anand sharma and uttar pradesh cm launch dmic … · 2014-07-24 · industries leading to...
TRANSCRIPT
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The Union Minister of Commerce and Industry
Shri Anand Sharma and Chief Minister of Uttar
Pradesh, Shri Akhilesh Yadav launched Delhi
Mumbai Corridor in Uttar Pradesh, in Lucknow
on March 2, 2014. “Uttar Pradesh will be the
main beneficiary of the Industrial Corridor
strategy being pursued by Government of India
as it is the meeting point of the Eastern and the
Western Corridors. The entire agriculture produce
of UP can be linked to cold chains and put on
Western Corridor at Dadri. This will enable all
agricultural products to reach the ports in record
time. The overall impact of the Western and
Eastern Corridors and the new Industrial Cities
being developed in the Delhi-Mumbai Industrial
Corridor project have the potential to create
over 30 lakh jobs in UP and enhance the State’s
Industrial Output by Rs. 24 lakh crores” Said Shri
Sharma on the occasion.
The growth of manufacturing sector is an essential
condition for sustaining GDP growth rate to
8-9% on a long term basis. Government of India
proposes to enhance the share of manufacturing
sector in GDP growth from 16% to 25% within
a decade and creating 100 million jobs. In this
regard, Government of India has announced the
pioneering National Manufacturing Policy 2013.
The conceptualization of the DMIC project as an
iconic symbol of Indo-Japan strategic partnership
was made. It has rapidly moved forward and
seven new industrial cities have advanced towards
implementation.
The Government has also announced three more
Industrial Corridor Projects namely:
(a) Amritsar-Kolkatta Industrial Corridor Project
with Eastern Dedicated Freight Corridor as
the back bone;
(b) Chennai-Bangalore Industrial Corridor
Project;
(c) Bangalore-Mumbai Economic Corridor
Project
The Industrial Corridors will lead to the
development of futuristic industrial cities with
transport connectivity effective and efficient
technologies, reliable energy supply and efficient
logistics. This will enable India to compete with
the best in the manufacturing and investment
estimation of the world and have the potential
of radically transforming India into global
manufacturing hub within a decade.
DMICDC in Uttar Pradesh:
Dadri-Noida-Ghaziabad Industrial City:
The vision of this 217 km. Investment Region is to
develop an Infrastructure led integrated industrial
city which is smart, sustainable, well connected
and having state of art support industrial and
social infrastructure. The master plan has adopted
the following principles:
• Developing Industrial City of Future endowed
with all the requisite physical & social
infrastructure like Water, Power, housing,
health, education etc.
• Transit Oriented Development: The region
to be supported by efficient mass transport
system. High intensity mixed land use is
proposed to be developed along major transit
nodes.
• Improved connectivity with Development
of intra and inter regional connectivity has
ANAND SHARMA AND UTTAR PRADESH CM LAUNCH DMIC PROJECT
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been provided as part of the overall planning
process. Considering that development of
investment region will augment creation
of employment opportunity in the region,
there would be significant requirements for
improving the connectivity.• Focus on
Recycling of water and waste and integration
of smart technologies.
Industries in sectors viz. Food, Auto, Electrical &
Electronics, IT/ITeS, Research & Development,
Aerospace, Biotech and Hi tech are proposed in
the investment region.
Integrated Industrial Township at Greater
Noida:
The Integrated Industrial Township is planned on
the area of 302 ha with the key objective to create
a “knowledge based ecosystem” integrated with
industries leading to innovation and economic
development. The project will generate direct
industrial employment for about 58,000 workers.
It will be planned as the first comprehensive
built environment helping the launch of DMIC
Investment Region. The project will strengthen
the status of Greater Noida and Noida as a
manufacturing destination. It will also encourage
creation and growth of new businesses by fostering
collaboration and innovation, also enhancing the
development, transfer, and commercialization of
technology.
Integrated Transport Hub at Boraki:
The transport hub along the Delhi-Howrah trunk
rail corridor, with state-of-the art Multi-modal
Transit facility at Boraki Village is envisioned to
be the nucleus of development for Dadri-Noida-
Ghaziabad Investment Region, Greater Noida and
its upcoming extensions. The project will integrate
four transit nodes and user-friendly regional
railway terminal, a metro passenger terminal, an
ISBT, and the terminal station of the proposed
rapid rail connectivity between DNGIR and Delhi
International Airport. It shall be supplemented
by a Business Centre (equipped with office and
business hotel accommodation).
