RESTRICTED
WORLD TRADE WT/ACC/4
18March 1996
ORGANIZATION(96-0939)
ACCESSION TOTHE WORLD TRADE ORGANIZATION
Information tobeProvided onDomestic Support andExport Subsidies inAgriculture
Technical Note bytheSecretariat
1. Thepurposeofthistechnicalnoteistoallowaccedinggovernmentstopresentfactualinformation
ontheirdomestic support andexport subsidy measures actually inplace inagriculture, asrequired
under Section IV,4(b)and(e)oftheOutline Format foraMemorandum ontheForeign Trade Régime
(WT/ACC/1),inamannerconsistentwiththenotificationrequirementsoftheAgreementonAgriculture.
Tothisend,thefollowing paragraphs aredesigned toidentify agricultural policy measures inthearea
ofdomestic support andexport subsidies under theAgreement onAgriculture onwhich suchinformation
isrequired. (Thedefinition ofproducts covered bytheAgreement onAgriculture iscontained in
Annex 1oftheAgreement).
2. Topresent theinformation intheprescribed form, theformats usedbyWTO Members tonotify
theircurrent measures areproposed asthebasisforcollection (G/AG/2). Accordingly, thedescription
ofanymeasures maintained byacceding governments should besufficiently detailed toenable Members
tomake ajudgement astotherelationship between eachofthemeasures inquestion andtherelevant
criteria oftheAgreement onAgriculture.
3. Theinformation tobeprovided inthiscontext iswithout prejudice toanyadditional information
which Members maywishtorequest fromacceding governments onanyother aspects oftheirtrade
régime onagriculture. Inthisregard, itshould benoted thatinformation onborder measures affecting
foreign tradeinagricultural products should beprovided under Section IV,4(a)and(c)oftheOutline
Format.
Domestic Support
4. TheAgreement onAgriculture prohibits theuseofdomestic support infavour ofagricultural
producers inexcess ofcommitment levels specified inschedules (Article 3:2andArticle 6)withthe
exception ofsupport granted bymeans ofthree groups ofpolicies:
(i) measures thathaveno,oratmost minimal, trade distortion effects oreffects onproduction
andwhich meetbasic andpolicy-specific criteria andother conditions assetoutinAnnex 2
oftheAgreement onAgriculture; these areknown as"green box" measures;
(ii) some measures ofassistance, whether direct orindirect, toencourage agricultural andrural
development andwhich areanintegral partofthedevelopment programmes ofdeveloping
countries (Article 6:2); and
(iii) direct payments under production-limiting programmes (Article 6:5).WT/ACC/4
Page2
5. Thetypes ofmeasures inoperation thatmayfallintothe"green box" include those inthe
following categories, provided theymeetbasic andpolicy specific criteria andconditions assetout
inAnnex 2oftheAgreement onAgriculture:
General government services; research; pestanddisease control; training services; extension
andadvisory services; inspection services; marketing andpromotion services; infrastructural
services; public stockholding forfoodsecurity purposes; domestic foodaid;andother similar
types ofmeasure.
Direct payments toproducers; decoupled income support; income insurance andsafety-net
programmes;naturaldisasterrelief;producerandresourceretirementprogrammes;investment
aids; environmental programmes; regional assistance programmes; andother similar types
ofmeasure.
6. Such measures should belisted assetoutinSupporting Table DS:1 (attached). Inorder to
dothis,thefollowing information isrequired:
- adescription ofeachmeasure withreference tothecriteria intherelevant section of
Annex 2oftheAgreement onAgriculture;
- themonetary value andanyrevenue foregone involved witheachmeasure, normally
using theaverage ofthemost recent 3yearperiod;
- datasources oftheabove information.
7. Fordeveloping countries, thefollowing types ofmeasures mayfallintothecategory of
development measures which arealsoexempt from commitments tobespecified inschedules:
- investment subsidies which aregenerally available toagriculture;
- agricultural input subsidies, generally available tolow-income orresource-poor
producers;
- domestic support toproducers toencourage diversification fromgrowing illicit narcotic
crops.
8. Such measures should belisted assetoutonSupporting Table DS:2 (attached). Inorder to
dothis,thefollowing information isrequired:
- adescription ofeachmeasure withreference tothecriteria inArticle 6:2ofthe
Agreement onAgriculture;
- themonetary value andanyrevenue foregone involved witheachmeasure, normally
using theaverage ofthemost recent 3yearperiod;
- datasources oftheabove information.
9. Direct payments under production-limiting programmes maybeexempt from commitments
tobespecified inschedules, ifthey:
(i) arebased onfixed areaandyields; orWT/ACC/4
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(ii) aremade on85percentorlessofthebaselevelofproduction; or
(iii) arelivestock payments made onafixed number ofhead.
