AGREEMENT ON AGRICULTURE
Members,
Having decided
to establish a basis for initiating a process of reform of trade in agriculture
in line with the objectives of the negotiations as set out in the Punta del
Este Declaration;
Recalling that
their long-term objective as agreed at the Mid-Term Review of the Uruguay Round
"is to establish a fair and market-oriented agricultural trading system
and that a reform process should be initiated through the negotiation of
commitments on support and protection and through the establishment of
strengthened and more operationally effective GATT rules and disciplines";
Recalling
further that "the above-mentioned long-term objective is to provide for
substantial progressive reductions in agricultural support and protection
sustained over an agreed period of time, resulting in correcting and preventing
restrictions and distortions in world agricultural markets";
Committed to
achieving specific binding commitments in each of the following areas: market access; domestic support; export competition; and to reaching an agreement on sanitary and
phytosanitary issues;
Having agreed
that in implementing their commitments on market access, developed country
Members would take fully into account the particular needs and conditions of
developing country Members by providing for a greater improvement of
opportunities and terms of access for agricultural products of particular
interest to these Members, including the fullest liberalization of trade in
tropical agricultural products as agreed at the Mid-Term Review, and for
products of particular importance to the diversification of production from the
growing of illicit narcotic crops;
Noting that
commitments under the reform programme should be made in an equitable way among
all Members, having regard to non-trade concerns, including food security and
the need to protect the environment;
having regard to the agreement that special and differential treatment
for developing countries is an integral element of the negotiations, and taking
into account the possible negative effects of the implementation of the reform
programme on least-developed and net
food-importing developing countries;
Hereby agree as
follows:
Part I
Article 1
Definition of Terms
In this Agreement, unless the context otherwise requires:
(a) "Aggregate
Measurement of Support" and "AMS" mean the annual level of
support, expressed in monetary terms, provided for an agricultural product in
favour of the producers of the basic agricultural product or non-product-specific
support provided in favour of agricultural producers in general, other than
support provided under programmes that qualify as exempt from reduction under
Annex 2 to this Agreement, which is:
(i) with
respect to support provided during the base period, specified in the relevant
tables of supporting material incorporated by reference in Part IV of a
Member's Schedule; and
(ii) with
respect to support provided during any year of the implementation period and
thereafter, calculated in accordance with the provisions of Annex 3 of this
Agreement and taking into account the constituent data and methodology used in
the tables of supporting material incorporated by reference in Part IV of the
Member's Schedule;
(b) "basic
agricultural product" in relation to domestic support commitments is
defined as the product as close as practicable to the point of first sale as
specified in a Member's Schedule and in the related supporting material;
(c) "budgetary outlays" or
"outlays" includes revenue foregone;
(d) "Equivalent
Measurement of Support" means the annual level of support, expressed in
monetary terms, provided to producers of a basic agricultural product through
the application of one or more measures, the calculation of which in accordance
with the AMS methodology is impracticable, other than support provided under
programmes that qualify as exempt from reduction under Annex 2 to this
Agreement, and which is:
(i) with
respect to support provided during the base period, specified in the relevant
tables of supporting material incorporated by reference in Part IV of a
Member's Schedule; and
(ii) with
respect to support provided during any year of the implementation period and
thereafter, calculated in accordance with the provisions of Annex 4 of this
Agreement and taking into account the constituent data and methodology used in
the tables of supporting material incorporated by reference in Part IV of the
Member's Schedule;
(e) "export
subsidies" refers to subsidies contingent upon export performance,
including the export subsidies listed in Article 9 of this Agreement;
(f) "implementation
period" means the six-year period commencing in the year 1995, except
that, for the purposes of Article 13, it means the nine-year period commencing
in 1995;
(g) "market
access concessions" includes all market access commitments undertaken
pursuant to this Agreement;
(h) "Total Aggregate Measurement of
Support" and "Total AMS" mean the sum of all domestic support
provided in favour of agricultural producers, calculated as the sum of all
aggregate measurements of support for basic agricultural products, all
non-product-specific aggregate measurements of support and all equivalent
measurements of support for agricultural
products, and which is:
(i) with
respect to support provided during the base period (i.e. the "Base Total
AMS") and the maximum support permitted to be provided during any year of
the implementation period or thereafter (i.e. the "Annual and Final Bound
Commitment Levels"), as specified in Part IV of a Member's Schedule; and
(ii) with
respect to the level of support actually provided during any year of the
implementation period and thereafter (i.e.
the "Current Total AMS"), calculated in accordance with the
provisions of this Agreement, including Article 6, and with the
constituent data and methodology used in the tables of supporting material
incorporated by reference in Part IV of the Member's Schedule;
(i) "year"
in paragraph (f) above and in relation to the specific commitments of a Member
refers to the calendar, financial or marketing year specified in the Schedule
relating to that Member.
Article 2
Product Coverage
This Agreement applies to the products listed in Annex 1
to this Agreement, hereinafter referred to as agricultural products.
Part II
Article 3
Incorporation of Concessions and
Commitments
1. The domestic support and export subsidy
commitments in Part IV of each Member's Schedule constitute commitments
limiting subsidization and are hereby made an integral part of GATT 1994.
2. Subject to the provisions of
Article 6, a Member shall not provide support in favour of domestic
producers in excess of the commitment levels specified in Section I of
Part IV of its Schedule.
3. Subject to the provisions of paragraphs
2(b) and 4 of Article 9, a Member shall not provide export subsidies
listed in paragraph 1 of Article 9 in respect of the agricultural
products or groups of products specified in Section II of Part IV of
its Schedule in excess of the budgetary outlay and quantity commitment levels
specified therein and shall not provide such subsidies in respect of any
agricultural product not specified in that Section of its Schedule.
Part III
Article 4
Market Access
1. Market access concessions contained in
Schedules relate to bindings and reductions of tariffs, and to other market
access commitments as specified therein.
2. Members shall not maintain, resort to,
or revert to any measures of the kind which have been required to be converted
into ordinary customs duties[1], except as otherwise
provided for in Article 5 and Annex 5.
