Question - Apart From Caps On The Overall Trade-distorting Support, Are Caps Proposed On The Support For Individual Products As Well?
Answer -
Yes, this Round also seeks to place limits on subsidies at the level of products, in order to avoid shifting support between different products. For countries other than the US, the ceiling or maximum level would be the average support actually provided during the Uruguay Round implementation period (1995-2000). The calculation for the US would be based on total Amber Box support for specific products per year for that period but shared among products according to the average share over the years 1995-2004. Another special dispensation, implicitly for the US, is that they can begin with a cap that is 30% higher than the scheduled limits.