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Green Box aids are trade distorting, says Indian study.(European Policy News)
- Article from:
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Agra Europe
- Article date:
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October 20, 2006
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The EU's argument that decoupled aid payments have only a minimal trade-distorting effect has been challenged by a new report by economic researchers in India.
The report * claims that removing subsidies which are classified within the WTO as 'Green Box'--and thus currently exempt from reduction commitments--would have a very serious effect on the agricultural economies of those countries making most use of such subsidies--notably the EU, the US, Japan and Switzerland.
It would therefore affect patterns of global agricultural production and trade, thus undermining the view that such payments are production- and trade-neutral.
EU farm exports 45% higher
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