Agreement on Agriculture: export subsidies
The Uruguay Round Agreement on Agriculture (AoA) imposed meaningful disciplines on agricultural export subsidies for the first time. Prior to AoA implementation, export subsidies significantly distorted agricultural trade.

Under the AoA, countries that employed export subsidies for agricultural commodities agreed to lower the volume and value of their subsidies over the next 6 years (1995 to 2000). Developed countries committed to reduce subsidized exports by 21 percent in volume and 36 percent in value by the year 2000 (14 percent and 24 percent by the year 2004 for developing countries). New subsidies cannot be introduced. Bona fide food aid and export market promotion and advisory services are exempt. Use of marketing practices to circumvent export subsidy commitments is restricted.

Use of export subsidies is concentrated among a small number of WTO members. Prior to the Uruguay Round, the United States and the European Union (EU) were the two largest users of export subsidies. The EU now accounts for most export subsidies—about 90 percent of spending on export subsidies by all WTO countries during 1995-98. U.S. export subsidies are now well below commitment levels. Use of export subsidies overall has declined from pre-Uruguay Round levels, but further progress in trade liberalization depends on continued reduction or elimination of export subsidies.

The readings below address issues related to export subsidies. New readings will be posted as they become available.

• Canada's Subsidized Dairy Exports: The Issue of WTO Compliance, Agricultural Outlook, August 2001.
• Effects of Eliminating EU Export Subsidies, Agricultural Policy Reform in the WTO—The Road Ahead, May 2001
• The WTO's Three Pillars: Vision and Reality—Reduce Export Subsidies, December 2000
• Export Subsidies—AoA issues series
• Export Subsidy Commitments: Few Are Binding Yet, But Some Members Try To Evade Them, Agriculture in the WTO, December 1998
• EU Export Subsidy Commitments Not Yet Binding, But Future Uncertain, Europe, IATR, December 1997

Other Agreement on Agriculture issues:

• Agreement on Agriculture general issues
• Tariffs and market access
• Domestic support

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page updated: October 6, 2003