The Hindu Business Line : India moots 2-pronged plan for WTO farm talks

INDIA has put forward a two-pronged strategy in resolving the tariff formula difficulties on agriculture negotiations under the World Trade Organisation (WTO) umbrella.

This proposal, submitted by the Union Commerce and Industry Minister Mr Kamal Nath, in Paris on Wednesday at the informal trade ministerial meeting of the WTO, would ensure greater market access for farmers of developing countries to the markets of the developed countries.

According to the two-pronged strategy, all member countries of the WTO - both developed and developing countries - convert 100 per cent of all specific duty tariff lines into ad valorem equivalents (AVEs) and then bind these tariffs in ad valorem terms after conversion; second, regardless of the formulae or methodology that is finally adopted for the conversion, the maximum agricultural tariff should not exceed 100 per cent at the end of the Doha Round.

As a member of the group of Five Interested Parties composed of Brazil, India, the EU and the US, Mr Kamal Nath also helped in achieving a breakthrough by arriving at an agreed formula for conversion of specific duties into ad valorem equivalents, which was backed by participants at the Mini Ministerial.

The proposal would be approved in Geneva by the 148 member countries at the General Council meeting and the success of this "gateway issue" would help in arriving at a common ground on other contentious issues currently making snail's progress, an official statement said here.

On non-agricultural market access (NAMA) issue, Mr Nath came down heavily on developed countries for practising double standards. Thus, developed countries sought reduction from bound rates and were not willing to bind duties in ad valorem terms in agriculture, but called for reduction from applied rates and 100 per cent binding in ad valorem terms in NAMA. Supporting Mr Kamal Nath, the Australian Trade Minister, Mr Mark Vaile, described it as the "schizoprenia of the developed countries".

Mr Kamal Nath referred to the joint proposal on NAMA already submitted by Argentina-Brazil-India as a balanced and equitable one as if combined a satisfactory degree of liberalisation with the required security for developing countries and incorporated the principle of less than full reciprocity and flexibilities in tariff reduction for developing countries.

It had the added advantage of addressing issues of tariff peaks and tariff escalation. He cautioned members not to treat harmonisation of tariffs as an end itself— "it is not in the mandate so let us not make it a goal".

He also urged removal of non-tariff barriers such as complex technical requirements and standards, often used as an alibi for environmental and health point of view.

In another intervention, the Minister said services must be given priority in the negotiations and articulated New Delhi's interest in Mode 1(cross border supply) and Mode 4 (movement of natural persons as service providers).

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India moots 2-pronged plan for WTO farm talks