WTO – Farm Subsidies

  • Joint proposal submitted by India and China to the World Trade Organization.
  • Upcoming 11th Ministerial Conference (MC) of the WTO to be held in Buenos Aires in December 2017
In news:
What is the proposal?
  • Proposal called for the develelimination — by developed countries — of the most trade-distorting form of farm subsidies, as a prerequisite for consideration of other reforms in domestic support negotiations.
  • Contention: Developed countries, including the US, the EU and Canada, have been consistently providing trade-distorting subsidies to their farmers at levels much higher than the ceiling applicable to developing countries.
Aggregate Measurement of Support (AMS) and developing countries:
  • Aggregate Measurement of Support (AMS) or ‘Amber Box’ support: The most trade-distorting form of farm subsidies
  • Developed countries have more than 90% of global AMS entitlements amounting to nearly $160 billion.
  • Most of the developing countries, including India and China, do not have AMS entitlements.
  • China and India says: Elimination of AMS should be the starting point of reforms rather than seeking reduction of subsidies by developing countries.



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