Thursday, 2 January 2014

WTO MINISTERIAL CONFERENCE - BALI

The Ninth Ministerial Conference held in Bali tried to agree on three basic issues: trade facilitation, agricultural subsidies compatible with food security and trade facilities for LCDs.

As the Ninth Ministerial Conference of the WTO took place in Bali, India lead the G-33, a group of the developing nations, standing up for the developing countries to subsidize their crops to bolster food security without having to worry about legal challenges. There were some differences on simplification of international trade. In spite of such differences, the Bali conference ended with success.

The food security proposal has become important for India after it passed the Food Security law guaranteeing heavily subsidized food for nearly two-thirds of its population. The counter arguments were that the concern for food security and poverty alleviation was logical but that should not be detrimental to food security of others. The members also agreed to find a permanent solution to this problem breaching ceilings mandated in the WTO Agreement on Agriculture.

The positive outcome was possible only due to the firm and resolute stand taken by Commerce and Industry Minister, Anand Sharma. He described the decision as historic for India. “India has played a major role in the revival and re-energizing the Doha Round of talks. The Bali declaration is a positive step,” Sharma said.

The developing countries desirous of benefiting from this decision may be required to comply with certain anti-circumvention provisions and notification requirements.  Further, only existing public stock holding programs can be insulated from dispute challenges.  While India is likely to be the main beneficiary of this decision, many developing countries may be constrained by their inability to comply with various conditions accompanying the decision.

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