Nairobi: With rich countries pushing for a deal at WTO on phasing out export subsidies, India Wednesday asserted there is little convergence of views among members of the global trade body on this issue and objected to any such pact without a permanent solution to farm subsidies.
"We are disappointed at the cavalier manner in which these issues are being pushed into the future. On the other hand, there is a sudden inexplicable zeal to harvest Export Competition. On this we are told that there is convergence when in fact, there appears to be little," Commerce Minister Nirmala Sitharaman today said at the Plenary Session here.
The European Union and some other countries, including Brazil, are seeking a deal on export competition during the ongoing WTO's Ministerial meeting here. Sitharaman's statement counters the claims being made in some quarters here about emergence of a consensus on the issue.
Developed countries, which are accused of giving huge 'trade-distorting' farm subsidies, want emerging nations like India to take greater commitments in terms of reducing their export support.
"We're on the verge of an important agreement on agricultural export competition," the UK said.
"Australia believes it would not be acceptable to finish MC10 without an outcome on export competition in agriculture," Australia said at the Plenary Session.
A deal on export competition could lead to phasing out of India's transport subsidies and market allowances being given for exports of commodities like sugar.
EU trade Commissioner Cecilia Malmstrom said that a deal in export competition would be beneficial for developing countries.
It is learnt that traction is picking on developing countries including India's demand to start discussions on special safeguard mechanism (SSM) along with the export competition. SSM is important to protect interest of poor farmers in case of sudden surge in imports or dip in prices.
During an open-ended agriculture meeting, Sitharaman said that export competition is one of the pillars of agriculture negotiations and these negotiations are finely balanced on three pillars and "taking out one pillar will disturb the balance".
In the run up to Bali Ministerial meeting, the G-20 including India, had tabled a proposal on Export Competition.
But there could not be a binding outcome since many of the members, including some of the members who are now proposing to harvest this pillar, raised the same issue of balance in agriculture negotiations, Sitharaman said.
"Now the efforts are to cherry pick issues from within the Export Competition pillar and further to dilute the provisions to suit a few members. At this late hour new definitions and language are being proposed. It is not possible to react to these new concepts without extensive domestic consultations," she said.
Further, these new concepts are being discussed in a limited group of members, Sitharaman said adding this "severely" impacts the transparency of the process.
A draft text on the export competition agreement is expected to be circulated on the third day of the Ministerial meeting tomorrow on agriculture by the sector's chair.
During the bilateral meetings with the WTO chief and BRICS members, India strongly raised the issue of SSM and finding a permanent solution for food security issues.
India is pitching for SSM which would help in protecting the interest of poor farmers in case of sudden surge in imports or dip in prices.
SSM is part of the Doha Round, which was started in 2001, but has not yet concluded due to huge differences between developing and developed countries on farmers issues.
India is insisting to conclude the round but the rich nations want to abandon that and start discussions on new issues like rules of investments and government procurement.
During the Plenary Session, several other ministers too emphasised on the successful completion of the Doha Round and not to take commitments to remove the export support for agricultural products.
