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WTO Constraints on U.S. and EU Domestic Support in Agriculture: The October 2005 Proposals

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  • Brink, Lars

Abstract

The USA, the EU and the G-20 submitted proposals on domestic support in the WTO agriculture negotiations in October 2005. This research projects future support, allowances and constraints for the USA and the EU under these proposals. Accounting properly for the de minimis rules generates a "maximum usable components" constraint, which, even when added to the cap on blue, can be more constraining than the new overall commitment. The overall commitment under the U.S. proposal constrains neither the USA nor the EU in the future. However, the overall commitment under the EU and G 20 proposals constrains both the USA and the EU to provide less future overall support than the sum of the cap on blue and maximum usable components. In general the three proposals are weak in constraining future distorting support in the USA and the EU.

Suggested Citation

  • Brink, Lars, 2006. "WTO Constraints on U.S. and EU Domestic Support in Agriculture: The October 2005 Proposals," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(01), pages 1-20.
    • Handle: RePEc:ags:ecjilt:23822
    DOI: 10.22004/ag.econ.23822
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    References listed on IDEAS

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    1. Daniel A. Sumner, 2003. "Implications of the US Farm Bill of 2002 for agricultural trade and trade negotiations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 99-122, March.
    2. Bruce A. Babcock & Chad E. Hart, 2005. "How Much "Safety" Is Available under the U.S. Proposal to the WTO?," Center for Agricultural and Rural Development (CARD) Publications 05-bp48, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Westhoff, Patrick C. & Brown, Scott & Hart, Chad E., 2006. "When Point Estimates Miss the Point: Stochastic Modeling of WTO Restrictions," Staff General Research Papers Archive 31341, Iowa State University, Department of Economics.
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    Cited by:

    1. Kerr, William A., 2007. "Too Smart for Their Own Good! Complexity, Capacity and Credence in Trade Negotiations," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(2), pages 1-14.
    2. Kerr, William A., 2015. "Food Security, Strategic Stockholding and Trade-Distorting Subsidies: Is There a Permanent Solution?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 16(01), pages 1-13.
    3. Lars Brink, 2009. "WTO Constraints on Domestic Support in Agriculture: Past and Future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 1-21, March.
    4. Martin, William J. & Anderson, Kym, 2008. "Agricultural trade reform under the Doha Agenda: some key issues," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(01), pages 1-16.
    5. Kerr, William A., 2009. "Recession, International Trade and the Fallacies of Composition," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(01), pages 1-11.
    6. Cardwell, Ryan T., 2008. "Food Aid and the WTO: Can New Rules Be Effective?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(01), pages 1-20.
    7. Brockmeier, Martina & Pelikan, Janine, 2008. "Agricultural market access: A moving target in the WTO negotiations?," Food Policy, Elsevier, vol. 33(3), pages 250-259, June.

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