New Delhi, Feb 2: In a proposal submitted to the World Trade Organisation (WTO), India has suggested that a provision be made in the Agreement on Agriculture (AOA) to permit developing countries to impose quantitative restrictions (QRs) on farm products if their imports surge or prices fall in global markets.This separate safeguard mechanism sought by New Delhi implies that QRs once lifted, can be re-imposed to meet extraordinary or abnormal situations in order to protect the interest of most developing agrarian economies. The proposal is under consideration during the on-going mandated negotiations on agriculture under the WTO's auspices in Geneva. New Delhi has also suggested that as a special and differential measure, the developing countries be allowed to maintain appropriate levels of tariff bindings, keeping in mind their developmental needs and the high distortions prevailing in the international market.
Further, the proposal wants developed countries to bring down their tariff bindings as on January 1, 2000 by 50 per cent by the end of 2001. Article 13 of AOA confers special and differential treatment on developed countries.
Called the "peace clause", developed countries have enjoyed exemption from possible countervailing actions in certain situations.This has further skewed the terms of trade in favour of developed countries.
New Delhi has suggested that this peace clause be abolished for developed countries while developing countries be given a special and differential treatment by allowing them to use the clause for a period of at least 10 years.
Besides, tariff rate quotas (TRQs) should be eventually abolished as they result in trade distortions by legitimatising QRs, denying market access for developing countries.
There should also be greater transparency in the administration of TRQs by prescribing guidelines for complete uniformity across countries and products, adopting a common base period for calculating domestic consumption for minimum market access commitments by developed countries.
In addition, developed countries should not be allowed to use sanitary and phyto-sanitary (SPS) measures for protectionist purposes by prescribing overly stringent trade restrictive measures for denying market access to developing countries.
At the same time, developing countries should be exempt from any obligation to provide any minimum market access.
The share of exports from developing countries which constitutes over three-fourths of the WTO membership, continues to remain around 30 per cent of the world trade in agriculture, less than what it was 25 to 30 years ago.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
