Interviews
Revised WTO drafts require improvement : FICCI
11 Feb '08
4 min read
A lower ambition in agriculture and a higher ambition in NAMA would result in imbalanced Doha outcome which would not be in our interest”, pointed out Dr Amit Mitra.
FICCI further observed that as was the case in the earlier draft, this time also an essential element namely tariff capping for all products, has not been addressed in the present draft.
Developed countries have absurdly high tariffs on a number of farm products that does not have any economic justification in the process of agricultural trade reforms. The Chamber said that for developed countries tariffs on non-sensitive agriculture products should be capped at 100%.
On the issue of addressing tariff escalation, FICCI feels that the treatment should be applicable to only developed countries which is not the case in the latest draft. The draft provides for tariff reduction for both developed and developing countries wherever tariff escalation exists.
FICCI also observed that a number of products of export interest to developing countries has been excluded from the list of products on which the draft proposes tariff reduction as a result of tariff escalation.
These are the products which are grown in India and in which the country has the potential for developing processing industry on a significant scale. The Chamber expressed concern over the norms related to Special Safeguard Mechanism (SSM) that would be made available to developing countries.
FICCI feels that the norms as proposed in the latest draft are quite restrictive and narrow down the scope of usage of this mechanism. According to the Chamber, the draft provides for self-designation of products which will be called Special Products (SP) based on the criteria of food security, livelihood security and rural development. While the mechanism of these SPs is clear from the draft, its implications require careful study.
FICCI further observed that as was the case in the earlier draft, this time also an essential element namely tariff capping for all products, has not been addressed in the present draft.
Developed countries have absurdly high tariffs on a number of farm products that does not have any economic justification in the process of agricultural trade reforms. The Chamber said that for developed countries tariffs on non-sensitive agriculture products should be capped at 100%.
On the issue of addressing tariff escalation, FICCI feels that the treatment should be applicable to only developed countries which is not the case in the latest draft. The draft provides for tariff reduction for both developed and developing countries wherever tariff escalation exists.
FICCI also observed that a number of products of export interest to developing countries has been excluded from the list of products on which the draft proposes tariff reduction as a result of tariff escalation.
These are the products which are grown in India and in which the country has the potential for developing processing industry on a significant scale. The Chamber expressed concern over the norms related to Special Safeguard Mechanism (SSM) that would be made available to developing countries.
FICCI feels that the norms as proposed in the latest draft are quite restrictive and narrow down the scope of usage of this mechanism. According to the Chamber, the draft provides for self-designation of products which will be called Special Products (SP) based on the criteria of food security, livelihood security and rural development. While the mechanism of these SPs is clear from the draft, its implications require careful study.
Federation of Indian Chambers of Commerce and Industry
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