Setaside squeeze

The draft deal at the world trade talks in Geneva could spell the end of setaside and other subsidies linked to limiting production.

These so-called “blue box” subsidies cannot exceed 5% of a WTO member’s total value of agricultural production, according to the deal which sets the parameters for further world trade negotiations.

However, EU negotiators secured “some flexibility” for members with “an exceptionally large percentage of their trade-distorting support in the blue box”.