Mathematics · Percentages and De Minimis Limits
A developing country has wheat production valued at 10,000 million USD and provides direct price support of 850 million USD for wheat. It also provides non-product specific subsidies (fertilizer/electricity) of 1,200 million USD. Total agricultural production is 25,000 million USD. Under WTO rules, developing countries have a 10% de minimis limit for product-specific support (of crop production value) and 10% for non-product specific support (of total agricultural production value). Calculate the total Amber Box support (AMS) for WTO reporting.
- 1Total AMS: 2,050 million USD; Does not exceed limits.
- 2Total AMS: 850 million USD; Exceeds product-specific limit.
- 3Total AMS: 0 USD; Both support types fall within de minimis limits.✓
- 4Total AMS: 2,050 million USD; Exceeds both limits.
Correct answer
Total AMS: 0 USD; Both support types fall within de minimis limits.
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