WTO backs phased cut in agri-tariffs

TOKYO: IN A significant gain for the developing countries, the WTO has proposed that they can gradually cut customs duty on agricultural products over a period and continue state subsidy and extraordinary support.
A draft by chairman of the WTO committee on agriculture Stuart Harbinson, circulated at the start of the three-day mini-ministerial meeting here today, has come in for praise from developing countries but was viewed as a jolt to many developed nations, including Japan and the European Union (EU).
The draft, though dubbed as “US centric�, was seen as addressing some of long-standing objections from developing countries in opening up the industrialised nations’ farm sector to their exports.
A high-power Indian delegation including commerce minister Arun Jaitely and agricultrue minister Ajit Singh are expected to articulate India’s reservations on market access on the ground that their opening up should be linked to industrial nations dismantling trade-distorting farm subsidies.
India is also expected to use the opportunity to press during the negotiations on trade and services for free movement of professionals without any immigration hassles.
Though India welcomed the draft modalities giving concessions on the state subsidy and special product exemption front, it would oppose the reduction in the tariff structure as proposed within a period of 10 years, official sources said.
The developing countries consider the draft as an important document as it has attempted to take on board the differing views of three major trading blocks — Cairns, EU and the developing countries — over the contentious issue of market access in agriculture sector.
Japan rejected the proposed tariff cuts which threatens its uncompetitive rice farmers as “biased� in favour of exporting countries.
The US described the slashing of export subsidies to zero level in a time bound manner as “problematic�. The EU blasted it as unbalanced in the approach to subsidies and claimed that it failed to take into account non-trade concerns.
With the Japanese proposal on Trips (Trade related aspects of intellectual property rights) and public health being a non-starter, the meeting is expected to discuss the next course of action on the basis of a note circulated by WTO director general on the contentious issue of access to cheap medicine. India and several developing countries have made it clear that there could be no dilution of what has been agreed at Doha with regard to access to cheap medicines.