Seamless connectivity between Indira
Gandhi International Airport and Dadri-
Noida Ghaziabad Investment Region:
With the object of providing fast and adequate
rail based commuter connectivity to New Delhi,
various alignment options are currently being
explored to provide fast connectivity from the
proposed Boraki Station (catering the population
of Noida, Greater Noida and proposed Dadri-
Noida-Ghaziabad Investment Region) with the
Indira Gandhi International airport. The need
of the project has emanated from the long travel
time consumed by existing Road based transport
systems.
Multi Modal Logistics Hub Project at Dadri:
By virtue of industrial development there would
be an immediate need of developing the multi
modal logistics hub within the Investment Region.
The proposed MMLH is expected to handle 1.05
million TEUs.
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India will conduct a dry run study in March 2014
on International North-South Transport Corridor
(INSTC), through Nhava Sheva (Mumbai)-
Bandar Abbas (Iran)- Tehran-Bandar Anzali
(Iran)-Astrakhan(Russia). The announcement
figured in the protocol signed after the 3rd
meeting of the Inter Governmental Commission
on Trade and Economic, Science and Technology
Cooperation between India and Azerbaijan by Dr.
E.M.S. Natchiappan, Minister of State (Commerce
& Industry) and Mr. Huseyngulu Baghirov,
Minister of Ecology and Natural Resources from
Azerbaijan, in New Delhi on February 25, 2014.
“The two countries have the requisite momentum
to take the relationship to next level. Completion
of the corridor will lead to mutually beneficial
connectivity between the two regions,” said Dr
Natchiappan.
During the meeting, both side reviewed the
statusof the construction of Gazvin-Rasht-
Astara (Iran)-Astara (Azerbaijan) railway route
for connecting the railway lines of International
North-South Transport Corridor. The Azerbaijani
side informed about the meeting between Iran
and Azerbaijan in November 2013 at which it
DRY RUN ON INTERNATIONAL NORTH-SOUTH TRANSPORT CORRIDOR NEXT MONTH
The Minister of State for Commerce and Industry, Dr. E.M.S. Natchiappan and the Minister of Ecology and Natural Resources, Azerbaijan, Mr. Huseyngulu Bagirov signing a protocol after the 3rd India-Azerbaijan Inter Governmental Commission Meeting on
Trade and Economic, Science and Technology Cooperation between India and Azerbaijan, in New Delhi on February 25, 2014.
National Hydroelectric Power
Corporation Limited also expressed
interest in the development of hydro
power plant in Azerbaijan
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was decided to conduct technical and financial
feasibility study and discuss it in the next meeting
of the INSTC Coordination Council.
On Hydrocarbon front the Indian side noted the
Azerbaijani Government’s support for ONGC
Videsh Limited’s acquisition of Participating
Interest (PI) owned by Hess Corporation’s
wholly owned subsidiaries in the upstream and
midstream oil and gas assets in the Azerbaijani
Chirag Guneshli (ACG) Contract area and in
Baku-Tbilisi-Ceyhan (BTC) pipeline. Both the
sides expressed satisfaction at the present level of
bilateral engagement in the hydrocarbon sector.
India and Azerbaijan also proposed to constitute a
Joint Working Group in the field of hydrocarbon.
The Indian Side reiterated the need to expedite
the formation of the Joint Working Group in the
field of hydrocarbon sector.
National Hydroelectric Power Corporation
Limited also expressed interest in the development
of hydro power plant in Azerbaijan. Both the sides
agreed to explore opportunities for participation
in renewable energy sector, energy efficiency and
various upcoming projects in oil and gas, petro-
chemicals, pipelines, etc. in Azerbaijan or India or
third countries in collaboration or joint venture.
The Indian Side showed keen interest in farming-
in into producing assets in Azerbaijan.
India also called for investment in the field
of hotel industry tourism and infrastructural
development as India allows 100 per cent foreign
direct investment (FDI) in hospitality sector on
automated basis.
India was assured on easing the access for Indian
Pharma products. Azerbaijani Side assured to look
into the matter regarding the issues relating to
registration and re-registration of Indian Pharma
products by the Ministry of Health, Azerbaijan.
