WTO tariff reduction deal 'unfair'
The ‘compromise’ draft paper circulated by the WTO chief Pascal Lamy has not found favour with developing countries.
By Amiti Sen, ET Bureau |
GENEVA: The ���compromise��� draft paper circulated by the WTO chief Pascal Lamy has not found favour with developing countries. India and other members of the G-33 group of countries with defensive farm interests have warned that the inadequate provisions on protecting farmers from import surges could be a potential deal-breaker. Argentina, on the other hand, has rejected the proposals on Nama (industrial goods) on the ground that it placed a greater burden of tariff reduction on developing countries rather than developed countries. The 30 trade ministers participating in the on-going mini-ministerial meeting of the WTO will work on the Lamy paper over the next few days to try and give it a shape which is acceptable by the entire membership. EU trade commissioner Pascal Lamy said that the package held more for developing countries than developed countries, "but we accept that."
Rubbishing the proposal on special safeguard measures (SSMs) ��� measures which would allow developing countries to increase their tariffs in case of a surge in imports���in the meeting of the Trade Negotiations Committee of the WTO, India said it was unacceptable. "We cannot go home with a provision which would ask us to wait for an import surge of 40% before we can take remedial action. By that time the import surge would have wreaked havoc on the livelihoods of the most vulnerable farmers. We need serious reconsideration of this proposal," India���s statement said.
The G-33 - which has 42 members including India and is chaired by Indonesia-met Saturday morning and also decided to demand that countries should be allowed to increase tariffs by more than 15% of the ceiling rate in case of import surges.
The powerful G-20 alliance of developing countries in agriculture with both offensive (seeking greater markets) and defensive interests in agriculture, however, holds divergent views on SSMs. "Some think it goes too far while others think it does not go far enough. So it is very difficult as the coordinator of G-20 to take a position on one or the other," said Brazilian foreign minister Celso Amorim.
India is more agreeable on the provisions on Nama in the Lamy paper. If developed countries agree to take a reduction coefficient of 8%, it would mean that tariff peaks on products of interest to India-like leather and textiles-will come down to below 8% in the developed country markets. Argentina, however, rejected the entire Nama text. On the anti-concentration clause, which would limit the flexibilities given to developing countries in the area of protecting certain tariff lines from cuts, India said it was willing to negotiate reasonable numbers.
Rubbishing the proposal on special safeguard measures (SSMs) ��� measures which would allow developing countries to increase their tariffs in case of a surge in imports���in the meeting of the Trade Negotiations Committee of the WTO, India said it was unacceptable. "We cannot go home with a provision which would ask us to wait for an import surge of 40% before we can take remedial action. By that time the import surge would have wreaked havoc on the livelihoods of the most vulnerable farmers. We need serious reconsideration of this proposal," India���s statement said.
The G-33 - which has 42 members including India and is chaired by Indonesia-met Saturday morning and also decided to demand that countries should be allowed to increase tariffs by more than 15% of the ceiling rate in case of import surges.
The powerful G-20 alliance of developing countries in agriculture with both offensive (seeking greater markets) and defensive interests in agriculture, however, holds divergent views on SSMs. "Some think it goes too far while others think it does not go far enough. So it is very difficult as the coordinator of G-20 to take a position on one or the other," said Brazilian foreign minister Celso Amorim.
India is more agreeable on the provisions on Nama in the Lamy paper. If developed countries agree to take a reduction coefficient of 8%, it would mean that tariff peaks on products of interest to India-like leather and textiles-will come down to below 8% in the developed country markets. Argentina, however, rejected the entire Nama text. On the anti-concentration clause, which would limit the flexibilities given to developing countries in the area of protecting certain tariff lines from cuts, India said it was willing to negotiate reasonable numbers.
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