10. Such measures should belisted assetoutonSupporting Table DS:3 (attached). Inorder to
dothis,thefollowing information isrequired:
- adescription ofeachmeasure withreference tothecriteria inArticle 6:5ofthe
Agreement onAgriculture;
- themonetary value andanyrevenue foregone involved witheachmeasure, normally
using theaverage ofthemost recent 3yearperiod;
- datasources oftheabove information.
Other Domestic Support Measures
11. Asnoted above, anyother domestic support infavour ofagricultural producers issubject to
commitments tobespecified inschedules. Under theAgreement onAgriculture thecommitments
aretobemade onthebasis ofa"Total Aggregate Measurement ofSupport (Total AMS)" which is
anaggregation ofsupport measures provided onaproduct-specific basisforthose measures thataffect
onlyoneoralimited number ofproducts, andsupport measures provided onanon-product-specific
basisforother measures. TheTotal AMS, including theBaseTotal AMS andtheCurrent Total AMS,
isdefined inArticle 1(h)oftheAgreement onAgriculture. TheAMS isdefined inArticle 1(a)of
theAgreement onAgriculture.
Product-specific AMS measures
12. Aproduct-specific AMS should becalculated foranyagricultural product thathasanyform
ofadministered priceoperating, forexample, aspartofaprogramme tostabilize prices, trigger public
intervention, trigger direct payments (e.g.deficiency payments) orprovide minimum income levels,
etc.Inaddition, anyother typeofproduct-specific measure (such asproduct-specific fertilizer or
transport subsidies) should alsobeincluded intheproduct-specific AMS.
13. AnAMS should becalculated foreachbasic agricultural product, asclose aspracticable to
thepoint offirstsaleoftheproduct concerned, onwhich these measures operate, including support
atboththenational andthesub-national level. Thecalculation oftheproduct-specific AMS isdescribed
inAnnex 3oftheAgreement onAgriculture1.
14. Inorder tocalculate aproduct-specific AMS fortheseproducts, relevant tables fromSupporting
Tables DS:5 toDS:7 (attached) should beused.
15. Theinformation required inthese tables is,foreachproduct covered, thefollowing:
1Itmaynotbepracticable tocalculate theAMS however, if,forexample, anappropriate world
price fortheproduct inquestion cannot beestablished (c.f.paragraph 15below). Ifthisisthecase,
an"equivalent measurement ofsupport" mayneedtobeestablished assetoutinAnnex 4ofthe
Agreement onAgriculture (Supporting Table DS:8 attached).WT/ACC/4
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- foranydomestic support measure thataffects theproducer price (normally foreach
ofthelastthree years:
- theapplied administered price;
- anexternal reference price, e.g.anestimate oftheworld price suchasthe
c.i.f. price orf.o.b. price. Thisprice should beadjusted toasimilar stage
ofprocessing astheadministered price. (For deficiency payments, the
reference price should bethatusedfordetermining payments);
- theamount ofeligible production thatreceives theadministered price;
- thebudgetary costofprice-related non-exempt direct payments (where this
istheoption used under paragraph 10ofAnnex 3oftheAgreement on
Agriculture);
- thevalue ofanyassociated feesorlevies.
- forother measures (forthesame period):
- thebudgetaryexpendituresandanyrevenueforegoneinvolvedwiththemeasure
foreachproduct;
- thevalue ofanyassociated feesorlevies.
- datasources oftheabove information.
16. Foranymeasure which affects theproducer price, Supporting Table DS:5 should beusedunless
themeasure inquestion involves direct payments from thegovernment toproducers, inwhich case
Supporting Table DS:6 should beused. Theresults ofthecalculations inSupporting Tables DS:5
andDS:6 should, along withthebudgetary cost(orrevenue foregone) ofother measures, beentered
inSupporting Table DS:7 which allows allproduct-specific AMS tobetotalled. Formore details on
thecalculation methodology oftheproduct-specific AMS, seeAnnex 3oftheAgreement onAgriculture.
17. Note, however, thattheAgreement onAgriculture (Article 6:4)provides fora"deminimis"
levelof5percent(developed countries) or10percent(developing countries) ofthevalue ofproduction
oftheproduct concerned. Iftheinformation provided shows thatproduct-specific AMS represents
lessthanthe"deminimis"percentage,theproduct-specificAMSmaybeexemptedfromthecommitments
tobeincluded inschedules.
Thenon-product-specific AMS
18. Formeasures notincluded intheproduct-specific AMS, anon-product-specific AMS should
becalculated byaggregating thevalue ofanynon-exempt non-product-specific measures suchasinput
subsidies (e.g.fertilizer ortransport subsidies) andcredit andother financial input assistance.
