 "Nirmala Sitharaman")
India is set to prepare for a tougher fight at the ongoing World Trade Organization (WTO) conference, after its major demands on agriculture didn’t find suitable mention in the preliminary draft text on the sector, early on Thursday.
Reports from Nairobi, where about 160 trade ministers from member countries have met to negotiate, suggest the text tilts heavily favour of developed countries, only cursorily dealing with concerns of the developing world.
Calls for a permanent solution on public stockholding have been diluted, with no clear deadline. Creation of special safeguards in farm trade have been nominally agreed to but on the condition that developing nations grant more market access, through reduced tariffs.
The draft, circulated unofficially before the start of negotiations on agriculture, do not represent a consensus — they only aim to find common ground. However, that seems increasingly difficult.
Public stockholding of food crops, supported by India and other Less Developed Countries (LDC) has not been assigned a deadline although there had earlier been one for December 2017. America, Canada, Australia and the European Union oppose the practice, alleging it goes against the trade body’s principle of non-interference with free market practices.
The Trade Facilitation Agreement signed by India in 2014 allows it to maintain food buffer stocks till a permanent solution is found. The ‘peace clause’ agreed during the 2013 Bali Ministerial Declaration between India and the US has been taken note of and extended indefinitely. Negotiations on the issue shall continue. The draft says the WTO General Council shall regularly review progress.
Under the present structure, India cannot export such subsidised food. India’s refusal to accept restrictions on the functioning of its agricultural state trading enterprises has been respected, with the draft not putting any mandatory disciplines in place.
Commerce and Industry Minister Nirmala Sitharaman, heading the delegation, is expected to express disappointment on the developments during her meetings with Lesotho trade minister and chair for agricultural talks, Joshua Setipa, and Kenyan trade minister Amina Mohamed, later on Thursday.
The creation of a Special Safeguard Mechanism (SSM) in agricultural trade, long demanded by the majority of developing countries, has also not been properly addressed. SSM would allow countries to temporarily raise tariffs to deal with surging imports and subsequent price falls. It had recently garnered the support of G-33, a coalition of nations demanding flexibility for developing countries to limit market opening in agriculture. They'd soon issue a different draft to take forward their demands. Developing countries have demanded that 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.
On the other hand, in the area of export competition, pushed by a number of developed and agricultural goods exporting countries, the draft is more definite and talks about specific commitments on elimination of subsidies.
The 12-page text dealing with phasing out of government support to exporters charted a tighter deadline for developing countries, to eliminate these by 2023. An earlier EU proposal had suggested 2026.
In comparison, greater leeway has been given to developed countries for eliminating these by 2020, as against the EU’s earlier proposal of 2018.
Sitharaman had on Wednesday cautioned against rushing through on the subject, citing very limited convergence on the issue among members. Negotiators from India have maintained subsidies given by developed countries to their farmers is an important component in the issue. Such countries have refused to bring it to the negotiating table.
