https:/crsreports.congress.gov Updated June 3, 2019WTO Disciplines on U.S. Domestic Support for AgricultureTrade is critical to the U.S. agricultural sector: Exports account for about 20% of total U.S. agricultural production. Some commoditiessuch as cotton, wheat, and soybeanshave export shares of nearly 50% or greater. As a member of the World Trade Organization (WTO), the United States has committed to abide by WTO rules and disciplines, including those that govern domestic farm policy. WTO Disciplines of Domestic Support A farm support program can violate WTO commitments in two principal waysfirst, by exceeding spending limits of certain market-distorting programs and, second, by generating distortions that spill over into the international marketplace and cause significant adverse effects. The Agreement on Agriculture (AoA) The WTOs AoA spells out the rules for countries to determine whether their policies for any given year are potentially trade distorting, how to calculate the costs of any distortion, and how to report those costs to the WTO in a public and transparent manner. WTO Classification of Domestic Support The WTO uses a traffic light analogy to group programs. Gre
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