{ "id": "RS20840", "type": "CRS Report", "typeId": "REPORTS", "number": "RS20840", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 440584, "date": "2015-04-20", "retrieved": "2016-04-06T19:12:09.112693", "title": "Agriculture in the WTO: Rules and Limits on Domestic Support", "summary": "Omnibus U.S. farm legislation\u2014referred to as the farm bill\u2014is renewed every five or six years. Farm income and commodity price support programs have been a part of U.S. farm bills since the 1930s. Each successive farm bill usually involves some modification or replacement of existing farm programs. A key question likely to be asked of every new farm proposal or program is how it will affect U.S. commitments under the World Trade Organization\u2019s (WTO\u2019s) Agreement on Agriculture (AoA) and its Agreement on Subsidies and Countervailing Measures (SCM). \nThe United States currently is committed, under the AoA, to spend no more than $19.1 billion annually on those domestic farm support programs most likely to distort trade\u2014referred to as amber box programs and measured by the aggregate measure of support (AMS). The AoA spells out the rules for countries to determine whether their policies\u2014for any given year\u2014are potentially trade-distorting, and how to calculate the costs. \nAn additional consideration for WTO compliance\u2014the SCM rules governing adverse market effects resulting from a farm program\u2014comes into play when a domestic farm policy effect spills over into international markets. The SCM details rules for determining when a subsidy is \u201cprohibited\u201d (e.g., certain export- and import-substitution subsidies) and when it is \u201cactionable\u201d (e.g., certain domestic support policies that incentivize overproduction and result in significant market distortion\u2014whether as lower market prices or altered trade patterns). Because the United States is a major producer, consumer, exporter, and/or importer of most major agricultural commodities, the SCM is relevant for most major U.S. agricultural products. As a result, if a particular U.S. farm program is deemed to result in market distortion that adversely affects other WTO members\u2014even if it is within agreed-upon AoA spending limits\u2014then that program may be subject to challenge under the WTO dispute settlement procedures.\nDesigning farm programs that comply with WTO rules can avoid potential trade disputes. Based on AoA and SCM rules, U.S. domestic agricultural support can be evaluated against five specific successive questions to determine how it is classified under the WTO rules, whether total support is within WTO limits, and whether a specific program fully complies with WTO rules. \nCan a program\u2019s support outlays be excluded from the AMS total by being placed in the green box of minimally distorting programs?\nCan a program\u2019s support outlays be excluded from the AMS total by being placed in the blue box of production-limiting programs?\nIf amber, will support be less than 5% of production value (either product-specific or non-product-specific) thus qualifying for the de minimis exclusion?\nDoes the total, remaining annual AMS exceed the $19.1 billion amber box limit?\nEven if a program is found to be fully compliant with the AoA rules and limits, does its support result in price or trade distortion in international markets? If so, then it may be subject to challenge under SCM rules.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RS20840", "sha1": "247e60920868f4c62e9ca3e3dd930ea7fbca980b", "filename": "files/20150420_RS20840_247e60920868f4c62e9ca3e3dd930ea7fbca980b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RS20840", "sha1": "cd14708c704bba87c9f8713cb4361748969c61da", "filename": "files/20150420_RS20840_cd14708c704bba87c9f8713cb4361748969c61da.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 217, "name": "Agricultural Trade" }, { "source": "IBCList", "id": 365, "name": "U.S. and International Trade Agreements" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462631/", "id": "RS20840_2014Sep18", "date": "2014-09-18", "retrieved": "2014-12-05T09:57:41", "title": "Agriculture in the WTO: Rules and Limits on Domestic Support", "summary": "This report provides a brief overview of the World Trade Organization (WTO) commitments most relevant for U.S. domestic farm policy. The report discusses a key question that policy makers ask of virtually every new farm proposal is, how will it affect U.S. commitments under the WTO? The answer depends not only on cost, but also on the proposal's design and objectives, as described below.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140918_RS20840_4d70eb4e55b8fe8b6e670cfcbf443ddb5d32d99d.pdf" }, { "format": "HTML", "filename": "files/20140918_RS20840_4d70eb4e55b8fe8b6e670cfcbf443ddb5d32d99d.html" } ], "topics": [ { "source": "LIV", "id": "Agriculture policies", "name": "Agriculture policies" }, { "source": "LIV", "id": "Agriculture in foreign trade", "name": "Agriculture in foreign trade" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "Trade adjustment assistance", "name": "Trade adjustment assistance" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462865/", "id": "RS20840_2014Jan27", "date": "2014-01-27", "retrieved": "2014-12-05T09:57:41", "title": "Agriculture in the WTO: Limits on Domestic Support", "summary": "This report provides a brief overview of the World Trade Organization's (WTO) commitments most relevant for U.S. domestic farm policy.