Rice Subsidy Continues to Exceed Limits

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.

Thursday, March 22, 2012

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 Nacion.com.

A WTO spokesman told the EFE news agency in Geneva that the Central American country continues to exceed the agreed ceiling of domestic support (AMS, or aggregate measure of support) with trade distorting effects. In 2010, the entire Costa Rican AMS was for rice, with $109.7 million allocated, despite the commitment of San Jose to set a limit for the support of $15.95 million.

The WTO spokesman said that several countries such as the USA, Pakistan, Australia and Japan have expressed concern about the fact that a year and a half after the alert on this situation, Costa Rica has done nothing, nor has it provided any new information.

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More on this topic

Costa Rica Continues to Exceed Rice Subsidy

June 2012

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

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)".

Objection to Rice Subsidy in Costa Rica Increases

June 2011

This time it was U.S. representatives who in a bilateral meeting expressed their anger to their Costa Rican counterparts over the excessive subsidy to rice farmers.

In 2010 $109 million was awarded in subsidies to the rice sector, a figure that exceeds by 700% the limit established in the Agreement on Agriculture by WTO.

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WTO members launched a new campaign against the country due to its subsidies to rice production.

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Costa Rica agreed not to exceed $ 15.5 million a year in subsidies and in the year 2010 it has gone over $ 100 million.

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