Policies deemed to have little or no effects on trade were exempt from limitations. In addition, commitments regarding minimum access for imports can limit U.S. domestic programs such as sugar. A key issue in the next round of trade talks will be identification of further limits or exemptions for domestic policies. As a commodity reserve, it meets food aid needs by acquiring grain when prices are low and storing it until needed for a food aid donation. If it were converted to a cash reserve, grain would be purchased at current market prices when needed for donations without any storage.
Results reveal the cash reserve to be less costly in almost all cases.
Export programs facilitated over 70 percent of U.S. wheat exports during fiscal years 1986-95. In 1996-98, export program shipments accounted for just under 25 percent of wheat exports. Instructions for obtaining copies of the U.S. domestic support notifications for 1995-98 are provided. The AMS was designed during the Uruguay Round of GATT negotiations as part of the effort to obtain and implement commitments from member countries to reduce domestic support for agriculture. The PSE is a broader measure of economic assistance than the AMS, since it includes some of the measures left out of the AMS that are related to trade policies and to sector-wide policies assumed not to distort trade.