The Agreement on Agriculture (AoA) was signed by the member countries of the World Trade Organization (WTO) in 1995, and it lays down the rules for regulating trade in agricultural products. Article 5 of the AoA is an important provision that deals with the domestic support policies of member countries for their agricultural sectors. In this article, we will discuss the key aspects of Article 5 and its implications for global agriculture.

Article 5 of the AoA deals with the domestic support measures that a member country may provide for its agricultural sector. The article sets out three categories of support measures: amber box, blue box, and green box. The amber box measures are those that have a distortionary effect on trade and are subject to reduction commitments. The blue box measures are those that are less trade-distorting and are subject to less stringent reduction commitments. Finally, the green box measures are those that are non-distorting and do not require any reduction commitments.

The amber box measures include all forms of support that have a direct or indirect impact on production, such as price support, subsidies, and input subsidies. These measures are considered to be trade-distorting because they can lead to overproduction, which can result in surpluses that may be exported and can depress world prices, thereby affecting other countries` markets. The reduction commitments for amber box measures are based on the level of support provided by each member country in the base period (1986-88).

The blue box measures include payments that are linked to production-limiting programs, such as voluntary production quotas or acreage reduction programs. These measures are considered less trade-distorting because they do not encourage overproduction. The reduction commitments for blue box measures are less stringent than those for amber box measures, and are based on the level of support provided in the base period.

The green box measures include programs that are not trade-distorting, such as research and development, infrastructure development, and environmental protection measures. These measures are not subject to reduction commitments and are considered essential for the sustainable development of agriculture.

The implications of Article 5 for global agriculture are significant. Firstly, it ensures that member countries` support policies for their agriculture sectors are transparent and subject to multilateral scrutiny. This helps to prevent unfair competition and ensures a level playing field for all countries. Secondly, it encourages member countries to shift their support policies towards non-distorting measures that promote sustainable agricultural development. Finally, it recognizes the importance of agriculture for developing countries and allows them to provide support to their agriculture sectors without being subject to reduction commitments.

In conclusion, Article 5 of the Agreement on Agriculture is an important provision that regulates the domestic support policies of member countries for their agriculture sectors. It ensures that member countries` support policies are transparent, fair, and sustainable, and helps to create a level playing field for all countries. By promoting non-distorting measures and recognizing the importance of agriculture for developing countries, Article 5 helps to ensure the long-term viability of global agriculture.