Article 5
Special Safeguard Provisions
1. Notwithstanding the provisions of
paragraph 1(b) of Article II of GATT 1994, any Member may take recourse to the
provisions of paragraphs 4 and 5 below in connection with the importation of an
agricultural product, in respect of which measures referred to in paragraph 2
of Article 4 of this Agreement have been converted into an ordinary customs
duty and which is designated in its Schedule with the symbol "SSG" as
being the subject of a concession in respect of which the provisions of this
Article may be invoked, if:
(a) the
volume of imports of that product entering the customs territory of the Member
granting the concession during any year exceeds a trigger level which relates
to the existing market access opportunity as set out in paragraph 4; or, but not concurrently:
(b) the
price at which imports of that product may enter the customs territory of the
Member granting the concession, as determined on the basis of the c.i.f. import
price of the shipment concerned expressed in terms of its domestic currency,
falls below a trigger price equal to the average 1986 to 1988 reference price[2] for the product concerned.
2. Imports under current and minimum access
commitments established as part of a concession referred to in paragraph 1
above shall be counted for the purpose of determining the volume of imports
required for invoking the provisions of subparagraph 1(a) and paragraph 4, but
imports under such commitments shall not be affected by any additional duty
imposed under either subparagraph 1(a) and paragraph 4 or subparagraph 1(b) and
paragraph 5 below.
3. Any supplies of the product in question
which were en route on the basis of a
contract settled before the additional duty is imposed under subparagraph 1(a)
and paragraph 4 shall be exempted from any such additional duty, provided that
they may be counted in the volume of imports of the product in question during
the following year for the purposes of triggering the provisions of
subparagraph 1(a) in that year.
4. Any additional duty imposed under
subparagraph 1(a) shall only be maintained until the end of the year in
which it has been imposed, and may only be levied at a level which shall not
exceed one third of the level of the ordinary customs duty in effect in
the year in which the action is taken.
The trigger level shall be set according to the following schedule based
on market access opportunities defined as imports as a percentage of the corresponding
domestic consumption[3] during the three preceding
years for which data are available:
(a) where
such market access opportunities for a product are less than or equal to
10 per cent, the base trigger level shall equal 125 per cent;
(b) where
such market access opportunities for a product are greater than 10 per
cent but less than or equal to 30 per cent, the base trigger level shall
equal 110 per cent;
(c) where
such market access opportunities for a product are greater than 30 per cent,
the base trigger level shall equal 105 per cent.
In all cases the additional duty may be imposed in any
year where the absolute volume of imports of the product concerned entering the
customs territory of the Member granting the concession exceeds the sum of (x) the base trigger level set out above
multiplied by the average quantity of imports during the three preceding years
for which data are available and (y)
the absolute volume change in domestic consumption of the product concerned in
the most recent year for which data are available compared to the preceding
year, provided that the trigger level shall not be less than
105 per cent of the average quantity of imports in (x) above.
5. The additional duty imposed under
subparagraph 1(b) shall be set according to the following schedule:
(a) if
the difference between the c.i.f. import price of the shipment expressed in
terms of the domestic currency (hereinafter referred to as the "import
price") and the trigger price as defined under that subparagraph is less than
or equal to 10 per cent of the trigger price, no additional duty shall be
imposed;
(b) if
the difference between the import price and the trigger price (hereinafter
referred to as the "difference") is greater than
10 per cent but less than or equal to 40 per cent of the
trigger price, the additional duty shall equal 30 per cent of the amount by
which the difference exceeds 10 per cent;
(c) if
the difference is greater than 40 per cent but less than or equal to
60 per cent of the trigger price, the additional duty shall equal
50 per cent of the amount by which the difference exceeds
40 per cent, plus the additional duty allowed under (b);
(d) if
the difference is greater than 60 per cent but less than or equal to 75
per cent, the additional duty shall equal 70 per cent of the amount
by which the difference exceeds 60 per cent of the trigger price,
plus the additional duties allowed under (b) and (c);
(e) if
the difference is greater than 75 per cent of the trigger price, the
additional duty shall equal 90 per cent of the amount by which the
difference exceeds 75 per cent, plus the additional duties allowed
under (b), (c) and (d).
6. For perishable and seasonal products,
the conditions set out above shall be applied in such a manner as to take
account of the specific characteristics of such products. In particular, shorter time periods under
subparagraph 1(a) and paragraph 4 may be used in reference to the corresponding
periods in the base period and different reference prices for different periods
may be used under subparagraph 1(b).
7. The operation of the special safeguard
shall be carried out in a transparent manner.
Any Member taking action under subparagraph 1(a) above shall give
notice in writing, including relevant data, to the Committee on Agriculture as
far in advance as may be practicable and in any event within 10 days of the
implementation of such action. In cases
where changes in consumption volumes must be allocated to individual tariff
lines subject to action under paragraph 4, relevant data shall include the
information and methods used to allocate these changes. A Member taking action under paragraph 4
shall afford any interested Members the opportunity to consult with it in
respect of the conditions of application of such action. Any Member taking action under subparagraph
1(b) above shall give notice in writing, including relevant data, to the
Committee on Agriculture within 10 days of the implementation of the first
such action or, for perishable and seasonal products, the first action in any
period. Members undertake, as far as
practicable, not to take recourse to the provisions of subparagraph 1(b)
where the volume of imports of the products concerned are declining. In either case a Member taking such action
shall afford any interested Members the opportunity to consult with it in
respect of the conditions of application of such action.
8. Where measures are taken in conformity
with paragraphs 1 through 7 above, Members undertake not to have recourse,
in respect of such measures, to the provisions of paragraphs 1(a) and 3 of
Article XIX of GATT 1994 or paragraph 2 of Article 8 of the Agreement on
Safeguards.
9. The provisions of this Article shall
remain in force for the duration of the reform process as determined under
Article 20.
Part IV
Article 6
Domestic Support Commitments
1. The domestic support reduction
commitments of each Member contained in Part IV of its Schedule shall apply to
all of its domestic support measures in favour of agricultural producers with
the exception of domestic measures which are not subject to reduction in terms
of the criteria set out in this Article and in Annex 2 to this
Agreement. The commitments are expressed
in terms of Total Aggregate Measurement of Support and "Annual and Final
Bound Commitment Levels".
2. In accordance with the Mid-Term Review
Agreement that government measures of assistance, whether direct or indirect,
to encourage agricultural and rural development are an integral part of the
development programmes of developing countries, investment subsidies which are
generally available to agriculture in developing country Members and
agricultural input subsidies generally available to low-income or resource-poor
producers in developing country Members shall be exempt from domestic support
reduction commitments that would otherwise be applicable to such measures, as
shall domestic support to producers in developing country Members to encourage
diversification from growing illicit narcotic crops. Domestic support meeting the criteria of this
paragraph shall not be required to be included in a Member's calculation of its
Current Total AMS.
