India and China unite to seek cuts in developed nations' farm subsidies
NEW DELHI: India and China have together demanded at the World Trade Organization that developed economies lower farm subsidies to their farmers under the agreed multilateral trade rules.
The two have proposed that developed economies including the US, the EU and Canada do away with $160 billion of trade-distorting farm subsidies that they give to products including cotton, wool and tobacco.
They have recommended that half the difference between the actual support and 10% Aggregate Measurement of Support (AMS) be reduced in 2019 with equal steps.
Under the WTO, the AMS or ‘Amber Box’ is capped at 5% of the value of production for developed countries (de minimis support), but in many cases the actual support has exceeded the ceiling.
In a joint proposal to the WTO, the two countries suggested a formula for a gradual reduction and an eventual elimination of these incentives by developed countries.
“The product-specific support has to be ultimately brought down to zero but till the time it is there, it should be limited to 5%,” said an official aware of the proposal.
India and China argued that most the developing members cannot provide product-specific Amber Box support exceeding de minimis limit, but developed countries are not constrained by this norm which gives them “significant flexibilities” to provide support to their agriculture.
This distorts production and trade by “providing a significantly high amount of subsidies compared to the value of production of the products concerned, concentrating the subsidies in a few products and shifting the products in which the subsidies are concentrated”, they said.
This is the second joint submission by the two countries on elimination of AMS. In a proposal last year, they said the US has provided subsidies exceeding 50% of the value of production for dry peas (57%), rice (82%), canola (61%), flaxseed (69%), sunflower (65%), sugar (66%), cotton (74%), mohair (141%) and wool (215%).
The EU provided more than 50% of product-specific support for several products. These include butter (71%), skimmed milk powder (67%), apples (68%), courgettes (51%), cucumber (86%), lemon (60%), pear for processing (82%), tinned pineapples (108%), tomatoes for processing (61%), rice (66%), olive oil (76%), white sugar (120%), tobacco (155%) and silkworms (167%).
The product-support given by Canada was more than thrice the value of production in 2009.
True. The Western countries have distorted Trade and commerce all these years through their rackets of subsidies and then they still have the guts to talk nonsense against any perceived needed help by the developing nations to their Agriculture and Industries.
Some advanced developing countries like China or BRICS will have to quit WTO as this organization only help developed countries.
US & Europe will always try to separate Bharat (India) and Ching Hua (China). It is in our own interest that we should cooperate and work. May be such a time will come.
This is a good move because the west particularly US is trying to export agricultural products to India and the trade lobby there is very vociferous about it. India can not resist it for long, if US does not reduce its subsidies their products will be cheaper which will further impact Indian farmers
WTO has basically meant China being the factory of the world and the rest being raw material suppliers to China and it finished goods buyers. India has found that the Chinese have in spite of anti dumping duties have supplied steel, steel products by wrongly classifying into India and have made SME’s in textile industry sick by dumping textiles. The commerce minister has announced in the parliament today that India is framing policies to avoid dumping by the chinese so that the dead industirs that employ over 300 K Indians can be revived. India is stupid to allow excessive Chinese imports and a trade deficit of $ 60 billion with China and now joins China against farm subsidies of the west. All want to protect their people and we the Indians are the only fools who thanks to software exports and inward remittances allow to be fooled by the world esp. China and we support China. Sad.
my instinct and my views of being friends rather than enemies, and the aftermath followed were very extraordinary, our country and theirs have felt,feeling it''s benefits now. I wish this continue for longtime and forever.friendship is better than enimity..
That is right direction. We should use Brics platform to take on US and Western Europe.
Feku must go and China cannot be trusted. India should do it all alone without any help from China.
You dont have brains to unders all these. Chinese screwed Nehru in 1961 war but why is Rahul Gandhi and his brother in law have business in china, went to meet chinese ambasador.
India is standing up albeit cautiously and rightly so...
Cooperation is demand of time and both have played well to ask developed nations to stop subsidy.
Excellent-Open for cooperation on common interest challenges and no compromises on national interest
Good example of Government diplomacy