외교부

 

AGREEMENT ON AGRICULTURE

Members,

Having decided to establish a basis for initiating a process of reform of trade in

agriculture in line with the objectives of the negotiations as set out in the Punta del Este

Declaration;

Recalling that their long-term objective as agreed at the Mid-Term Review of the

Uruguay Round "is to establish a fair and market-oriented agricultural trading system

and that a reform process should be initiated through the negotiation of commitments on

support and protection and through the establishment of strengthened and more

operationally effective GATT rules and disciplines";

Recalling further that "the above-mentioned long-term objective is to provide for

substantial progressive reductions in agricultural support and protection sustained over

an agreed period of time, resulting in correcting and preventing restrictions and distortions

in world agricultural markets";

Committed to achieving specific binding commitments in each of the following areas:

market access; domestic support; export competition; and to reaching an agreement on

sanitary and phytosanitary issues;

Having agreed that in implementing their commitments on market access, developed

country Members would take fully into account the particular needs and conditions of

developing country Members by providing for a greater improvement of opportunities and

terms of access for agricultural products of particular interest to these Members, including

the fullest liberalization of trade in tropical agricultural products as agreed at the Mid-Term

Review, and for products of particular importance to the diversification of production from

the growing of illicit narcotic crops;

Noting that commitments under the reform programme should be made in an

equitable way among all Members, having regard to non-trade concerns, including food

security and the need to protect the environment; having regard to the agreement that

special and differential treatment for developing countries is an integral element of the

negotiations, and taking into account the possible negative effects of the implementation

of the reform programme on least-developed and net food-importing developing countries;

Hereby agree as follows:

Part I

Article 1

Definition of Terms

In this Agreement, unless the context otherwise requires:

(a) "Aggregate Measurement of Support" and "AMS" mean the annual level of

support, expressed in monetary terms, provided for an agricultural product

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in favour of the producers of the basic agricultural product or non-productspecific

support provided in favour of agricultural producers in general, other

than support provided under programmes that qualify as exempt from

reduction under Annex 2 to this Agreement, which is:

(i) with respect to support provided during the base period, specified in

the relevant tables of supporting material incorporated by reference

in Part IV of a Member's Schedule; and

(ii) with respect to support provided during any year of the

implementation period and thereafter, calculated in accordance with

the provisions of Annex 3 of this Agreement and taking into account

the constituent data and methodology used in the tables of supporting

material incorporated by reference in Part IV of the Member's

Schedule;

(b) "basic agricultural product" in relation to domestic support commitments

is defined as the product as close as practicable to the point of first sale as

specified in a Member's Schedule and in the related supporting material;

(c) "budgetary outlays" or "outlays" includes revenue foregone;

(d) "Equivalent Measurement of Support" means the annual level of support,

expressed in monetary terms, provided to producers of a basic agricultural

product through the application of one or more measures, the calculation

of which in accordance with the AMS methodology is impracticable, other

than support provided under programmes that qualify as exempt from

reduction under Annex 2 to this Agreement, and which is:

(i) with respect to support provided during the base period, specified in

the relevant tables of supporting material incorporated by reference

in Part IV of a Member's Schedule; and

(ii) with respect to support provided during any year of the

implementation period and thereafter, calculated in accordance with

the provisions of Annex 4 of this Agreement and taking into account

the constituent data and methodology used in the tables of supporting

material incorporated by reference in Part IV of the Member's

Schedule;

(e) "export subsidies" refers to subsidies contingent upon export performance,

including the export subsidies listed in Article 9 of this Agreement;

(f) "implementation period" means the six-year period commencing in the year

1995, except that, for the purposes of Article 13, it means the nine-year period

commencing in 1995;

(g) "market access concessions" includes all market access commitments

undertaken pursuant to this Agreement;

(h) "Total Aggregate Measurement of Support" and "Total AMS" mean the sum

of all domestic support provided in favour of agricultural producers, calculated

as the sum of all aggregate measurements of support for basic agricultural

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products, all non-product-specific aggregate measurements of support and

all equivalent measurements of support for agricultural products, and which

is:

(i) with respect to support provided during the base period (i.e. the "Base

Total AMS") and the maximum support permitted to be provided

during any year of the implementation period or thereafter (i.e. the

"Annual and Final Bound Commitment Levels"), as specified in Part

IV of a Member's Schedule; and

(ii) with respect to the level of support actually provided during any year

of the implementation period and thereafter (i.e. the "Current Total

AMS"), calculated in accordance with the provisions of this Agreement,

including Article 6, and with the constituent data and methodology

used in the tables of supporting material incorporated by reference

in Part IV of the Member's Schedule;

(i) "year" in paragraph (f) above and in relation to the specific commitments

of a Member refers to the calendar, financial or marketing year specified in

the Schedule relating to that Member.

Article 2

Product Coverage

This Agreement applies to the products listed in Annex 1 to this Agreement,

hereinafter referred to as agricultural products.

Part II

Article 3

Incorporation of Concessions and Commitments

1. The domestic support and export subsidy commitments in Part IV of each Member's

Schedule constitute commitments limiting subsidization and are hereby made an integral

part of GATT 1994.

2. Subject to the provisions of Article 6, a Member shall not provide support in favour

of domestic producers in excess of the commitment levels specified in Section I of Part IV

of its Schedule.

3. Subject to the provisions of paragraphs 2(b) and 4 of Article 9, a Member shall not

provide export subsidies listed in paragraph 1 of Article 9 in respect of the agricultural

products or groups of products specified in Section II of Part IV of its Schedule in excess

of the budgetary outlay and quantity commitment levels specified therein and shall not

provide such subsidies in respect of any agricultural product not specified in that Section

of its Schedule.

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Part III

Article 4

Market Access

1. Market access concessions contained in Schedules relate to bindings and reductions

of tariffs, and to other market access commitments as specified therein.

2. Members shall not maintain, resort to, or revert to any measures of the kind which

have been required to be converted into ordinary customs duties1, except as otherwise

provided for in Article 5 and Annex 5.

