The Standstill in Subsidies Update

This report by the International Institute for Sustainable Development (IISD) provides an update on the status of subsidy negotiations within the WTO's Doha Round as of November 2005. It analyzes the slow progress across agriculture, fisheries, services, and the Agreement on Subsidies and Countervailing Measures (SCM), noting that while fisheries have seen some conceptual movement, other sectors remain stalled due to technical complexities, political disputes, and a lack of consensus on definitions.

• Overall progress on subsidy reform in the Doha Round has been slow, with services and the Agreement on Subsidies and Countervailing Measures (SCM) receiving relatively little attention compared to agriculture and fisheries.
• Agricultural negotiations are stalled, particularly regarding the Aggregate Measure of Support (AMS). Members are divided between an 'absolute' reduction formula proposed by Canada, which tiers countries by total support levels, and a four-band formula recommended by the G-20.
• There is a significant dispute over the Green Box in agriculture. The EU and G-10 view the required review as a "health check-up" without substantive reform, while the G-20, Cairns Group, and the U.S. argue for significant changes to address trade-distorting subsidies.
• Fisheries negotiations have seen more progress, centering on a conflict between a "top-down" approach (a general prohibition with exceptions) advocated by the Friends of Fish and a "bottom-up" approach (focusing on over-capacity and over-fishing) proposed by Japan.
• Negotiations on services subsidies are hindered by a "chicken and egg" problem: members cannot provide information on subsidies without a formal definition, but cannot create a definition without that information.
• The SCM negotiations are largely paralyzed by the Boeing-Airbus dispute between the U.S. and the EU, as neither party wishes to change rules while engaged in a trade dispute.
• The lapsing of Article 8 of the SCM in 1999 removed the 'non-actionable' status of subsidies for research and development, disadvantaged regions, and environmental upgrades, making them subject to countervailing measures.
• Developing countries have shown limited initiative in formal subsidy proposals, potentially due to concerns over national economic sovereignty or a belief that the gains do not justify the required concessions.

APA

Wall, M., & Vis-Dunbar, D. (2005). The Standstill in Subsidies Update. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/trade_standstill.pdf

Chicago

Wall, Matthew, and Damon Vis-Dunbar. The Standstill in Subsidies Update. International Institute for Sustainable Development, 2005. https://www.iisd.org/system/files/publications/trade_standstill.pdf.

Wikipedia

{{cite report |last1=Wall |first1=Matthew |last2=Vis-Dunbar |first2=Damon |title=The Standstill in Subsidies Update |publisher=International Institute for Sustainable Development |date=November 2005 |url=https://www.iisd.org/system/files/publications/trade_standstill.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wall2005standstill, author = {Wall, Matthew and Vis-Dunbar, Damon}, title = {{The Standstill in Subsidies Update}}, institution = {International Institute for Sustainable Development}, year = {2005}, month = nov, url = {https://www.iisd.org/system/files/publications/trade_standstill.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }