedule of the Member concerned; and any re-allocation of shortfalls shall be
made among the developing country suppliers concerned.  Developed country Members shall, on
request, provide to the maximum extent possible advisory and marketing assistance in order tofacilitate imports from developing countries under tariff quotas.TN/AG/W/1
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Attachment 2
State Trading Import Enterprises
Draft for further consideration of  possible provisions for a new Article 4.3 of the
Agreement on Agriculture
3. (a) Members shall ensure that state trading import enterprises are operated in conformity
with the provisions of this Article and, subject to these provisions, in accordance with
Article XVII and other relevant provisions  of GATT 1994, this Agreement and other
WTO agreements.  For the purposes of this Article, state trading import enterprises
shall include any governmental or non-governmental enterprise, including amarketing board, which has been granted or which enjoys de facto as a result of its
governmental or quasi governmental status, exclusive or special rights, privileges or
advantages, including any statutory or constitutional powers, in the exercise of which
or by virtue of which such state trading import enterprises (hereinafter referred to as
"governmental import  enterprises") influence through their purchases and sales thelevel, direction or prices of imports.
(b) Members shall ensure that governmental import enterprises are not operated in such a
way as to nullify or impair the benefits of market access concessions and of the
commitments relating to non-tariff measures under Article 4.2 of this Agreement.
(c) Any Member which establishes or maintains a governmental import enterprise shall
notify relevant information on the operations of that enterprise in accordance with a
format and at intervals to be established by the Committee on Agriculture.
(d) The disciplines regarding governmental import enterprises shall not unduly impede
developing countries in the pursuit of their legitimate food and livelihood security
and rural development objectives.  The notification requirements to be established
under sub-paragraph (c) above shall provide for appropriate special and differential
treatment for developing countries.TN/AG/W/1
Page 13
Attachment 3
Illustration of the Operation of the Export Subsidy Reduction Formula
1. In accordance with paragraph 29, the following formulae are to be applied for the reduction of
export subsidies:
(1)   B j = B j-1  -  c · Bj-1   with j = 1, ….. , n
(2)   Q j = Q j-1  -  c · Qj-1  with j = 1, ….. , n   
with
B = budgetary outlays    Q = quantities    c = constant factor     j = implementation year
and B 0  and Q 0  being the base levels, respectively.
2. The following table illustrates the operation of these formulae.  Column 1 refers to the base
level and the implementation years.  Column 2 provides the path of reductions expressed, for each
implementation year, as a percentage of the base level of budgetary outlays (formula (1)) or quantities
(formula (2)) for the product concerned if the constant factor c equals 0.15.  Columns 3 to 6 providethe corresponding paths for alternative values of the constant factor c.
Export subsidy reduction formula
(Base level = 100 per cent of final bound level of budgetary outlays/quantities)
Constant  Factor c
0.15 0.2 0.25 0.3 0.35
Per cent Base
level 100 100 100 100 100
Year "Current" bound level in per cent of base level
1 85.0 80.0 75.0 70.0 65.0
2 72.3 64.0 56.3 49.0 42.3
3 61.5 51.2 42.2 34.3 27.5
4 52.3 41.0 31.6 24.0 17.9
5 44.5 32.8 23.7 16.8 11.6
6 37.8 26.2 17.8 11.8 7.6
7 32.1 21.0 13.4 8.3 4.9
8 27.3 16.8 10.1 5.8 3.2
9 23.2 13.4 7.6 4.1 2.1
10 19.7 10.7 5.7 2.9 1.4
11 16.7 8.6 4.3 2.0 0.9
12 14.2 6.9 3.2 1.4 0.6TN/AG/W/1
Page 14
3. For example, if the constant factor c eq uals 0.3 (Column 5), then at the beginning of
implementation year 1, the bound level of budgetary outlays will have to be reduced to 70 per cent of
the final bound level of budgetary outlays (formula (1 )).  At the beginning of implementation year 2,
the bound level of budgetary outlays will have to be reduced to 49 per cent of the final bound level of
budgetary outlays, at the beginning of implementation year 3 to 34.3 per cent and so forth.  If the
constant factor c equals 0.2, the corresponding percentages are 80 per cent, 64 per cent, 51.2 per centand so forth.