Article 5

Special Safeguard Provisions

1. Notwithstanding the provisions of paragraph 1(b) of Article II of GATT 1994, any

Member may take recourse to the provisions of paragraphs 4 and 5 below in connection

with the importation of an agricultural product, in respect of which measures referred to

in paragraph 2 of Article 4 of this Agreement have been converted into an ordinary customs

duty and which is designated in its Schedule with the symbol "SSG" as being the subject

of a concession in respect of which the provisions of this Article may be invoked, if:

(a) the volume of imports of that product entering the customs territory of the

Member granting the concession during any year exceeds a trigger level which

relates to the existing market access opportunity as set out in paragraph 4;

or, but not concurrently:

(b) the price at which imports of that product may enter the customs territory

of the Member granting the concession, as determined on the basis of the

c.i.f. import price of the shipment concerned expressed in terms of its domestic

currency, falls below a trigger price equal to the average 1986 to 1988

reference price2 for the product concerned.

2. Imports under current and minimum access commitments established as part of

a concession referred to in paragraph 1 above shall be counted for the purpose of determining

the volume of imports required for invoking the provisions of subparagraph 1(a) and

paragraph 4, but imports under such commitments shall not be affected by any additional

duty imposed under either subparagraph 1(a) and paragraph 4 or subparagraph 1(b) and

paragraph 5 below.

1These measures include quantitative import restrictions, variable import levies, minimum import prices,

discretionary import licensing, non-tariff measures maintained through state-trading enterprises, voluntary

export restraints, and similar border measures other than ordinary customs duties, whether or not the measures

are maintained under country-specific derogations from the provisions of GATT 1947, but not measures

maintained under balance-of-payments provisions or under other general, non-agriculture-specific provisions

of GATT 1994 or of the other Multilateral Trade Agreements in Annex 1A to the WTO Agreement.

2The reference price used to invoke the provisions of this subparagraph shall, in general, be the average

c.i.f. unit value of the product concerned, or otherwise shall be an appropriate price in terms of the quality

of the product and its stage of processing. It shall, following its initial use, be publicly specified and available

to the extent necessary to allow other Members to assess the additional duty that may be levied.

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3. Any supplies of the product in question which were en route on the basis of a contract

settled before the additional duty is imposed under subparagraph 1(a) and paragraph 4

shall be exempted from any such additional duty, provided that they may be counted in

the volume of imports of the product in question during the following year for the purposes

of triggering the provisions of subparagraph 1(a) in that year.

4. Any additional duty imposed under subparagraph 1(a) shall only be maintained

until the end of the year in which it has been imposed, and may only be levied at a level

which shall not exceed one third of the level of the ordinary customs duty in effect in the

year in which the action is taken. The trigger level shall be set according to the following

schedule based on market access opportunities defined as imports as a percentage of the

corresponding domestic consumption3 during the three preceding years for which data are

available:

(a) where such market access opportunities for a product are less than or equal

to 10 per cent, the base trigger level shall equal 125 per cent;

(b) where such market access opportunities for a product are greater than 10 per

cent but less than or equal to 30 per cent, the base trigger level shall equal

110 per cent;

(c) where such market access opportunities for a product are greater than 30

per cent, the base trigger level shall equal 105 per cent.

In all cases the additional duty may be imposed in any year where the absolute

volume of imports of the product concerned entering the customs territory of the Member

granting the concession exceeds the sum of (x) the base trigger level set out above multiplied

by the average quantity of imports during the three preceding years for which data are

available and (y) the absolute volume change in domestic consumption of the product

concerned in the most recent year for which data are available compared to the preceding

year, provided that the trigger level shall not be less than 105 per cent of the average

quantity of imports in (x) above.

5. The additional duty imposed under subparagraph 1(b) shall be set according to the

following schedule:

(a) if the difference between the c.i.f. import price of the shipment expressed

in terms of the domestic currency (hereinafter referred to as the "import

price") and the trigger price as defined under that subparagraph is less than

or equal to 10 per cent of the trigger price, no additional duty shall be

imposed;

(b) if the difference between the import price and the trigger price (hereinafter

referred to as the "difference") is greater than 10 per cent but less than or

equal to 40 per cent of the trigger price, the additional duty shall equal 30

per cent of the amount by which the difference exceeds 10 per cent;

(c) if the difference is greater than 40 per cent but less than or equal to

60 per cent of the trigger price, the additional duty shall equal 50 per cent

3Where domestic consumption is not taken into account, the base trigger level under subparagraph 4(a)

shall apply.

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of the amount by which the difference exceeds 40 per cent, plus the additional

duty allowed under (b);

(d) if the difference is greater than 60 per cent but less than or equal to 75 per

cent, the additional duty shall equal 70 per cent of the amount by which the

difference exceeds 60 per cent of the trigger price, plus the additional duties

allowed under (b) and (c);

(e) if the difference is greater than 75 per cent of the trigger price, the additional

duty shall equal 90 per cent of the amount by which the difference exceeds

75 per cent, plus the additional duties allowed under (b), (c) and (d).

6. For perishable and seasonal products, the conditions set out above shall be applied

in such a manner as to take account of the specific characteristics of such products. In

particular, shorter time periods under subparagraph 1(a) and paragraph 4 may be used

in reference to the corresponding periods in the base period and different reference prices

for different periods may be used under subparagraph 1(b).

7. The operation of the special safeguard shall be carried out in a transparent manner.

Any Member taking action under subparagraph 1(a) above shall give notice in writing,

including relevant data, to the Committee on Agriculture as far in advance as may be

practicable and in any event within 10 days of the implementation of such action. In cases

where changes in consumption volumes must be allocated to individual tariff lines subject

to action under paragraph 4, relevant data shall include the information and methods used

to allocate these changes. A Member taking action under paragraph 4 shall afford any

interested Members the opportunity to consult with it in respect of the conditions of

application of such action. Any Member taking action under subparagraph 1(b) above shall

give notice in writing, including relevant data, to the Committee on Agriculture within

10 days of the implementation of the first such action or, for perishable and seasonal

products, the first action in any period. Members undertake, as far as practicable, not to

take recourse to the provisions of subparagraph 1(b) where the volume of imports of the

products concerned are declining. In either case a Member taking such action shall afford

any interested Members the opportunity to consult with it in respect of the conditions of

application of such action.

8. Where measures are taken in conformity with paragraphs 1 through 7 above, Members

undertake not to have recourse, in respect of such measures, to the provisions of

paragraphs 1(a) and 3 of Article XIX of GATT 1994 or paragraph 2 of Article 8 of the

Agreement on Safeguards.