3. A Member shall be considered to be in
compliance with its domestic support reduction commitments in any year in which
its domestic support in favour of agricultural producers expressed in terms of
Current Total AMS does not exceed the corresponding annual or final bound
commitment level specified in Part IV of the Member's Schedule.
4. (a) A Member shall not be required to
include in the calculation of its Current Total AMS and shall not be required
to reduce:
(i) product-specific
domestic support which would otherwise
be required to be included in a Member's calculation of its Current AMS where
such support does not exceed 5 per cent of that Member's total value
of production of a basic agricultural product during the relevant year; and
(ii) non-product-specific
domestic support which would otherwise be required to be included in a Member's
calculation of its Current AMS where such support does not exceed
5 per cent of the value of that Member's total agricultural
production.
(b) For
developing country Members, the de
minimis percentage under this paragraph shall be 10 per cent.
5. (a) Direct payments under
production-limiting programmes shall not be subject to the commitment to reduce
domestic support if:
(i) such
payments are based on fixed area and yields;
or
(ii) such
payments are made on 85 per cent or less of the base level of
production; or
(iii) livestock
payments are made on a fixed number of head.
(b) The
exemption from the reduction commitment for direct payments meeting the above
criteria shall be reflected by the exclusion of the value of those direct
payments in a Member's calculation of its Current Total AMS.
Article 7
General Disciplines on Domestic
Support
1. Each Member shall ensure that any
domestic support measures in favour of agricultural producers which are not
subject to reduction commitments because they qualify under the criteria set
out in Annex 2 to this Agreement are maintained in conformity therewith.
2. (a) Any domestic support measure in favour
of agricultural producers, including any modification to such measure, and any
measure that is subsequently introduced that cannot be shown to satisfy the criteria
in Annex 2 to this Agreement or to be exempt from reduction by reason of
any other provision of this Agreement shall be included in the Member's
calculation of its Current Total AMS.
(b) Where
no Total AMS commitment exists in Part IV of a Member's Schedule, the Member
shall not provide support to agricultural producers in excess of the relevant de minimis level set out in paragraph 4
of Article 6.
Part V
Article 8
Export Competition Commitments
Each Member undertakes not to provide export subsidies
otherwise than in conformity with this Agreement and with the commitments as
specified in that Member's Schedule.
Article 9
Export Subsidy Commitments
1. The following export subsidies are
subject to reduction commitments under this Agreement:
(a) the
provision by governments or their agencies of direct subsidies, including
payments-in-kind, to a firm, to an industry, to producers of an agricultural
product, to a cooperative or other association of such producers, or to a
marketing board, contingent on export performance;
(b) the
sale or disposal for export by governments or their agencies of non-commercial
stocks of agricultural products at a price lower than the comparable price
charged for the like product to buyers in the domestic market;
(c) payments
on the export of an agricultural product that are financed by virtue of
governmental action, whether or not a charge on the public account is involved,
including payments that are financed from the proceeds of a levy imposed on the
agricultural product concerned or on an agricultural product from which the
exported product is derived;
(d) the
provision of subsidies to reduce the costs of marketing exports of agricultural
products (other than widely available export promotion and advisory services)
including handling, upgrading and other processing costs, and the costs of
international transport and freight;
(e) internal
transport and freight charges on export shipments, provided or mandated by
governments, on terms more favourable than for domestic shipments;
(f) subsidies
on agricultural products contingent on their incorporation in exported
products.
2. (a) Except as provided in subparagraph (b),
the export subsidy commitment levels for each year of the implementation
period, as specified in a Member's Schedule, represent with respect to the
export subsidies listed in paragraph 1 of this Article:
(i) in
the case of budgetary outlay reduction commitments, the maximum level of
expenditure for such subsidies that may be allocated or incurred in that year
in respect of the agricultural product, or group of products, concerned; and
(ii) in
the case of export quantity reduction commitments, the maximum quantity of an
agricultural product, or group of products, in respect of which such export subsidies
may be granted in that year.
(b) In
any of the second through fifth years of the implementation period, a Member
may provide export subsidies listed in paragraph 1 above in a given year in
excess of the corresponding annual commitment levels in respect of the products
or groups of products specified in Part IV of the Member's Schedule, provided
that:
(i) the
cumulative amounts of budgetary outlays for such subsidies, from the beginning
of the implementation period through the year in question, does not exceed the
cumulative amounts that would have resulted from full compliance with the
relevant annual outlay commitment levels specified in the Member's Schedule by
more than 3 per cent of the base period level of such budgetary outlays;
(ii) the
cumulative quantities exported with the benefit of such export subsidies, from
the beginning of the implementation period through the year in question, does
not exceed the cumulative quantities that would have resulted from full
compliance with the relevant annual quantity commitment levels specified in the
Member's Schedule by more than 1.75 per cent of the base period quantities;
(iii) the
total cumulative amounts of budgetary outlays for such export subsidies and the
quantities benefiting from such export subsidies over the entire implementation
period are no greater than the totals that would have resulted from full
compliance with the relevant annual commitment levels specified in the Member's
Schedule; and
(iv) the
Member's budgetary outlays for export subsidies and the quantities benefiting
from such subsidies, at the conclusion of the implementation period, are no
greater than 64 per cent and 79 per cent of the 1986-1990
base period levels, respectively. For
developing country Members these percentages shall be 76 and 86 per cent,
respectively.
3. Commitments relating to limitations on
the extension of the scope of export subsidization are as specified in
Schedules.
4. During the implementation period,
developing country Members shall not be required to undertake commitments in
respect of the export subsidies listed in subparagraphs (d) and (e) of
paragraph 1 above, provided that these are not applied in a manner that would
circumvent reduction commitments.
Article 10
Prevention of Circumvention of Export Subsidy Commitments
1. Export subsidies not listed in
paragraph 1 of Article 9 shall not be applied in a manner which
results in, or which threatens to lead to, circumvention of export subsidy
commitments; nor shall non-commercial transactions be used to circumvent such
commitments.
2. Members undertake to work toward the
development of internationally agreed disciplines to govern the provision of
export credits, export credit guarantees or insurance programmes and, after
agreement on such disciplines, to provide export credits, export credit
guarantees or insurance programmes only in conformity therewith.
