A.8. International issues caused by subsidies
- The de minimus levels of AMS (Aggregate Measures of Support), where wealthy nations like the USA pay subsidies >50% in some items like cotton and sugar, are not in reach for developing nations like India and China.
- Subsidies in affluent nations also serve as a barrier to the importation of goods from developing nations.
- The amount of subsidies given to wealthy nations is significantly more than that of developing nations like India.
- Due to the omission of equality, the WTO-signed Agreement on Agriculture contains loopholes. Spending on input subsidies and price support measures combined cannot exceed 10% of the entire value of agricultural production in developing nations and only 5% of the value of agricultural production in industrialised countries.