The Hindu Business Line : India for different system of tariff cuts in farm sector

IN the run-up to the Fifth Ministerial of the World Trade Organisation (WTO) in Cancun early next month, India has fired its first salvo by pleading for a different structure of tariff reduction for developing countries in the agricultural sector as being important and essential.

"Under no circumstances can we accept any form of harmonisation concept," India said this in a statement on the revised Draft Cancun Ministerial meeting at the General Council of the WTO in Geneva on Monday.

India said that the major developed countries must substantially cut their agricultural subsidies, if they expect the developing countries to provide market access or ambitiously reduce their tariffs, which is the only instrument available to them for safeguarding their farmers.

"For India, with over 650 million people dependent on agriculture for their livelihood, it becomes all the more important that the agricultural negotiations do not become a tool to impoverish them further.

Some countries in their interventions had mentioned about two categories of commitments being taken by members on market access. Members should realise that in any case they are two categories of members, one with deep pockets who subsidise their agriculture heavily, leading to the distortions and the others who have no financial resources to provide support for their farmers even when required.

Moreover, the framework for tariff reduction worked out by the European Commission and the United States was tailor-made to suit their tariff structure and enable them to make minimal contribution to market access while on the other hand place inordinately high burden on many developing countries," the statement noted with deep concern.

Recalling the commitments made by Trade Ministers at Doha to establish a fair and market-oriented trading system, the statement has stressed that if substantial reduction in domestic support does not take place and export subsidies are not eliminated, the distortions in the global agricultural trade cannot be removed.

"Unfortunately, the DMT does not provide us with the necessary levels of comfort so that developing countries are in a position to make major contribution in market access."

On TRIPs and the Convention of Bio-Diversity, the statement said the progress made under the mandate given to the TRIPs Council to pursue its work programme, the protection of traditional knowledge and folklore should be reported to the Ministers to enable them to give suitable directions for accelerating this work.

On Singapore issues, the statement notes that the reality of discussions on these issues is portrayed in the text and points out that it is premature for the draft modalities on each of the four issues to be annexed when the clarification process is still under way.

On non-agricultural market access (NAMA) India said that many members have serious reservations on a mandatory approach to sectoral negotiations and said "our understanding is that developing countries will have adequate provisions for flexibility in this respect, incorporating the concept of less than full reciprocity."

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India for different system of tariff cuts in farm sector