3. Any Member which claims that any
quantity exported in excess of a reduction commitment level is not subsidized
must establish that no export subsidy, whether listed in Article 9 or not,
has been granted in respect of the quantity of exports in question.
4. Members donors of international food
aid shall ensure:
(a) that
the provision of international food aid is not tied directly or indirectly to
commercial exports of agricultural products to recipient countries;
(b) that
international food aid transactions, including bilateral food aid which is
monetized, shall be carried out in accordance with the FAO "Principles of
Surplus Disposal and Consultative Obligations", including, where
appropriate, the system of Usual Marketing Requirements (UMRs); and
(c) that
such aid shall be provided to the extent possible in fully grant form or on
terms no less concessional than those provided for in Article IV of the Food
Aid Convention 1986.
Article 11
Incorporated Products
In no case may the per-unit subsidy paid on an
incorporated agricultural primary product exceed the per-unit export subsidy
that would be payable on exports of the primary product as such.
Part VI
Article 12
Disciplines on Export Prohibitions
and Restrictions
1. Where any Member institutes any new
export prohibition or restriction on foodstuffs in accordance with
paragraph 2(a) of Article XI of GATT 1994, the Member shall observe
the following provisions:
(a) the
Member instituting the export prohibition or restriction shall give due
consideration to the effects of such prohibition or restriction on importing
Members' food security;
(b) before
any Member institutes an export prohibition or restriction, it shall give
notice in writing, as far in advance as practicable, to the Committee on
Agriculture comprising such information as the nature and the duration of such
measure, and shall consult, upon
request, with any other Member having a substantial interest as an importer
with respect to any matter related to the measure in question. The Member instituting such export
prohibition or restriction shall provide, upon request, such a Member with
necessary information.
2. The provisions of this Article shall
not apply to any developing country Member, unless the measure is taken by a
developing country Member which is a net-food exporter of the specific
foodstuff concerned.
Part VII
Article 13
Due Restraint
During the implementation period, notwithstanding the
provisions of GATT 1994 and the Agreement on Subsidies and Countervailing
Measures (referred to in this Article as the "Subsidies Agreement"):
(a) domestic support measures that conform
fully to the provisions of Annex 2 to this Agreement shall be:
(i) non-actionable
subsidies for purposes of countervailing duties[4];
(ii) exempt
from actions based on Article XVI of GATT 1994 and Part III of the
Subsidies Agreement; and
(iii) exempt
from actions based on non-violation nullification or impairment of the benefits
of tariff concessions accruing to another Member under Article II of GATT 1994,
in the sense of paragraph 1(b) of
Article XXIII of GATT 1994;
(b) domestic support measures that conform
fully to the provisions of Article 6 of this Agreement including direct
payments that conform to the requirements of paragraph 5 thereof, as reflected
in each Member's Schedule, as well as domestic support within de minimis levels and in conformity with
paragraph 2 of Article 6, shall be:
(i) exempt
from the imposition of countervailing duties unless a determination of injury
or threat thereof is made in accordance with Article VI of GATT 1994 and
Part V of the Subsidies Agreement, and due restraint shall be shown in
initiating any countervailing duty investigations;
(ii) exempt
from actions based on paragraph 1 of Article XVI of GATT 1994 or
Articles 5 and 6 of the Subsidies Agreement, provided that such
measures do not grant support to a specific commodity in excess of that decided
during the 1992 marketing year; and
(iii) exempt
from actions based on non-violation nullification or impairment of the benefits
of tariff concessions accruing to another Member under Article II of GATT 1994,
in the sense of paragraph 1(b) of Article XXIII of GATT 1994,
provided that such measures do not grant support to a specific commodity in
excess of that decided during the 1992 marketing year;
(c) export subsidies that conform fully to
the provisions of Part V of this Agreement, as reflected in each Member's
Schedule, shall be:
(i) subject
to countervailing duties only upon a determination of injury or threat thereof
based on volume, effect on prices, or consequent impact in accordance with
Article VI of GATT 1994 and Part V of the Subsidies Agreement, and
due restraint shall be shown in initiating any countervailing duty
investigations; and
(ii) exempt
from actions based on Article XVI of GATT 1994 or Articles 3, 5 and 6
of the Subsidies Agreement.
Part VIII
Article 14
Sanitary and Phytosanitary
Measures
Members agree to give effect to the Agreement on the
Application of Sanitary and Phytosanitary Measures.
Part IX
Article 15
Special and Differential Treatment
1. In keeping with the recognition that
differential and more favourable treatment for developing country Members is an
integral part of the negotiation, special and differential treatment in respect
of commitments shall be provided as set out in the relevant provisions of this
Agreement and embodied in the Schedules of concessions and commitments.
2. Developing country Members shall have
the flexibility to implement reduction commitments over a period of up to
10 years. Least-developed country
Members shall not be required to undertake reduction commitments.
Part X
Article 16
Least-Developed and Net
Food-Importing Developing Countries
1. Developed country Members shall take
such action as is provided for within the framework of the Decision on Measures
Concerning the Possible Negative Effects of the Reform Programme on
Least-Developed and Net Food-Importing Developing Countries.
2. The Committee on Agriculture shall
monitor, as appropriate, the follow-up to this Decision.
Part XI
Article 17
Committee on Agriculture
A Committee on Agriculture is hereby established.
Article 18
Review of the Implementation of
Commitments
1. Progress in the implementation of
commitments negotiated under the Uruguay Round reform programme shall be
reviewed by the Committee on Agriculture.
2. The review process shall be undertaken
on the basis of notifications submitted by Members in relation to such matters
and at such intervals as shall be determined, as well as on the basis of such
documentation as the Secretariat may be requested to prepare in order to
facilitate the review process.
3. In addition to the notifications to be
submitted under paragraph 2, any new domestic support measure, or
modification of an existing measure, for which exemption from reduction is
claimed shall be notified promptly. This
notification shall contain details of the new or modified measure and its
conformity with the agreed criteria as set out either in Article 6 or in
Annex 2.
4. In the review process Members shall
give due consideration to the influence of excessive rates of inflation on the
ability of any Member to abide by its domestic support commitments.
5. Members agree to consult annually in
the Committee on Agriculture with respect to their participation in the normal
growth of world trade in agricultural products within the framework of the
commitments on export subsidies under this Agreement.
6. The review process shall provide an
opportunity for Members to raise any matter relevant to the implementation of
commitments under the reform programme as set out in this Agreement.
