WTO AGREEMENT ON

AGRICULTURE: LEGAL AND

CONCEPTUAL ISSUES
A PRESENTATION
BY O.P. HISARIA
Context and Need of
a separate Agreement
Agriculture outside the purview of GATT,
1947.
Trade in agriculture important for a large
number of countries.
Prevalence of distortions.
Unwillingness of Members to integrate the
agriculture trade completely with other goods
trade.

Product Coverage under AoA
HS Chapters 1 to 24 less fish and fish
products.
Mannitol, sorbitol, essential oils, albuminoidal
substances, modified starches, glues and
finishing agents.
Hides and skins, raw furskins.
Raw silk, silk waste, wool and animal hair.
Raw cotton, waste and cotton carded or
combed, raw flax and raw hemp.
Areas of commitment: Market Access
Tariffication.
Binding of tariffs.
Tariff reduction.
Minimum market access commitments.
TRQ
Special Safeguard Mechanism (SSG).

Tariff Rate Quota (TRQ)
Applied by 43 Members on 1425 products.
The methods of quota allocation:
1. First-come, first serve.
2. Licences on demand.
3. Auctioning.
4. Historical importers.
5. Import by STEs.
6. Import by producers group/association.
7. Applied tariff.
Special Safeguard Mechanism (SSG)
Only for products in tariffication.
Cannot apply to in-quota imports.
Two types of triggers: volume based and
price based.
Application based on notified levels of price
and volume triggers.
In volume trigger, duty is one-third of applied
rate.
In price trigger, duty depends on price.
Areas of Commitment: Domestic
Support
Amber Box
Exempt support under Article 6.2.
Exempt support under De-minimis.
Exempt support under Article 6.5 (Blue Box).
Subsidies under Annex.2 (Green Box)

Green Box: The types
General services including research, pest and
disease control, training, extension and advisory,
inspection, marketing and promotion, infrastructural
services.
Public stock holding for food security.
Domestic food aid.
Direct payments including decoupled income
support, income insurance and income safety net,
relief from natural disasters, structural adjustment
assistance, environmental programmes and regional
assistance programmes.
Areas of commitment: Export subsidy
Reduction commitment.
Enumeration of prohibited subsidies.
S&D for developing countries.
Subsidies prohibited under the
Agreement
Direct export subsidies contingent on export
performance.
Sale of non-commercial stocks of agricultural
products for export at prices lower than comparable
domestic prices.
Cost reduction measures such as subsidies to
reduce the cost of marketing.
Internal transport subsidies applying to exports only.
Subsidies on incorporated products.
Government levy leading to promotion of export.
Special and Differential Treatment for
Developing Countries
Exemption under Article 6.2.
Higher level of De-minimis (Article 6.4).
Continuation of certain types of export subsidies
(Article 9.4).
Special provision on use of export prohibition or
restriction on food stuff (Article 12.2).
Lower levels of reduction commitment on tariff, trade
distorting support and export subsidies.
Special and Differential Treatment for
Developing Countries
No commitments on LDCs.
Special measures for net food importing
developing countries.
Future negotiations to take care of S&D for
developing countries.
Special provision concerning public stock
holding for food security and domestic aid.
Special treatment under Annex.5.
Other issues
Non-trade concerns.
Peace Clause.
Notification Requirements
Case Law
Peace Clause
Green Box No CVD action, no nullification and
impairment.
Amber and Blue Box No serious prejudice action
possible, no nullification and impairment,
determination of injury required for CVD.
Export subsidies No serious prejudice action
possible, determination of injury required for CVD.
General Safeguards, BoP provisions, anti-dumping
possible in some cases.
Non-Trade Concerns
Food and livelihood security.
Environment.
Multi-functionality.
Food safety.
Animal welfare.
Dispute
Settlement Action
European Communities measures affecting importation of
certain poultry products.
European Communities regime for importation, distribution
and sale of banana.
Korea Beef.
USA Tax treatment for Foreign Sales Corporation
Canada Import of milk and export of dairy products.
Chile Price Band System
USA Subsidy for upland cotton.
EC Export subsidies for sugar.
Notification Requirement
Notifications for volume and price trigger under the
SSG, annual notification on use of measures.
Summary of total Domestic Support.
Export subsidy budgetary outlay and quantity
reduction commitment, notification of total exports,
statement of non-use of export subsidy.
Annual notification setting out the quantity of food
aid provided to LDCs and NFIDCs

Thank you