9. The provisions of this Article shall remain in force for the duration of the reform

process as determined under Article 20.

Part IV

Article 6

Domestic Support Commitments

1. The domestic support reduction commitments of each Member contained in Part

IV of its Schedule shall apply to all of its domestic support measures in favour of agricultural

producers with the exception of domestic measures which are not subject to reduction in

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terms of the criteria set out in this Article and in Annex 2 to this Agreement. The

commitments are expressed in terms of Total Aggregate Measurement of Support and

"Annual and Final Bound Commitment Levels".

2. In accordance with the Mid-Term Review Agreement that government measures

of assistance, whether direct or indirect, to encourage agricultural and rural development

are an integral part of the development programmes of developing countries, investment

subsidies which are generally available to agriculture in developing country Members and

agricultural input subsidies generally available to low-income or resource-poor producers

in developing country Members shall be exempt from domestic support reduction

commitments that would otherwise be applicable to such measures, as shall domestic support

to producers in developing country Members to encourage diversification from growing illicit

narcotic crops. Domestic support meeting the criteria of this paragraph shall not be required

to be included in a Member's calculation of its Current Total AMS.

3. A Member shall be considered to be in compliance with its domestic support reduction

commitments in any year in which its domestic support in favour of agricultural producers

expressed in terms of Current Total AMS does not exceed the corresponding annual or final

bound commitment level specified in Part IV of the Member's Schedule.

4. (a) A Member shall not be required to include in the calculation of its Current

Total AMS and shall not be required to reduce:

(i) product-specific domestic support which would otherwise be required

to be included in a Member's calculation of its Current AMS where

such support does not exceed 5 per cent of that Member's total value

of production of a basic agricultural product during the relevant year;

and

(ii) non-product-specific domestic support which would otherwise be

required to be included in a Member's calculation of its Current AMS

where such support does not exceed 5 per cent of the value of that

Member's total agricultural production.

(b) For developing country Members, the de minimis percentage under this

paragraph shall be 10 per cent.

5. (a) Direct payments under production-limiting programmes shall not be subject

to the commitment to reduce domestic support if:

(i) such payments are based on fixed area and yields; or

(ii) such payments are made on 85 per cent or less of the base level of

production; or

(iii) livestock payments are made on a fixed number of head.

(b) The exemption from the reduction commitment for direct payments meeting

the above criteria shall be reflected by the exclusion of the value of those

direct payments in a Member's calculation of its Current Total AMS.

Article 7

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General Disciplines on Domestic Support

1. Each Member shall ensure that any domestic support measures in favour of

agricultural producers which are not subject to reduction commitments because they qualify

under the criteria set out in Annex 2 to this Agreement are maintained in conformity

therewith.

2. (a) Any domestic support measure in favour of agricultural producers, including

any modification to such measure, and any measure that is subsequently

introduced that cannot be shown to satisfy the criteria in Annex 2 to this

Agreement or to be exempt from reduction by reason of any other provision

of this Agreement shall be included in the Member's calculation of its Current

Total AMS.

(b) Where no Total AMS commitment exists in Part IV of a Member's Schedule,

the Member shall not provide support to agricultural producers in excess

of the relevant de minimis level set out in paragraph 4 of Article 6.

Part V

Article 8

Export Competition Commitments

Each Member undertakes not to provide export subsidies otherwise than in conformity

with this Agreement and with the commitments as specified in that Member's Schedule.

Article 9

Export Subsidy Commitments

1. The following export subsidies are subject to reduction commitments under this

Agreement:

(a) the provision by governments or their agencies of direct subsidies, including

payments-in-kind, to a firm, to an industry, to producers of an agricultural

product, to a cooperative or other association of such producers, or to a

marketing board, contingent on export performance;

(b) the sale or disposal for export by governments or their agencies of noncommercial

stocks of agricultural products at a price lower than the

comparable price charged for the like product to buyers in the domestic

market;

(c) payments on the export of an agricultural product that are financed by virtue

of governmental action, whether or not a charge on the public account is

involved, including payments that are financed from the proceeds of a levy

imposed on the agricultural product concerned or on an agricultural product

from which the exported product is derived;

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(d) the provision of subsidies to reduce the costs of marketing exports of

agricultural products (other than widely available export promotion and

advisory services) including handling, upgrading and other processing costs,

and the costs of international transport and freight;

(e) internal transport and freight charges on export shipments, provided or

mandated by governments, on terms more favourable than for domestic

shipments;

(f) subsidies on agricultural products contingent on their incorporation in

exported products.

2. (a) Except as provided in subparagraph (b), the export subsidy commitment levels

for each year of the implementation period, as specified in a Member's

Schedule, represent with respect to the export subsidies listed in paragraph

1 of this Article:

(i) in the case of budgetary outlay reduction commitments, the maximum

level of expenditure for such subsidies that may be allocated or

incurred in that year in respect of the agricultural product, or group

of products, concerned; and

(ii) in the case of export quantity reduction commitments, the maximum

quantity of an agricultural product, or group of products, in respect

of which such export subsidies may be granted in that year.

(b) In any of the second through fifth years of the implementation period, a

Member may provide export subsidies listed in paragraph 1 above in a given

year in excess of the corresponding annual commitment levels in respect of

the products or groups of products specified in Part IV of the Member's

Schedule, provided that:

(i) the cumulative amounts of budgetary outlays for such subsidies, from

the beginning of the implementation period through the year in

question, does not exceed the cumulative amounts that would have

resulted from full compliance with the relevant annual outlay

commitment levels specified in the Member's Schedule by more than

3 per cent of the base period level of such budgetary outlays;

(ii) the cumulative quantities exported with the benefit of such export

subsidies, from the beginning of the implementation period through

the year in question, does not exceed the cumulative quantities that

would have resulted from full compliance with the relevant annual

quantity commitment levels specified in the Member's Schedule by

more than 1.75 per cent of the base period quantities;

(iii) the total cumulative amounts of budgetary outlays for such export

subsidies and the quantities benefiting from such export subsidies

over the entire implementation period are no greater than the totals

that would have resulted from full compliance with the relevant

annual commitment levels specified in the Member's Schedule; and

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(iv) the Member's budgetary outlays for export subsidies and the quantities

benefiting from such subsidies, at the conclusion of the implementation

period, are no greater than 64 per cent and 79 per cent of the 1986-

1990 base period levels, respectively. For developing country Members

these percentages shall be 76 and 86 per cent, respectively.

