(Purchases at market prices are not counted as supported.) Normally the support is within the agreed limits (see technical note) but some countries fear this might not always be the case. The stockholding programmes are considered to distort trade when they involve purchases from farmers at prices fixed by the governments, known as “supported” or “administered” prices. The Bali decision on stockholding arises because some developing countries fear they could breach the limits they have agreed on trade-distorting domestic support - ie, support that influences prices and quantities. The reference period was 1986–88, the first three years of the Uruguay Round negotiations which produced the present Agriculture Agreement and members’ commitments. Some members see the fixed reference prices as a way to prevent countries - particularly major players in agricultural trade - from using inflation to increase the support they are allowed. ( Support price - reference price) x ( eligible production) ≤ 10% of the value of production (or other agreed limit) The few that started off with higher support levels ended up with agreed AMS limits that are above the 10%, provided they reduced their support: Trade-distorting domestic support (the “ aggregate measurement of support“ or AMS, sometimes called “Amber Box” support) is calculated as the difference between the present support price and the 1986–88 reference price multiplied by production that is eligible for the support.įor most developing countries, the resulting amount has to be within 10% of the value of production (the “ de minimis“ level).

Quota buster meaning