Both sides reiterated there is potential to
cooperate with each other in various sectors
of trade like investment, transport, energy,
fertilizers, financial services, aviation, tourism,
culture, pharmaceuticals, health, agriculture &
animal products, information and communication
technology, chemicals, science, education, visa &
consular matters etc. “Apart from the traditional
areas of cooperation between the two countries,
there is a need to diversify the trade basket to
include more commodities and services”, said Dr
Natchiappan.
The total trade between India and Azerbaijan
rose from USD 565.98 million in 2011-12 to USD
608.55 million in 2012-13.
India and Azerbaijan reviewed
the status of the construction of
Gazvin-Rasht-Astara (Iran)-Astara
(Azerbaijan) railway route
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India and Zimbabwe have decided to further
enhance their cooperation in the priority sectors
of cooperation namely, pharmaceuticals,
infrastructure, health sector, small and medium
industries. This was agreed during a bilateral
meeting of the Union Minister of Commerce &
Industry Shri Anand Sharma with Ms. Joice T
R Mujuru, Vice President of Zimbabwe and Mr.
Michael Bimha, Industry and Commerce Minister
of Zimbabwe, in Harare on February 3, 2014.
Shri Sharma also met Mr. Patrick Chinamasa,
Zimbabwe’s Minister of Finance. Shri Sharma
informed the Zimbabwean side that in addition
to the assistance being offered under the Lines
ANAND SHARMA MEETS ZIMBABWE’S VICE PRESIDENT, FINANCE AND COMMERCE MINISTERS
The Minister of State for Commerce and Industry, Dr. E.M.S. Natchiappan and the Minister of Ecology and Natural Resources, Azerbaijan, Mr. Huseyngulu Bagirov signing a protocol after the 3rd India-Azerbaijan Inter Governmental Commission Meeting on
Trade and Economic, Science and Technology Cooperation between India and Azerbaijan, in New Delhi on February 25, 2014.
The Union Minister for Commerce & Industry, Shri Anand Sharma meeting the Industry and
Commerce Minister of Zimbabwe, Mr. Michael Bimha, in Harare on February 03, 2014.
Anand Sharma offered India’s full
assistance in implementing the
Zimbabwe Agenda for Sustainable
Socio-Economic Transformation
programme in the areas of
infrastructure, agriculture, food
production, mining, capacity
development
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of Credit, India is willing to provide assistance
under the Buyers’ Credit Programme. India, in
September 2012, approved a LoC worth USD 28.6
million for up-gradation of Deka Pumping Station
and the River Water Intake System in Zimbabwe.
During the discussions, it was also decided to
speed up the implementation of various projects
being executed under the India-Africa Forum
Summit Programme, which include a Food
Testing Laboratory, a Rural Training Park and a
Vocational Training Centre. India is mulling to set
up an FTL in Zimbabwe at an approximate cost
of US$ 2 million under the India-Africa Forum
Summit-II. Under the IAFS-II, India is in the
process of setting up Rural Technology Park in and a
Vocational Training Centre (VTC)/Incubation Centre.
Shri Sharma offered to the Zimbabwean side
to organize a special dedicated programme
to train the Government officials and private
sector executives in international trade. This
training will be organized at the Centre for WTO
Studies, Indian Institute for Foreign Trade, New
Delhi. IIFT’s offer is to conduct an Executive
Development Programme on International
Business in Zimbabwe, which will be conducted
for a period of one week for about 60 participants
from the Zimbabwean side.
Shri Sharma also expressed India’s commitment to
deepen and diversify the trade and investment ties
between India and Zimbabwe. The Indian Minister
offered India’s full assistance in implementing the
Zimbabwe Agenda for Sustainable Socio-Economic
Transformation (ZIMASSET) programme in
the areas of infrastructure, agriculture, food
production, mining, capacity development. In
order to identify areas of cooperation in the field
of production of generics, a delegation from
PHARMEXCIL will visit Zimbabwe to have
deliberations with Zimbabwean industry and
Government.
While India’s export to Zimbabwe stood at US$
133.08 million in 2012, it rose to US$ 176.26
million in 2013. On the other hand, India’s imports
to Zimbabwe decreased from US$ 33.02 million in
2012 to US$ 10.29 million in 2013. India exports
drugs, pharmaceuticals & chemicals, machinery
and instruments, electronic goods and plastic
& linoleum products as major commodities to
Zimbabwe. Zimbabwe, on the other hand exports
cotton, tea, non-ferrous metals and spices to India
as principal commodities.
