- India’s apprehension is that its total Aggregate Measurement of Support (AMS) may exceed the 10% permitted cap for developing countries.
- The AoA requires India to notify its domestic support measures to the WTO.
- The “Peace Clause” is significant for India.
- It allows India to continue its food security programs (procurement by FCI at MSP and PDS distribution).
- This is permitted even if the subsidy breaches the 10% limit.
- The open-ended nature of the peace clause means India is not challenged for crossing the cap.
- However, this applies only to existing subsidies, not new ones.