Common use of Domestic Support Clause in Contracts

Domestic Support. 1. The Parties recognize that domestic support measures may be of crucial importance to their agricultural sectors, but may also affect distort trade and production. they recognise that may arise commitments on reduction of domestic agricultural support for multilateral negotiations within the framework of the WTO. thus if a Party decides to support its agricultural producers, shall endeavour to move towards domestic support policy that: a) Have minimal or no trade distorting effects on trade or production; or b) Are exempt from any domestic support reduction commitments that may be negotiated under the WTO. 2. The Parties also recognise that either party may modify its domestic support measures, including those that may be subject to reduction commitments, in accordance with its rights and obligations under the WTO Agreement.

Domestic Support. 1. The Parties recognize that that, while domestic support measures may can be of crucial importance to their agricultural sectors, but such measures may also affect distort have trade distorting and productionproduction effects. they recognise They also recognize that domestic support reduction commitments may arise commitments on reduction of domestic result from agricultural support for multilateral negotiations within trade in the framework of the WTOWTO framework. thus if Accordingly, where a Party decides to support supports its agricultural producers, shall that Party should endeavour to move towards work toward domestic support policy measures that: (a) Have minimal or no trade distorting effects on trade or productionproduction effects; or (b) Are are exempt from any applicable domestic support reduction commitments that may be negotiated under the WTO. 2. The Parties also recognise further recognize that either party a Party may modify change its domestic support measures, including those that may be subject to reduction commitments, in accordance with pursuant to its rights and obligations under the WTO Agreement.