The WTO's Agreement on Agriculture (AoA) was negotiated in the 1986-94 Uruguay Round of multilateral trade negotiations and marked a significant first step towards bringing agricultural subsidies ("domestic support" in the language of the AoA) under international disciplines. Specific commitments set out in the AoA were implemented over a six-year period (10 years for developing countries), starting in 1995.
The AoA differs from the ASCM in several important respects. For one, it allows export subsidies for agricultural products, though these had to be reduced. (By contrast, the ASCM prohibits export subsidies.) Second, it requires Members to reduce other trade-distorting subsidies provided to agriculture.
Under the AoA, subsidies are grouped into "boxes": amber, blue and green. Amber-box support (see next page) is subject to limits expressed in terms of a "Total Aggregate Measurement of Support" (Total AMS) which combines all supports for specified products, together with supports that are not for specific products, into one single figure.
WTO Members agreed to initiate negotiations for continuing the agricultural reform process one year before the end of the implementation period, i.e. by the end of 1999. These talks were incorporated into the Doha Round of multilateral trade negotiations, which began in earnest in 2002.
Considerable progress was made over the next two years, leading to an agreement at the end of July 2004 on a framework for concluding the negotiations. The trade talks then turned to modalities - the specific targets, formulas and timetables for reducing trade-distorting domestic support and trade barriers, and eliminating export subsidies. However, a core group of WTO member countries - the United States, the European Union (EU), Brazil, India, Australia, and Japan - have not ironed out their differences over the modalities.
