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World Trade Organisation logo. Photo Courtsey: Wikipedia
World Trade Organisation logo. Photo Courtsey: Wikipedia

India feels let down by new WTO proposals for Doha trade deal

Tue-May 20, 2008

New Delhi / Press Trust of India

The World Trade Organisation on Tuesday released new negotiating texts on agriculture and industrial products, but India feels let down by not getting enough policy space to protect its farmers and nascent industries in the draft proposals for a Doha trade deal.

The revised text, released by the negotiating group on agriculture, proposes less number of products which India and other developing countries can protect from unrestricted imports from the agro exporting countries like the US, Canada and Australia.

Likewise, India's plea for greater flexibility for protecting its industries, including small and medium units, has not found much favour in the draft proposals for duty cuts on manufactured goods, official sources said.

"The American pressure seems to have played a role on the revised proposals," an official said.

Pressure seems to be mounting on bigger developing countries, like India, China, Brazil and South Africa to "yield their market" while the developed countries do not appear prepared for sacrifice, he said.

The Doha negotiations, launched in 2001, for a market opening multilateral trade agreement have remained inconclusive amid differences between developed and developing countries. The talks were mandated to be concluded by end of 2004.

India is upset that the new proposals, released by Crawford Falconer, Chairman of the negotiating group on Agriculture, have set a limit on a safeguard mechanism for protecting its small and marginal farmers.

The agriculture draft, released in Geneva on Monday night, gives only 3-8 products on which India and other 45 countries in the G-33 coalition can invoke the Special Safeguard Mechanism (SSM), under which countries can raise duties to ensure that the domestic prices are not depressed due to cheap imports.

"We have such a large number of farm and horticulture products under different agro-climatic zones. We do not want any limit on the products. We want flexibility so that we can use the SSM on a product which witnesses plunge in prices due to global factors," the official said.

He said under pressure from the US and other agriculture-exporting countries, the lower limit of Special Products, which qualify for lesser duty cuts, has been revised downward from 12 to 8 per cent of the total tariff lines.

Besides, the formula for achieving a zero cut has been devised in such a way that the countries with defensive interest would get less number of tariff lines to safeguard its farmers.

As for industrial products, the flexibility for duty cuts under the less than reciprocal clause for developing countries has been curtailed.

On the other hand, more leeway has been given to the developed nations.

"The para-8 (Hong Kong declaration) has been diluted to the detriment of our interest," Head of International Trade Policy Division at CII T S Vishwanath said.

Assocham Secretary General D S Rawat said that though Indian industry has made big strides in the last few years, it cannot be equated with the industrial base of the developed countries.


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