WTO meet: India seeks lasting solution to stock holding of grains
India stresses the need for public stock-holding for its large, vulnerable population and wants a permanent solution from the MC13
NEW DELHI: India will press for finding a permanent solution to public stock holding of grains for food security and protection of the interests of fishermen at the WTO ministerial meeting beginning Monday.
The Indian delegation is led by Commerce and Industry Minister Piyush Goyal. The four-day 13th ministerial conference (MC13) will start on February 26 in Abu Dhabi, the United Arab Emirates (UAE).
The key issue of India’s interests at the meeting relates to finding a permanent solution for its minimum support price (MSP) issue for food security, agricultural reforms, fisheries subsidies, e-commerce moratorium on import duties, dispute settlement, and WTO reforms.
Food security issues
The public stock-holding (PSH) programme is a policy tool under which the government procures crops like rice and wheat from farmers at MSP, and stores and distributes foodgrains to the poor.
India stresses the need for PSH for its large, vulnerable population and wants a permanent solution from the MC13. Food procurement, stockholding, and distribution are crucial to India’s food security strategy.
MSP is normally higher than the prevailing market rates and sells these at a low price to ensure food security for over 800 million beneficiaries. However, the WTO’s Agreement on Agriculture limits the ability of a govt to purchase food at MSP.
Under global trade norms, a WTO member country’s food subsidy bill should not breach the limit of 10 per cent of the value of production based on the reference price of 1986-88.
As part of the solution, India has asked for measures like amendments in the formula to calculate the food subsidy cap. Developed nations are of the view that such programmes distort global trade prices of food grains.
Joint Support Initiatives or plurilateral agreements
India opposes this move being pushed for certain nations. For example, India is strongly opposing efforts of a group of countries led by China to push a proposal on investment facilitation for development agreement at the WTO.
The country has maintained that this agenda falls outside the mandate of the global trade body.
Agricultural reforms farmer livelihoods and ensure equitable market access. However, developed nations are pushing to reduce domestic support and increase market openness irrespective of the fact that they themselves provide large subsidies to their rich farmers.
WTO reforms
India advocates for inclusive reforms that consider developing countries’ interests, against the backdrop of developed nations’ proposals for flexible negotiation processes, dropping of decision-making by consensus and the integration of nontrade issues into WTO without consensus.
India supports efforts to improve the working of the WTO but its key pillars like special and differential treatment for less developed and developing nations, equal voice and dispute settlement mechanism should be retained while undertaking reforms, an official said.
India also seeks a revamp of the Appellate Body to ensure fairness, facing off against the USA’s reluctance to do so and EU’s proposal for alternate mechanisms.
The US, a frequent participant in WTO disputes, has been obstructing the process due to dissatisfaction with inefficiencies and perceived overreaches by the WTO’s judiciary.
The members have already reached the first part of the agreement in 2022 under which subsidies will be prohibited for illegal, unreported and unregulated (IUU) fishing. Now they are negotiating to curb subsidies that contribute to overfishing and overcapacity with a view to promoting sustainable fishing.
India champions a balanced approach on the principle of common but differentiated responsibilities, an expert said.
India, being a low fisheries subsidizer, emphasizes that advanced fishing nations that have historically provided substantial subsidies and contributed to fish stock depletion should bear more responsibility based on the ‘polluter pay principle’. “Our top priority will be to protect the interest of poor fishermen. About 90 lakh people are dependent on the sector in India,” the official said.
The key issue of India’s interests at the meeting relates to finding a permanent solution for its MSP issue for food security, agricultural reforms, fisheries subsidies, e-commerce moratorium on import duties, dispute settlement, and WTO reforms
Extension of customs duties moratorium on e-commerce trade
The ongoing moratorium on customs duties on electronic transmissions, in place since 1998, is a contentious issue facing the WTO and a key focus point for India at the upcoming MC13. India, alongside several other developing nations, has historically called for the termination of the moratorium and has specific demands at MC13 to achieve this goal.