4. The application of formula (2) in a practical case could look as follows:  If the final bound
quantity for product x equals 500 tonnes (base level Q
0) and a constant factor of 0.3 is chosen, the
calculation using formula (2) above yields the follow ing results for the bound levels for the first three
years of implementation ("current" bound levels Q 1, Q 2 and Q 3):
Base level Q 0 = 500 tonnes            "current" bound level in year 1, …, 3
Year          in tonnesin per cent of
base level
(Column 5 of
table above)
1 Q1 = Q 0 - c · Q0  =  500  -  0.3 · 500  =    350 70.0
2 Q2 = Q 1 - c · Q1  =  350  -  0.3 · 350  =    245 49.0
3 Q3 = Q 2 - c · Q2  =  245  -  0.3 · 245  =    171.5 34.3
and so forth.TN/AG/W/1
Page 15
Attachment 4
Export Credits
Draft for further consideration of a possible new Article 9 bis or 10 bis of the Agreement of
Agriculture on Governmental Support for Export Financing
General
1. Subject to the provisions of this Article, Members shall not, directly or indirectly, provide
support or enable support to be provided for or in connection with the financing of exports of
agricultural products or the credit and other risks associated therewith otherwise than on marketrelated terms and conditions.  [Each Member accordingly undertakes not to provide export financing
support otherwise than in conformity with this Ar ticle.]  [Each Member accordingly undertakes not to
provide export financing support otherwise than in  conformity with this Article and with the
commitments as specified in that Member's Schedule.]
Forms and providers of export financing support subject to discipline
2. Export financing support that is subject to the provisions of this Article includes:
(a) direct financing support, comprising direct credits/financing, refinancing, and interest
rate support;
(b) risk cover, comprising export credit insurance or reinsurance and export credit
guarantees;
(c) government-to-government credit agreements covering the imports of agricultural
products exclusively from the creditor country under which some or all of the risk is
undertaken by the government of the exporting country;
(d) any other form of governmental support, direct or indirect, including deferred
invoicing and foreign exchange risk hedging.
3. The provisions of this Article shall be applicable to export financing support provided by or
on behalf of:  government departments, agencies, or statutory bodies, at both the national and sub-
national levels;  any financial institution or entity engaged in export financing in which there is
governmental participation by way of equity, provision of loans or underwriting of losses;  any
governmental or non-governmental enterprise, including a marketing board, which has been grantedor enjoys de facto exclusive or special rights, privileges or financing advantages, including statutory
or constitutional powers, in the exercise of which or  by virtue of which support for or in connection
with the financing of exports is provided; and any ba nk or other private financial, credit insurance or
guarantee institution which acts on behalf of or at  the direction of governments or their agencies.
Terms and conditions
4. Export financing support which is provided in conformity with th e following terms and
conditions shall be deemed to comply with paragraph 1 above:
(a) Maximum repayment term:  the maximum repayment term of a supported export
credit shall not exceed the period beginning at the starting point of credit and ending
on the contractual date of the final payment.  The "starting point of a credit" shall be
no later than the weighted mean date or actual date of the arrival of the goods in theTN/AG/W/1
Page 16
recipient country for a contract under which shipments are made in any consecutive
six-month period.  The following maximum repayment terms shall be respected:
(i) for breeding cattle:  [   ] months for contracts up to and including [   ];  and
[   ] months for contracts exceeding [   ];
(ii) for agricultural vegetable reproduction material:  [   ] months;
(iii) for exports of agricultural products to developing countries, as specified in
paragraph 9(a) below:  [.. months];
(iv) for exports of basic foodstuffs to least-developed and for net food-importing
developing countries as listed in document G/AG/5/Rev.5, as specified inparagraph 10(a) below;
(v) for all other products and destinations:  [six months/180 days].
