India against freezing duties, removal of farm export control

GENEVA: India rejected proposals of some developed nations to freeze customs duties at current levels (tariff standstill) and taking away rights to ban farm exports as a possible way forward on WTO talks, saying that if accepted it would tantamount to ceding sovereign rights.

"This (freezing customs duties) amounted to the developing countries ceding their policy space and being denied any recognition for their autonomous liberalisation," Commerce and Industry Minister Anand Sharma said at the meeting of G-20 ministers here.

Sharma, who is here to participate in the eighth Ministerial Conference of WTO, said that any dilution of the flexibilities available under the WTO regime for imposing export restrictions on agricultural items and taxes was "unacceptable".

The WTO negotiations have been stalled due to differences between rich and developing nations on tariff liberalisation and level of market opening.

Agreeing to tariff standstill means a drastic reduction in duties by developing countries like India, as the country's applied customs duties is below bound ceiling levels.

To augment domestic supplies, India has banned exports of pulses and also imposed quantitative restrictions on outward shipments of commodities like rice and sugar. Besides, India is planning to bring a food security law under which nearly 64 per cent of its population will have legal entitlement on subsidised food grains.