- Main Objective: To discipline and reduce domestic support (subsidies) given to agriculture.
- While giving freedom to members in designing domestic agricultural policies.
- Key Provisions:
- Classifies domestic support into three categories:
- Green Box: Support with no or minimal distortive effect on trade (exempted/allowed).
- Amber Box: Support that distorts trade (restricted/not allowed), subject to reduction commitments.
- Other exempted measures: Development Measures (investment/input subsidies to low-income farmers), Blue Box (payments on fixed areas/numbers), De-minimis Support (total AMS < 10% for developing countries).
- Members must notify Committee on Agriculture about their domestic support measures.
- Peace Clause: Allows developing countries to breach 10% subsidy cap for food security programs without challenge.