Domestic Support and the WTO : Comparison of Support Among OECD Countries

Introduction Domestic farm support policies are a source of market and trade distortions. As members of the WTO, countries committed to limit their spending on domestic agricultural programs presumed to be the most trade distorting and to exempt other programs from any limitations under a set of special conditions. The continuing challenge for WTO negotiations on domestic farm policy will be to obtain effective commitments to reduce agricultural trade distortions, while allowing countries flexibility to use minimally trade distorting policies to achieve their own national priorities. Part of the task facing trade negotiators is determining where and how to draw the line between benign policies and trade distorting policies.