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Recently, the WTO Trade Ministers concluded their talks without any commitment on rich countries being asked to check their domestic subsidies. The negotiations exceeded by one day due to lack of consensus among the developed and developing world.
India and other developing countries were particular about the re-affirmation to conclude the 14-year old Doha Round. < Let's begin with the basics of WTO negotiations>
It is the latest round of trade negotiations among the WTO members, which started in 2001, to sign a pact to open up world trade by lowering or eliminating trade barriers.
The focus is on helping developing countries join the global marketplace, and boost their economies as a result.
The Doha Round is also known as the Doha Development Agenda.
The goal of any trade talks is to make it easier for goods and services to be bought and sold across national borders.
The negotiations includes:
Basically, the benefits for developing countries depends on the the kind of agreement the negotiators come up with.
However, the developing countries are hoping that stronger restrictions on farm subsidies in developed countries would be good for farmers in the developing world.
Basically, SSM will allow developing countries to temporarily increase the import duties on farm products, so as to counter the sudden increase in imports and price falls.< Actually, the developed countries have well-developed and mechanised agriculture along with that, huge subsidies are extended to farmers in these countries>
This mechanism would empower the developing countries to impose additional duties on agri-products, when their imports breach specified ceilings or price.
What’s the problem here?
The negotiations are on the extent to which different categories of developing countries will be allowed to hike duties using the SSM, beyond their tariff.
< If these issues are included in the agreement, developing and poor countries feel that these standards or rules might become non-tariff barriers, hurting their exports>
< Developed countries are fearing large scale migration, on account of increase in skilled manpower in developing countries such as India. India is looking for such concessions so that it's skilled manpower can find access to developed countries market.>
Experts say removing export subsidies by 2023 is likely to worsen sugar sector crisis.
India secured a re-affirmative Ministerial Decision on the public stockholding issue.
The developing and the developed world failed to bridge their differences over farm issues as well as on whether to continue with the ongoing 14-year-old Doha Round talks.
Persisting deep differences between developed & developing countries will make job of ministers difficult in arriving at consensus.
The next Ministerial meeting of WTO is to be held in December in Nairobi.