Classifying farm support programmes

in the WTO

The WTO uses a box system to classify subsidies according to the extent to which they distort trade. AMS is the
measure of agricultural support for any individual WTO member for which they are asked to propose
reductions as part of the Doha Round. It is found by adding Blue Box and Amber Box payments. It
excludes de minimis payments.

All WTO members are Amber box spending The Blue box applies The Green box includes
permitted to provide covers all support only in agriculture. It all subsidies that do not
minimal agricultural measures that distort refers to supports that distort trade, or cause at
supports, totalling no trade: all WTO would normally be most minimal distortion.
more than 5% of members are classed as Amber but They must be government
agricultural production committed to which are explicitly funded and most not
for developed countries reducing them. limited or in some way involve price supports. In
and 10% for developing Examples include US tailored to reduce trade agriculture, although
countries. These counter-cyclical distortion. The July green box supports can
allowances are not payments to farmers. Framework involve direct payments
counted towards their Amber box payments Agreement proposes for farmers, they are
AMS. As part of the are part of a state's that Blue Box payments “decoupled” from
Doha Round, the EU is overall AMS. be limited to 5% of a production – they do not
proposing to reduce state’s agricultural pay for the
this allowance by at production. The EU production of produce or
least 65%. has also called for support price levels for
greater clarity on how goods farmed. This is the
Blue Box subsidies are central element of the
defined. EU’s current CAP reform
which has moved 90% of
EU farm support into the
green box. Green box
programs can include
regional development and
environmental protection
programs – the EU is a
strong defender of these
forms of support for rural
communities. There is no
limit to green box
spending.