Thursday, December 4, 2014

India's Position

India generally supports proposals for freer and more transparent trade.[1] However it is clear that in the past such proposals have been heavily weighted to favor the interests of the developed world while handicapping the progress of developing countries. This set of negotiations is an encouraging opportunity to take steps forward toward truly free trade that benefits the developed and developing world.

The agenda on the table here is an excellent starting point that contains many essential areas of interests. The elimination of Non-Tariff Barriers is an important issue in world trade and an issue dear to the Indian economy. Onerous labeling and technical requirements hamper the growth of both the Indian economy and mutually beneficially business relationships.[2] However the elimination of the NTBs should not be limited to agriculture, automobile production, and finance. NTBs on key products of developing countries such as textiles and metallurgical products should also be included. It is important that the reforms contemplated here reflect the interests of both the developed and the developing world. [3]

However safety is still an important concern. It is not the role of this organization to prevent sovereign nations from exercising their right to protect the health and welfare of their people. As such, India stands with a growing group of nations who maintain that in the wake of uncertainty and evolving and emerging scientific evidence assert that countries have the right to regulate and limit the the import of GMOs.[4] [5]

The elimination of agricultural subsidies by the developed world would be a significant step toward trade equality. This is an excellent starting point for discussion, though some level of agricultural subsidy should be discussed on an equal level between developed and developing countries. With the current Uruguay Round state of affairs developed countries can provide unlimited amounts of certain types of support to their farmers while developing countries, already more vulnerable to food security issues, must stay within a de minims cap. If not rectified, this fixed percentage cap currently operational for the developing world will become an increasingly difficult to manage problem as developing countries attempt to enlarge their food aid programs.[6] Increased equality in the agricultural market between developed and developing countries would be an important and encouraging step and is on that is necessary to the future prosperity of free trade.


However it is also important that such steps take into account the particular challenges faced by developing countries. Progress in equalizing the landscape on agricultural subsidies must not wipe out the significant recent steps taken in bilateral agreement between India and the US on with regards to extending agreement on the “peace clause” that came out of the Bali negotiations. The indefinite extension of exceptions for food security programs is an important acknowledgement by the United States of the importance that these programs play in the nutrition of the poorer members of the population in developing countries.[7] Until the issue of public stockholding for food security purposes is resolved this “peace clause” should remain in place and this extension should be recognized by the WTO as a whole.[8] Currently such stock holding is limited to ten percent.  However for developing countries this forms an essential component of helping to provide food security to poorer citizens. These programs often result in developing countries governments being hard pressed against the ten percent limit. LDCs should be allowed to use an unlimited standard, when using public stocks for these purposes.

India would like to and indeed will insist on seeing progress toward a freer and more equal trade landscape. This will mean both general progress and leveling the playing field between developed and developing countries. These negotiations are an opportunity for everyone to benefit from truly free and equal trade.






[1] "Background Note 12th August 2014 on the WTO Negotiations." Government of India, Ministry of Commerce and Industry, Department of Commerce. August 12, 2014. Accessed December 1, 2014. http://commerce.nic.in/trade/Background_note_WTO_Negotiations_12-Aug_2014.pdf.
[2] Mehta, Rajesh. "Non-tariff Barriers Affecting India's Exports." RIS Discussion Papers 97.
[3] Mehta, Rajesh. "Non-tariff Barriers Affecting India's Exports."
[4] Bello, Walden. "Twenty-Six Countries Ban GMOs—Why Won’t the US?" The Nation, October 29, 2013. http://www.thenation.com/blog/176863/twenty-six-countries-ban-gmos-why-wont-us#.
[5] Specter, Michael. "Seeds of Doubt." The New Yorker, August 25, 2014.
[6] "Background Note 12th August 2014 on the WTO Negotiations."
[7] "India and US Reach WTO Breakthrough over Food." BBC, November 13, 2014. http://www.bbc.com/news/business-30033130.
[8] "Background Note 12th August 2014 on the WTO Negotiations."

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