More than 160 countries are participating in the 12th WTO Ministerial Meeting in Geneva. And differences between developed and developing countries can make it challenging for them to agree on issues affecting the global economy. Mint explains:
What are the key issues being discussed?
The WTO’s 164 member countries have five broad themes—food security and agriculture; fisheries subsidy; Intellectual Property Rights Waivers on COVID-19 Vaccines and Pandemic Response; reform of the WTO; and extension of moratorium on customs duty on e-transmission. While India and other developing countries are pushing for a fair, equitable and balanced outcome, the draft agreement appears to favor developed countries. India is fighting for the right to stock and export food grains, the right to subsidize the fisheries sector and the right to tax digital imports.
Why is stockholding important?
A “permanent solution” on public stockholding of food grains would allow countries like India to have higher agricultural support. India and other developing countries run public stockholding programs to benefit the poor. However, developed countries regard them as trade distortions and WTO rules, at present, limit the support that countries give directly to their farmers to 10% of the value of production calculated on the basis of 1986–88. can. Although the ‘peace clause’ negotiated by India in 2013 protects developing countries against legal action if borders are violated, it is subject to stricter conditions.
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Has India breached the subsidy limit yet?
While India has not crossed the 10% limit for wheat, it has now had to implement a ‘peace clause’ for rice for three years. At present, the peace clause only covers government programs launched before 2013. India wants government programs launched after 2013 to be included in the count as it seeks to expand the scope of agricultural support.
What is the Fisheries Subsidy Proposal?
The proposal aims to end subsidies that contribute to overfishing, curb support for illegal, unreported and unregulated fishing, and promote sustainable fishing. According to the latest draft text, developing countries will be required to do away with subsidies that contribute to more fishing within seven years of the agreement taking effect, or by 2030. India wants this exemption period to be extended to 25 years, arguing that its fisheries industry is still in its infancy.
What is India’s stand on e-transmission?
The case dates back to 1998, when WTO members agreed not to impose any customs duty on electronic transmission. But from time to time the postponement has been extended in ministerial conferences and many countries want to make the adjournment permanent. India is opposing the expansion saying that developing countries are losing revenue. Officials argued that since digital trade is dominated by big tech and developed countries, the moratorium favors developed countries as a whole.