India is mulling to set up a Food
Testing Laboratory in Zimbabwe
at an approximate cost of US$ 2
million under the India-Africa
Forum Summit-II
India, in September 2012,
approved a Line of Credit worth
USD 28.6 million for up-gradation
of Deka Pumping Station and the
River Water Intake System in
Zimbabwe
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conveyed the resolution of issues pertaining to
market access of egg powder. They informed
that Indian entities have started getting the nod
for export of egg powder for the Custom Union
Markets. During the India-Russia Working Group
on Trade & Economic Cooperation (IRWGTEC)
(10th – 11th September, 2013), the Russian side
had stated that market access can be given if the
Indian products meet the requirements and norms
of the Custom Union. The Indian side responded
that the products match the international
standards and the Department is ready to receive
a delegation of food and veterinary authorities
to inspect the facilities. Today Russian side also
assured to expeditiously resolve the issue of
recognition of Government approved Indian labs
for enabling export of bovine meat from India.
Both sides also reviewed the progress of
identified ‘priority projects’. These projects
include establishment of joint stock Indo-
Russian enterprises for manufacturing light
helicopters Ka-226T; establishment of joint stock
Indo- Russian enterprises for manufacturing
light helicopters Ka-226T; JSC United Aircraft
Corporation preparation of participation in tender
for Indian program to develop civil aircraft; plant
construction for manufacturing butyl rubber with
capacity of 100000 tons per year at the production
site in Jamnagar. “Seeking to further strengthen
the special and privileged strategic partnership
and specifically to enhance the economic and
investment cooperation between India and Russia
on a bilateral basis, have identified investment
projects and proposals for special attention”, said
Shri Sharma.
IndIan products clear market access Issues In the custom unIon
The Deputy Prime Minister of Russia, Mr. Dmitry Rogozin meeting the Union Minister for Commerce & Industry,
Shri Anand Sharma, in New Delhi on February 26, 2014.
India and Russia have agreed to a proposal
for setting up a Joint Study Group for studying
the scope of CECA (Comprehensive Economic
Cooperation Agreement) with member-countries
of the Customs Union viz Russian Federation,
Kazakhstan and Belarus. This was conveyed
in a meeting between The Union Minister of
Commerce and Industry Shri Anand Sharma and
Mr. Dmitry Rogozin, Deputy Prime Minister,
Russia, in New Delhi on February 26, 2014.
Keeping in view of the support of the Russian side
on the idea of setting up a JSG for CECA between
India and the CU, Russian side was requested to
steer the process for CECA within the Eurasian
Economic Commission. Russian Side also
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The Union Minister for Commerce & Industry Shri
Anand Sharma has asserted that India remains
one of the top destinations for Foreign Direct
Investment, despite the economic slowdown.
Speaking at a Students’ Interactive Session at
Sophia College in Mumbai on February 11, 2014,
Shri Sharma said India’s Foreign Direct Investment
policy has been progressively liberalized to make
the regime more investor friendly. He said in a
recent review of the policy the government has
amended the sectoral caps in some key areas to
stimulate FDI inflow. Between 2009-13, India
attracted FDI worth US $ 172.82 billion, despite
growing competition from emerging economies
like Brazil, Indonesia, Vietnam etc.
Responding to a student’s question about India’s
poor ranking on the ‘ease of doing business’
parameter, Shri Sharma admitted that red tape
continued to be a cause of concern, but added
that sincere efforts were being made to create a
conducive business environment. He said, his
Ministry has recently launched the e-Biz portal,
which allows potential entrepreneurs to complete
most of the formalities online, like submitting
forms, making payments, among others. They
can also track the status of their requests through
the portal. Shri Sharma said that two of the key
organizations crucial for clearance of projects –
Ministry of Environment & Forests and Central
Board of Customs & Excise are yet to come on
INDIA REMAINS ONE OF THE TOP DESTINATIONS FOR FOREIGN DIRECT INVESTMENT: ANAND SHARMA
The Union Minister for Commerce & Industry, Shri Anand Sharma speaking at a Students’ Interactive Session on “Emerging India in a Globalized World: The Imperative of Change” in Sofia College, Mumbai on February 11, 2014.
By 2035, when the developed
world will be saddled with ageing
population, India, and not China,
would be the country that would
provide skilled manpower to
the world
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board, but expressed confidence that he would
convince them to join in soon.
