A day ahead of the crucial mini-ministerial meet at the World Trade Organisation (WTO) headquarters here, a key alliance of developing countries on agriculture - the G-33 - reaffirmed their unity during a meeting here on Sunday and said only a substantial reduction of the trade distorting farm subsidies of the developed nations would ensure a positive outcome of the Doha Round talks.
Pointing out that the deepening global food crisis is posing a major threat to peace across the globe, the alliance of developing countries with interests to defend in agriculture said the Doha Round negotiations would have a development oriented outcome only if the rich countries effectively address the major distortions in farm trade caused due to their huge subsidies and market access barriers.
The global food crisis has touched alarming levels, the G-33 said, adding that it was the poor in these developing countries that have been affected the most.
The G-33 has insisted that the developed countries must not only substantially reduce their subsidies from the current applied levels, but also ensure that they do not indulge in masking their subsidies in one form or the other.
Developed countries have been facing allegations of resorting to box-shifting - that is recategorising their subsidies to make it permissible as per the WTO norms.
For instance, it has been alleged that the rich nations take out their subsidies from the amber box that is not permissible as per WTO norms and place it in the permissible 'green box'. Green box subsidies include those given for infrastructure development, public stock holding for food security, direct income support, crop insurance and income safety net and are therefore allowed as they do not influence immediate production decisions.
The developing countries have demanded the US to cut their "trade-distorting" farm subsidies from $55 billion to around $13-16 billion. They have also asked the European Union to bring down their agricultural subsidies that is worth billions of dollars.
Pointing out that the deepening global food crisis is posing a major threat to peace across the globe, the alliance of developing countries with interests to defend in agriculture said the Doha Round negotiations would have a development oriented outcome only if the rich countries effectively address the major distortions in farm trade caused due to their huge subsidies and market access barriers.
The global food crisis has touched alarming levels, the G-33 said, adding that it was the poor in these developing countries that have been affected the most.
The G-33 has insisted that the developed countries must not only substantially reduce their subsidies from the current applied levels, but also ensure that they do not indulge in masking their subsidies in one form or the other.
Developed countries have been facing allegations of resorting to box-shifting - that is recategorising their subsidies to make it permissible as per the WTO norms.
For instance, it has been alleged that the rich nations take out their subsidies from the amber box that is not permissible as per WTO norms and place it in the permissible 'green box'. Green box subsidies include those given for infrastructure development, public stock holding for food security, direct income support, crop insurance and income safety net and are therefore allowed as they do not influence immediate production decisions.
The developing countries have demanded the US to cut their "trade-distorting" farm subsidies from $55 billion to around $13-16 billion. They have also asked the European Union to bring down their agricultural subsidies that is worth billions of dollars.
source:yahoo
1 comment:
There needs to be joined-up thinking in development of WTO agreements. The impact of policies on food security shows that human rights norms that have already been agreed are not being respected. The WTO and other International Governmental Organisations, such as the World Bank and International Monetary Fund, arguably have a responsibility in international law (through their member states) to respect these norms. Current case studies from Cambodia and Haiti show how this has not happened. There is a danger that WTO will once again ignore human rights obligations as nations put their own economic interests first. For further information on this and the Simultaneous Policy campaign, which aims to overcome the fear of economic disadvantage, see:
http://globaljusticeideas.blogspot.com/2008/07/cambodia-haiti-food-security.html
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