AGREEMENT ON AGRICULTURE: DOMESTIC SUPPORT MEASURESJuly 1st, 2005
FiledJuly 1st, 2005The General Agreement on Tariffs and Trade (GATT) had traditionally fo- cused on trade measures and not so much on purely domestic production policies, except where they had impact on trade (e.g. subsidy issues in GATT 1994’s Article XVI). For the first time the Uruguay Round (UR) Agreement on Agriculture (AoA) formally recognized a close link between domestic and trade policies. The focus of the domestic support provisions of the AoA is on limiting subsidies on those areas that distort trade as these concern trading partners. At the same time it leaves am- ple scope for designing domestic agricultural policies that are not trade distorting. Given the importance of agricultural development for most developing countries and the role support and subsidies play in agricultural development, disciplines on domestic support measures are of obvious importance for them.