24th October, 2002
Ministry of Agriculture  


POLITICAL CONSENSUS NECESSARY FOR WTO AGREEMENT ON AGRICULTURE –AJIT SINGH


Agriculture Minister, Shri Ajit Singh has called for evolving a political consensus on WTO agreement on agriculture so that negotiations on the subject may be carried on with full confidence. He was addressing a meeting of Agriculture Ministers of States and Union Territories here today to discuss and work out a strategy for renegotiation of WTO Agreement on agriculture. Assuring protection of farmers’ interests Shri Ajit Singh said that our farmers have not suffered due to WTO but because of the subsidies being given by the developed nations to their farmers. Unless domestic subsidies are reduced internationally, we will not be able to benefit from lower tariffs. He added that the developed countries would have to reduce their export subsidies so that developing nations like India which do not have resources to provide that level of subsidy, could compete in the global market.

Stating that WTO is here to exist, Shri Singh said even those nations who were not members of this Organization, were trying to gain entry due to its advantages. Demanding a level playing field in the new agreement on agriculture which would have to be completed before 2005, Shri Singh said that our farmers may have lower level of technology but they are second to none in the world.

The Minister of State for Agriculture, Shri Hukum Deo Narayan Yadav, Minister of State for Commerce, Shri Rajiv Pratap Rudy and senior officials of Agriculture Ministry participated in the meeting.

India is a member of WTO and thus a signatory to the WTO Agreement on agriculture. This Agreement came into effect from 1.1.1995. Under article 20 of agreement a review of the agreement has been undertaken. To ensure protection of our national interest India has been participating in renegotiation process actively. The negotiations have now reached the crucial 3rd phase and modalities of the Agreement are likely to be decided by the end of this year. The developing countries including India have been pointing out the high level of domestic support provided by the developed countries and its harmful impact on the international prices of agricultural commodities. Thus, these countries seek real and substantial reduction in the domestic support provided by developed countries. Given the subsistence nature of agriculture in developing countries, these countries have also demanded a special treatment provided to them for extending the necessary support to their agriculture, without any reduction commitments. Similarly, in market access and export subsidy, the developing countries seek reduction in the tariff levels and export subsidy provided by developed countries and a special treatment for developing countries calling for lesser commitments on them.