(b) Cash payments:  a minimum cash payment shall be required to be paid, by or on
behalf of the importer, at or before the starting point of the supported credit,
representing not less than [15] per cent of the total amount of the contract/shipment
value but excluding interest as defined in sub-paragraph (c) below.  Cash payments
shall not be financed.
(c) Payment of interest:  in the case of direct financing support, "interest" excludes
premiums and other charges for insuring or guaranteeing supplier or financial credits,
banking fees or commissions relating to the export credit, and withholding taxes
imposed by the importing country.  Interest shall be payable.  Where the repayment
term exceeds 180 days, interest shall be payable not less frequently than every sixmonths, with the first payment to be made no later than six months after the starting
point of export financing.
(d) Minimum interest rates:  interest rates in respect of direct financing support shall not
be below the actual cost of borrowing for the funds so employed (including the costof funds if capital was borrowed on international capital markets in order to obtain
funds of the same maturity), plus an appropriate risk-based spread reflective of
prevailing market conditions:  provided how ever that, for repayment terms of twenty-
four months or longer, Members shall us e Commercial Interest Reference Rates
(CIRRs) as published by the OECD, plus an appropriate risk-based spread reflective
of prevailing market conditions.
(e) Repayment of principal:  the principal sum (transaction value minus cash payment) of
an export credit shall be repayable in equal, regular six-monthly instalments starting
not later than six months after the starting point of the credit.
(f) Premiums in respect of coverage of risks under export credit insurance, reinsurance
and export credit guarantees:  premiums shall be charged, shall be risk-based and
shall be adequate to cover long term operating costs and losses.  Premium shall be
expressed in percentages of the outstanding principal value of the credit, shall be
payable in full at the date of issuance of cover and shall not be financed.  Premium
rebates shall not be accorded.  Furthermore, support in the form of export creditinsurance, reinsurance or guarantees shall not be provided in respect of export
financing contracts whose terms and conditions are not otherwise in conformity with
the provisions of this paragraph.TN/AG/W/1
Page 17
(g) Foreign exchange risk:  Export credits, export credit insurance, export credit
guarantees, and related financial support shall be provided in freely traded currencies.
Foreign exchange exposure deriving from credit that is repayable in the currency of
the importer shall be fully hedged, such that the market risk and credit risk of the
transaction to the supplier/lender/guarantor is not increased.  The cost of the hedge
shall be incorporated into and be in ad dition to the premium rate determined in
accordance with this Article.
(h) Period of validity of export financing offers:  credit terms and conditions (e.g.,
interest rates for direct financing support and all risk-based terms and conditions)
offered for an individual export credit or line of credit shall not be fixed for a period
exceeding six months without payment of premium.
Non-conforming financing support
5. Export financing supports which do not conform with all the relevant the provisions of
paragraph 4 of this Article, hereinafter referred to as "non-conforming export financing", constitute
export subsidies for the purposes of this Agreement and are subject to specific export financingreduction commitments under this Article.
6. The commitments for each year of the implementation period, as specified in Part IV,
Section IV, of a Member's Schedule, represent with respect to non-conforming financing support:
(a) in the case of scheduled reduction commitments relating to the value of non-
conforming export financing support, the maximum level of such financing support in
value terms, that may be provided in that year in respect of the agricultural product,
or group of products concerned;
(b) in the case of scheduled quantity reduction commitments, the maximum quantity of
an agricultural product, or group of pr oducts, in respect of which non-conforming
export financing may be provided in that year;  and
(c) in the case of commitments relating to repayment terms, the maximum and degressive
non-conforming repayment terms that may be supported in each successive year of
the specified implementation period.
Emergency exception
7. An emergency situation is defined as a sudden, significant and unusual deterioration in a
Member country's economy and its ability to finance current imports of basic foodstuffs, and whichmay have far reaching consequences such as social deprivation or unrest.  In the event of such an
emergency the importing Member country concerned may request an exporting Member to provide
more generous export financing terms than are permissible under this Article.  A Member making
such a request shall concurrently notify the Committee on Agriculture in writing accordingly.  The
Member to whom such a request is addressed shall consider the request for more generous terms inaccordance with the need to sustain the viability of its export credits, export credit guarantees, or
export credit insurance programmes.
