AGGREGATE MEASUREMENT OF SUPPORT

Aggregate measurement of support (AMS) is the indicator on which the domestic support discipline for the Uruguay Round Agreement on Agriculture is based. It is determined by calculating a market price support estimate for each commodity receiving such support, plus non-exempt direct payments or any other subsidy not exempted from reduction commitments, less specific agricultural levies or fees paid by producers.

Context: It differs from the Producer Support Estimate (PSE) in many respects. The most important difference is that price gaps in the AMS calculation are estimated by reference to domestic administered prices and not to actual producer prices, and that external reference prices are fixed at the average levels of the 1986-1988 base period. In addition, many budgetary transfers included in PSEs are excluded from the AMS.