Ministry of Commerce & Industry16-December, 2003 14:21 IST
India urges dropping of three Singapore issues

CALL FOR SPIRIT OF ACCOMMODATION AS WAY FORWARD

INDIA’S INTERVENTION AT THE WTO GENERAL COUNCIL MEETING
Calling for a spirit of goodwill and accommodation on the part of all members to carry the process of negotiations forward, India has suggested that further work on three Singapore issues viz., trade & investment, trade & competition policy and transparency in government procurement should be dropped from the agenda of the World Trade Organisation (WTO). The intervention by India at the General Council meeting of Capital Based Officials (15-16 December, 2003) at the WTO in Geneva indicates that India’s position is in line with the views expressed by a large number of developing and the least developed countries in the General Council document dated 12 December, 2003 on Singapore issues. Regarding Trade Facilitation, India has said that work on clarification of various aspects of this issue may continue in the light of the interest expressed by several delegations, and also that any subsequent decision on modalities should be by explicit consensus.

Describing the issue of agriculture as being at the core of the ongoing negotiations, India has stated that: “Resolution of fundamental differences in this area would depend on the depth of agriculture reform that is proposed to be carried out in the developed countries along with adequate safeguards to address livelihood and food security concerns of billions of farmers in developing countries. We have a responsibility to translate the Doha mandate into provisions that would ensure balance across the three pillars (of agricultural negotiations). The right level of ambition in agriculture would be that which balances the extent of reduction in distortions in world markets due to high support and protection in developed countries against the increased vulnerability of billions of farmers in developing countries due to further opening of their markets”.

Regarding the framework approach in agriculture and non-agricultural market access to facilitate finalisation of modalities which would form the basis of agricultural and non-agricultural trade liberalisation, India has pointed out that a framework would find acceptance only if certain conditions are fulfilled. The first condition is that it must fully reflect the principles laid down in the Doha mandate, as stated in the G-20 Ministerial Communiqué issue at Brasilia last week i.e., that any framework to be viable must “lead to the establishment of modalities capable of ensuring that negotiations in agriculture would result in substantial reductions in domestic support, substantial increase in market access, phasing out of all forms of export subsidies and operation of an effective special & differential treatment that takes into account rural development and food security concerns of developing countries”. Secondly, the framework must not be ambiguous or uncertain, eg., the blend approach to market access suggested in the Derbez text as it seems to impact differently on member countries depending on tariff dispersion prevalent in each country and does not take into account the cardinal principle of S&D treatment through less than full reciprocity. Thirdly, it should not be structured in a manner that will prejudice the position of member countries in further negotiations. The issue of cotton subsidies, raised by several African countries, deserves concrete action, the statement adds.

On non-agricultural market access (NAMA), India has emphasised the need to remain faithful to the Doha Declaration, especially the principle of less than full reciprocity in reduction commitments for developing countries. “The right way forward does not appear to be a simple Swiss Formula with a single coefficient nor the concept of harmonisation of tariffs. The formula proposed by the Chairman of the negotiation group incorporated suitable S&D provisions and we are willing to work further on this…. It also needs to be recognised that developing countries need a degree of flexibility with respect to sensitive products…. Sectoral initiative should be voluntary rather than mandatory for developing countries”, India has said. It has also reiterated that non-tariff barriers which are an integral part of NAMA negotiations should be adequately dealt with.

Pointing out that there has hardly been any progress in the resolution of implementation issues, India has called upon the General Council or the Trade Negotiations Committee of the WTO to create a separate negotiating body exclusively for implementation issues and special & differential treatment issues. This negotiating body should also address the issue of commodity price stabilisation in agricultural products raised by Kenya and other African countries in the run-up to Cancun, as this is an unresolved issue of great significance to many developing countries.

India has emphasised the need for concerted and conscious efforts to ensure that the development dimension of the negotiation is not diluted, but occupies the centrestage, as this alone will ensure progress of trade liberalisation on a sustained basis.
(Release ID :194)