India welcomes new WTO draft with caution

Font Size

Print

Feedback

Email

Discuss

Related Articles

Delhi, Mumbai to join world's richest cities listFX problems symptom not cause: IMF's YoussefGold prices close in Rs 17K/10 gram

New Delhi, February 12:: India, cautiously welcoming the new WTO draft proposals on agriculture and NAMA, said that it would hold consultations with other developing countries and stakeholders in the country before shaping its final views.

Reacting to the new farm draft issued on February 8 in Geneva, the Union Commerce Minister, Kamal Nath said : "We will do our best to protect our poor farmers who cannot be expected to bear the burden of trade distorting subsidies in rich countries".

He said while convergence has been achieved in some areas in the draft, yet there remained some issues to be resolved. He pointed out that significant and effective reduction of trade distorting subsidies of the developed countries was an issue on which there can be no compromise.

Nath, however, expressed satisfaction over the new farm draft bringing back the original G-20 proposals for a minimum 54% in agricultural tariff by developed countries and maximum tariff cut of 36% for developing countries.

The minister said that the agriculture text distilled the progress made in negotiations between September 2007 and January 2008. While convergence has been achieved in some areas, the chair has also put out brand new text in some other unresolved areas and these would require detailed deliberations e.g. Special Products (SPs), Special Safeguard Mechanism (SSM), Special Safeguards, Tropical Products, Tariff Simplification etc. There were also some other issues on which large divergences still exist, e.g. OTDS, market access in Sensitive Products, Tariff Capping etc.

He said: "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". He added that: "Indian agriculture cannot be expected to carry the burden and most definitely not in a Development Round".

The minister expressed satisfaction at the fact that the original G-20 proposal of a minimum 54% cut in agricultural tariffs for developed countries and a maximum tariff cut of 36% for developing countries 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.