Lok Sabha Question No. 3673 (UNSTARRED), answered on 2016-08-08
Subject: Issues Raised by India in WTO
Ministry: COMMERCE AND INDUSTRY
Asked by: P. KARUNAKARAN, JAYADEV GALLA, M. B. RAJESH, PONNUSAMY VENUGOPAL

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

## LOK SABHA UNSTARRED QUESTION NO. 3673

## TO BE ANSWERED ON 08 TH  AUGUST, 2016

## ISSUES RAISED BY INDIA IN WTO

## 3673.  SHRI P. KARUNAKARAN: SHRI JAYADEV GALLA: SHRI M.B. RAJESH:

## DR. P. VENUGOPAL:

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

- (a) the details of Nairobi Agreement entered into by India indicating the issues raised in the
- World Trade Organization (WTO) summit recently;
- (b) whether India has to stop giving subsidies to cotton from Ist January, 2017 and subsidies to other than cotton produces from 2018 end;
- (c) if so, the details thereof along with the reasons for entering into such an agreement which adversely affects the Indian farmers;
- (d) whether any solution was arrived at the WTO summit on public stock holding programme for food security and if so, the details thereof;
- (e) whether there was any effective agreement on special safeguard mechanism to impose
- safeguard tariff duties on the import of highly subsidized agricultural products; and
- (f)
- if so, the details thereof along with the benefits to Indian farmers as a result thereof?

## ANSWER

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

- (a) : A declaration was adopted at the Tenth Ministerial Conference of the World Trade Organization (WTO), held in Nairobi, Kenya, from 15 to 19 December 2015. It comprises six Ministerial Decisions on agriculture, cotton and issues related  to  least-developed  countries  (LDCs).  These  cover  an  agricultural Special Safeguard Mechanism (SSM) for developing countries, public stockholding  for  food  security  purposes,  a  commitment  to  abolish  export subsidies  for  farm  exports  and  measures  related  to  cotton.  Decisions  were
- also taken regarding preferential treatment to LDCs in the area of services and

the  criteria  for  determining  whether  exports  from  LDCs  may  benefit  from trade preferences.

- (b) &(c):  The Ministerial Decision relating to Cotton does not prohibit subsidies to  the  cotton  sector  and  India  can  continue  to  provide  domestic  support  to cotton,  as  per  the  existing  WTO  rules  and  commitments.  The  Ministerial Decision relating to export competition stipulates that export subsidies to the cotton  sector  will  be  eliminated  by  developed  countries  immediately  and  by developing  countries  with  effect  from  1  January  2017.    Presently  export subsidies can be provided by only a few members, mainly developed countries, who had been giving such subsidies and had scheduled the same following the Uruguay Round of trade negotiations. India was not giving such subsidies and had not scheduled them and therefore,  does not have such an entitlement. The elimination  of  export  subsidies  by  developed  countries  will  help  the  cotton industry in developing countries, including India, to become more competitive.

(d):  A Ministerial Decision on Public Stockholding for Food Security Purposes was taken at the WTO Ministerial Conference in Nairobi in December 2015. WTO Members  decided  to  engage  constructively  to  negotiate  and  make  all concerted efforts to agree and adopt a permanent solution on the issue of public stockholding for food security purposes. As per the Bali Ministerial Decision of December  2013,  Members  had  agreed  to  negotiate  an  agreement  for  a permanent  solution  on  the  issue  of  public  stockholding  for  food  security purposes for adoption by the 11 th Ministerial Conference of the WTO.In order to achieve such a permanent solution, the negotiations on this subject are to be held in the WTO's Committee on Agriculture in Special Session, in dedicated sessions and  in an accelerated time-frame,  distinct from  the  agriculture negotiations under the Doha  Development  Agenda.India negotiated and secured a re-affirmative Ministerial Decision on Public Stockholding for Food Security Purposes honouring both the Bali Ministerial Decision of December 2013 and a WTO General Council Decision of November 2014. The decision commits Members to engage constructively in finding a permanent solution to this issue.

(e) &(f): India  negotiated  a  Ministerial  Decision  which  recognizes  that developing  countries  will  have  the  right  to  have  recourse  to  an  agricultural Special Safeguard Mechanism (SSM) as envisaged in the mandate of the Doha round of trade negotiations. Negotiations on the SSM will be held in dedicated sessions and the WTO General Council has to regularly review the progress. The  SSM  is  intended  to  help  developing  countries  protect  their  agriculture sector from the effects of import surges.