7. Any Member may bring to the attention
of the Committee on Agriculture any measure which it considers ought to have
been notified by another Member.
Article 19
Consultation and Dispute
Settlement
The provisions of Articles XXII and XXIII of
GATT 1994, as elaborated and applied by the Dispute Settlement
Understanding, shall apply to consultations and the settlement of disputes
under this Agreement.
Part XII
Article 20
Continuation of the Reform Process
Recognizing that the long-term objective of substantial
progressive reductions in support and protection resulting in fundamental
reform is an ongoing process, Members agree that negotiations for continuing
the process will be initiated one year before the end of the implementation
period, taking into account:
(a) the
experience to that date from implementing the reduction commitments;
(b) the
effects of the reduction commitments on world trade in agriculture;
(c) non-trade
concerns, special and differential treatment to developing country Members, and
the objective to establish a fair and market-oriented agricultural trading
system, and the other objectives and concerns mentioned in the preamble to this
Agreement; and
(d) what
further commitments are necessary to achieve the above mentioned long-term
objectives.
Part XIII
Article 21
Final Provisions
1. The provisions of GATT 1994 and of
other Multilateral Trade Agreements in Annex 1A to the WTO Agreement shall
apply subject to the provisions of this Agreement.
2. The Annexes to this Agreement are
hereby made an integral part of this Agreement.
ANNEX 1
PRODUCT COVERAGE
1. This Agreement shall cover the
following products:
(i)
|
HS Chapters 1 to 24
less fish and fish products, plus*
|
||
(ii)
|
HS Code
|
2905.43
|
(mannitol)
|
|
HS Code
|
2905.44
|
(sorbitol)
|
|
HS Heading
|
33.01
|
(essential oils)
|
|
HS Headings
|
35.01 to 35.05
|
(albuminoidal
substances, modified starches, glues)
|
|
HS Code
|
3809.10
|
(finishing agents)
|
|
HS Code
|
3823.60
|
(sorbitol n.e.p.)
|
|
HS Headings
|
41.01 to 41.03
|
(hides and skins)
|
|
HS Heading
|
43.01
|
(raw furskins)
|
|
HS Headings
|
50.01 to 50.03
|
(raw silk and silk
waste)
|
|
HS Headings
|
51.01 to 51.03
|
(wool and animal
hair)
|
|
HS Headings
|
52.01 to 52.03
|
(raw cotton, waste
and cotton carded or combed)
|
|
HS Heading
|
53.01
|
(raw flax)
|
|
HS Heading
|
53.02
|
(raw hemp)
|
2. The foregoing shall not limit the
product coverage of the Agreement on the Application of Sanitary and
Phytosanitary Measures.
*The product
descriptions in round brackets are not necessarily exhaustive.
ANNEX 2
DOMESTIC SUPPORT:
THE BASIS FOR EXEMPTION FROM
THE REDUCTION COMMITMENTS
1. Domestic support measures for which
exemption from the reduction commitments is claimed shall meet the fundamental
requirement that they have no, or at most minimal, trade-distorting effects or
effects on production. Accordingly, all
measures for which exemption is claimed shall conform to the following basic
criteria:
(a) the
support in question shall be provided through a publicly-funded government
programme (including government revenue foregone) not involving transfers from
consumers; and,
(b) the
support in question shall not have the effect of providing price support to
producers;
plus policy-specific
criteria and conditions as set out below.
Government Service Programmes
2. General services
Policies in this category involve expenditures (or
revenue foregone) in relation to programmes which provide services or benefits
to agriculture or the rural community.
They shall not involve direct payments to producers or processors. Such programmes, which include but are not
restricted to the following list, shall meet the general criteria in paragraph
1 above and policy-specific conditions where set out below:
(a) research,
including general research, research in connection with environmental programmes,
and research programmes relating to particular products;
(b) pest
and disease control, including general and product-specific pest and disease
control measures, such as early-warning systems, quarantine and eradication;
(c) training
services, including both general and specialist training facilities;
(d) extension
and advisory services, including the provision of means to facilitate the
transfer of information and the results of research to producers and consumers;
(e) inspection
services, including general inspection services and the inspection of
particular products for health, safety, grading or standardization purposes;
(f) marketing
and promotion services, including market information, advice and promotion
relating to particular products but excluding expenditure for unspecified
purposes that could be used by sellers to reduce their selling price or confer
a direct economic benefit to purchasers; and
(g) infrastructural
services, including: electricity reticulation, roads and other means of transport,
market and port facilities, water supply facilities, dams and drainage schemes,
and infrastructural works associated with environmental programmes. In all cases the expenditure shall be
directed to the provision or construction of capital works only, and shall
exclude the subsidized provision of on-farm facilities other than for the
reticulation of generally available public utilities. It shall not include subsidies to inputs or
operating costs, or preferential user charges.
3. Public stockholding for food security
purposes[5]
Expenditures (or revenue foregone) in relation to the
accumulation and holding of stocks of products which form an integral part of a
food security programme identified in national legislation. This may include government aid to private
storage of products as part of such a programme.
The volume and accumulation of such stocks shall correspond to
predetermined targets related solely to food security. The process of stock accumulation and
disposal shall be financially transparent.
Food purchases by the government shall be made at current market prices
and sales from food security stocks shall be made at no less than the current
domestic market price for the product and quality in question.
4. Domestic food aid[6]
Expenditures (or revenue foregone) in relation to the
provision of domestic food aid to sections of the population in need.
Eligibility to receive the food aid shall be subject to clearly-defined
criteria related to nutritional objectives.
Such aid shall be in the form of direct provision of food to those
concerned or the provision of means to allow eligible recipients to buy food
either at market or at subsidized prices.
Food purchases by the government shall be made at current market prices
and the financing and administration of the aid shall be transparent.
5. Direct payments to producers
Support provided through direct payments (or revenue
foregone, including payments in kind) to producers for which exemption from
reduction commitments is claimed shall meet the basic criteria set out in
paragraph 1 above, plus specific criteria applying to individual types of
direct payment as set out in paragraphs 6 through 13 below. Where exemption from reduction is claimed for
any existing or new type of direct payment other than those specified in
paragraphs 6 through 13, it shall conform to criteria (b) through (e)
in paragraph 6, in addition to the general criteria set out in paragraph
1.
6. Decoupled income support
(a) Eligibility
for such payments shall be determined by clearly-defined criteria such as
income, status as a producer or landowner, factor use or production level in a
defined and fixed base period.
