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The proposal subscribed by Argentina, Brazil, Chile, Mexico, Paraguay, Peru demands the elimination of all export subsidies beginning with those that have the greatest impact on developing countries, working on an agreed timetable.
The demand contradicts that of Washington and Brussels that originally proposed the parallel elimination of subsidies and export credits only for certain sectors, and simply reduces the rest.
In the chapter regarding domestic supports, the developing countries initiative demands substantial reduction of the different types of aid to agriculture, so generous in rich countries, including those that so far had been considered “minimally” distortional of international trade.
For the first time the elimination of the so called “blue box” is suggested. The “blue box” includes direct payments to US and EU farmers in the framework of production reduction programs that are not currently included in the cuts commitments.
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