The Hindu Business Line : Rich countries must lower farm subsidies: CII

THE Confederation of Indian Industry (CII) has said that India should consider the current negotiations under the Doha round of the World Trade Organisation to be successful, only if they result in the developed countries giving lesser domestic subsidies to agriculture, or even eliminating these subsidies.

In a statement, CII has said that only then will the many distortions in international trade be removed. Further, the statement adds that this will raise international prices of agricultural commodities to remunerative levels. "This will go a long way in ensuring stability of income for farmers in developing countries," the CII has said. This is one of the findings of the chamber's position paper for India's negotiating position on agriculture that has been submitted to the Government.

CII has said that the current negotiation should first focus on getting developed countries to make substantial commitments to reduce or eliminate domestic support and export subsidies and then move on to the issue of market access. The chamber is of the view that satisfactory commitment of developed countries on domestic support and subsidies would help facilitate countries like India make its commitments on market access.

Besides, CII has said that India should also ask for better market access opportunities for domestic exportable agriculture commodities to the developed and developing countries. CII has expressed the opinion that while the second draft paper submitted by the Chairman of WTO's Agriculture Committee, Mr Stuart Harbinson, could serve as a base paper on negotiations for market access, it needs several modifications. "Any formula that is devised should first cover the concerns of developing countries and the principles of less than full reciprocity should be maintained.

Further, it has said that all food safety issues should be included in the Sanitary and Phytosanitary (SPS) Agreement .

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Rich countries must lower farm subsidies: CII