The Hindu : Business : ‘Fresh WTO proposals meet India’s demands partly’

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Wednesday, Feb 13, 2008
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‘Fresh WTO proposals meet India’s demands partly’

Special Correspondent

Convergence has been achieved in some areas: Kamal Nath

There will be no compromise on trade-distorting subsidies
Lot of work still remains to be done on Special Products

NEW DELHI: In a cautious welcome to the fresh WTO proposals on agriculture in the Doha Round, India on Tuesday said that it would protect the country’s poor farmers who cannot be expected to bear the burden of the rich countries’ trade distorting subsidies.

Commenting on the revised draft modalities text on agriculture and NAMA (non-agricultural market access) put out by the World Trade Organization (WTO) in Geneva on February 8, Commerce and Industry Minister Kamal Nath told newspersons here that while convergence had been achieved in some areas, brand new texts pertaining to many unresolved issues had also been brought out.

Therefore, Mr. Kamal Nath said that before giving its final views, India would hold consultations with its other developing partner countries, domestic stakeholders and other ministries while making it clear that there would be no compromise on trade-distorting subsidies of the developed countries.

“Significant and effective reduction of trade distorting subsidies of the developed countries is an issue on which there can be no compromise because they impact adversely upon the livelihood of millions of our poor farmers… Indian agriculture cannot be expected to carry the burden and most definitely not in a Development Round,” he said. As for the fresh proposals on industrial products, Mr. Kamal Nath said that the domestic industry would require greater flexibilities as compared to industries in the developed countries.

Mr. Kamal Nath also expressed surprise at the removal of numbers on Para 8 of the NAMA text dealing with flexibilities for developing countries and which had been on the table since July 2004.

However, he expressed satisfaction over the fact that the original G-20 proposal of a minimum 54 per cent cut in farm tariffs for developed countries and a maximum tariff cut of 36 per cent for developing nations was back on the table. “India had always espoused the concept of two thirds proportionality between developed and developing countries in tariff reductions,” he said.

In a note of caution, Mr. Kamal Nath pointed out that a lot of work still remained to be done on Special Products (SPs). India has already made it clear that one of its “must-haves” on SPs was a significant number of tariff lines which did not have to take any tariff cuts. Also, logic demanded that the cuts for other SPs had to be more favourable than for ‘Sensitive Products’. “The livelihood of Indian farmers and the food security of the nation is of paramount importance and must be protected at all costs,” he said. The Minister hoped that the Chair of the ‘Rules Negotiating Group’ would take a cue from the NAMA Chair and come out with a revised text to truly reflect the views of the membership rather than representing just the views of one country, as in the case of the anti-dumping proposals.

“Now is the time for progress in other areas of interest to the WTO membership, viz. Rules and Services. There must be simultaneous progress on all fronts if we are to clinch a deal by end 2008,” Mr Kamal Nath said.

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