(b) The
amount of such payments in any given year shall not be related to, or based on,
the type or volume of production (including livestock units) undertaken by the
producer in any year after the base period.
(c) The
amount of such payments in any given year shall not be related to, or based on,
the prices, domestic or international, applying to any production undertaken in
any year after the base period.
(d) The
amount of such payments in any given year shall not be related to, or based on,
the factors of production employed in any year after the base period.
(e) No production shall be required in order
to receive such payments.
7. Government financial participation in
income insurance and income safety-net programmes
(a) Eligibility
for such payments shall be determined by an income loss, taking into account
only income derived from agriculture, which exceeds 30 per cent of average
gross income or the equivalent in net income terms (excluding any payments from
the same or similar schemes) in the preceding three-year period or a three-year
average based on the preceding five-year period, excluding the highest and the
lowest entry. Any producer meeting this
condition shall be eligible to receive the payments.
(b) The
amount of such payments shall compensate for less than 70 per cent of the
producer's income loss in the year the producer becomes eligible to receive
this assistance.
(c) The
amount of any such payments shall relate solely to income; it shall not relate to the type or volume of
production (including livestock units) undertaken by the producer; or to the prices, domestic or international,
applying to such production; or to the factors of production employed.
(d) Where
a producer receives in the same year payments under this paragraph and under
paragraph 8 (relief from natural disasters), the total of such payments
shall be less than 100 per cent of the producer's total loss.
8. Payments
(made either directly or by way of government financial participation in crop
insurance schemes) for relief from natural disasters
(a) Eligibility
for such payments shall arise only following a formal recognition by government
authorities that a natural or like disaster (including disease outbreaks, pest
infestations, nuclear accidents, and war on the territory of the Member
concerned) has occurred or is occurring;
and shall be determined by a production loss which exceeds 30 per
cent of the average of production in the preceding three-year period or a
three-year average based on the preceding five-year period, excluding the
highest and the lowest entry.
(b) Payments
made following a disaster shall be applied only in respect of losses of income,
livestock (including payments in connection with the veterinary treatment of
animals), land or other production factors due to the natural disaster in
question.
(c) Payments
shall compensate for not more than the total cost of replacing such losses and
shall not require or specify the type or quantity of future production.
(d) Payments
made during a disaster shall not exceed the level required to prevent or
alleviate further loss as defined in criterion (b) above.
(e) Where
a producer receives in the same year payments under this paragraph and under
paragraph 7 (income insurance and income safety-net programmes), the total
of such payments shall be less than 100 per cent of the producer's
total loss.
9. Structural adjustment assistance
provided through producer retirement programmes
(a) Eligibility
for such payments shall be determined by reference to clearly defined criteria
in programmes designed to facilitate the retirement of persons engaged in
marketable agricultural production, or their movement to non-agricultural
activities.
(b) Payments
shall be conditional upon the total and permanent retirement of the recipients
from marketable agricultural production.
10. Structural adjustment assistance provided
through resource retirement programmes
(a) Eligibility
for such payments shall be determined by reference to clearly defined criteria
in programmes designed to remove land or other resources, including livestock,
from marketable agricultural production.
(b) Payments
shall be conditional upon the retirement of land from marketable agricultural
production for a minimum of three years, and in the case of livestock on its
slaughter or definitive permanent disposal.
(c) Payments
shall not require or specify any alternative use for such land or other
resources which involves the production of marketable agricultural products.
(d) Payments
shall not be related to either the type or quantity of production or to the
prices, domestic or international, applying to production undertaken using the
land or other resources remaining in production.
11. Structural adjustment assistance provided
through investment aids
(a) Eligibility
for such payments shall be determined by reference to clearly-defined criteria
in government programmes designed to assist the financial or physical
restructuring of a producer's operations in response to objectively
demonstrated structural disadvantages.
Eligibility for such programmes may also be based on a clearly-defined
government programme for the reprivatization of agricultural land.
(b) The
amount of such payments in any given year shall not be related to, or based on,
the type or volume of production (including livestock units) undertaken by the
producer in any year after the base period other than as provided for under
criterion (e) below.
(c) The
amount of such payments in any given year shall not be related to, or based on,
the prices, domestic or international, applying to any production undertaken in
any year after the base period.
(d) The
payments shall be given only for the period of time necessary for the
realization of the investment in respect of which they are provided.
(e) The
payments shall not mandate or in any way designate the agricultural products to
be produced by the recipients except to require them not to produce a
particular product.
(f) The
payments shall be limited to the amount required to compensate for the
structural disadvantage.
12. Payments under environmental programmes
(a) Eligibility
for such payments shall be determined as part of a clearly-defined government
environmental or conservation programme and be dependent on the fulfilment of
specific conditions under the government programme, including conditions
related to production methods or inputs.
(b) The
amount of payment shall be limited to the extra costs or loss of income
involved in complying with the government programme.
13. Payments under regional assistance
programmes
(a) Eligibility
for such payments shall be limited to producers in disadvantaged regions. Each such region must be a clearly designated
contiguous geographical area with a definable economic and administrative
identity, considered as disadvantaged on the basis of neutral and objective
criteria clearly spelt out in law or regulation and indicating that the
region's difficulties arise out of more than temporary circumstances.
(b) The
amount of such payments in any given year shall not be related to, or based on,
the type or volume of production (including livestock units) undertaken by the
producer in any year after the base period other than to reduce that
production.
(c) The
amount of such payments in any given year shall not be related to, or based on,
the prices, domestic or international, applying to any production undertaken in
any year after the base period.
(d) Payments
shall be available only to producers in eligible regions, but generally
available to all producers within such regions.
(e) Where
related to production factors, payments shall be made at a degressive rate
above a threshold level of the factor concerned.
(f) The
payments shall be limited to the extra costs or loss of income involved in
undertaking agricultural production in the prescribed area.
ANNEX 3
DOMESTIC SUPPORT:
CALCULATION OF AGGREGATE MEASUREMENT OF SUPPORT
1. Subject to the provisions of Article 6,
an Aggregate Measurement of Support (AMS) shall be calculated on a
product-specific basis for each basic agricultural product receiving market
price support, non-exempt direct payments, or any other subsidy not exempted
from the reduction commitment ("other non-exempt policies"). Support which is non-product specific shall
be totalled into one non-product-specific AMS in total monetary terms.
2. Subsidies under paragraph 1 shall
include both budgetary outlays and revenue foregone by governments or their
agents.
