Lok Sabha Question No. 2455 (UNSTARRED), answered on 2017-07-31
Subject: WTO Regime
Ministry: COMMERCE AND INDUSTRY
Asked by: (ADV.) JOICE GEORGE, M. UDHAYAKUMAR

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2455 TO BE ANSWERED ON 31 st JULY, 2017

## WTO REGIME

## 2455. ADV. JOICE GEORGE: ADV. M. UDHAYAKUMAR:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether it is a fact that World Trade Organisation (WTO) regime has not benefitted all the countries equally and if so, the details thereof along with the reaction of the Government thereto;
- (b) whether  the  Government  has  any  specific  plans/programme  to  become  selfsufficient in the production of pulses and other items and if so, the details thereof;
- (c) whether the Government is planning any internal market reforms to tackle the WTO regime pitfalls and if so the details thereof;
- (d) whether it is true that according to WTO, India may have to push hard in building consensus on decision of its interest including a permanent solution to deal with its concerns  over  developing  food  stocks  as  well  as  its  proposal  to  have  a  global agreement on easier flow of professionals and investment rules for service; and
- (e) if so, the details thereof along with the reaction of the Government thereto and the action taken by the Government in this regard?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- a) :  The World Trade Organization (WTO) deals with the rules of trade among nations, as negotiated and  agreed  among  its  member  countries,  and inter  alia ,  also  settles  trade  disputes  between  its members.  Its  fundamental  principles  include  non-discrimination  in  trade  matters,  freer  trade, predictability  and  transparency.  Decision-making  is  largely  based  on  the  principle  of  consensus. However,  the  impact  of  the  rules  on  different  member  countries  and  sectors  would  depend  on several  factors,  both  external  and  internal  to  a  member  country,  and  would  consequently  vary across countries. Negotiations in a multilateral forum such as the WTO require some give and take, so that the best possible outcomes are achieved. The Government is pushing for outcomes in the priority areas of India's interest, such as in the area of agriculture negotiations.
- b) :  Under the National Food Security Mission (NFSM), for the year 2017-18, out of a total allocation of Rs. 1720.00 Crore Government has allocated an amount of Rs. 1069.87 Crore for pulses as central share to increase the production of pulses in the country. A programme on Additional Area coverage of Pulses is operational since 2013-14 under the NFSM to increase the production of rabi/ summer pulses through area expansion of rabi pigeon pea, gram, pea and lentil during rabi and, moong and urad during summer in NFSM-Pulses implementing States.
- c) :    The  Government  believes  that  a  rules-based,  non-discriminatory  multilateral  trading  system  is necessary for bringing transparency, equity and fair play into global trade relations. The multilateral trading system potentially offers a suitable institutional architecture for a developing country. While framing  trade-related  policies,  the  Government  is  mindful  of  the  need  to  ensure  that  these  are aligned  with  India's  obligations  and  commitments  under  various  WTO  Agreements.  Internal economic  and  market  reforms  are  an  ongoing  autonomous  process  based  on  national  goals  and priorities.  These  include  strengthening  and  upgradation  of  trade-related  infrastructure,  steps  to enhance the ease of doing business, steps to improve India's export competitiveness and deepen engagements  with  new  markets,  deepen  and  widen  the  export  basket  and  promote  product standards, packaging and branding of Indian products.
- d) and (e):   India has a long standing position on the need to prioritize the agreed mandate of the Doha Round, in particular,  the  Ministerial  decision  to  find  a  permanent  solution  by  December  2017  on public  stockholding  for  food  security  purposes,  which  relates  to  protection  of  our  food-grain procurement programme at Minimum Support Prices and subsidized  distribution  to  economically weaker sections. The Government is committed to pursuing this issue in the WTO in order to take forward the mandate given in the Bali and Nairobi Ministerial Conferences of the WTO in 2013 and 2015  respectively.  India  is  seeking  to  implement  the  decisions  on  the  issue  through  active  and constructive engagement with Member countries.

Further, India's proposal for facilitating trade in services in the WTO was made with the objective of imparting  much  needed  momentum  to  the  discussion  on  services.  The proposal provides  a framework to address the various impediments to trade in services in a comprehensive and holistic manner. The proposal has been discussed in the relevant services bodies of the WTO.

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