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.

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

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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