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Home > Business > Business Headline > Report

India seeks flexibility in setting farm tariffs

BS Economy Bureau in New Delhi | February 17, 2003 12:42 IST

While sticking to its stand against dilution of the development agenda chalked out by World Trade Organisation members in Doha and the exclusion of the Singapore issues from the multilateral trade agenda, India has sought greater flexibility in setting agricultural tariffs to protect the interests of farmers.

It has also sought greater access for non-agricultural products.

Commerce and Industry Minister Arun Jaitley cautioned that the success of the post-Doha negotiations in areas like agriculture would depend on restoring the development focus.

He said with 650 million Indians dependent on agriculture for a livelihood, the country would adopt a cautious approach. He also said tariffs for non-agricultural products would be brought down gradually.

"The government has already announced a gradual reduction of tariffs. We must remember that besides protecting several sectors like the small-scale industry, Customs duty forms a substantial part of the government's revenues. There is no immediate substitute for it," Jaitley said at the Tokyo mini-ministerial, which concluded on Sunday.

Stating that India was willing to be pro-active in market access issues related to movement of people as service providers, Jaitley said there were concerns on market access for industrial and agricultural products.

India maintained that the Singapore issues -- investment, competition policy, government procurement and trade facilitation -- did not fall within the purview of the WTO, while the European Union, Japan and some other countries pressed for the inclusion of these issues in the WTO agenda.

India also called for stronger disciplines in anti-dumping and anti-subsidy policies in order to ensure that market access obtained through reduction in tariffs and removal of non-tariff barriers was not negated through protectionist measures.

Responding to the first draft of the modalities on agriculture, Jaitley said they sought to give a direction to future WTO negotiations on agriculture and answered some of the concerns raised by developing countries.

The minister said India continued to have reservations on the proposals on market access in agriculture because countries with a large population dependent on agriculture needed a more satisfactory solution to the problem.

India, however, expressed satisfaction on the special and differential treatment issue and retention of the de minimus level at 10 per cent for developing countries.

Jaitley said, "India is not prepared to accept any dilution of the Doha development agenda."

The development agenda set at Doha should be implemented within the given timeframe, the minister said, adding that indefinite delays in the settlement of the special and differential treatment issue, TRIPS and public health, and implementation issues were serious concerns of the developing world.

"The legitimacy of a multilateral decision-making process depends on its ability to stick to deadlines. In this case, the deadlines have been breached. The sooner these issues are settled, the better it is," Jaitley said.
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