3. Commitments relating to limitations on the extension of the scope of export

subsidization are as specified in Schedules.

4. During the implementation period, developing country Members shall not be required

to undertake commitments in respect of the export subsidies listed in subparagraphs (d)

and (e) of paragraph 1 above, provided that these are not applied in a manner that would

circumvent reduction commitments.

Article 10

Prevention of Circumvention of Export Subsidy Commitments

1. Export subsidies not listed in paragraph 1 of Article 9 shall not be applied in a

manner which results in, or which threatens to lead to, circumvention of export subsidy

commitments; nor shall non-commercial transactions be used to circumvent such

commitments.

2. Members undertake to work toward the development of internationally agreed

disciplines to govern the provision of export credits, export credit guarantees or insurance

programmes and, after agreement on such disciplines, to provide export credits, export credit

guarantees or insurance programmes only in conformity therewith.

3. Any Member which claims that any quantity exported in excess of a reduction

commitment level is not subsidized must establish that no export subsidy, whether listed

in Article 9 or not, has been granted in respect of the quantity of exports in question.

4. Members donors of international food aid shall ensure:

(a) that the provision of international food aid is not tied directly or indirectly

to commercial exports of agricultural products to recipient countries;

(b) that international food aid transactions, including bilateral food aid which

is monetized, shall be carried out in accordance with the FAO "Principles

of Surplus Disposal and Consultative Obligations", including, where

appropriate, the system of Usual Marketing Requirements (UMRs); and

(c) that such aid shall be provided to the extent possible in fully grant form or

on terms no less concessional than those provided for in Article IV of the

Food Aid Convention 1986.

Article 11

Incorporated Products

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In no case may the per-unit subsidy paid on an incorporated agricultural primary

product exceed the per-unit export subsidy that would be payable on exports of the primary

product as such.

Part VI

Article 12

Disciplines on Export Prohibitions and Restrictions

1. Where any Member institutes any new export prohibition or restriction on foodstuffs

in accordance with paragraph 2(a) of Article XI of GATT 1994, the Member shall observe

the following provisions:

(a) the Member instituting the export prohibition or restriction shall give due

consideration to the effects of such prohibition or restriction on importing

Members' food security;

(b) before any Member institutes an export prohibition or restriction, it shall

give notice in writing, as far in advance as practicable, to the Committee

on Agriculture comprising such information as the nature and the duration

of such measure, and shall consult, upon request, with any other Member

having a substantial interest as an importer with respect to any matter

related to the measure in question. The Member instituting such export

prohibition or restriction shall provide, upon request, such a Member with

necessary information.

2. The provisions of this Article shall not apply to any developing country Member,

unless the measure is taken by a developing country Member which is a net-food exporter

of the specific foodstuff concerned.

Part VII

Article 13

Due Restraint

During the implementation period, notwithstanding the provisions of GATT 1994

and the Agreement on Subsidies and Countervailing Measures (referred to in this Article

as the "Subsidies Agreement"):

(a) domestic support measures that conform fully to the provisions of Annex 2

to this Agreement shall be:

(i) non-actionable subsidies for purposes of countervailing duties4;

(ii) exempt from actions based on Article XVI of GATT 1994 and Part III

of the Subsidies Agreement; and

4"Countervailing duties" where referred to in this Article are those covered by Article VI of GATT 1994

and Part V of the Agreement on Subsidies and Countervailing Measures.

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(iii) exempt from actions based on non-violation nullification or impairment

of the benefits of tariff concessions accruing to another Member under

Article II of GATT 1994, in the sense of paragraph 1(b) of

Article XXIII of GATT 1994;

(b) domestic support measures that conform fully to the provisions of Article

6 of this Agreement including direct payments that conform to the

requirements of paragraph 5 thereof, as reflected in each Member's Schedule,

as well as domestic support within de minimis levels and in conformity with

paragraph 2 of Article 6, shall be:

(i) exempt from the imposition of countervailing duties unless a

determination of injury or threat thereof is made in accordance with

Article VI of GATT 1994 and Part V of the Subsidies Agreement, and

due restraint shall be shown in initiating any countervailing duty

investigations;

(ii) exempt from actions based on paragraph 1 of Article XVI of GATT

1994 or Articles 5 and 6 of the Subsidies Agreement, provided that

such measures do not grant support to a specific commodity in excess

of that decided during the 1992 marketing year; and

(iii) exempt from actions based on non-violation nullification or impairment

of the benefits of tariff concessions accruing to another Member under

Article II of GATT 1994, in the sense of paragraph 1(b) of Article XXIII

of GATT 1994, provided that such measures do not grant support to

a specific commodity in excess of that decided during the 1992

marketing year;

(c) export subsidies that conform fully to the provisions of Part V of this

Agreement, as reflected in each Member's Schedule, shall be:

(i) subject to countervailing duties only upon a determination of injury

or threat thereof based on volume, effect on prices, or consequent

impact in accordance with Article VI of GATT 1994 and Part V of the

Subsidies Agreement, and due restraint shall be shown in initiating

any countervailing duty investigations; and

(ii) exempt from actions based on Article XVI of GATT 1994 or Articles 3,

5 and 6 of the Subsidies Agreement.

Part VIII

Article 14

Sanitary and Phytosanitary Measures

Members agree to give effect to the Agreement on the Application of Sanitary and

Phytosanitary Measures.

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Part IX

Article 15

Special and Differential Treatment

1. In keeping with the recognition that differential and more favourable treatment

for developing country Members is an integral part of the negotiation, special and differential

treatment in respect of commitments shall be provided as set out in the relevant provisions

of this Agreement and embodied in the Schedules of concessions and commitments.

2. Developing country Members shall have the flexibility to implement reduction

commitments over a period of up to 10 years. Least-developed country Members shall not

be required to undertake reduction commitments.

Part X

Article 16

Least-Developed and Net Food-Importing Developing Countries

1. Developed country Members shall take such action as is provided for within the

framework of the Decision on Measures Concerning the Possible Negative Effects of the

Reform Programme on Least-Developed and Net Food-Importing Developing Countries.

2. The Committee on Agriculture shall monitor, as appropriate, the follow-up to this

Decision.

