#TradeNerdsCorner
1. India has notified WTO members that it exceeded its trade-distorting subsidy entitlement for rice in marketing year 2019/20.
docs.wto.org/dol2fe/Pages/S…
1/4
1. India has notified WTO members that it exceeded its trade-distorting subsidy entitlement for rice in marketing year 2019/20.
docs.wto.org/dol2fe/Pages/S…
1/4
Developing countries’ limits for trade-distorting farm support = 10% of value of production.
India’s $6.3bn for rice exceeds the $4.6bn limit (10% of $46bn in footnote 2)
This was for buying into food security stocks, so it escapes legal challenge
docs.wto.org/dol2fe/Pages/S…
2/4
India’s $6.3bn for rice exceeds the $4.6bn limit (10% of $46bn in footnote 2)
This was for buying into food security stocks, so it escapes legal challenge
docs.wto.org/dol2fe/Pages/S…
2/4
#TradeNerdsCorner
2. Did Trump’s subsidies for American farmers exceed US limits in the WTO?
No, says the latest US notification for 2018/19. Total trade-distorting support was $13bn. The limit is $19bn.
Why?
docs.wto.org/dol2fe/Pages/S…
3/4
2. Did Trump’s subsidies for American farmers exceed US limits in the WTO?
No, says the latest US notification for 2018/19. Total trade-distorting support was $13bn. The limit is $19bn.
Why?
docs.wto.org/dol2fe/Pages/S…
3/4
Dig deeper. "Green Box" (“criteria in Annex 2”), supposedly non-distorting and therefore allowed without limit.
“Domestic food aid”—a whopping $95bn = 84% of the $113 Green Box total = 7.3 times the AMS total
Expect exchanges in the Ag Committee
docs.wto.org/dol2fe/Pages/S…
4/4
“Domestic food aid”—a whopping $95bn = 84% of the $113 Green Box total = 7.3 times the AMS total
Expect exchanges in the Ag Committee
docs.wto.org/dol2fe/Pages/S…
4/4
Correction. I think that should be 6 times the AMS total. Never mind. It’s $95bn
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