Nod for WTO Agriculture Agreement

By Sushma Ramachandran

NEW DELHI, JAN. 6. In the backdrop of growing concern over the impact of globalisation on the domestic farming community, the Government today approved the initial Indian proposals for the mandated negotiations under the Agreement on Agriculture of the World Trade Organisation (WTO). These include several proposals seeking to protect domestic producers from a surge in imports while calling for ``effective market access'' in developed country markets by removing tariff barriers and subsidies.

The proposals cleared today by the Cabinet Committee on WTO matters also include the suggestion made earlier by the noted agricultural scientist, Dr. M.S. Swaminathan for a ``Food Security Box'' meant to focus on food security and livelihood concerns of developing countries. While formulating the proposals, the Government has clearly taken into account the fears expressed in recent months over the impact of agricultural imports from developed countries which provide huge subsidies to their farmers especially in areas like dairy products. It has also sought to include primary products like rubber and jute which are of interest for developing countries but have been excluded from the Uruguay Round Agriculture Agreement.

The proposals finalised jointly by the Departments of Agriculture and Commerce will now be submitted to the mandated negotiations on agriculture. These have already begun from January 1. As part of the agreed work programme, member countries have to submit their proposals for these negotiations.

The Indian proposal primarily seeks to achieve the aim of protecting the country's food security and livelihood concerns by having sufficient flexibility for domestic policy measures and protecting indigenous producers from a surge in imports or a significant decline in import prices.

On opportunities for expanding agricultural exports, it notes that market access is possible in developed country markets through substantial reductions in tariffs and in their ``trade- distorting domestic support''. It also seeks elimination of the export subsidies extended by developed country members.

The proposals are in the key areas of market access, domestic support, export competition and food security. They envisage the continuance of the present flexibility in public stockholding, public distribution of foodgrains as also dispensation for developing countries to take measures for poverty alleviation, rural development and rural employment.

It specifically seeks flexibility for developing countries for providing subsidies to key farm inputs. It has also been suggested that as a special and differential measure, developing countries be allowed to maintain appropriate levels of tariff bindings keeping in view their developmental needs and the high distortions prevailing in the international market to protect the livelihood of their population dependent on agriculture.

The Indian proposal seeks inclusion of primary agricultural commodities such as rubber, primary forest produce, jute and coir which were not included under the Agreement on Agriculture during the Uruguay Round.

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