Part XI

Article 17

Committee on Agriculture

A Committee on Agriculture is hereby established.

Article 18

Review of the Implementation of Commitments

1. Progress in the implementation of commitments negotiated under the Uruguay Round

reform programme shall be reviewed by the Committee on Agriculture.

2. The review process shall be undertaken on the basis of notifications submitted by

Members in relation to such matters and at such intervals as shall be determined, as well

as on the basis of such documentation as the Secretariat may be requested to prepare in

order to facilitate the review process.

3. In addition to the notifications to be submitted under paragraph 2, any new domestic

support measure, or modification of an existing measure, for which exemption from reduction

is claimed shall be notified promptly. This notification shall contain details of the new

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or modified measure and its conformity with the agreed criteria as set out either in Article

6 or in Annex 2.

4. In the review process Members shall give due consideration to the influence of

excessive rates of inflation on the ability of any Member to abide by its domestic support

commitments.

5. Members agree to consult annually in the Committee on Agriculture with respect

to their participation in the normal growth of world trade in agricultural products within

the framework of the commitments on export subsidies under this Agreement.

6. The review process shall provide an opportunity for Members to raise any matter

relevant to the implementation of commitments under the reform programme as set out

in this Agreement.

7. Any Member may bring to the attention of the Committee on Agriculture any measure

which it considers ought to have been notified by another Member.

Article 19

Consultation and Dispute Settlement

The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied

by the Dispute Settlement Understanding, shall apply to consultations and the settlement

of disputes under this Agreement.

Part XII

Article 20

Continuation of the Reform Process

Recognizing that the long-term objective of substantial progressive reductions in

support and protection resulting in fundamental reform is an ongoing process, Members

agree that negotiations for continuing the process will be initiated one year before the end

of the implementation period, taking into account:

(a) the experience to that date from implementing the reduction commitments;

(b) the effects of the reduction commitments on world trade in agriculture;

(c) non-trade concerns, special and differential treatment to developing country

Members, and the objective to establish a fair and market-oriented

agricultural trading system, and the other objectives and concerns mentioned

in the preamble to this Agreement; and

(d) what further commitments are necessary to achieve the above mentioned

long-term objectives.

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Part XIII

Article 21

Final Provisions

1. The provisions of GATT 1994 and of other Multilateral Trade Agreements in Annex

1A to the WTO Agreement shall apply subject to the provisions of this Agreement.

2. The Annexes to this Agreement are hereby made an integral part of this Agreement.

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ANNEX 1

PRODUCT COVERAGE

1. This Agreement shall cover the following products:

(i) HS Chapters 1 to 24 less fish and fish products, plus*

(ii) HS Code 2905.43 (mannitol)

HS Code 2905.44 (sorbitol)

HS Heading 33.01 (essential oils)

HS Headings 35.01 to 35.05 (albuminoidal substances,

modified starches, glues)

HS Code 3809.10 (finishing agents)

HS Code 3823.60 (sorbitol n.e.p.)

HS Headings 41.01 to 41.03 (hides and skins)

HS Heading 43.01 (raw furskins)

HS Headings 50.01 to 50.03 (raw silk and silk waste)

HS Headings 51.01 to 51.03 (wool and animal hair)

HS Headings 52.01 to 52.03 (raw cotton, waste and cotton

carded or combed)

HS Heading 53.01 (raw flax)

HS Heading 53.02 (raw hemp)

2. The foregoing shall not limit the product coverage of the Agreement on the Application

of Sanitary and Phytosanitary Measures.

*The product descriptions in round brackets are not necessarily exhaustive.

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ANNEX 2

DOMESTIC SUPPORT: THE BASIS FOR EXEMPTION FROM

THE REDUCTION COMMITMENTS

1. Domestic support measures for which exemption from the reduction commitments

is claimed shall meet the fundamental requirement that they have no, or at most minimal,

trade-distorting effects or effects on production. Accordingly, all measures for which

exemption is claimed shall conform to the following basic criteria:

(a) the support in question shall be provided through a publicly-funded

government programme (including government revenue foregone) not involving

transfers from consumers; and,

(b) the support in question shall not have the effect of providing price support

to producers;

plus policy-specific criteria and conditions as set out below.

Government Service Programmes

2. General services

Policies in this category involve expenditures (or revenue foregone) in relation to

programmes which provide services or benefits to agriculture or the rural community. They

shall not involve direct payments to producers or processors. Such programmes, which

include but are not restricted to the following list, shall meet the general criteria in

paragraph 1 above and policy-specific conditions where set out below:

(a) research, including general research, research in connection with

environmental programmes, and research programmes relating to particular

products;

(b) pest and disease control, including general and product-specific pest and

disease control measures, such as early-warning systems, quarantine and

eradication;

(c) training services, including both general and specialist training facilities;

(d) extension and advisory services, including the provision of means to facilitate

the transfer of information and the results of research to producers and

consumers;

(e) inspection services, including general inspection services and the inspection

of particular products for health, safety, grading or standardization purposes;

(f) marketing and promotion services, including market information, advice and

promotion relating to particular products but excluding expenditure for

unspecified purposes that could be used by sellers to reduce their selling price

or confer a direct economic benefit to purchasers; and

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(g) infrastructural services, including: electricity reticulation, roads and other

means of transport, market and port facilities, water supply facilities, dams

and drainage schemes, and infrastructural works associated with

environmental programmes. In all cases the expenditure shall be directed

to the provision or construction of capital works only, and shall exclude the

subsidized provision of on-farm facilities other than for the reticulation of

generally available public utilities. It shall not include subsidies to inputs

or operating costs, or preferential user charges.

3. Public stockholding for food security purposes5

Expenditures (or revenue foregone) in relation to the accumulation and holding of

stocks of products which form an integral part of a food security programme identified in

national legislation. This may include government aid to private storage of products as

part of such a programme.

The volume and accumulation of such stocks shall correspond to

predetermined targets related solely to food security. The process of stock

accumulation and disposal shall be financially transparent. Food purchases

by the government shall be made at current market prices and sales from

food security stocks shall be made at no less than the current domestic market

price for the product and quality in question.

4. Domestic food aid6

Expenditures (or revenue foregone) in relation to the provision of domestic food aid

to sections of the population in need.

