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Update on On-going Negotiations on Agriculture at the WTO: Implications for India

Update on On-going Negotiations on Agriculture at the WTO: Implications for India. Trade Division Department of Agriculture & Cooperation. Current State of Play. No significant movement on core issues after July, 2004

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Update on On-going Negotiations on Agriculture at the WTO: Implications for India

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  1. Update on On-going Negotiations on Agriculture at the WTO:Implications for India Trade Division Department of Agriculture & Cooperation

  2. Current State of Play • No significant movement on core issues after July, 2004 • Negotiations resume 13th September, 2005 – attempt to conclude Doha Round by the Hong Kong Ministerial December, 2005. • Developments so far indicate: • reduction in trade distorting domestic support will occur – quantum and time frame to be negotiated. • all kinds of export subsidies to be eliminated – time period of elimination under negotiation. • All countries - all commodities to undertake tariff reduction – quantum time frame and exceptions - under negotiation.

  3. Implications of the trends in the Negotiations • Reduction in trade distorting domestic support may have no negative impact on India, as the quantum is too small. • Reduction in domestic support by the developed countries will have positive implications for countries like India, competitiveness may improve international prices may firm up. • Elimination of export subsidies will have positive implications on our export potential, especially in heavily subsidized commodities such as sugar, meat and dairy products. • Elimination of export subsidies not to cover exemptions available to developing countries.

  4. Implications of the trends in the Negotiations • Reduction in tariffs will have mixed implications for India. • In some commodities, especially where difference between applied and bound tariff rates is small, the level of protection available will be reduced – increase exposure to imports. • Reduction in tariff rates of other countries greater market access for our commodities.

  5. Way ahead for the Government, including State Governments • Identify crops which will become vulnerable, in case the tariffs are reduced – efforts required to diversify away from these crops or improve productivity to withstand competition. • Identify and promote crops/products where markets are likely to be opened in view of reduction in domestic support and export subsidies. • Improvement in export specific infrastructure necessary to effectively tap the potential increase in exports.

  6. THANK YOU

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