In a bid to safeguard its interests pertaining to food security in the WTO, India has pitched for a no-challenge on the public stockholding of stocks if its agricultural subsidies exceed 10% of total subsidies.
In the present WTO rules, India could be challenged if the subsidies exceed the stipulated amount and hence, it is discussing an interim mechanism for a permanent solution. Even in the interim mechanism, New Delhi wants a no-challenge clause because the dispute might spill over to the negotiations related to services.
In the context of the WTO Bali Ministerial next month, New Delhi has said that some subsidies that are given as part of the procurement for public stockholding from the poor and marginal farmers should not be regarded as a ?prohibited subsidy? or an ?amber box? subsidy by the WTO.
In WTO terminology, subsidies are identified by ?boxes? that are given the colours of traffic lights: Green (permitted), amber (slow down or to be reduced) and red (forbidden).
?Public stockholding is allowed but is limited. We have sought a no challenge clause on the public stockholding of stocks if our subsidies go beyond the 10% level. In the present WTO rules, we could be challenged and hence, we are discussing an interim mechanism for a permanent solution. Even in the interim mechanism, we want a no-challenge clause,? said a top commerce ministry official.
Experts say that the peace clause is of limited utility and more needs to be done to protect India’s interests.