Eligibility to receive the food aid shall be subject to clearly-defined criteria

related to nutritional objectives. Such aid shall be in the form of direct

provision of food to those concerned or the provision of means to allow eligible

recipients to buy food either at market or at subsidized prices. Food purchases

by the government shall be made at current market prices and the financing

and administration of the aid shall be transparent.

5. Direct payments to producers

Support provided through direct payments (or revenue foregone, including payments

in kind) to producers for which exemption from reduction commitments is claimed shall

meet the basic criteria set out in paragraph 1 above, plus specific criteria applying to

individual types of direct payment as set out in paragraphs 6 through 13 below. Where

exemption from reduction is claimed for any existing or new type of direct payment other

5For the purposes of paragraph 3 of this Annex, governmental stockholding programmes for food security

purposes in developing countries whose operation is transparent and conducted in accordance with officially

published objective criteria or guidelines shall be considered to be in conformity with the provisions of this

paragraph, including programmes under which stocks of foodstuffs for food security purposes are acquired and

released at administered prices, provided that the difference between the acquisition price and the external

reference price is accounted for in the AMS.

5 & 6For the purposes of paragraphs 3 and 4 of this Annex, the provision of foodstuffs at subsidized prices with

the objective of meeting food requirements of urban and rural poor in developing countries on a regular basis

at reasonable prices shall be considered to be in conformity with the provisions of this paragraph.

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than those specified in paragraphs 6 through 13, it shall conform to criteria (b) through

(e) in paragraph 6, in addition to the general criteria set out in paragraph 1.

6. Decoupled income support

(a) Eligibility for such payments shall be determined by clearly-defined criteria

such as income, status as a producer or landowner, factor use or production

level in a defined and fixed base period.

(b) The amount of such payments in any given year shall not be related to, or

based on, the type or volume of production (including livestock units)

undertaken by the producer in any year after the base period.

(c) The amount of such payments in any given year shall not be related to, or

based on, the prices, domestic or international, applying to any production

undertaken in any year after the base period.

(d) The amount of such payments in any given year shall not be related to, or

based on, the factors of production employed in any year after the base period.

(e) No production shall be required in order to receive such payments.

7. Government financial participation in income insurance and income safety-net

programmes

(a) Eligibility for such payments shall be determined by an income loss, taking

into account only income derived from agriculture, which exceeds 30 per cent

of average gross income or the equivalent in net income terms (excluding

any payments from the same or similar schemes) in the preceding three-year

period or a three-year average based on the preceding five-year period,

excluding the highest and the lowest entry. Any producer meeting this

condition shall be eligible to receive the payments.

(b) The amount of such payments shall compensate for less than 70 per cent

of the producer's income loss in the year the producer becomes eligible to

receive this assistance.

(c) The amount of any such payments shall relate solely to income; it shall not

relate to the type or volume of production (including livestock units)

undertaken by the producer; or to the prices, domestic or international,

applying to such production; or to the factors of production employed.

(d) Where a producer receives in the same year payments under this paragraph

and under paragraph 8 (relief from natural disasters), the total of such

payments shall be less than 100 per cent of the producer's total loss.

8. Payments (made either directly or by way of government financial participation in

crop insurance schemes) for relief from natural disasters

(a) Eligibility for such payments shall arise only following a formal recognition

by government authorities that a natural or like disaster (including disease

outbreaks, pest infestations, nuclear accidents, and war on the territory of

the Member concerned) has occurred or is occurring; and shall be determined

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by a production loss which exceeds 30 per cent of the average of production

in the preceding three-year period or a three-year average based on the

preceding five-year period, excluding the highest and the lowest entry.

(b) Payments made following a disaster shall be applied only in respect of losses

of income, livestock (including payments in connection with the veterinary

treatment of animals), land or other production factors due to the natural

disaster in question.

(c) Payments shall compensate for not more than the total cost of replacing such

losses and shall not require or specify the type or quantity of future

production.

(d) Payments made during a disaster shall not exceed the level required to

prevent or alleviate further loss as defined in criterion (b) above.

(e) Where a producer receives in the same year payments under this paragraph

and under paragraph 7 (income insurance and income safety-net programmes),

the total of such payments shall be less than 100 per cent of the producer's

total loss.

9. Structural adjustment assistance provided through producer retirement programmes

(a) Eligibility for such payments shall be determined by reference to clearly

defined criteria in programmes designed to facilitate the retirement of persons

engaged in marketable agricultural production, or their movement to nonagricultural

activities.

(b) Payments shall be conditional upon the total and permanent retirement of

the recipients from marketable agricultural production.

10. Structural adjustment assistance provided through resource retirement programmes

(a) Eligibility for such payments shall be determined by reference to clearly

defined criteria in programmes designed to remove land or other resources,

including livestock, from marketable agricultural production.

(b) Payments shall be conditional upon the retirement of land from marketable

agricultural production for a minimum of three years, and in the case of

livestock on its slaughter or definitive permanent disposal.

(c) Payments shall not require or specify any alternative use for such land or

other resources which involves the production of marketable agricultural

products.

(d) Payments shall not be related to either the type or quantity of production

or to the prices, domestic or international, applying to production undertaken

using the land or other resources remaining in production.

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11. Structural adjustment assistance provided through investment aids

(a) Eligibility for such payments shall be determined by reference to clearlydefined

criteria in government programmes designed to assist the financial

or physical restructuring of a producer's operations in response to objectively

demonstrated structural disadvantages. Eligibility for such programmes may

also be based on a clearly-defined government programme for the

reprivatization of agricultural land.

(b) The amount of such payments in any given year shall not be related to, or

based on, the type or volume of production (including livestock units)

undertaken by the producer in any year after the base period other than as

provided for under criterion (e) below.

(c) The amount of such payments in any given year shall not be related to, or

based on, the prices, domestic or international, applying to any production

undertaken in any year after the base period.

(d) The payments shall be given only for the period of time necessary for the

realization of the investment in respect of which they are provided.

(e) The payments shall not mandate or in any way designate the agricultural

products to be produced by the recipients except to require them not to

produce a particular product.

(f) The payments shall be limited to the amount required to compensate for the

structural disadvantage.

12. Payments under environmental programmes

(a) Eligibility for such payments shall be determined as part of a clearly-defined

government environmental or conservation programme and be dependent

on the fulfilment of specific conditions under the government programme,

including conditions related to production methods or inputs.

