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Trade Policy Reform Through Litigation

  • Joseph A. McMahon
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    summary The uncertain nature of the Doha negotiations gives rise to the possibility that Members may seek to achieve reforms through litigation rather than negotiations. This article examines two areas of the Common Agricultural Policy that may be the subject of litigation. The first of these areas is the Single Farm Payment (SFP). It is suggested that the SFP may not be fully consistent with the provisions of Annex 2 of the Agreement on Agriculture (the Green Box). Although the Appellate Body decision in US - Upland Cotton addressed some of the questions on the interpretation of paragraph 6 of Annex 2, it chose not to address the fundamental requirement for all Green Box policies contained in the introductory paragraph. The second area is export subsidies for processed agricultural products and here the issue is the continuing relevance of Article XVI: 4 of the GATT Whilst a dispute may be the best way forward to determine this particular issue, it is not the best way forward with respect to the Green Box. As this Box is likely to become the primary repository of agricultural support measures, negotiation not litigation offers the best way forward. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2007.

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    Article provided by The Agricultural Economics Society in its journal EuroChoices.

    Volume (Year): 6 (2007)
    Issue (Month): 2 (08)
    Pages: 42-47

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    Handle: RePEc:bla:eurcho:v:6:y:2007:i:2:p:42-47
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