1. INDIA AND THE WTO IN THE CONTEXT OF AGRICULTURE

2. HOW IS WTO DIFFERENT FROM GATT?

3. WTO IS GATT PLUS WTO covers areas well beyond GATT
Textile and Agriculture
Intellectual Property Rights
Services
Investment

4. BASIC PRINCIPLES OF WTO
Protection to domestic industry through tariffs.
Binding of tariffs.
Most Favoured Nation (MFN) Treatment.
National Treatment

5. WORD TRADE ORGANISATION
How to make the best of it?

6. WORLD TRADE ORGANISATION
Was there any option available?

7. JOINING WTO…. EVEN IF THERE WAS AN OPTION AVAILABLE
With regard to Agreements in General and Agreement on Textiles and TRIPS in particular
With regard to Agreements on Agriculture

8. MISAPPREHENSIONS ABOUT WTO
Potential benefits of Agreement on Agriculture
Removal of Quantitative Restrictions.

9. UNDERSTANDING AGREEMENT ON AGRICULTURE (AOA)

10. AGREEMENT ON AGRICULTURE (AOA)
AOA and the Agreement on Application on Sanitary & Phytosanitary Measures were negotiated in parallel
Decisions on measures concerning the possible negative effects of the reform programme on least developed and net food importing developing countries also part of the package.

11. THREE MAIN ELEMENTS OF THE AGREEMENT
Market Access
Domestic Subsidies
Export Subsidies
In addition, special concerns of developing countries and net food importing countries are also addressed.

12. MARKET ACCESS Tariffication of Non Tariff Barriers (NTB’s)
Reduction of Tariffs
By a simple average of 36% over 6 years for developed countries
By a simple average of 24% over 10 years for developing countries
Minimum Access
Not less than 3%, rising to 5% by 2004 for developing countries

13. DOMESTIC SUPPORT Aggregate Measurement of Support (AMS)
Product Specific
Non-Product Specific
De Minimis Provisions
Three Categories of Domestic Support
“Green Box” Measures
“Blue Box” Measures
“Amber Box” Measures

14. DOMESTIC SUPPORT
Green Box measures include all publically funded government programmes which do not provide price support to producers. For example, research, pest and disease control, marketing and promotion services, infrastructure, public stock holding, payments under environment programmes etc. These measures are considered least trade distorting and hence are exempt from reduction.

15. DOMESTIC SUPPORT
Blue Box measures refer to direct payments under production limiting programmes, which are also not subject to reduction commitments.
Amber Box measures include product specific support as well as non-product specific support extended to the farm sector. These are subject to reduction above the de minimis level.

16. DOMESTIC SUPPORT Other exemptions include:
Investment subsidies in the Agriculture sector
Input support to low income/resource poor farmers
Support for diversification from illicit narcotic crops

17. EXPORT SUBSIDY Prohibited Otherwise subject to reduction commitments
Value of Subsidy
By 36% over 6 years for developed countries
By 24% over 10 years for developing countries
No reduction for least developed countries
Quantity of Export
By 21% over 6 years for developed countries
by 14% over 10 years for developing countries
No reduction for least developed countries

18. NOTIFICATION OBLIGATIONS
Members bound to notify changes in Market Access, Export Subsidies and Domestic Support
India notifies
AMS
Product Specific for 19 crops
Non product specific: Fertilizer, Irrigation Electricity and seeds
Green Box
Special & differential , provisions for low income/ resource poor farmers

19. INDIA’S COMMITMENTS Market Access
No tariffication; ceiling bindings of
100% for primary commodities
150% for processed agricultural products
300% for edible oils
Cont----/----

20. INDIA’S COMMITMENT Domestic Support Export subsidy
Price Support for 19 products
AMS is negative by a large margin and below De Minimis
Export subsidy
India does not have these.
No commitments

