PUBLIC STOCKHOLDING FOR FOOD SECURITY PURPOSES
- Public stockholding programmes for food security is allowed as per the WTO Agreement on Agriculture. However, if food for such programmes is acquired at administered prices and not at market prices, then there deemed to be support to farmers.
- As per WTO rules negotiated in the Uruguay Round all such support has to be kept within a limit of 10% of the value of production of the product in question. This cap can constrain procurement and food aid programmes in developing countries.
- The draft agriculture negotiating text of December, 2008 seeks to change this. It contains a proposal to revise the rules, but as the negotiations have not concluded this remains an unfinished agenda.
- India, as part of a coalition of developing countries known as the ‘G-23’, proposal an amendment of the WTO’s Agreement on Agriculture to change these rules.
- The G-33 proposal, as well as various alternatives suggested by the Group, met with resistance. Negotiations continued during the Bali Ministerial Conference. The finally agreed text of the ministerial decision provides for Members to put in place an interim mechanism and to negotiate on an agreement for a permanent solution for adoption by the 11th Ministerial Conference.
- In the interim, until a permanent solution is found and subject to certain conditions, members will be protected against challenge in the WTO under the Agreement on Agriculture in respect of public stockholding programmes for food security purposes.
DISPUTE SETTLEMENT
- Dispute settlement is the central pillar of the rules based multilateral trading system and the WTO’s unique contribution to the stability of the global economy. It underscores the rule of law and makes the trading system more secure and predictable.
- As per the mandate of the Doha Declaration, the WTO Members have been negotiating, aimed at improvements and clarification of the Dispute Settlement Understanding (DSU).
- There are total 12 major issues which are under discussions in the DSU reforms.
- India and other developing countries have been reiterating their objectives for a development oriented review or the Dispute Settlement Procedures under the Doha Development Agenda (DDA). Keeping this objective in View, India and other developing countries have been pursuing reforms aimed at special & differential (S&D) treatment to developing countries. These include proposals for the litigation costs to mitigate the rising costs of settling the WTO Disputes, cross retaliation that may allow the developing countries to retaliate in any sector or agreement against the losing developed country.
- The Department of Commerce is vested with the responsibility to protect India’s trade interests through the observance of multi-lateral rules relating to trade. India has been an active participant in the dispute settlement process of the WTO both as a complainant and as a respondent.
- India is at present engaged in the following three disputes in the WTO.
- USA’s challenge of the notification of Department of Animal Husbandry and Dairying relating to import restrictions on animal and animal products including chicken from countries which notified outbreak of Notifiable Avian Influenza. As part of the dispute settlement process, WTO Panel has heard both the sides and the experts. The final findings/rulings of the Panel is expected soon.
- India’s Challenge of the exorbitant Counter Veiling Duty (CVD) imposed by the US on India’s exports of certain Hot Rolled Carbon Steel Flat products. As part of the dispute settlement process, the WTO Panel after hearing both the sides and the third parties to the dispute have circulated its ruling. India and the US have filed appeal before the Appellate Body and the Dispute Settlement Body (DSB) on certain legal issues related to Panel Ruling.
- The US challenge of domestic content requirement condition in Phase 1 (Batch I and Batch II) and Phase II (Batch 1) Programs of the Jawaharlal Nehru National Solar Mission (INNSM) of India for generation of solar power. Consultations were held with US in 2013 and 2014. Though, India satisfactorily replied to all the queries of US, keeping in mind the importance of sustainable development and long term renewable energy needs of developing economies like India, WTO Panel has been established on the request of the US and now the process of Panel composition is underway.
