<p>This is a sociology issues than WTO may solved. It is impossible to level the trade playing ground in culture, especially with the ambigous term such as "minimally trade-distorting". </p>

<p>E.g.</p>

<ul>
<li><p>Machinery, fertilizer mostly produce in rich nations, thus make it
cheaper, even without subsidies.</p></li>
<li><p>Corporation from rich country may take a localised diversified animal/crops genes , then charged the research outcome back on the poor country without compensation on the origin.</p></li>
<li><p>Agricultural Research grants from government is also a form of subsidies. Should the research lead to a lead on overall production. </p></li>
<li><p>crops gene that "borrow" from poor country that do diversified crop planting rarely compensated.</p></li>
</ul>

<p><a href="https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm3_e.htm" rel="nofollow noreferrer">Details of WTO agriculture agreement are available in this link</a></p>

CC BY-SA 3.0
2016-12-14T15:05:06.823Z
2016-12-14T15:05:06.823Z
mootmoot
<p>Certain types of agricultural subsidies are permitted under the WTO's <a href="https://www.wto.org/english/tratop_e/agric_e/agboxes_e.htm" rel="nofollow noreferrer">Green Box</a>. These include direct income support for farmers, and environmental and regional development programmes. However the rules state that, to qualify, such subsidies must be no more than minimally trade-distorting.  Whether such subsidies (in the US and other countries) actually meet that requirement is a matter of controversy, as discussed in this <a href="http://www.ictsd.org/downloads/2012/02/agricultural-subsidies-in-the-wto-green-box-ensuring-coherence-with-sustainable-development-goals.pdf" rel="nofollow noreferrer">ICTSD Information Note</a> which also shows (in Figure 1) the very high Green Box proportion of US subsidies.  </p>

CC BY-SA 3.0
2016-12-14T12:00:10.787Z
2016-12-14T12:00:10.787Z
Adam Bailey
<p>The WTO explicitly prohibits subsidies on export goods to prevent dumping and market distortion but the United States spends <code>$2.4</code> Billion annually on corn subsidies and has a trade surplus of <code>$19.5</code> billion in agricultural goods. </p>

<p>How does this subsidy not constitute dumping under the WTO guidelines?</p>

<subsidies><international-trade>
How does the U.S agriculture subsidy not constitute export subsidies under the WTO?
TheSaint321
# How does the U.S agriculture subsidy not constitute export subsidies under the WTO?

(Asked by: username_0 on 2016-12-13)

The WTO explicitly prohibits subsidies on export goods to prevent dumping and market distortion but the United States spends `$2.4` Billion annually on corn subsidies and has a trade surplus of `$19.5` billion in agricultural goods.

How does this subsidy not constitute dumping under the WTO guidelines?

**Tags:** subsidies, international-trade


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## 2 answers

### Answer by username_2 on 2016-12-14. Score: 3 | Accepted answer

Certain types of agricultural subsidies are permitted under the WTO's [Green Box](https://www.wto.org/english/tratop_e/agric_e/agboxes_e.htm). These include direct income support for farmers, and environmental and regional development programmes. However the rules state that, to qualify, such subsidies must be no more than minimally trade-distorting. Whether such subsidies (in the US and other countries) actually meet that requirement is a matter of controversy, as discussed in this [ICTSD Information Note](http://www.ictsd.org/downloads/2012/02/agricultural-subsidies-in-the-wto-green-box-ensuring-coherence-with-sustainable-development-goals.pdf) which also shows (in Figure 1) the very high Green Box proportion of US subsidies.


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### Answer by username_1 on 2016-12-14. Score: 0

This is a sociology issues than WTO may solved. It is impossible to level the trade playing ground in culture, especially with the ambigous term such as "minimally trade-distorting".

E.g.

* Machinery, fertilizer mostly produce in rich nations, thus make it
  cheaper, even without subsidies.
* Corporation from rich country may take a localised diversified animal/crops genes , then charged the research outcome back on the poor country without compensation on the origin.
* Agricultural Research grants from government is also a form of subsidies. Should the research lead to a lead on overall production.
* crops gene that "borrow" from poor country that do diversified crop planting rarely compensated.

[Details of WTO agriculture agreement are available in this link](https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm3_e.htm)


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