21. WHAT HAS HAPPENED SO FAR?

22. GROWTH OF AGRICULTURAL EXPORTS IN POST-WTO PERIOD
Value of Agri Exports
Percentage Change
In Rs. Crores
110.83
In Rs. Crores at prices
121.88
185.67
52.33
In Million Dollars
42.23

23. TRENDS IN AGRICULTURAL TRADE OVER THE LAST TWO DECADES
VALUE IN US $ MILLION
Sl.No.
Item 1.
Total exports
8486
18143
(113.80)
44400
(144.72) 2.
Total Agricultural Exports
2601
3521
(35.37)
6013
(70.77) 3.
%share of Agri Exports to Total Exports
30.65
19.40
(-36.70)
13.54
(-30.20) 4.
Total imports
15869
24075
(51.7)
49720
(106.52 5.
Total Agricultural Imports
2030
1354
(-33.26)
1676
(23.78) 6.
%share of Agri Imports to Total Imports
12.80
5.62
(-56.1)
3.37
(-40.03) 7.
Value of Agri Imports as
78.04
38.45
(-50.73)
27.88
(-27.50)
* Figures in parentheses indicate percentage over the previous decade

24. CHANGES IN UNIT EXPORT PRICES (DOLLAR PER KG)
Sl.No.
Commodity 1.
Fresh Fruits
0.13
0.60 2.
Processed Fruits and Vegetables
0.54
0.64 3.
Poultry and Dairy Products
0.42
1.73 4.
Tea
2.05
2.13 5.
Spices
1.26
1.45 6.
Other Cereals
0.10
0.19 7.
Non-Basmati Rice
0.24
0.25 8.
Meat and Meat Preparations
1.01
1.07 9.
Groundnut
0.63
0.50
10.
Coffee
2.61
1.36
11.
Basmati Rice
0.62
0.55
12.
Wheat
0.15
0.12
13.
Marine Products
3.51
2.75
14.
Fresh Vegetables
0.89
0.20
15.
Fruits and Vegetable seeds
1.16
1.09
Source: CMIE Reports

25. WTO DOMESTIC SUPPORT NOTIFICATIONS ($ BILLION)
Country and Category
Base
1995
1996
1997
1998
European Union
116
117
119 99 96
- Amber
102 62 61 56 52
- Blue - 28 22
-Green 14 27 30 21
Japan 74 68 60 34 53 38 36 6
- Green 24 26
United States 58 64
-Amber 5 10
-Blue 29 51 55 54
Source: WTO Notifications

26. ESTIMATES OF SUPPORT TO AGRICULTURE IN OECD (FIGURES IN US DOLLARS BILLION)
Item
1997
1998
1999
Producer Support Estimate (PSE)
246
267
271
283
Total Support Estimate (TSE)
308
347
329
352
361
Source : OECD data base

27. PERCENTAGE AGGREGATE MEASURE OF SUPPORT BY MAJOR COUNTRIES
Country as % of value agricultural
Year of Production
Domestic Support EU
1997
48.03
Japan
1998
39.15
USA
28.59
Canada
10.60

28. INDIA’S AGGREGATE MEASUREMENT OF SUPPORT (RS. CRORES)
Item
Product Specific
Non Product Specific * *
780.35
882.44
% of Value of Agricultural Production**
5.40
7.52
1.83
2.07
Note: * - does not exclude support to resource poor farmers
** - indicated only for non-product specific support
Source: Ministry of Commerce, Government of India

29. MAJOR COUNTRY POSITIONS
EU, Japan and certain Nordic countries advocating multifunctionality in an attempt to continue with the high degree of protection currently available to their agriculture.
Cairns Group of agriculture exporting countries (18) calling for substantial reduction in tariffs, domestic support and elimination of export subsidies.

30. MAJOR COUNTRY POSITIONS
United States looking for greater market access for its products, championing trade in genetically modified products, calling for reduction in tariffs and trade distorting support.
Developing countries having a difference of opinion keeping in view their status as net importers of food or exporters of agricultural products

31. S&D PROVISIONS
Ostensibly designed to create a level playing filed between developed and developing countries
AOA provides S&D treatment favouring the developed countries, i.e. the continuance of Blue Box, export subsidies, unlimited Green Box and domestic support levels and TRQs

32. INDIA’S OBJECTIVES
To preserve flexibility in domestic support policies to ensure food and livelihood security.
To create opportunities for a meaningful expansion of agricultural exports.

