Division 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:

1. (a)

   the support in question shall be provided through a publicly-funded government programme (including government revenue foregone) not involving transfers from consumers; and

2. (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.