The Minister also said the National Manufacturing
Policy seeks to address the menace of red tape
by introducing accountability to ensure timely
clearance of proposals. Shri Sharma said India’s
current economic growth is not commensurate
with its potential and the country has capacity
to grow faster. He said that India is looking to
create as many as 100 million skilled jobs in the
manufacturing sector by raising its share of GDP
to 25 per cent from 16 per cent. “We have to
create jobs through industrialization and boosting
manufacturing. The dedicated Delhi-Mumbai
Industrial Corridor and the Chennai-Bangalore –
Mumbai industrial corridor will create specialized
manufacturing centres, with single window service
to expand our industrial base,” he added.
The Commerce & Industry Minister also defended
the FDI in retail policy of the government, stating
that its benefits can be reaped by farmers as well
as small and medium enterprises. “If a retail chain
sources its farm products from hinterland or
creates cold storage facility, it will be the farmer
in the villages who will benefit directly” he added.
He reiterated that entry of organized retailer will
not put the corner grocery stores out of business.
Shri Sharma also said that India’s young
population is an important asset. “By 2035, when
the developed world will be saddled with ageing
population, India, and not China, would be the
country that would provide skilled manpower to the
world” he added. Shri Sharma called upon the young
students to cultivate a positive mindset and notice
the developments that have taken place in India.
The Minister in his address also touched upon
various global and domestic issues including the
emergence of a multi-polar world, importance
of preserving democratic tradition, protecting
cultural unity of India and above all the importance
of education in building a strong nation.
Noted industrialist Adi Godrej in his remarks
called for early introduction of GST to rationalize
tax regime and boost productivity.
More than 150 students of Sofia College for
Women participated in the Minister’s Interactive
Session, “Emerging India in a Globalized World:
The Imperatives of Change”, organized by CII.
Anand Sharma said that two of the key organizations crucial for clearance of projects – Ministry of Environment & Forests and
Central Board of Customs & Excise are yet to come on board, but expressed confidence that he
would convince them to join in soon
Between 2009-13, India attracted
FDI worth US $ 172.82 billion,
despite growing competition from
emerging economies like Brazil,
Indonesia, Vietnam etc
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The second meeting of India-UAE High Level Joint Task Force on Investments (HLTFI) was held in Mumbai on March 3, 2014. The HLTFI, co-chaired by Shri Anand Sharma, Union Minister of Commerce & Industry and Sheikh Hamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court, was established in April 2012 as a platform to address mutual issues associated with existing investments between the two countries and to promote and facilitate cross-border investments. More than 30 government and private sector representatives from India and the UAE were present.
The second meeting of the HLTFI made progress on a number of fronts:
1. Discussions were held on supporting the establishment of a strategic petroleum reserve in India in a manner serving the common strategic interests of both countries and based on the principles of long term strategic partnership and cooperation. The decision was taken to establish another joint working group to make progress on this effort;
2. Wide-ranging discussions took place on priority sectors of engagement for channelling investments in the two countries;
3. Discussions took place on expediting the resolution of current pending issues associated with existing UAE investments in India (Etisalat, Emaar & DP World), and a plan
UAE INVITES INDIAN COMPANIES TO INVEST IN RENEWABLE ENERGY SECTOR
The Union Minister for Commerce & Industry, Shri Anand Sharma with the Ambassador of UAE in India, Mr. Muhamad Sultan Al Uwais, during the 2nd Meeting of the India-UAE High Level Joint Task Force on Investment, in Mumbai on March 03, 2014.
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of action was agreed for the Legacy Issues sub-working group to address and resolve these issues;
4. Acknowledged TAQA, the Abu Dhabi-based international energy and water company, as the largest private operator of hydroelectric plants in India, following its acquisition, signed on Saturday 1st March, 2014 in New Delhi, of two hydroelectric plants in India. The equity invested by the TAQA-led consortium in the acquisition of the two hydroelectric plants will amount to approximately INR 3,820 crores (USD 616 million), of which 51% is from TAQA. The consortium will also acquire the assets` non-recourse project debt. The agreement follows the signing of the UAE-India Bilateral Investment Promotion and Protection Agreement in December 2013 and the UAE`s commitment at the last HLTFI meeting to invest USD 2 billion in India`s infrastructure sector.
5. The UAE has invited the Indian companies in the renewable energy area to the UAE to meet with Masdar to discuss potential investments.
The UAE and India are significant trading partners and bilateral trade between the two countries is expected to continue its important growth in years to come. Alongside trade, the HLTFI would seek to achieve a similar growth path for investment with a clear roadmap between the two countries.
