Doha debate, agri safeguards to dominate WTO meet

The conference likely to witness tough negotiations by countries divided over developmental issues, agriculture and market access

Continuation of the Doha Development Agenda and establishment of special safeguards in agriculture for developing countries will dominate the 10th ministerial conference of the World Trade Organization (WTO), beginning in Nairobi on Tuesday.

The conference is expected to witness tough negotiations by countries divided over developmental issues, agriculture and market access.

The Doha Development Agenda had promised trade concessions to the least developed countries in the form of lower trade tariffs and discussions on opening markets to agricultural, manufactured goods, and services. Things have progressed little in the past 14 years with developed countries preferring to drag negotiations.

The developing bloc, led by India, has repeatedly demanded developmental issues flowing from the Doha Development Agenda be at the centre of discussions at the conference. However, developed countries oppose this.

Another contentious issue is the special safeguards mechanism (SSM) in agriculture, which allows countries to raise tariffs temporarily to deal with surging imports and subsequent price falls.

India has called SSM a priority. It is supported by international groupings such as the G33 (group of 33 developing nations), BRICS (Brazil, Russia, India, China and South Africa) and the African bloc. Developing countries have demanded a provision already existing in Article 5 of the multilateral body’s agreement on agriculture be amended to provide them the same benefit that rich countries derive from the special agricultural safeguards.

The issue had divided nations with developed members led by the US along with the European Union, Australia and Canada opposing it.

India also has its personal battle at the multilateral trade platform involving agricultural issues including public stockholding of food crops and providing subsidies to farmers.

Commerce minister Nirmala Sitharaman, who heads the delegation, has reiterated India’s commitment to finding a permanent solution to stockholding. Developed countries, however, say India’s public stockholding programme runs afoul of WTO norms.

The Trade Facilitation Agreement signed by India in 2014 allows India to maintain its food buffer stocks till a permanent solution is found. It still cannot export such subsidised food.

Back then, the US and India had also agreed to a ‘peace clause’, giving India temporary protection from complaints by other WTO members.

India also faces challenge on the policy of providing minimum support price to farmers. For a permanent solution, it has proposed to either amend the formula for calculating the food subsidy cap of 10 per cent, or allowing such schemes outside the purview of subsidy caps. The existing formula is outdated as it is based on prices of 1986-88.

Trade ministers from 160 member countries are slated to attend the four-day WTO conference in Kenya.