Transparency and notification
8. No later than three months after the entry into force of this Article each Member shall submit
a notification concerning that Member's export financing programmes, export financing bodies and
other related matters in accordance with the format specified in Annex [  ] hereto.  This notification
shall be updated at the beginning of each subsequent year.  At not less than [  ] monthly intervalsTN/AG/W/1
Page 18
Members shall submit a notification to the Committee on Agriculture in which details are provided of
export financing commitments entered into in acco rdance with the format specified in Annex [..]
hereto.  Least-developed country Members shall not be required to submit such notifications.  [Note:
the Annexes referred to in this paragraph to be developed at the appropriate stage.]
Special and differential treatment
9. In respect of imports of agricultural products, special and differential treatment in favour of
developing country Members shall comprise:
(a) longer maximum repayments terms of up to [   ] months;(b) repayment of the principal sum in equal and regular instalments not less frequently
than annually, with the first payment due no later than twelve months after the
starting point of credit;
(c) payment of interest not less frequently th an annually, with the first interest payment
to be made no later than twelve months after the starting point of credit.
10. In respect of imports of basic foodstuffs least-developed countries and net food-importing
developing countries as listed in G/AG/5/Rev.5 shall be accorded:
(a) additional longer maximum repayment terms of up to [   ] months;(b) differential and more favourable interest rates and/or premiums.
11. Developing country Members providing di rect export financing support may use London
Interbank Offered Rates (Libor rates) and CIRRs, plus an appropriate risk-based spread, as minimuminterest rate benchmarks.
12. For developing country Members the provisions of this Article, other than those relating to
notification and transparency, shall enter into force at the beginning of the year following the end of
the developing country implementation period for export subsidy commitments :  provided that, with
respect to any product or group of products for which a developing country Member is listed as a
significant exporter in document G/AG/2/Add.1, these provisions shall become applicable with effect
from the entry into force of this Article;  and provided further that the provisions of  Article 9.4 of this
Agreement shall also apply to export financing.
Other Matters
13. The provisions of Articles 3.1, 3.3, 8, 10.1 and 10.3 of this Agreement shall apply mutatis
mutandis to the commitments with respect to export financing under this Article.
14. [Annexes hereto comprise….]TN/AG/W/1
Page 19
Attachment 5
Article 10.4 of the Agreement on Agriculture
Draft for further consideration of a  possible replacement of paragraph 4 of Article 10 of the
Agreement on Agriculture
4. (a) Members donors of international food aid, whether in kind or in the form of financial
grants to be used to purchase food for or by the recipient country, shall ensure:
(i) that, in the case of food aid to meet or relieve emergency or critical food
needs arising from natural disasters, crop failures or humanitarian crises and
post-crisis situations, such aid is granted in response to appeals fromspecialised United Nations food aid agencies, from non-governmental
humanitarian organisations or private charitable bodies, or in response to
bilateral government-to-government requests for emergency food aid relief;
(ii) that food aid for other purposes, including under projects or programmes to
enhance nutritional standards amongst vulnerable groups in least-developed
and net food-importing developing countries, is provided exclusively in the
form of untied financial grants to be used to purchase food for or by the
recipient country:  except that such food aid may be provided in-kind within
the framework of projects and programmes operated by specialised UnitedNations food aid agencies or on behalf of such specialised agencies through
non-governmental humanitarian organisations or private charitable bodies;
(iii) that food aid is provided exclusively in fully grant form;
(iv) that the provision of food aid is not tied directly or indirectly, formally or
informally, explicitly or implicitly, to commercial exports of agricultural
products or of other goods and services to recipient countries.
(b) Members shall ensure that their food aid transactions are carried out in accordance
with the procedures under the FAO "Principles of Surplus Disposal and Consultative
Obligations", including, where appropriate, the system of "Usual Marketing
Requirements".  Any Member may raise any matter relating to a donor Member's
compliance with these principles and requirements under Article 18.6 of this
Agreement.
