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New Delhi, July 20: much on drastic cuts in farm subsidies and tariffs of the developed countries. It has suggested a very complicated SSM for developing countries, practically making its application difficult and ineffective, while the developed countries continue to invoke special safeguard (SSG) clause. India which is a member of G-33, has demanded at least 20% of the farm tariff lines to be designated as SPs. The Indian commerce minister, Kamal Nath has threatened that he may walk out if the deal fails to protect small and marginal farmers and infant industries
The revised NAMA draft released by Don Stephenson has sought to take away the flexibilities to industries in the developing countries with the introduction of 'anti-concentration' clause
Like the May draft, It has linked tariff reduction coefficients with flexibilities. India has demanded that flexibilities have to be treated on stand-alone basis and there should be no trade-off between flexibilities and tariff reduction coefficients.
The proposal for negotiations in remanufactured goods finds place in the revised draft indicating convergence on this issue, which is far from reality. In the earlier draft, the issue was under the square brackets reflecting lack of consensus on the subject.
The controversial coefficient ranges for developed and developing countries for cutting tariffs through a "Swiss formula" still remains in the May text as also the percentages of tariff lines that can have flexibilities from the full tariff cuts, according to a "sliding scale".
The revised NAMA draft has also attempted to create a division in the unity of the developing countries by proposing additional flexibilities to some. Also the farm draft has proposed relaxation for least developing countries (LDCs), small vulnerable economies and 'other developing countries'—this may possible divide the unity amongst the developing countries, if not tackled effectively
The mini-ministerial will also be faced with demands from many diverse groups. Cotton producers – Benin, Burikina Faso, Chad, Mali – are seeking cuts in US subsidies. The Cairns group, primarily of farm exporters, are seeking radical reforms in both developing and developed markets. G-10, representing food importers like Iceland, Japan, Israel, Liechtenstein, Mauritius, Norway, South Korea, Switzerland and Taiwan is stressing the importance of non-trade issues in agriculture like environment and community development. These countries have high tariffs. Banana war between the Latin American producers and European Union has remained unresolved On the issue of 12 tropical products there is a tug-of-war between Latin American countries...
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