The provisions of National Food Security Act 2013 recently enacted by the Parliament have become the target of the attack.
The 9th WTO Ministerial is scheduled in Bali in Indonesia in December 3-6 this year.
The WTO Director General Roberto Azevedo met the Indian Commerce and Industry Minister Anand Sharma here on Monday and discussed issues relating to the upcoming WTO ministerial.
In his discussions Sharma underscored the need for addressing the concerns of food security which have been outlined in a proposal presented by G-33 countries. He observed that food security is the most fundamental of human needs and the lack of it can have profound ramifications as seen during the food price volatility and crises of recent years.
A solution to the G-33 proposal would be an important contribution by the WTO towards addressing the challenges of food security in developing countries, he said. He pointed out that public stockholding programmes are widely used to ensure food security in many developing countries where agriculture is largely rainfed. Updating of the rules would greatly help these countries in carrying out such operations without defaulting on their commitments.
Sharma urged Azevêdo to persuade all parties to discuss the food security proposal constructively. He observed that developing countries are finding themselves hamstrung by the existing rules in running their food stockholding and domestic food aid programmes. The developed world too had market price support programmes and was able to move away from market price support - though not fully even now - because of their deep pockets. This is not possible for developing countries. It is important for developing countries to be able to guarantee some minimum returns to their poor farmers so that they are able to produce enough for themselves and for domestic food security.
Azevedo said that earlier proposal on food security submitted by India and the G-33 was contested by developed countries. But the legitimacy of food security concerns have been accepted by members. He said that member states may consider bringing back the “Peace Clause’ to allow margins for food security concerns, pending long-term negotiations.
Sharma expressed satisfaction at the intensification of discussion on the G33 proposal but also voiced his concern about the hardening of positions of some Members who are now proposing stringent conditions to be satisfied before an interim mechanism can be availed of. These conditions will make it difficult, if not impossible, to use.
On Trade Facilitation Sharma emphasised that it is important to honour the provisions of the mandate relating to special and differential treatment of developing countries including LDCs and support & assistance to such countries.
Sharma and Azevêdo agreed that a lopsided outcome of the Doha Round is not in anyone’s interest. It is up to all of us to participate actively in the negotiations in order to arrive at that balance.
Sharma also referred to the LDC issues and observed that these merit urgent and active attention, so that we can move some steps closer to their fuller integration into international trade. Without this, any early harvest package would be incomplete and unacceptable.
India is firmly with the LDCs on their proposals. India has already implemented Duty Free Quota Free market access for LDCs. A proposal to increase coverage of items under duty free List to around 97% ( from 85% at present) of the total tariff lines at 6 digit level and to further liberalize the Rules of Origin is under the active consideration of the Government of India.
Sharma assured the DG of India’s cooperation in striving to achieve a balanced outcome at Bali and an early resolution of remaining issues in the DDA post-Bali.
Azevedo also spoke at meeting arranged separately by apex Indian industry bodies – CII and FICCI.
He refretted that the WTO since its inception in 1995 has not been able to deliver any agreed multilateral text so far. The world trade body is now on a brink and he is trying his best to bail it out.
He said that in the upcoming December ministerial there would be discussions on trade facilitation, trade in agriculture, development issues.
On trade facilitation, discussions will be on cutting down costs and delays, trade off between technical assistance and special and defferential treatment, customs cooperation, disclosures, consularisation, authorised brokers. India is pushing for customs cooperation, but “the draft on customs cooperation has not matured at technical level,” he said.
On trade in agriculture, issues of food security, public stockholding and acquisition for such stockholding, food aid, tariff rate quota export competion and special and differential treatment would be discussed. The WTO Ministerial will discuss phasing out of export subsidies given by developed countries by 2013 as per Hong Kong Declaration.
On development issues, rules of origin for least developed countries (LDCs) and duty free quotas will be discussed.
Apart from these proposals on cotton issue and services are expected.
India defends its food subsidy before WTO chief
ASHOK B SHARMA - 2013-10-07 14:52
New Delhi: India has decided to defend its assistance to public stockholding of foodgrains and distribution of subsidised food to the poor which has come under attack by developed countries like US, Canada and the European Union at the World Trade Organisation (WTO).