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140127_RS20840_12da6351aa30bd5710a1c5d768f5c1ef5d3a3026.pdf" }, { "format": "HTML", "filename": "files/20140127_RS20840_12da6351aa30bd5710a1c5d768f5c1ef5d3a3026.html" } ], "topics": [ { "source": "LIV", "id": "Agriculture", "name": "Agriculture" }, { "source": "LIV", "id": "Trade agreements", "name": "Trade agreements" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Agricultural price supports", "name": "Agricultural price supports" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "International affairs", "name": "International affairs" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc822427/", "id": "RS20840_2012Dec04", "date": "2012-12-04", "retrieved": "2016-03-19T13:57:26", "title": "Agriculture in the WTO: Limits on Domestic Support", "summary": "A potential major constraint affecting U.S. agricultural policy choices is the set of commitments made as part of membership in the World Trade Organization (WTO), with its various agreements governing agriculture and trade, including dispute settlement. This report provides a brief overview of the WTO commitments most relevant for U.S. domestic farm policy. A key question that policymakers ask of virtually every new farm proposal is, how will it affect U.S. commitments under the WTO?", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20121204_RS20840_ec54b42219eeeb46ed2734320d8f1a54a475df22.pdf" }, { "format": "HTML", "filename": "files/20121204_RS20840_ec54b42219eeeb46ed2734320d8f1a54a475df22.html" } ], "topics": [ { "source": "LIV", "id": "Agriculture policies", "name": "Agriculture policies" }, { "source": "LIV", "id": "Agriculture in foreign trade", "name": "Agriculture in foreign trade" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "Trade adjustment assistance", "name": "Trade adjustment assistance" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc808479/", "id": "RS20840_2010Jun16", "date": "2010-06-16", "retrieved": "2016-03-19T13:57:26", "title": "Agriculture in the WTO: Limits on Domestic Support", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20100616_RS20840_9d5141211b92a9b777fdd3150d0a26d8e9dc0015.pdf" }, { "format": "HTML", "filename": "files/20100616_RS20840_9d5141211b92a9b777fdd3150d0a26d8e9dc0015.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs6947/", "id": "RS20840 2005-05-10", "date": "2005-05-10", "retrieved": "2005-08-16T10:21:42", "title": "Agriculture in the WTO: Limits on Domestic Support", "summary": "Most provisions of the current \u201cfarm bill,\u201d the Farm Security and Rural Investment Act (FSRIA) of 2002 (P.L. 107-171), do not expire until 2007. However, hearings on a 2007 farm bill could begin in late 2005. At that time, Congress will begin to examine farm income and commodity price support proposals that might succeed the programs\r\ndue to expire in 2007. A key question likely to be asked of virtually every new proposal is how it will affect U.S. commitments under the WTO\u2019s Agreement on Agriculture (AA), which commits the United States to spend no more than $19.1 billion annually on domestic farm support programs most likely to distort trade. The AA spells out the rules for countries to determine whether their policies are potentially trade distorting, and to calculate the costs. This report describes the steps for making these determinations.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20050510_RS20840_ed7d5d0bba6d66515123a783ad1e69a67fdb076e.pdf" }, { "format": "HTML", "filename": "files/20050510_RS20840_ed7d5d0bba6d66515123a783ad1e69a67fdb076e.html" } ], "topics": [ { "source": "LIV", "id": "Agriculture", "name": "Agriculture" }, { "source": "LIV", "id": "Trade agreements", "name": "Trade agreements" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Agricultural price supports", "name": "Agricultural price supports" }, { "source": "LIV", "id": "Trade", "name": "Trade" }, { "source": "LIV", "id": "International affairs", "name": "International affairs" }, { "source": "LIV", "id": "Budgets", "name": "Budgets" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metacrs1389/", "id": "RS20840_2001Mar13", "date": "2001-03-13", "retrieved": "2005-06-10T18:24:47", "title": "Farm Program Spending: What's Permitted Under the Uruguay Round Agreements", "summary": "This report discusses farm income and commodity price support proposals that\r\nmight succeed the programs due to expire in 2002. A key question being asked of\r\nvirtually every new proposal is how it will affect U.S. commitments under the 1994\r\nUruguay Round Agreement on Agriculture (URAA), which commitsthe United States\r\nto spend no more than $19.1 billion annually on domestic farm supports most likely to\r\ndistort trade. The URAA spells out the rules for countries to determine whether their\r\npolicies are potentially trade distorting, and to calculate the costs.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20010313_RS20840_5572a62e1878d0a7177074be2c29fcc6d4533d29.pdf" }, { "format": "HTML", "filename": "files/20010313_RS20840_5572a62e1878d0a7177074be2c29fcc6d4533d29.html" } ], "topics": [ { "source": "LIV", "id": "Agriculture", "name": "Agriculture" }, { "source": "LIV", "id": "Government spending", "name": "Government spending" }, { "source": "LIV", "id": "Agricultural price supports", "name": "Agricultural price supports" }, { "source": "LIV", "id": "Budgets", "name": "Budgets" } ] } ], "topics": [] }