India opposes new US proposal on food stockholding at WTO

India and other members of the G-33 grouping have opposed a new US proposal for a permanent solution to the factious issue of food stockholding for food security in developing countries at the second informal meeting at the World Trade Organization this year.

India said the US proposal may result in an outcome where countries are advised as to what kind of food security programmes they should adopt, which is not part of the existing mandate.

In trying to address the food security issue vis-a- vis the proposal, one of the outcomes could be a decision on public stockholding whereas the mandate is the other way round, India argued.

The G-33 countries, led by India and including China and the Philippines, want public stockholding for food security purposes to come under the ‘Green Box’ — subsidies that cause no or minimum trade distortion.

The G-33 on Friday debated the US proposal at the second dedicated session this year on the issue at the Geneva-based  WTO. The proposal was among many others to clinch a deal.

The proposal comprises three main elements — reviewing efficacy and trade effects of existing food security programmes and the extent to which they meet their goals; evaluating the real and potential problems encountered in implementing food security programmes because of constraints in the existing WTO rules; and drawing from the best practices and recommendations on food stockholding.

Best practices in food stockholding would include programmes in states that are most economical, targeted and effective and the ones that are not trade distorting and have enhanced transparency.

Indonesia, speaking on behalf of the G-33 countries, said that the real issue is getting a permanent solution, not to engage in an academic programme or to expand the mandate to review existing programmes.

The informal meeting also saw the playing out of the old hardened battle lines between the proponents of another proposal to the issue, called the G-33 proposal, and the opponents of it.

The G-33 proposal suggests to amend the Agriculture Agreement to provide new flexibilities for programmes when governments buy food from low-income farmers at supported prices to build up stocks, to be shifted from the 'Amber Box' - all domestic support measures considered to distort production and trade - to the Green Box.