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Issue paper

FAO Trade Policy Technical Notes on Issues Related to the WTO Negotiations on Agriculture. No. 5 Domestic Support: Trade Related Issues and the Empirical Evidence

This Technical Note seeks to address two central questions relating to negotiations towards further disciplines on domestic support measures: (i) what are the characteristics of domestic support measures that cause such measures to have a potentially trade distortionary effect? and (ii) will further WTO disciplines on domestic support measures be effective in reducing levels of trade distorting support?

To provide context, the Note begins by summarizing how domestic support measures are currently disciplined within the Uruguay Round Agreement on Agriculture (UR AoA) and discusses the effectiveness of these disciplines. It then highlights the most significant aspects of the August 2004 Framework Agreement in terms of the potential for further disciplines on the use of domestic support.

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