19. Inorder tocalculate thisAMS asshown inSupporting Table DS:9 (attached), thefollowing
information isrequired, normally foreachofthethree most recent years:
- thebudgetary outlays andanyrevenue foregone involved witheachmeasure;
- thevalue ofanyassociated feesandlevies;WT/ACC/4
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- datesources oftheabove information.
20. Aswiththeproduct-specific AMS, iftheinformation provided shows thatthevalue ofthe
non-product-specific AMS doesnotexceed 5percent(developed) or10percent(developing) ofthe
totalvalue ofagricultural production, thedeminimis provision mayapply (Article 6:4).
Aggregating AMS commitments
21. Ascommitments tobeincluded inschedules under theAgreement onAgriculture aremade
ontheTotal AMS (theaggregate ofallindividual AMS andanyequivalent measurements ofsupport)
Supporting Table DS:4 (attached) canbeusedtogetanaggregate figure. Thisneedonlyinclude AMS
thatareovertherelevant deminimis level(ifany).
Export Subsidies
22. TheAgreement onAgriculture prohibits theuseofthose export subsidies listed inArticle 9:1
withtheexception ofthose thatapply toproducts explicitly specified inschedules (Article 3:3). Such
subsidies include (formore precision, seeArticle 9:1):
(a) direct subsidies contingent onexport performance;
(b) thesaleordisposal forexport ofnon-commercial stocks ataprice lower thanthatin
thedomestic market;
(c) payments onexports financed byvirtue ofgovernmental action including thosefinanced
from theproceeds ofalevyonproducers;
(d) subsidies toreduce thecostsofmarketing exports (other thanwidely available export
promotion andadvisory services) including handling, upgrading andother processing
costs, andthecosts ofinternational transport andfreight;
(e) internal transport charges onexport shipments onterms more favourable thanfor
domestic shipments; and,
(f) subsidiesonagriculturalproductscontingentontheirincorporationinexportedproducts.
23. Developing countries maynotberequired, during theimplementation period oftheAgreement
onAgriculture, totakecommitments onsubsidies incategories (d)and(e)listed inparagraph 19
(Article 9:4).
24. Acceding governments should provide information ontheamount ofsubsidy andthequantity
ofsubsidized product exported, ifany,foreachcategory ofexport subsidy. Inorder todothis,
Supporting Table ES:1(attached) should beusedwhich requires thefollowing data,normally foreach
ofthelastthree years:
- thebudgetary expenditures andanyrevenue foregone involved witheachmeasure for
eachproduct;
- thequantity ofproduct exported thatreceived suchsubsidies andadetailed description
oftheproduct including tariff linereferences atleastthesix-digit level;WT/ACC/4
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- datasources oftheabove information.
25. Forthepurposes ofSupporting Table ES:1, thefollowing levelofproduct aggregation should
beused:
(i) Wheat andwheat flour (ix) Skim milkpowder (xvii) Eggs
(ii) Coarse grains (x) Cheese (xviii) Wine
(iii) Rice (xi) Other milkproducts (xix) Fruit
(iv) Oilseeds (xii) Bovine Meat (xx) Vegetables
(v) Vegetable oils (xiii) Pigmeat (xxi) Tobacco
(vi) Oilcakes (xiv) Poultry meat (xxii) Cotton
(vii) Sugar (xv) Sheepmeat
(viii) Butter andbutter oil (xvi) Liveanimals
26. Inthecaseofsubsidies onagricultural products contingent ontheirincorporation inexported
products, aggregate budgetary outlays onlyshould belisted inSupporting Table ES:1.
