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This chapter outlines the book’s evaluation of experience and prospects for future guidance through the WTO toward socially desirable domestic support policies and constraints on those that distort agricultural trade. The analysis addresses seven areas, including description of the rules of the Agreement on Agriculture applying to developed and developing members, the evolution of support (China and India recently among large-support members) and across policies (shift toward exempted measures with minimal distorting effects), and the difficult interface between economic and legal analysis (measurement of market price support (MPS) and exemption of some distorting support). Transparency and ongoing negotiations are apprised and key disputes about domestic support are summarized, including through members’ obligations in the Agreement on Subsidies and Countervailing Measures. Policy space to address 21st century non-trade priorities, prominently sustainability and climate change mitigation, is assessed. The book is designed to build a foundation for meaningful and feasible future reforms.
Review in the Committee on Agriculture of implementation of domestic support commitments is assessed in this chapter, drawing on the WTO’s Agricultural Information Management System (Ag-IMS). A total of 4,051 domestic support questions were posed toward 108 members between 1995 and mid-2021, particularly about support claimed as green box exempt, calculation of AMS support, and transparency. There are substantial delays in the submission of notifications and questions in the review process often do not elicit informative answers. Nonetheless, the Committee exchanges increase members’ understanding of others’ policies and interpretations of the Agreement. Measuring MPS is complex, can have a decisive bearing on assessment of a member’s compliance with its support obligations, and often is not resolved through Committee discussion, as demonstrated by the notifications and counter-notifications submitted concerning India’s AMS support for wheat and other products in later years.
The WTO Agreement on Agriculture subjects different groups of developed and developing countries to different limits on domestic support and allows various exemptions from these limits. Offering a comprehensive assessment of the Agreement's rules and implementation, this book develops guidance toward socially desirable support policies. Although dispute settlement has clarified interpretation of the Agriculture and SCM Agreements, gaps remain between the legal disciplines and the economic effects of support. Considering the Agriculture Agreement also in the context of today's priorities of sustainability and climate change mitigation, Lars Brink and David Orden build a strategy that aligns the rules and members' commitments with the economic impacts of agricultural support measures. While providing in-depth analysis of the existing rules, their shortcomings and the limited scope of ongoing negotiations, the authors take a long-term view, where policies directed toward evolving priorities in agriculture are compatible with strengthened rules that reduce trade and production distortions.
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