(b) The amount of payment shall be limited to the extra costs or loss of income

involved in complying with the government programme.

13. Payments under regional assistance programmes

(a) Eligibility for such payments shall be limited to producers in disadvantaged

regions. Each such region must be a clearly designated contiguous

geographical area with a definable economic and administrative identity,

considered as disadvantaged on the basis of neutral and objective criteria

clearly spelt out in law or regulation and indicating that the region's

difficulties arise out of more than temporary circumstances.

(b) The amount of such payments in any given year shall not be related to, or

based on, the type or volume of production (including livestock units)

undertaken by the producer in any year after the base period other than to

reduce that production.

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(c) The amount of such payments in any given year shall not be related to, or

based on, the prices, domestic or international, applying to any production

undertaken in any year after the base period.

(d) Payments shall be available only to producers in eligible regions, but generally

available to all producers within such regions.

(e) Where related to production factors, payments shall be made at a degressive

rate above a threshold level of the factor concerned.

(f) The payments shall be limited to the extra costs or loss of income involved

in undertaking agricultural production in the prescribed area.

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ANNEX 3

DOMESTIC SUPPORT:

CALCULATION OF AGGREGATE MEASUREMENT OF SUPPORT

1. Subject to the provisions of Article 6, an Aggregate Measurement of Support (AMS)

shall be calculated on a product-specific basis for each basic agricultural product receiving

market price support, non-exempt direct payments, or any other subsidy not exempted from

the reduction commitment ("other non-exempt policies"). Support which is non-product

specific shall be totalled into one non-product-specific AMS in total monetary terms.

2. Subsidies under paragraph 1 shall include both budgetary outlays and revenue

foregone by governments or their agents.

3. Support at both the national and sub-national level shall be included.

4. Specific agricultural levies or fees paid by producers shall be deducted from the AMS.

5. The AMS calculated as outlined below for the base period shall constitute the base

level for the implementation of the reduction commitment on domestic support.

6. For each basic agricultural product, a specific AMS shall be established, expressed

in total monetary value terms.

7. The AMS shall be calculated as close as practicable to the point of first sale of the

basic agricultural product concerned. Measures directed at agricultural processors shall

be included to the extent that such measures benefit the producers of the basic agricultural

products.

8. Market price support: market price support shall be calculated using the gap between

a fixed external reference price and the applied administered price multiplied by the quantity

of production eligible to receive the applied administered price. Budgetary payments made

to maintain this gap, such as buying-in or storage costs, shall not be included in the AMS.

9. The fixed external reference price shall be based on the years 1986 to 1988 and shall

generally be the average f.o.b. unit value for the basic agricultural product concerned in

a net exporting country and the average c.i.f. unit value for the basic agricultural product

concerned in a net importing country in the base period. The fixed reference price may

be adjusted for quality differences as necessary.

10. Non-exempt direct payments: non-exempt direct payments which are dependent

on a price gap shall be calculated either using the gap between the fixed reference price

and the applied administered price multiplied by the quantity of production eligible to receive

the administered price, or using budgetary outlays.

11. The fixed reference price shall be based on the years 1986 to 1988 and shall generally

be the actual price used for determining payment rates.

12. Non-exempt direct payments which are based on factors other than price shall be

measured using budgetary outlays.

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13. Other non-exempt measures, including input subsidies and other measures such

as marketing-cost reduction measures: the value of such measures shall be measured using

government budgetary outlays or, where the use of budgetary outlays does not reflect the

full extent of the subsidy concerned, the basis for calculating the subsidy shall be the gap

between the price of the subsidized good or service and a representative market price for

a similar good or service multiplied by the quantity of the good or service.

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ANNEX 4

DOMESTIC SUPPORT:

CALCULATION OF EQUIVALENT MEASUREMENT OF SUPPORT

1. Subject to the provisions of Article 6, equivalent measurements of support shall be

calculated in respect of all basic agricultural products where market price support as defined

in Annex 3 exists but for which calculation of this component of the AMS is not practicable.

For such products the base level for implementation of the domestic support reduction

commitments shall consist of a market price support component expressed in terms of

equivalent measurements of support under paragraph 2 below, as well as any non-exempt

direct payments and other non-exempt support, which shall be evaluated as provided for

under paragraph 3 below. Support at both national and sub-national level shall be included.

2. The equivalent measurements of support provided for in paragraph 1 shall be

calculated on a product-specific basis for all basic agricultural products as close as practicable

to the point of first sale receiving market price support and for which the calculation of

the market price support component of the AMS is not practicable. For those basic

agricultural products, equivalent measurements of market price support shall be made

using the applied administered price and the quantity of production eligible to receive that

price or, where this is not practicable, on budgetary outlays used to maintain the producer

price.

3. Where basic agricultural products falling under paragraph 1 are the subject of nonexempt

direct payments or any other product-specific subsidy not exempted from the

reduction commitment, the basis for equivalent measurements of support concerning these

measures shall be calculations as for the corresponding AMS components (specified in

paragraphs 10 through 13 of Annex 3).

4. Equivalent measurements of support shall be calculated on the amount of subsidy

as close as practicable to the point of first sale of the basic agricultural product concerned.

Measures directed at agricultural processors shall be included to the extent that such

measures benefit the producers of the basic agricultural products. Specific agricultural

levies or fees paid by producers shall reduce the equivalent measurements of support by

a corresponding amount.

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ANNEX 5

SPECIAL TREATMENT WITH RESPECT TO PARAGRAPH 2 OF ARTICLE 4

Section A

1. The provisions of paragraph 2 of Article 4 shall not apply with effect from the entry

into force of the WTO Agreement to any primary agricultural product and its worked and/or

prepared products ("designated products") in respect of which the following conditions are

complied with (hereinafter referred to as "special treatment"):

(a) imports of the designated products comprised less than 3 per cent of

corresponding domestic consumption in the base period 1986-1988 ("the base

period");

(b) no export subsidies have been provided since the beginning of the base period

for the designated products;

(c) effective production-restricting measures are applied to the primary

agricultural product;

(d) such products are designated with the symbol "ST-Annex 5" in Section I-B

of Part I of a Member's Schedule annexed to the Marrakesh Protocol, as being

subject to special treatment reflecting factors of non-trade concerns, such

as food security and environmental protection; and

(e) minimum access opportunities in respect of the designated products

correspond, as specified in Section I-B of Part I of the Schedule of the Member

concerned, to 4 per cent of base period domestic consumption of the

designated products from the beginning of the first year of the implementation

period and, thereafter, are increased by 0.8 per cent of corresponding domestic

consumption in the base period per year for the remainder of the

implementation period.