27. Iftheacceding government doesnotmaintain, atpresent, anyexport subsidy listed inArticle 9:1
oftheAgreement onAgriculture, astatement tothiseffect should beincluded inlieuofSupporting
Table ES:1.WT/ACC/4
Page7Supporting Table DS:1 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Measures exempt fromthereduction commitment --"Green Box"
Measure type Name anddescription ofmeasure withreference tocriteria inAnnex 2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionDatasources
1 2 3 4
(a) "general services"
(b) "public stockholding forfoodsecurity purposes"
(c) "domestic foodaid"
(d) "decoupled income support"
(e) "income insurance andincome safety-net programmes"
(f) "payments forrelief from natural disasters"
(g) "structural adjustment assistance provided through producer retirement programmes"
(h) "structural adjustment assistance provided through resource retirement programmes"
(i) "structural adjustment assistance provided through investment aids"
(j) "environmental programmes"
(k) "regional assistance programmes"
(l) "other"WT/ACC/4
Page8Supporting Table DS:2 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Measures exempt fromthereduction commitment -Special andDifferential Treatment -"Development Programmes"
Measure type Name anddescription ofmeasure withreference tocriteria inArticle 6:2
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionDatasources
1 2 3 4
(a) "investment subsidies generally available toagriculture"
(b) "input subsidies generally available tolow-income orresource-poor producers"
(c) "support toencourage diversification from growing illicit narcotic crops"WT/ACC/4
Page9Supporting Table DS:3 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Measures exempt fromthereduction commitment -Direct Payments under Production-Limiting Programmes -"Exempt Direct Payments"
Measure type Name anddescription ofmeasure withreference tocriteria inArticle 6:5
oftheAgreement onAgricultureMonetary value of
measure inyearin
questionDatasources
1 2 3 4
(a) "payments based onfixed areaandyields"
(b) "payments based on85percentorlessofthebaselevel ofproduction"
(c) "livestock payments made onafixed number ofhead"WT/ACC/4
Page10Supporting Table DS:4 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Calculation oftheTotal Aggregate Measurement ofSupport
Description ofbasic products
(including non-product specific
AMS)Product-specific AMS (from
Supporting Tables DS:5 toDS:7
below)Product-specific measurements ofsupport
(from Supporting Table DS:8 below)Current Total AMS (aggregate)
1 2 3 4
Product A Total Product A
Product B Total Product B
Product C Total Product C
... ...
Non-product-specific AMS Total Non-product-specific AMS
(from Supporting Table DS:9 below)
_______________________
TOTAL: Current Total AMSWT/ACC/4
Page11Supporting Table DS:5 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Product-Specific Aggregate Measurements ofSupport: Market Price Support
Description of
basic productsCalendar /marketing
yearbeginning ...Measure type(s) Applied administered price External reference
priceEligible production Associated
fees/leviesTotal market
price supportData
sources
1 2 3 4 5 6 7 8
((4-5*6)-79WT/ACC/4
Page12Supporting Table DS:6 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Product-Specific Aggregate Measurements ofSupport: Non-Exempt Direct Payments
Description of
basic productCalendar /
marketing year
beginning ...Measure type(s) Applied
administered
priceExternal
reference priceEligible
productionTotal price-
related direct
paymentsOther non-
exempt direct
paymentsAssociated
fees/leviesTotal direct
paymentsData
sources
1 2 3 4 5 6 7
((4-5)*6)8 9 10
(7+8-9)11WT/ACC/4
Page13Supporting Table DS:7 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Product-Specific Aggregate Measurements ofSupport: Other Product-Specific Support andTotal Product-Specific AMS
Description of
basic productCalendar /
marketing year
beginning ...Measure type(s) Other product-
specific
budgetary
outlaysOther product
specific support
(include
calculation
details)Associated
fees/leviesTotal other
product-
specific
supportMarket price
support
(Supporting
Table DS:5)Non-exempt
direct
payments
(Supporting
Table DS:6)Total AMS Data
sources
1 2 3 4 5 6 7
(4+5-6)8 9 10
(7+8+9)11WT/ACC/4
Page14Supporting Table DS:8 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Product-Specific Equivalent Measurements ofSupport
Description
ofbasic
productsCalendar /
marketing
year
beginning ...Measure
type(s)Applied
administered
priceProduction
eligible to
receive the
applied
administered
priceMarket price
support
budgetary
outlaysEquivalent
measurement
ofsupport
(include
calculation
details)Non-exempt
direct
paymentsOther
product-
specific
supportAssociated
fees/leviesTotal
monetary
value of
equivalent
commitmentDatasources
1 2 3 4 5 6 7 8 9 10 11
(7+8+9-10)12WT/ACC/4
Page15Supporting Table DS:9 DOMESTIC SUPPORT:
REPORTING PERIOD: calendar year, marketing year, etc.
Non-Product-Specific AMS
Measure type(s) Calendar /marketing
yearbeginning ...Non-product-specific
budgetary outlaysOther non-product-
specific support (include
calculation details)Associated fees/levies Total non-product-specific
supportDatasources
1 2 3 4 5 6
(3+4-5)7WT/ACC/4
Page16Supporting Table ES:1 EXPORT SUBSIDIES:
REPORTING PERIOD: calendar year, marketing year, etc.
Export Subsidies: Outlay andQuantity
Description of
productsDirect export
subsidiesSales ofstocks Producer financed
subsidiesCostreduction
measuresInternal transport
subsidiesTotal product
specific export
subsidiesQuantity of
subsidized exportsDatasource
1 2 3 4 5 6 7 8 9