3. Support at both the national and
sub-national level shall be included.
4. Specific agricultural levies or fees
paid by producers shall be deducted from the AMS.
5. The AMS calculated as outlined below
for the base period shall constitute the base level for the implementation of
the reduction commitment on domestic support.
6. For each basic agricultural product, a
specific AMS shall be established, expressed in total monetary value terms.
7. The AMS shall be calculated as close as
practicable to the point of first sale of the basic agricultural product
concerned. Measures directed at
agricultural processors shall be included to the extent that such measures
benefit the producers of the basic agricultural products.
8. Market price support: market price support shall be calculated
using the gap between a fixed external reference price and the applied
administered price multiplied by the quantity of production eligible to receive
the applied administered price.
Budgetary payments made to maintain this gap, such as buying-in or
storage costs, shall not be included in the AMS.
9. The fixed external reference price
shall be based on the years 1986 to 1988 and shall generally be the average
f.o.b. unit value for the basic agricultural product concerned in a net
exporting country and the average c.i.f. unit value for the basic agricultural
product concerned in a net importing country in the base period. The fixed reference price may be adjusted for
quality differences as necessary.
10. Non-exempt direct payments: non-exempt direct payments which are
dependent on a price gap shall be calculated either using the gap between the
fixed reference price and the applied administered price multiplied by the
quantity of production eligible to receive the administered price, or using
budgetary outlays.
11. The fixed reference price shall be based
on the years 1986 to 1988 and shall generally be the actual price used for
determining payment rates.
12. Non-exempt direct payments which are
based on factors other than price shall be measured using budgetary outlays.
13. Other non-exempt measures, including
input subsidies and other measures such as marketing-cost reduction
measures: the value of such measures
shall be measured using government budgetary outlays or, where the use of
budgetary outlays does not reflect the full extent of the subsidy concerned,
the basis for calculating the subsidy shall be the gap between the price of the
subsidized good or service and a representative market price for a similar good
or service multiplied by the quantity of the good or service.
ANNEX 4
DOMESTIC SUPPORT:
CALCULATION OF EQUIVALENT MEASUREMENT OF SUPPORT
1. Subject to the provisions of Article 6,
equivalent measurements of support shall be calculated in respect of all basic
agricultural products where market price support as defined in Annex 3
exists but for which calculation of this component of the AMS is not
practicable. For such products the base
level for implementation of the domestic support reduction commitments shall
consist of a market price support component expressed in terms of equivalent
measurements of support under paragraph 2 below, as well as any non-exempt
direct payments and other non-exempt support, which shall be evaluated as
provided for under paragraph 3 below.
Support at both national and sub-national level shall be included.
2. The equivalent measurements of support
provided for in paragraph 1 shall be calculated on a product-specific
basis for all basic agricultural products as close as practicable to the point
of first sale receiving market price support and for which the calculation of
the market price support component of the AMS is not practicable. For those basic agricultural products,
equivalent measurements of market price support shall be made using the applied
administered price and the quantity of production eligible to receive that
price or, where this is not practicable, on budgetary outlays used to maintain
the producer price.
3. Where basic agricultural products
falling under paragraph 1 are the subject of non-exempt direct payments or
any other product-specific subsidy not exempted from the reduction commitment,
the basis for equivalent measurements of support concerning these measures
shall be calculations as for the corresponding AMS components (specified in
paragraphs 10 through 13 of Annex 3).
4. Equivalent measurements of support
shall be calculated on the amount of subsidy as close as practicable to the
point of first sale of the basic agricultural product concerned. Measures directed at agricultural processors
shall be included to the extent that such measures benefit the producers of the
basic agricultural products. Specific
agricultural levies or fees paid by producers shall reduce the equivalent
measurements of support by a corresponding amount.
ANNEX 5
SPECIAL TREATMENT WITH RESPECT TO PARAGRAPH 2 OF ARTICLE 4
Section A
1. The provisions of paragraph 2 of
Article 4 shall not apply with effect from the entry into force of the WTO
Agreement to any primary agricultural product and its worked and/or prepared
products ("designated products") in respect of which the following
conditions are complied with (hereinafter referred to as "special
treatment"):
(a) imports
of the designated products comprised less than 3 per cent of
corresponding domestic consumption in the base period 1986-1988 ("the base
period");
(b) no
export subsidies have been provided since the beginning of the base period for
the designated products;
(c) effective
production-restricting measures are applied to the primary agricultural
product;
(d) such
products are designated with the symbol "ST-Annex 5" in
Section I-B of Part I of a Member's Schedule annexed to the Marrakesh
Protocol, as being subject to special treatment reflecting factors of non-trade
concerns, such as food security and environmental protection; and
(e) minimum
access opportunities in respect of the designated products correspond, as
specified in Section I-B of Part I of the Schedule of the Member
concerned, to 4 per cent of
base period domestic consumption of the designated products from the
beginning of the first year of the implementation period and, thereafter, are
increased by 0.8 per cent of corresponding domestic consumption in
the base period per year for the remainder of the implementation period.
2. At the beginning of any year of the
implementation period a Member may cease to apply special treatment in respect of the
designated products by complying with the provisions of paragraph 6. In such a case, the Member concerned shall
maintain the minimum access opportunities already in effect at such time and
increase the minimum access opportunities by 0.4 per cent of
corresponding domestic consumption in the base period per year for the
remainder of the implementation period.
Thereafter, the level of minimum access opportunities resulting from
this formula in the final year of the implementation period shall be maintained
in the Schedule of the Member concerned.
3. Any negotiation on the question of
whether there can be a continuation of the special treatment as set out in
paragraph 1 after the end of the implementation period shall be completed
within the time-frame of the implementation period itself as a part of the
negotiations set out in Article 20 of this Agreement, taking into account the
factors of non-trade concerns.
4. If it is agreed as a result of the
negotiation referred to in paragraph 3 that a Member may continue to apply the
special treatment, such Member shall confer additional and acceptable
concessions as determined in that negotiation.
5. Where the special treatment is not to
be continued at the end of the implementation period, the Member concerned
shall implement the provisions of paragraph 6.
In such a case, after the end of the implementation period the minimum
access opportunities for the designated products shall be maintained at the
level of 8 per cent of corresponding domestic consumption in the base
period in the Schedule of the Member concerned.
