It has three pillars (aspects):
I. Domestic support: reducing the subsidies in agriculture sector.
II. Market access: increasing access to market.
III. Export subsidies: reducing the export subsidies.
I. Domestic support:
Differentiation between domestic subsidies according to “distortionary effects” and categorization in boxes:
a) Amber Box: highly trade distorting
– Price support, input subsidies etc.
– Subject to reduction commitments – in industrialized countries by 20%;
developing countries: 13%
b) Blue Box:
– Per ha payments (EU) and deficiency payments (USA)
– It was finally decided to change the blue box measures so that they qualify for the green box (“decoupling”).
c) Green Box: production and trade neutral
– State transfer payments (directly financed from the state budget); payments for research and extension service; also food aid.
– Not subject to reduction commitments.
II. Market access:
– Transformation of non-tariff trade barriers (NTBs) in tariffs (Tariffication)
– Reduction of tariffs: Developed countries on average by 36% and developing countries 24%.
III. Export Subsidies:
– Developed Countries: export of oversupply to the world market with the help of export subsidies: Export subsidies of more than 20% of the production value.
– Reduction of the expenditures for export subsidies by 36% or of the subsidized export volumes by 21%.