(c) Members which are recipients of food aid undertake not to re-export such food aid
otherwise than as part of a triangular food aid transaction initiated by a specialised
United Nations food aid agency.
(d) Members shall report on the form in which food aid is provided, as well as on the
products, amounts, destinations, channelling and other relevant terms and conditionsof their food aid operations, on the basis of a format and at intervals to be established
by the Committee on Agriculture.
(e) Food aid transactions which are not in conformity with the provisions of sub-
paragraph (a) above and which cannot be accommodated within limits of a Member'sexport subsidy reduction commitments shall be deemed for the purposes of
Article 10.1 of this Agreement to constitute non-commercial transactions which
circumvent that Member's export subsidy commitments.TN/AG/W/1
Page 20
Attachment 6
State Trading Export Enterprises
Draft for further consideration of possible additional provisions for inclusion
as a new Article 10.5 of the Agreement on Agriculture
5. (a) Members shall ensure that state trading export enterprises are operated in conformity
with the provisions of this Article and, subject to these provisions, in accordance with
Article XVII and other relevant provisions  of GATT 1994, this Agreement and other
WTO agreements.  For the purposes of this Article, state trading export enterprises
include any governmental or non-governmental enterprise, including a marketingboard, which has been granted or which enjoys de facto as a result of its
governmental or quasi-governmental status, exclusive or special rights, privileges or
advantages, including any statutory or constitutional powers, in the exercise of which
or by virtue of which such state trading export enterprises (hereinafter referred to as
"governmental export enterprises") influence through their purchases and sales thelevel, direction or prices of exports.
(b) Members shall ensure that governmental export enterprises are not operated in such a
way as to circumvent export subsidy commitments under this Agreement nor in such
a manner that would nullify or impair the conditions of competition in world exportmarkets that would prevail in the absence of such special rights, privileges or
advantages.  To this end Members undertake:
(i) to ensure that exports of a product by  a governmental export enterprise do not
take place at a price less than the price paid by such an enterprise to thedomestic producers of the product concerned;
(ii) not to restrict the right of any intere sted entity to export, or to purchase for
export, agricultural products;
(iii) not to grant special financing privileges, including government grants, loans,
loan guarantees, or underwriting of operational costs, to governmental export
enterprises that export for sale, directly or indirectly, a significant share of the
respective Member's total exports of an agricultural product.
(c) The provisions of sub-paragraph (b) above, other than (b)(i), shall not apply to
developing country Members.
(d) The provisions of sub-paragraph (b)(ii) above shall enter into force progressively on
the basis of a plan to be negotiated and specified in Part IV, Section V of the
Schedule of the Member concerned.
(e) Any Member which establishes or maintains a governmental export enterprise shall
notify relevant information on the operations of that enterprise in accordance with a
format and at intervals to be established by the Committee on Agriculture.TN/AG/W/1
Page 21
Attachment 7
Annex 2 of the Agreement on Agriculture
Possible amendments for further consideration (changes in italics)
1. Addition to paragraphs 5, 6, 11 and 13:
Reference to base periodsPayments shall be based on activities in a fixed and unchanging historical base period.  All
base periods shall be notified.
2. Modification of subparagraphs 7(a), (b) and (c):
Compensation criteria with respect to government financial participation in income insurance
and income safety-net programmes.
(a) Eligibility for such payments shall be de termined by an income loss, taking into
account only income derived from agriculture, which exceeds 30 per cent of average
gross income or the equivalent in net income terms (excluding any payments from the
same or similar schemes) in the preceding three to five-year period or a three-year
average based on the preceding five-year period, excluding the highest and the lowestentry.  Any producer meeting this condition shall be eligible to receive the payments
from the government.
(b) The amount of such  payments by governments shall restore a producer’s income to
no more than 70 per cent of income derived by that producer from agriculture in theaveraging period used to trigger eligibility for payment.
(c) The amount of any such payments shall relate solely to income derived from
agriculture of the farm enterprise as a whole ;  it shall not relate to the type or volume
of production (including livestock units) undertaken by the producer;  or to the prices,domestic or international, applying to such production;  or to the factors of production
employed.