6. Border measures other than ordinary
customs duties maintained in respect of the designated products shall become
subject to the provisions of paragraph 2 of Article 4 with effect from the
beginning of the year in which the special treatment ceases to apply. Such products shall be subject to ordinary
customs duties, which shall be bound in the Schedule of the Member concerned
and applied, from the beginning of the year in which special treatment ceases
and thereafter, at such rates as would have been applicable had a reduction of
at least 15 per cent been implemented over the implementation period
in equal annual instalments. These
duties shall be established on the basis of tariff equivalents to be calculated
in accordance with the guidelines prescribed in the attachment hereto.
Section B
7. The provisions of paragraph 2 of
Article 4 shall also not apply with effect from the entry into force of the WTO
Agreement to a primary agricultural product that is the predominant staple in
the traditional diet of a developing country Member and in respect of which the
following conditions, in addition to those specified in paragraph 1(a) through
1(d), as they apply to the products concerned, are complied with:
(a) minimum
access opportunities in respect of the products concerned, as specified in
Section I-B of Part I of the Schedule of the developing country
Member concerned, correspond to 1 per cent of base period domestic
consumption of the products concerned from the beginning of the first year of
the implementation period and are increased in equal annual instalments to
2 per cent of corresponding domestic consumption in the base period
at the beginning of the fifth year of the implementation period. From the beginning of the sixth year of the
implementation period, minimum access opportunities in respect of the products
concerned correspond to 2 per cent of corresponding domestic
consumption in the base period and are increased in equal annual instalments to
4 per cent of corresponding domestic consumption in the base period
until the beginning of the 10th year.
Thereafter, the level of minimum access opportunities resulting from
this formula in the 10th year shall be maintained in the Schedule of the
developing country Member concerned;
(b) appropriate
market access opportunities have been provided for in other products under this
Agreement.
8. Any negotiation on the question of
whether there can be a continuation of the special treatment as set out in
paragraph 7 after the end of the 10th year following the beginning of the
implementation period shall be initiated and completed within the time-frame of
the 10th year itself following the beginning of the implementation period.
9. If it is agreed as a result of the
negotiation referred to in paragraph 8 that a Member may continue to apply the
special treatment, such Member shall confer additional and acceptable
concessions as determined in that negotiation.
10. In the event that special treatment under
paragraph 7 is not to be continued beyond the 10th year following the beginning
of the implementation period, the products concerned shall be subject to
ordinary customs duties, established on the basis of a tariff equivalent to be
calculated in accordance with the guidelines prescribed in the attachment
hereto, which shall be bound in the Schedule of the Member concerned. In other respects, the provisions of
paragraph 6 shall apply as modified by the relevant special and differential
treatment accorded to developing country Members under this Agreement.
Attachment to Annex 5
Guidelines for the Calculation of Tariff
Equivalents for the Specific Purpose Specified in
Paragraphs 6 and 10 of this Annex
1. The calculation of the tariff
equivalents, whether expressed as ad
valorem or specific rates, shall be made using the actual difference
between internal and external prices in a transparent manner. Data used shall
be for the years 1986 to 1988. Tariff
equivalents:
(a) shall
primarily be established at the four-digit level of the HS;
(b) shall
be established at the six-digit or a more detailed level of the HS
wherever appropriate;
(c) shall
generally be established for worked and/or prepared products by multiplying the
specific tariff equivalent(s) for the primary agricultural product(s) by the
proportion(s) in value terms or in physical terms as appropriate of the primary
agricultural product(s) in the worked and/or prepared products, and take
account, where necessary, of any additional elements currently providing
protection to industry.
2. External prices shall be, in general,
actual average c.i.f. unit values for the importing country. Where average c.i.f. unit values are not
available or appropriate, external prices shall be either:
(a) appropriate
average c.i.f. unit values of a near country;
or
(b) estimated
from average f.o.b. unit values of (an) appropriate major exporter(s) adjusted
by adding an estimate of insurance, freight and other relevant costs to the
importing country.
3. The external prices shall generally be
converted to domestic currencies using the annual average market exchange rate
for the same period as the price data.
4. The internal price shall generally be a
representative wholesale price ruling in the domestic market or an estimate of
that price where adequate data is not available.
5. The initial tariff equivalents may be
adjusted, where necessary, to take account of differences in quality or variety
using an appropriate coefficient.
6. Where a tariff equivalent resulting
from these guidelines is negative or lower than the current bound rate, the
initial tariff equivalent may be established at the current bound rate or on
the basis of national offers for that product.
7. Where an adjustment is made to the
level of a tariff equivalent which would have resulted from the above
guidelines, the Member concerned shall afford, on request, full opportunities
for consultation with a view to negotiating appropriate solutions.
[1] These measures include quantitative import restrictions, variable
import levies, minimum import prices, discretionary import licensing,
non-tariff measures maintained through state-trading enterprises, voluntary
export restraints, and similar border measures other than ordinary customs
duties, whether or not the measures are maintained under country-specific
derogations from the provisions of GATT 1947, but not measures maintained under
balance-of-payments provisions or under other general, non-agriculture-specific
provisions of GATT 1994 or of the other Multilateral Trade Agreements in
Annex 1A to the WTO Agreement.
[2] The reference price used to invoke the provisions of this
subparagraph shall, in general, be the average c.i.f. unit value of the product
concerned, or otherwise shall be an appropriate price in terms of the quality
of the product and its stage of processing.
It shall, following its initial use, be publicly specified and available
to the extent necessary to allow other Members to assess the additional duty
that may be levied.
[3] Where domestic consumption is not taken into account, the base
trigger level under subparagraph 4(a) shall apply.
[4] "Countervailing duties" where referred to in this Article
are those covered by Article VI of GATT 1994 and Part V of the
Agreement on Subsidies and Countervailing Measures.
[5] For the purposes of paragraph 3 of this Annex, governmental
stockholding programmes for food security purposes in developing countries
whose operation is transparent and conducted in accordance with officially
published objective criteria or guidelines shall be considered to be in
conformity with the provisions of this paragraph, including programmes under
which stocks of foodstuffs for food security purposes are acquired and released
at administered prices, provided that the difference between the acquisition
price and the external reference price is accounted for in the AMS.
[6] &
6For the purposes of paragraphs 3 and 4 of this Annex, the
provision of foodstuffs at subsidized prices with the objective of meeting food
requirements of urban and rural poor in developing countries on a regular basis
at reasonable prices shall be considered to be in conformity with the
provisions of this paragraph.
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