Commenting on the 2nd meeting of the HLTFI, Shri Sharma underlined India’s status as a major destination for foreign investments and the opportunities that exist for the UAE, especially in infrastructure areas such as roads and highways, power and utilities, civil aviation, ports, renewable energy, urban infrastructure, etc. and participation through the Infrastructure Debt Funds. He also highlighted India’s desire to participate in the hydrocarbon sector in the UAE, especially in the upstream petroleum sector. He
also mentioned that he sees greater opportunities for UAE investors as strategic partners in India’s growth story.
Sheikh Hamed bin Zayed Al Nahyan said that “today we have advanced the work of the Joint Task Force, and laid the foundation for further mutually beneficial investments and areas of common interest. We look forward to the ratification of the Bilateral Investment Promotion and Protection Agreement, and the resolution of the outstanding issues identified at our first meeting. Together, our combined efforts will help to further strengthen bilateral trade relations and pave the way for continued strategic dialogue.”
The first meeting of the HLTFI, held in Abu Dhabi in February 2013, resulted in a wide-ranging discussion on matters of mutual interest including the identification of priority sectors of engagement for possible investments in the two countries. Since then, work conducted by the HLTFI to strengthen and develop bilateral relations in the field of investments culminated in the signing, in December, 2013, of a Bilateral Investment Promotion and Protection Agreement (BIPPA), serving as a platform for promotion and reciprocal legal protection of investments in both countries.
As a result of decisions taken during the inaugural meeting of the HLTFI, several joint working groups have been created to address issues of mutual interest in the following sectors: Infrastructure, Investment & Trade, Energy, Manufacturing & Technology, Aviation, Information and Communication Technology (ICT) and Legacy Issues. At today`s meeting, an action plan was agreed to expedite progress across all these joint working groups.
The next meeting of the UAE – India High Level Joint Task Force on Investments will be held on a mutually agreed date and location.
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The Union Minister for Commerce & Industry Shri Anand Sharma dedicated the Nucleus Breeding Centre of the Domestication of Tiger Shrimp Project of Rajiv Gandhi Centre for Aquaculture in Port Blair on February 28, 2014. Speaking on the occasion, Shri Sharma said that establishment of the project will have far reaching benefits for the shrimp famers and the sea food exporters of India. “It is expected that within five years of the establishment of the project, tiger shrimp aquaculture in India would scale new heights to achieve additional production to the tune of 100000 MT and have export value of USD 1 billion,” said Shri Sharma. “Last year, we exported shrimps worth over US$ 1.8 billion. This is an area which has the potential of becoming a huge foreign exchange earner for our country,’ added Shri Sharma. The Minister further added that India ranks second only to China in global aquaculture production producing 4.64 million tonnes annually out of the world’s total production of 60 million tones.
“There is no doubt that production of disease free varieties of Tiger prawns will assure market access to advanced markets which have much higher health standards. It will also catalyse the growth of ancillary industry in the entire value chain of sea food processing,” added the Minister. Shri Sharma said that “with the upgradation of the airport in Port Blair, there will be a surge in marine exports in the country.” He also said that the non-trade barrier issues in shrimp with Japan have been resolved.
Applauding the Rajiv Gandhi Centre for Aquaculture as being front ranking scientific organization in this sector in India, Shri Sharma also added that “they will shortly be granted four patents in adaptable aquaculture technology”
for which they have applied. The Minister said that the seafood industry of India is poised at a crucial juncture and it needs a dramatic technology infusion capacity building and market expansion. “It needs much greater value addition for providing remunerative prices to our resource poor farmers. I would urge MPEDA to create innovative implementation models which would create necessary forward and backward linkages and create economies of scale.”
Later in the day, Shri Sharma also laid the foundation stone for the Multi-species Grouper Hatchery at Rangachang, Andaman and the Broodstock Multiplication Centre for Tiger Shrimp at Kanyakumari. Once the aquaculture of groupers is established, Shri Sharma said that “production can be increased manifold and will facilitate export of this item in live condition which has the potential of enhancing the income by up to five-fold for our fishermen.”
Shri Sharma also praised Marine Products Export Development Authority (MPEDA) for introducing several scientific technologies for the aquaculture sector. “MPEDA has been consistently providing technology support for commercial hatcheries and extension in financial services in the entire coastal area to ensure propagation of scientific shrimp farming practices in the country,” said Shri Sharma. At the same time, Shri Sharma stressed the “need to make continuous investments in technology upgradation, research and development for addressing the diseases which have struck the shrimp aquaculture industry.”
