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WTO: Upbeat India seeks more sops

August 04, 2004 17:44 IST

After ensuring that in-built clauses were inserted in the World Trade Organisation Framework Agreement to protect Indian farmers, the Centre will now press for a shorter period for developed countries to phase out their domestic support.

Unlike, in the case of the phase out of multi-fibre agreement in the Uruguay Round, which took ten years, India will insist on a lesser period of five years for the phase out of domestic support, which has been agreed upon in the framework.

India and the WTO: News and Issues

During the negotiations on the Framework Agreement, India would insist on a wider list of sensitive products on which the government could impose quantitative restrictions for imports as well as exports in the event of crop failure or glut in production.

India would also insist on all the three windows for sensitive products like edible oil wherein a country could either restrict both import as well as export besides preferential duty structure for a listed quantity.

Officials said the Framework Agreement also ensured that the developed countries do not resort to counter cyclical tactics wherein it buys a farm product more than the prevailing cost to subsidise their own farmers and use it for food aid.

United States is known for such counter cyclical tactics under the USAID programme in which food grains are procured at higher cost domestically to provide aid to needy countries.

After his return from Geneva, Kamal Nath told a news conference on Tuesday that it was on India's insistence that a clause on domestic support was inserted to provide special and

differential treatment to enable developing countries to continue giving support to its subsistence and resource poor farmers.

"On de minimis, this (inserting of this clause) was a major gain for us," he said.

Regarding tough posturing by India during hectic negotiations in Geneva, Kamal Nath had said the threat to walk out had in fact worked.

The developed countries agreed to give additional flexibilities to developing nations as a result, he claimed.

With the adoption of the Framework Agreement by 147 WTO members, the modalities for the completion of the Doha Round of negotiations would be worked out by December 2005 when the next ministerial will be held in Hong Kong.

The specifics and numbers would be worked out after an agreement on the modalities at the ministerial.


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