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Negotiated hard for developing nations at WTO meet: Sitharaman

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Press Trust of India New Delhi
India negotiated "hard" at the recently concluded WTO's Nairobi meeting to ensure that the interest of developing countries remains at the centre of the agenda, government informed Parliament today.

"India negotiated hard to ensure that the WTO continues to place the interest of developing countries and LDCs at the centre of its agenda," Commerce and Industry Minister Nirmala Sitharaman said in the Lok Sabha.

A few developed countries including the US, however, are opposed to the continuation of the Doha Round, she said.

The Nairobi Ministerial Declaration acknowledged that members have different views on how to address the future of the Doha Round negotiations but noted strong commitment of all members to advance negotiations on the remaining Doha issues, she said.
 

"India not only made a statement to this effect at the closing ceremony on December 19 but also made a written submission to the Director General, WTO and the Chair of the Tenth Ministerial Conference," the minister said.

As part of the Doha Round, developing countries want the developed nations to substantially reduce their farm subsidies.

Sitharaman said the declaration records that WTO work would keep development at its centre.

She also said that on demand from a large number of developing countries for a Special Safeguard Mechanism (SSM) for agricultural products, India negotiated a Ministerial Declaration which recognises that developing countries will have the right to have recourse to an SSM.

SSM would help the countries to raise tariffs in case of sudden surge in imports or dip in global commodity prices.

"Members will continue to negotiate the mechanism in dedicated sessions of the Committee on Agriculture in special session. The WTO General Council has been mandated to regularly review progress of these negotiations," she said.

She said that as the future of the Doha Round appeared in doubt, India sought and succeeded in obtaining a re-affirmative ministerial decision on public stock holding for food security purposes.

"The decision commits members to engage constructively in finding a permanent solution to this issue," she said.

On the introduction of new issues like investment and e-commerce being pushed by the developed countries, she said the Declaration acknowledges the differences in views and states that any decision to launch negotiations multilaterally on such issues would need to be agreed by all members.

Meanwhile, some sections of Civil society groups and trade experts have criticised the government on the outcome of the World Trade Organization meeting. They have said that India has gained nothing from this meet.
Sitharaman said all countries agreed to the elimination of

agricultural export subsidies subject to the preservation of special and differential treatment for developing countries such as a longer phase out period for transportation and marketing export subsidies.

She said the ministerial decision contains disciplines to ensure that other export policies are not used as disguised forms of subsidies.

"These disciplines include terms to limit the benefits of financing support to agriculture exporters, rules on state enterprises engaging in agricultural trade and disciplines to ensure that food aid does not negatively affect domestic production. Developing countries, such as India, are given longer time to implement these rules," Sitharaman said.

She said one of the decision adopted extends the relevant provision to prevent 'ever-greening' of patents in the pharma sector to ensure accessibility and affordability of generic medicines.

"The decision would help immensely in maintaining affordable as well as accessible supply of generic medicines," she said.

India supported outcomes on issues of interest to Least Developed Countries (LDCs) including enhanced preferential rules of origin for LDCs and preferential treatment for LDC services providers, Sitharaman said.

India already offers duty free, quota free access scheme to all LDCs, which provides a comprehensive coverage with simple, transparent and liberal rules of origin.

As regards negotiations on subsidies on fisheries, she said India argued strongly for special and differential treatment.

On rules on anti-dumping, India strongly opposed a proposal that would give greater power to the WTO's anti- dumping committee to review members' practices.

"There was no convergence in these two areas and hence no outcome and therefore, interests of Indian fishermen have been adequately protected," Sitharaman said in a statement in the Lok Sabha.

She said the outcomes of the WTO conference, referred to as the 'Nairobi Package' contains ministerial decisions on agriculture, cotton and issues related to LDCs.

"These cover public stockholding for food security purposes, a Special Safeguard Mechanism (SSM) for developing countries, a commitment to abolish export subsidies for farm exports, particularly from the developed countries and measures related to cotton," she added.

Decisions were also made regarding preferential treatment to LDCs in the area of services and the criteria for determining whether exports from LDCs may benefit from trade preferences, Sitharaman said.

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First Published: Dec 22 2015 | 3:42 PM IST

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