Authorize unlimited food security programs, end agricultural subsidies exceeding 10 billion dollars in 3 years: India at the WTO
The food security proposal was launched by the G33 – of which India is a member – that WTO members will not challenge, through the dispute settlement mechanism, the support that developing countries provide to foodstuffs under public storage programs.
“A developing member will endeavor not to export from purchased stocks unless requested by an importing member,” the G33 said in the proposal.
Trade and Industry Minister Piyush Goyal said last week that as part of the confidence-building exercise, the G-33 must strive for positive results on a permanent solution the holding of public stocks for food security purposes, which is of the utmost importance, the rapid finalization of a special safeguard mechanism. , and a balanced result on domestic support.
“India has actively made these submissions amid efforts by many countries to focus on non-trade issues such as sustainability ahead of the ministerial meeting,” an official said.
In the other proposal, India said seven members – the European Union, Japan, the United States, Russia, Switzerland, Canada and Norway – hold more than 96% of the aggregate subsidy duty. trade-distorting agricultural products (called the Final Consolidated Aggregate Measure of Support in trade jargon) while the remaining members have less than a 4% share.
According to the proposal, all members with such rights between $ 1 billion and $ 10 billion will be required to reduce their support for each agricultural commodity and cap it at their de minimis levels, through equal annual payments, within a deadline. of five years from the date on which to be decided by the members.
De minimis or the threshold caps domestic support at 10% of the value of production, but many developed countries have the right to provide domestic support well above 10% of the value of production.
âIt’s a supreme irony that developed members, with relatively fewer farmers, have significant flexibility to provide trade-distorting support to their farmers. On the other hand, most developing Members, with a very large number of farmers, do not have the flexibility to support their farmers, âIndia said in its submission.
Citing studies, India said the de minimis duty and amount of trade-distorting subsidies per person employed in agriculture in Switzerland was $ 37,952, in the United States $ 24,714) and in the ‘EU of $ 12,361, compared to $ 1,208 in China, $ 451 in India and $ 206 in Kenya.