In the Informal
Meeting of the World Trade Organisation (WTO) Trade Ministers-
Mini Ministerial - in Tokyo this morning, Mr. Ajit Singh, Minister
for Agriculture, made a strong pitch for protecting the livelihood
concerns of the millions of India's small and marginal farmers.
He pointed out that India has 20 major agro climatic zones and
that there are as many as 33 crops on each of which more than
5 million lives are dependent. He reminded his select audience
that any agreement on trade and agriculture must take care of
the farmers who cannot be redeployed elsewhere. He made it clear
that it would be difficult for India to support any reform agenda
which deprives farmers of their basic rights.
The Session on
Agricultural Market Access was attended by Ministers from 23
countries. Mr. Ajit Singh said he expected positive results
from the Mini Ministerial in all the three interlinked pillars
of the WTO Agreement on Agriculture, namely, domestic support,
market access and export competition. During his stay in Tokyo,
the Agriculture Minister also utilised the opportunity to hold
bilateral meetings with his counterparts from New Zealand, South
Korea, Japan, Canada and the European Community Commissioner
for Agriculture.
The following
is the full text of the Minister's intervention at the Session
on Agricultural Market Access this morning:
"Madam Chair, I wish to convey my sincere appreciation for the
initiative taken to convene this meeting, and for setting at
the outset the agenda on agriculture related issues in the right
perspective. It is a valuable opportunity to exchange views
on the three pillars of the Agreement on Agriculture and, also,
the other relevant issues as provided in the Doha
mandate, particularly now that Chairman Stuart Harbinson has
brought out his first draft of the modalities paper. I had also
visited Geneva in January 2003, and had the opportunity then
to discuss agriculture-related issues with the DG, WTO, Mr.
Supachai, Chairman Stuart Harbinson and Secretariat officials,
and with various delegations. I recall also my fruitful interaction
with my Swiss counterpart Dr. Joseph Deiss and I am happy to
meet with him once again here today.
Throughout the
negotiations during the past few months, India has been emphasising
the inter-linkages between the three pillars in agriculture.
We have indicated time and again the importance of ensuring
speedy elimination of market distortions arising as a result
of domestic support and export subsidies. We have said also
that mere transfer of domestic support from the amber box to
the green box will not significantly reduce market distortions.
We had urged tighter disciplines on the green box. We had mentioned
also the specific problems that we face in our own agricultural
economy. With more than 650 million people, constituting 65%
of India's population, dependent on agriculture, this is a sector
of utmost sensitivity to us, as it is to many other similarly
placed developing countries. The agriculture negotiations are,
therefore, of vital importance to us, and we expect positive
results that would protect the interest of our small and marginal
farmers. We would like to see more market access in this area
in some of the developed country markets which are presently
closed to us and to several other developing countries. However,
I must emphasise that market access is not a function of tariffs
alone. There is little purpose in reducing tariffs if other
barriers are created in the form of various non-tariff measures,
including sanitary and phyto-sanitary measures, and if there
is a steady decline in prices because of high domestic support
in developed countries.
It is in this
context, therefore, that we need to examine the first draft
of the modalities submitted by the Chairman on 12 February 2003.
We received it only after we had left Delhi and, therefore,
would need to analyse the fine print in greater detail in due
course. Hence, what we discuss today can only be on the basis
of first impressions, which may undergo change as our experts
examine the 26-page document of the Chairman now before us.
There seem to
be some positive aspects in this paper. On domestic support,
I see a proposal for substantial reduction of AMS, a product-specific
cap on domestic support levels, reduction of de minimis levels
over a period of five years for developed countries, an attempt
to tighten the criteria for domestic support under paragraphs
5, 6, 7, 11 and 13 of the green box, and an attempt to control
blue box payments. These are not measures which will completely
solve the market distortion problems arising out of domestic
support, but are steps in the right direction and we could work
further on them. We notice a similar attempt for elimination
of export subsidies, and to discipline export credits and food
aid. We, however, continue to have reservations on the proposals
made in respect of market access. We do not believe that the
market access problems faced by countries such as ours with
sizeable populations dependent on agriculture have been fully
addressed. When we discuss the first draft in Geneva later this
month, our negotiators will be expressing our apprehensions
in this area.
We, however, note
that the first draft reflects, to some extent, the need of developing
countries for special and differential treatment in the important
area of agriculture. The retention of de minimis level at 10%
for developing countries, clearer definition of Article 6.2,
new flexibility for maintaining domestic production capacity
for food security purposes, and changes in the minimum crop
loss trigger for government participation in crop insurance
schemes, are some of the proposals which reflect the Chairman's
sensitivity to the requests made by developing country members.
Likewise, we note the attempt to maintain existing latitudes
and to expand them, wherever needed, to meet the specific requirements
of developing countries. However, much work still remains to
be done to ensure that there is no adverse market access impact
on our indigent farming community.
Now that the first
draft is on the table, it is upto us to further negotiate during
the weeks to come and ensure a satisfactory outcome which, as
we all know, will largely determine the success or otherwise
of the Doha Work Programme. The diversity of Indian agriculture
can be gauged by the fact that we have 20 major agro-climatic
zones and that there are as many as 33 crops on each of which
alone more than 5 million lives are dependent. I wish to conclude
by reminding ourselves that any agreement on trade and Agriculture
must take care of the most urgent livelihood concerns of the
farmers dependent solely on agriculture in the developing countries.
Our farmers cannot be redeployed elsewhere, and it will be difficult
for us to support any reform agenda, which deprives them of
their livelihood and brings them onto the streets of our cities
in search of jobs. The consequences of such a development could
tear asunder the very fabric of our society and polity.
Thank you, Madam
Chair."
