Topics handled by WTO committees and agreements
Issues covered by the WTO’s committees and agreements

AGRICULTURE NEGOTIATIONS: BACKGROUNDER
Phase 1: The peace clause

Article 13 (“due restraint”) of the Agriculture Agreement protects countries using subsidies which comply with the agreement from being challenged under other WTO agreements. Without this “peace clause”, countries would have greater freedom to take action against each others’ subsidies, under the Subsidies and Countervailing Measures Agreement and related provisions. The peace clause is due to expire at the end of 2003.

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UPDATED 10 OCTOBER 2002

Contents
> In a nutshell
Proposals received in Phase 1
Proposals received in Phase 2
Alliances table
INTRODUCTION
Phase 1
Export subsidies, competition and restrictions
Market access
Domestic support: amber, blue and green boxes
Developing countries
Transition economies
Non-trade concerns
Animal welfare and food quality
> The peace clause
Phase 2
Tariffs and quotas
Domestic support: amber, blue and green boxes
Export subsidies and restrictions
State trading
Food security
Food safety
Rural development
Geographical indications
Safeguards
Environment
Trade preferences
Food aid
Consumer information and labelling
Sectoral initiatives
Development box, single commodity producers, small island developing states, special and differential treatment
Additional issues (food aid, the Green Box, tariff quota expansion)

Modalities 2002–2003
Exports
Market access
Domestic support


Data
Statistics

This briefing document explains current agricultural issues raised before and in the current negotiations. It has been prepared by the Information and Media Relations Division of the WTO Secretariat to help public understanding about the agriculture negotiations. It is not an official record of the negotiations.


Some countries want it extended so that they can enjoy some degree of “legal security”, ensuring that they will not be challenged so long as they comply with their commitments on export subsidies and domestic support under the Agriculture Agreement.

Some others want it to lapse as part of their overall objective to see agriculture brought under general WTO disciplines that deal with governments’ ability to take action against subsidies.

Some countries have proposed variants. Canada would like to see “green box” domestic supports freed from the possibility of countervailing action under the Subsidies Agreement. India proposes something like the peace clause should be retained but only for developing countries, so that some subsidies are free from the possibility of countervailing duty.

 
 

Proposals referring to the peace clause submitted in Phase 1  back to top

  • EU: comprehensive negotiating proposal G/AG/NG/W/90
  • Canada: domestic support G/AG/NG/W/92
  • Mauritius: proposal G/AG/NG/W96
  • India: proposal G/AG/NG/W/102
  • Turkey: proposal G/AG/NG/W/106
  • Nigeria: proposal G/AG/NG/W/130
  • Kenya: proposal G/AG/NG/W/136
  • Mexico: proposal G/AG/NG/W/138
  • African Group: joint proposal G/AG/NG/W/142
  • Namibia: proposal G/AG/NG/W/143

 
 

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