Speaking on the trade scenario, Shri Sharma expressed hope that the annual trade figures will be higher this year in comparison to the last year. He also hoped that the Foreign Direct Investment figure for the last five year will cross USD 215 billion.
ANAND SHARMA INAUGURATES NUCLEUS BREEDING CENTRE FOR TIGER SHRIMP IN PORT BLAIR
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On February 18, 2014, the Minister of State for
Commerce and Industry Dr. E M Sudarsana
Natchiappan launched a Cement Information
System (CIS) Portal for on-line collection of data
regarding production, dispatch, export, import
etc. of cement across the country. The portal
is first of its kind in India which would enable
cement manufactures in India to upload data on
the central server of the Department. The cement
producers have been provided USER ID and
PASSWORD for this purpose. This will facilitate
the Government in analyzing the sector for
appropriate policy measures.
Speaking on the occasion, Dr. Natchiappan stated
that the cement sector plays an important role in
the Indian economy and suitable interventions
through policy are required for higher growth. The
portal will help in gathering data in real time. The
real time data collection will be better utilized for
answering the questions in Parliament apart from
its value in policy making process.
The Minister congratulated the entire NIC team
for their commitment for its development and
launching within short period of time.
E M S NATCHIAPPAN LAUNCHES CEMENT INFORMATION SYSTEM PORTAL
The Minister of State for Commerce and Industry, Dr. E.M.S. Natchiappan launching the Cement Information System (CIS) Portal, in New Delhi on February 18, 2014.
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Roberto Azevêdo urges members to make 2014 the year to implement Bali
and put Doha back on trackAt the first meeting of WTO ambassadors after
the 9th Ministerial Conference, Director-General
Roberto Azevêdo told the Trade Negotiations
Committee on February 6, 2014 that: “Bali
represents not just a huge achievement for all
of us—but also a huge opportunity. There is real
political momentum and we must build on it.” He
said he had asked the chairs of the negotiating
groups to “start a dialogue with members on
(Doha Round) issues that we may be able to take
forward”.
Good morning everybody.
As this is our first meeting of 2014, I would like to
wish you all a happy and successful New Year — I
very much hope it is a productive one.
I want to thank you all for the role you played,
individually and jointly, in delivering that historic
success in Bali.
After an 18 year drought, Bali proved that the
WTO can deliver negotiated outcomes.
It delivered significant gains for the global
economy and particularly for our developing
and least-developed members. And it moved the
spotlight back onto us here in Geneva.
But Bali has not finished the job.
We have two very significant tasks before us.
First and foremost, we need to implement the
decisions and agreements reached in Bali.
Second, the Bali Declaration instructs us to
prepare a clearly defined work program on the
remaining Doha Development Agenda issues by
the end of 2014.
And we should remember that the Bali Declaration
instructs that those areas where decisions were
non-binding in nature must be a priority in our
post-Bali work. We must keep a relentless focus
on these issues.
So the real work starts now.
These two tasks will form the bulk of our work
over the course of this year — and so this is what I
want to talk about today.
Implementing the Bali Package
First, let’s focus on implementation.
The true significance of the Bali results, and the
tangible realization of their benefits, will only be
achieved as a result of the actions that you, the
members, take over the coming months.
This is an important test for the system — and one
which we must pass if we want to move forward
and see the benefits of Bali made real.
We must work together to keep up the momentum
and the pressure that allowed us to reach a
successful outcome in the first place.
The Bali Package consists of ten ministerial
decisions, each of which requires different steps to
take forward.
A lot of the implementation efforts will fall outside
the TNC — but for clarity I think it would be
helpful to take a few moments to set out some of
the actions needed to implement each of those
decisions.
Let’s start with Trade Facilitation, where the work
has already started, and where there are important
milestones for implementation over the coming
WTO DEVELOPMENTS
17
months.
The first meeting of the Preparatory Committee
was convened by the General Council Chairman
on 31 January.
And we already have a chair, as you elected
Ambassador Esteban Conejos by acclamation. Let
me congratulate Ambassador Conejos, and wish
him all the best in his new role.
The Preparatory Committee will swiftly commence
the execution of the tasks Ministers gave it in Bali
— specifically, to ensure the entry into force of the
Trade Facilitation Agreement and prepare for its
efficient operation.