3. Modification of subparagraphs 8(a), (b) and (d):
Compensation criteria with respect to payments (made either directly of by way of
government financial participation in crop insurance schemes) for relief from naturaldisasters.
(a) Eligibility for such payments shall arise:
- in the case of disasters:   only following a formal recognition … excluding the
highest and lowest entry.
- in the case of government financial participation in crop insurance schemes:
eligibility for such payments shall be determined by a production loss which
exceeds 30 per cent of the average of production in an actuariallyappropriate period.TN/AG/W/1
Page 22
- in the case of the destruction of animals or crops to control or prevent
diseases named in national legislation or international standards: the
production loss may be less than the 30 per cent of the average of production
referred to above.
(b) Payments made under paragraph 8  shall be applied only in respect of losses of
income, livestock (including payments in connection with the veterinary treatment of
animals), land or other production factors due to the natural disaster or destruction of
animals or crops  in question.
(d) Payments made under paragraph 8  shall not exceed the level required to prevent or
alleviate further loss as defined in criterion (b) above.
4. Modification of subparagraph 9(b):
Structural adjustment assistance provided through producer retirement programmesPayments shall be conditional upon the total and permanent retirement of the recipients from
marketable agricultural production or lending of land for a longer period than [x] years.
Payments shall be time limited.
5. Addition at the end of subparagraph 10(d):
Structural adjustment assistance provided through resource retirement programmes
(d) Payments shall not … remaining in production.  Payments shall be time limited.
6. Addition at the end of subparagraph 11(a), modification of subparagraph 11(b), and inclusion
of new subparagraph 11(b) bis
Structural adjustment assistance provided through investment aids(a) Such structural disadvantages must be clearly defined.
(b) The amount of such payments in any given year shall not be related to, or based on,
the type or volume of production or inputs into the production (including livestock
units) … (b bis) The amount of such payments in any given year shall not be related
to, or based on, the use of factors of production in any given year after the base
period.
7. Modification of scope of paragraph 12 (heading) and/or of subparagraphs 12(a) and (b):
Payments under environmental programmes /animal welfare payments
(a) Eligibility for such payments shall be determined as part of a clearly-defined
government (….) programme and be dependent on the fulfilment of specific
conditions under the government programme [.] [including conditions related to
production methods or inputs ] .
(b) The amount of payment shall be less than the extra costs involved in complying with
the government programme and not be related to or based on the volume of
production .TN/AG/W/1
Page 23
Attachment 8
Annex 2 of the Agreement on Agriculture
Possible new elements of special and differential treatment for further consideration
(changes in italics)
1. Inclusion of a new sentence at the end of paragraph 3:
Public stockholding for food security purposes
The volume and accumulation … product and quality in question.  Developing country
Members shall be exempted from the condition in paragraph 3 that the volume and
accumulation of food security stocks shall correspond to predetermined targets.
2. Inclusion of new paragraph 6 bis:
Payments to maintain domestic production capacity of staple crops for food security purposes
(a) Eligibility for such payments shall be de termined by reference to clearly-defined
criteria in government programmes designed to provide support for the producers of
staple crops.
(b) Total production of the crop shall account for no less than [X] per cent of the total
value of agricultural production and:
- Total consumption of such crop shall account for no less than [Y] per cent of
the total domestic consumption of agricu ltural products in terms of calorie
intake;  or
- Total export of such crop shall account for no less than [Z] per cent of the
total export of a particular country.
(c) The amount of payment shall be limited to the minimum to maintain domestic
production capacity of such crop of the Member concerned.
3. Inclusion of new paragraph 6 ter:
Payments to small scale family farms for the purpose of maintaining rural viability and
cultural heritage
(a) Eligibility for such payments shall be determined by reference to clearly defined
criteria in government programmes design ed to provide support for small scale
family farms.
(b) Small scale farms shall be defined in national legislation, taking into account such
factors as total annual sales, share of hired farm labour, off-farm income, etc.
