In WTO terminology, subsidies are generally characterized by boxes that preserve the colours of traffic lights: green (authorized), amber (slower, i.e. reduce), red (prohibited). In agriculture, as usual, it is more complicated. The agricultural agreement does not have a red box, although it is forbidden to provide domestic aid exceeding the obligations of reduction in the amber box; and there is a blue box for grants related to programs that limit production. There are also exceptions for developing countries (sometimes referred to as the “S-D Box” or “development box,” including the provisions of Article 6.2 of the agreement). As a result of this deficiency, the WTO was created as an international organization that oversees the functioning of the rules-based multilateral trading system. The WTO is based on a series of trade agreements negotiated during the Uruguay Round (1986-1994). The Marrakesh Treaty created the WTO at the end of the Uruguay Round. The commitments made under the Convention on Agriculture and the working hours of MEPs are part of an ongoing process. As soon as the Uruguay Round was completed, members agreed to hold new negotiations on agriculture from one year before the six-year implementation period expired (Article 20). These negotiations will examine other commitments needed to achieve the long-term goal of a significant gradual reduction in aid and protection leading to fundamental reform. The negotiations should also take into account factors such as the experience gained during the implementation period, the impact of Uruguay Round reduction commitments on world trade in the agricultural sector, non-trade issues, the special and differentiated treatment of members of developing countries and the objective of establishing a fair and market-based agricultural trading system.
The EU and the US have actively protested against the EU and US agriculture project with other developing countries. India will advocate for a trade facilitation agreement in the services sector within the WTO and will have made a significant contribution to the country`s economy. The agricultural agreement contains a peace clause or clause governing the application of other WTO agreements to agricultural subsidies (Article 13). The provisions stipulate that Green Box`s domestic support measures must not be subject to countervailing duties or other subsidy measures under the WTO Agreement on Subsidies and Countervailing Measures, nor can they be subject to measures based on non-violation or infringement of tariff concessions under the GATT. Other national support measures consistent with the provisions of the agreement on agriculture may be subject to countervailing duties, but members must exercise the necessary restraint during the investigation. To the extent that aid for certain products does not exceed the aid agreed during the 1992 marketing year, these measures are exempt from other subsidy or cancellation or depreciation measures. Export subsidies that comply with the agricultural agreement are, if necessary, covered by appropriate provisions.