Costa Rica Continues to Exceed Rice Subsidy

Concerns persist in the Committee on Agriculture of the WTO about Costa Rica’s breach of its commitments on subsidies.

Thursday, June 21, 2012

A communication from the World Trade Organization (WTO)’s committee on agriculture reads:

Costa Rica continues to exceed the maximum limit to which it had committed on trade distorting domestic support (ADS or "Aggregate Domestic Support)". The ADS is one of the more distorting types of domestic support, as it raises domestic prices and stimulates production. This type of support is sometimes called "amber box".

According to the latest information provided by Costa Rica to the WTO (G/AG/N/CRI/34 document of June 11, 2011), the Amber Box, designated entirely to rice, amounted to 109.7 million in 2010, although the ceiling stands at 15.95 million.

More on this topic

Costa Rica: $104 million in Rice Subsidies in 2011

May 2012

In the last 5 years the pricing system in force has transferred more than $390 million from the pockets of consumers to rice producers.

A statement of the Ministry of Commerce reads:

Rice sector subsidies in excess of $100 million for the second year

San Jose, May 8th, 2012.

Rice Subsidy Continues to Exceed Limits

March 2012

The Government of Costa Rica admits that the rice growers will continue to receive support much higher than that allowed by the World Trade Organization.

Costa Rica does not have a defined end date for the high subsidies for rice and reducing them to the level allowed by the WTO, reported

Rice Subsidy Distorts Production in Costa Rica

June 2011

The amount of subsidy in 2010 was $109 million, 7 times greater than that authorized by the WTO, and has led to an increase in planted areas.

The Ministry of Foreign Trade in Costa Rica has released a statement which noted:

“Costa Ricans pay the fourth highest price for rice in the world.

Pressure Piles On Costa Rica to Remove Rice Subsidies

April 2011

The country presented its new national rice policy before the World Trade Organization.

It aims to address competitiveness issues and to solve the lack of compliance with international regulations on domestic agricultural subsidies.

Although this new strategy was welcomed at the WTO, many countries believe it is not enough, especially because the country has not specified a date to remove the subsidy mechanism.

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