2. At the beginning of any year of the implementation period a Member may cease

to apply special treatment in respect of the designated products by complying with the

provisions of paragraph 6. In such a case, the Member concerned shall maintain the

minimum access opportunities already in effect at such time and increase the minimum

access opportunities by 0.4 per cent of corresponding domestic consumption in the base

period per year for the remainder of the implementation period. Thereafter, the level of

minimum access opportunities resulting from this formula in the final year of the

implementation period shall be maintained in the Schedule of the Member concerned.

3. Any negotiation on the question of whether there can be a continuation of the special

treatment as set out in paragraph 1 after the end of the implementation period shall be

completed within the time-frame of the implementation period itself as a part of the

negotiations set out in Article 20 of this Agreement, taking into account the factors of nontrade

concerns.

4. If it is agreed as a result of the negotiation referred to in paragraph 3 that a Member

may continue to apply the special treatment, such Member shall confer additional and

acceptable concessions as determined in that negotiation.

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5. Where the special treatment is not to be continued at the end of the implementation

period, the Member concerned shall implement the provisions of paragraph 6. In such a

case, after the end of the implementation period the minimum access opportunities for the

designated products shall be maintained at the level of 8 per cent of corresponding domestic

consumption in the base period in the Schedule of the Member concerned.

6. Border measures other than ordinary customs duties maintained in respect of the

designated products shall become subject to the provisions of paragraph 2 of Article 4 with

effect from the beginning of the year in which the special treatment ceases to apply. Such

products shall be subject to ordinary customs duties, which shall be bound in the Schedule

of the Member concerned and applied, from the beginning of the year in which special

treatment ceases and thereafter, at such rates as would have been applicable had a reduction

of at least 15 per cent been implemented over the implementation period in equal annual

instalments. These duties shall be established on the basis of tariff equivalents to be

calculated in accordance with the guidelines prescribed in the attachment hereto.

Section B

7. The provisions of paragraph 2 of Article 4 shall also not apply with effect from the

entry into force of the WTO Agreement to a primary agricultural product that is the

predominant staple in the traditional diet of a developing country Member and in respect

of which the following conditions, in addition to those specified in paragraph 1(a) through

1(d), as they apply to the products concerned, are complied with:

(a) minimum access opportunities in respect of the products concerned, as

specified in Section I-B of Part I of the Schedule of the developing country

Member concerned, correspond to 1 per cent of base period domestic

consumption of the products concerned from the beginning of the first year

of the implementation period and are increased in equal annual instalments

to 2 per cent of corresponding domestic consumption in the base period at

the beginning of the fifth year of the implementation period. From the

beginning of the sixth year of the implementation period, minimum access

opportunities in respect of the products concerned correspond to 2 per cent

of corresponding domestic consumption in the base period and are increased

in equal annual instalments to 4 per cent of corresponding domestic

consumption in the base period until the beginning of the 10th year.

Thereafter, the level of minimum access opportunities resulting from this

formula in the 10th year shall be maintained in the Schedule of the developing

country Member concerned;

(b) appropriate market access opportunities have been provided for in other

products under this Agreement.

8. Any negotiation on the question of whether there can be a continuation of the special

treatment as set out in paragraph 7 after the end of the 10th year following the beginning

of the implementation period shall be initiated and completed within the time-frame of

the 10th year itself following the beginning of the implementation period.

9. If it is agreed as a result of the negotiation referred to in paragraph 8 that a Member

may continue to apply the special treatment, such Member shall confer additional and

acceptable concessions as determined in that negotiation.

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10. In the event that special treatment under paragraph 7 is not to be continued beyond

the 10th year following the beginning of the implementation period, the products concerned

shall be subject to ordinary customs duties, established on the basis of a tariff equivalent

to be calculated in accordance with the guidelines prescribed in the attachment hereto,

which shall be bound in the Schedule of the Member concerned. In other respects, the

provisions of paragraph 6 shall apply as modified by the relevant special and differential

treatment accorded to developing country Members under this Agreement.

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Attachment to Annex 5

Guidelines for the Calculation of Tariff

Equivalents for the Specific Purpose Specified in

Paragraphs 6 and 10 of this Annex

1. The calculation of the tariff equivalents, whether expressed as ad valorem or specific

rates, shall be made using the actual difference between internal and external prices in

a transparent manner. Data used shall be for the years 1986 to 1988. Tariff equivalents:

(a) shall primarily be established at the four-digit level of the HS;

(b) shall be established at the six-digit or a more detailed level of the HS

wherever appropriate;

(c) shall generally be established for worked and/or prepared products by

multiplying the specific tariff equivalent(s) for the primary agricultural

product(s) by the proportion(s) in value terms or in physical terms as

appropriate of the primary agricultural product(s) in the worked and/or

prepared products, and take account, where necessary, of any additional

elements currently providing protection to industry.

2. External prices shall be, in general, actual average c.i.f. unit values for the importing

country. Where average c.i.f. unit values are not available or appropriate, external prices

shall be either:

(a) appropriate average c.i.f. unit values of a near country; or

(b) estimated from average f.o.b. unit values of (an) appropriate major exporter(s)

adjusted by adding an estimate of insurance, freight and other relevant costs

to the importing country.

3. The external prices shall generally be converted to domestic currencies using the

annual average market exchange rate for the same period as the price data.

4. The internal price shall generally be a representative wholesale price ruling in the

domestic market or an estimate of that price where adequate data is not available.

5. The initial tariff equivalents may be adjusted, where necessary, to take account of

differences in quality or variety using an appropriate coefficient.

6. Where a tariff equivalent resulting from these guidelines is negative or lower than

the current bound rate, the initial tariff equivalent may be established at the current bound

rate or on the basis of national offers for that product.

7. Where an adjustment is made to the level of a tariff equivalent which would have

resulted from the above guidelines, the Member concerned shall afford, on request, full

opportunities for consultation with a view to negotiating appropriate solutions.