US, Japan, EU seek to amend rules on farm subsidies

US, Japan & EU have pleaded to WTO to amend the rule on farm subsidies, in the backdrop of the claims of under-reporting of farm subsidies. According to the WTO Agreement on Agriculture, a developing country cannot offer subsidies over 10% of the value of its agricultural production, while the norm is 5% for developed countries. 

“Japan, along with the US and the European Union and other members, co-sponsored at the WTO a proposal on reform of the notification system with a view to enhance transparency,” the official from Japan’s Ministry of Foreign Affairs stated. The proposal, which reportedly asks for a uniform subsidy threshold or a different calculation formula, could hurt countries like India.