33. PROPOSALS
As a S&D measure, developing countries to be allowed to maintain appropriate levels of tariffs
Developing countries to retain flexibility for public stock holding and public distribution of food grains
Use of special safeguard in the event of a surge in imports or a decline in prices
Measures for poverty alleviation, rural development and employment to be exempt from AMS.
Cont…….

34. PROPOSALS
Primary agricultural commodities like jute, rubber, coir and primary forest produce which provide employment and livelihood to many to be covered by AOA.
Exemption to developing countries from any obligations to provide minimum market access.
Historical low tariff bindings to be rationalised commensurate with bindings on similar category of products under the Uruguay Round.
Negative product specific support to be allowed to be adjusted against positive non-product specific support.
Cont…….

35. PROPOSALS To achieve meaningful market access it is proposed to seek:
Substantial reduction in tariffs, tariff peaks and tariff escalation by developed countries
Eventual abolition of TRQs
Transparent administration of TRQs with preference to developing countries in the interregnum
Cont…….

36. PROPOSALS
Suitable accounting of all trade distorting support (e.g. paras 5,6,&7 of Annex 2 and Art. 6.5 of AOA) in the AMS calculations
Elimination of all forms of export subsidies including export credits, guarantees, insurance etc. by developed countries.
Flexibility available to developing countries under ASCM to be preserved in AOA
Cont…….

37. PROPOSALS Peace clause not to be extended for developed countries
Down payment by way of 50% reduction in trade distortion and tariffs by developed countries by the end of 2001
Retaining and strengthening the existing S&D provisions

38. WHAT HAPPENED AT DOHA?

39. AT DOHA Implementation related concerns
Agreed to negotiate on outstanding implementation issues which shall be an integral part of the work programme

40. AT DOHA
Agriculture
Agreed to a comprehensive negotiation for substantial improvement in market access, phasing out of export subsidies and reducing domestic support.

41. AT DOHA Market access for non agricultural products
Agreed to negotiate for reduction of tariffs, including peak tariffs and removal of non-tariff barriers

42. AT DOHA
TRIPS
Agreed to consider extension of the protection of geographical indications provided for in Article 23.
Waiver from TRIPs for cheap medicines overriding patents in times of public health emergencies

43. AT DOHA
Trade & Investment/Trade & competition/Government procurement/Trade facilitation
Negotiation to take place but through explicit consensus

44. AT DOHA Trade & Environment
Agreed to negotiate on the relationship between existing WTO rules and specific trade obligations set out in multilateral environment agreements.

45. FUTURE STRATEGY FOR DEVELOPING COUNTRIES WITH REGARD TO AGRICULTURE

46. FUTURE STRATEGY
Ensure reduction of AMS and duties in letter and spirit ………. The implementation issues

47. FUTURE STRATEGY
Forge a common platform to change the rules of the game: special and differential treatment, AMS, reduction of duties.

48. FUTURE STRATEGY Are we prepared?
Proactive preparations for penetrating the markets when the duties and the subsidies come down.
Are we prepared?

49. FUTURE STRATEGY Active participation in Codex meetings.
Forging common platform for SPS related barriers.

50. FUTURE STRATEGY
Emphasis on quality within the country……… the “Quality” culture has to be developed

51. FUTURE STRATEGY Identify subsidies which are WTO compatible…………………
Agri Export Zones are a move
in this direction.

52. FUTURE STRATEGY
Take a fresh look at agricultural commodities which are being supported and move towards such commodities which are market driven rather than State driven
Wheat Durum Wheat
Rice Basmati Rice
Sugar Potatoes
Onion
Eggs

53. Thank You