Lok Sabha Question No. 2611 (UNSTARRED), answered on 2018-03-12
Subject: WTO Agreement on Agriculture
Ministry: COMMERCE AND INDUSTRY
Asked by: (ADV.) JOICE GEORGE, R. PARTHIPAN

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2611 TO BE ANSWERED ON 12 th  MARCH,2018

## WTO AGREEMENT ON AGRICULTURE

## 2611.   ADV. JOICE GEORGE: SHRI R. PARTHIPAN:

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

- (a) whether the World Trade Organisation (WTO) on agriculture was aimed to remove trade  barriers  and  to  promote  transparent  market  access  and  integration  of  global markets and if so, the details thereof;
- (b) whether the said Agreement is highly complicated and controversial and if so, the details thereof;
- (c) whether  it  has  often  been  criticised  as  a  tool  in  hands  of  developed  countries  to exploit weaker countries; and
- (d) if so, the details thereof along with the reaction of the Government in this regard?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) The  World  Trade  Organization  (WTO)  deals  with  the  rules  of  trade  between  nations.  The objective of these rules is to ensure that trade flows as smoothly, predictably and freely as possible.  The  WTO Agreement on Agriculture (AoA) aimed to establish a fair and marketoriented agricultural trading system with the objective of providing for substantial progressive reductions in agricultural support and protection over an agreed period of time, with  a  view  to  correcting  and  preventing  restrictions  and  distortions  in  world  agriculture markets.
- (b) and (c):  Despite  the  fact  that  the  developed  countries  had  to  undertake  higher  reduction commitments in the Uruguay Round (UR) of Trade Negotiations, their subsidy entitlements are  considerably  higher  than  those  of  developing  countries.      Many  of  the  developing countries such as India did not have any reduction commitment, as they were not providing any trade-distorting subsidies during the reference period taken into account during the UR negotiations.  These countries can provide such subsidies to the extent of 10% of the value
- of production of a crop in a calendar year and 10% of value of production in respect of nonproduct specific support during the year. Hence, the AoA provides considerable space and flexibility  to  a  few  developed  members  to  provide  huge  trade  distorting  subsidies  and further,  to  concentrate  these  subsidies  on  a  few  products  without  any  limit.  Developing countries, on the other hand have special and differential treatment in form of flexibilities to provide support for input subsidies to low income resource poor farmers.
- (d) The  Government  believes  that  any  meaningful  reform  in  agriculture  must  first  seek  to reduce the disproportionately large subsidies of the developed countries, address productspecific concentration and further, there must be no dilution of the special and differential treatment provisions for developing countries.

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