India is set to challenge longstanding trade norms at the upcoming World Trade Organization (WTO) meeting in Abu Dhabi. The focus is to dismantle entitlements that have favoured developed countries in global agriculture exports while impeding opportunities for developing nations.
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India, as per information from a knowledgeable source, plans to advocate for the removal of entitlements within trading rules that have favoured developed countries in dominating global agriculture export and hindering fair access for developing nations to export markets. This initiative will be presented at the forthcoming World Trade Organization (WTO) interministerial meeting in Abu Dhabi.
Specifically, India aims to eliminate the ‘additional Final Bound Total Aggregate Measurement of Support (FBTAMS) entitlements,’ which represent fixed additional allowances exceeding the ‘de minimis limits’ outlined in the WTO Agreement on Agriculture (AoA).
The individual cited above explained, “India’s stance is that any discussions on domestic support must first address the existing asymmetries and imbalances in the WTO Agreement on Agriculture (AoA). Therefore, addressing disciplines on domestic support should commence with the removal of historical asymmetries in domestic support.”
It’s worth noting that there has been resistance to discussing this issue, and actual negotiations on it have not yet begun within the WTO.
India faces regular scrutiny from major food grain exporters like the US and Canada regarding its PSH program, with allegations of excessive subsidies, particularly for rice. India has, on multiple occasions, invoked the ‘peace clause’ at the WTO due to breaches of the 10% subsidy ceiling on rice procurement.
India informed the WTO that its rice production’s value in 2019-20 amounted to $46.07 billion, with subsidies totalling $6.31 billion, equivalent to 13.7%, which exceeds the 10% limit.
Furthermore, India, in collaboration with a coalition of developing and African nations, has put forward a permanent solution for public stockholding of foodgrains. This proposal aims to provide them with greater flexibility in providing higher farm support.
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