WTO meet begins in Buenos Aires, India firm on stand
With the 11th ministerial conference of the World Trade Organization (WTO) beginning in Buenos Aires, Argentina on Sunday, India has reaffirmed its stand that a permanent solution to the public stockholding of food stocks must be found.
According to Union commerce minister Suresh Prabhu, the demand for a permanent solution is non-negotiable because it is a matter of the livelihood of millions of people. The minister said the solution should also include future programmes of all developing member countries as well as least developed countries (LDCs).
“A permanent solution to public stockholding for food security is a must have at WTO MC 11,” the minister tweeted after attending a meeting of G33 - a grouping of 47 developing countries having common objectives and similar concerns. He also expressed hope that India will get the support of WTO member countries on food security, Doha Development Agenda and protection to small farmers.
Prabhu, who met the representatives of the European Union ahead of the ministerial meeting, strongly pitched for a special safeguard mechanism (SSM) to help developing countries deal with import surges and price erosion of their agriculture produce owing to heavy subsidies offered by developed countries to their agriculture sector.
He stressed that the G-33 grouping represents the collective voice of over two-thirds of humanity. The minister said he was trying to meet trade ministers of those countries which have “opposite views” with a view to convince them about the concerns of the developing nations.
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. India has been seeking amendments in the formula to calculate the food subsidy cap as it fears the full implementation of food security programme might result in breach of the WTO cap.
To address this concern, the WTO members at the Bali ministerial meeting in December 2013 had agreed to put in place a temporary mechanism known as ‘peace clause’ which would be in force till a permanent solution is found. The clause protects developing nations from action in case the cap is breached.