(c) The amount of such payment shall be limited to the minimum level for continued
existence of such farms based on the purpose of maintaining rural viability and
cultural heritage.
(d) The payment shall not mandate or in any way designate the agricultural products to
be produced by the recipients.TN/AG/W/1
Page 24
4. Modification of subparagraphs 7(a), (b) and (c):
Compensation criteria with respect to government financial participation in income insurance
and income safety-net programmes.
(a) Eligibility for such payments shall be de termined by an income loss, taking into
account only income derived from agriculture, which exceeds 30 per cent of averagegross income or the equivalent in net income terms (excluding any payments from the
same or similar schemes) in the preceding three-year period or a three-year average
based on the preceding five-year period, excluding the highest and the lowest entry,
or, in the case of developing country Members, a certain proportion of average gross
income or the equivalent in net income terms (excluding any payments from the same
or similar schemes) which shall be clearly defined in national legislation .  Any
producer meeting this condition shall be eligible to receive the payments.
(b) The amount of such payments shall compensate for less than 70 per cent of the
producer's income loss in the year the producer becomes eligible to receive this
assistance , or, in the case of developing country Members, shall compensate for less
than a certain proportion of the producer's income loss, which shall be clearly
defined in national legislation.
(c) The amount of any such payments shall relate solely to income derived from
agriculture of the farm enterprise as a whole ;  it shall not relate to the type or volume
of production … production employed.
5. Modification of subparagraph 8(a):
Payments (made either directly or by way of government financial participation in crop
insurance schemes) for relief from natural disasters
(a) Eligibility for such payments shall aris e only following formal … excluding the
highest and the lowest entry , or, in the case of developing country Members, [exceeds
10 per cent of the average of production in the preceding year ] [exceeds a proportion
of the average of production in the preceding three-year period to be determined innational legislation ].
6. Modification of subparagraph 10(b):
Structural adjustment assistance provided through resource retirement programmes
(b) Payments shall be conditional upon the retirement of land from marketable
agricultural production for a minimum of three years, or, in the case of developing
country Members,  one year , and in the case of livestock … disposal.
7. Inclusion of new sentence at the end of subparagraph 13(a):
Payments under regional assistance programmes
(a) Eligibility for such payments …… temporary circumstances.  Developing country
Members shall be exempted from the condition that disadvantaged regions must
constitute a clearly designated contiguous geographical area with a definable
economic and administrative identity.TN/AG/W/1
Page 25
Attachment 9
Article 6.2 of the Agreement on Agriculture
Possible amendments for further consideration (changes in italics)
In accordance with the Mid-Term Review Agreement that government measures of assistance,
whether direct or indirect, to encourage agricultural and rural development are an integral part of the
development programmes of developing countries, and in accordance with paragraph 13 of the Doha
Ministerial Declaration the following measures  in developing country Members shall be exempt from
domestic support reduction commitments to the extent that these commitments  would otherwise be
applicable to such measures:
(i) investment subsidies which are generally available to agriculture(ii) agricultural input subsidies generally available to low-income or resource-poor producers(iii) domestic support to producers to encourage di versification from growing illicit narcotic crops
or those whose non-edible or non-drinkable products, being lawful, are recognized [byWHO] as harmful for human health
(iv) subsidies for concessional loans through established credit institutions or for the
establishment of regional and community credit cooperatives
(v) transportation subsidies for agricultural products and farm inputs to remote areas
(vi) on-farm employment subsidies for families of low-income and resource-poor producers(vii) government assistance for conservation measures(viii) marketing support programmes and programmes aimed at compliance with quality and
sanitary and phytosanitary regulations
(ix) capacity building measures with the objective of enhancing the competitiveness and
marketing of low-income and resource-poor producers
(x) government assistance for the establishment and operation of agricultural cooperatives
(xi) government assistance for risk management of agricultural producers and savings
instruments to reduce year-to-year variations in farm incomes
Domestic support meeting the criteria of this paragraph shall not be required to be included in a
Member's calculation of its Current Total AMS.
__________