The Bali decision on Trade Facilitation also calls
on the Committee to carry out three immediate
tasks:
• undertaking a legal review of the Agreement;
• drafting a protocol of amendment to include
the Trade Facilitation Agreement in Annex IA
of the WTO Agreement;
• and receiving notifications of Category A
commitments.
Our ability to move the whole of the WTO agenda
forward hinges on our ability to fulfil the promises
to provide timely and effective technical assistance
and capacity building wherever it is demanded by
developing and least-developed countries.
To help those countries make full use of the
flexibilities set out in Section II, and to facilitate
preparations for the Agreement’s entry into force,
the Secretariat will continue its needs assessment
program. But in addition there is an imperative on
developing members to identify what support they
need as early as possible.
Donor members and various donor organizations
are also getting ready to provide comprehensive
support on Trade Facilitation.
I met with them yesterday for an initial
conversation about the importance of coordination
and transparency in the provision of support to
developing countries.
Many donors were present at the meeting — over
25 countries and organisations were there.
In due course, the conversation needs to be
broadened out to include beneficiary countries
once there is greater clarity on their needs.
The WTO will of course help to facilitate
the interaction between the donors and the
beneficiaries.
So there is important — and urgent — work ahead.
I must also take this opportunity to thank
Ambassador Sperisen-Yurt for his leadership and
chairmanship of the Negotiating Group on Trade
Facilitation.
Let’s turn now to Agriculture, where there were
three decisions in Bali.
For each of these three decisions, Ministerial
guidance specifically indicates that the Committee
on Agriculture will undertake follow-up activities
in terms of monitoring and review.
The Committee on Agriculture met on 29 January
and discussed follow-up on these issues.
So let me briefly take each one in turn…
First, export competition. This decision calls for
dedicated discussions based on notifications and
a questionnaire to be circulated by the Secretariat.
The annex of the Declaration includes elements
for enhanced transparency on export competition
which will form the basis of the Secretariat’s
questionnaire.
The Committee on Agriculture agreed to hold the
annual discussion on export competition during
its meeting in June this year. This timing could
18
also be appropriate in 2015 as it would provide
adequate time between that discussion and the
review foreseen at MC10. That’s for you, the
members, to follow through in the Committee on
Agriculture.
The Secretariat will circulate the questionnaire
soon with a view to circulating a summary of
the questionnaire results in advance of the June
meeting.
Second, with respect to the decision on TRQ
administration, the Committee on Agriculture is
expected to review and monitor the implementation
of the Understanding.
The monitoring to be conducted in the context of
the TRQ underfill mechanism will depend on the
members’ submissions.
Some members have indicated that they planned
to take advantage of this mechanism. Others noted
that the Committee on Agriculture could begin
applying the monitoring procedures laid out in
the Annex of this Decision as soon as submissions
were received by the Committee.
That leaves the decision on public stockholding
for food security purposes. Here the monitoring
activity of the Committee will again depend on
how members decide to push this monitoring
agenda.
As you will recall, Ministers agreed to establish
a work program to be undertaken in the
Committee on Agriculture with the aim of making
recommendations for a permanent solution on
this issue — that’s what the decision says. This
work program will take into account members’
existing and future submissions.
Indeed, the conversation on the work program
has already started with a discussion at last week’s
meeting of the Committee on Agriculture.
I’d like now to turn to the decisions on Development
and LDC issues.
The adoption of an LDC package was a key
achievement of the Bali Ministerial — representing
a very significant step forward towards the better
integration of LDCs into the multilateral trading
system.
But, here too, Bali represents a beginning, not an
end.
A significant amount of effort is needed to convert
these decisions into concrete gains for the LDCs.
On the operationalization of the services waiver
the LDCs will need to table their collective request
as soon as possible. This will kick-start the process,
leading towards the high level meeting at which
members will indicate if, and in what areas, they
are prepared to give preferential access to LDCs.
In parallel, the Council for Trade in Services is
convening an informal meeting to discuss the
operationalization of the waiver. I encourage all
members to actively participate in this process,
so that we can bring fruition to this important
instrument.
Next, the decision on Duty-Free Quota-Free
market access.
Similarly here, members will need to notify their
DFQF schemes and any other relevant changes
that they may have adopted. In my view the LDCs
should be pursuing this issue in the Committee on
Trade and Development. Of course all members
have a responsibility here, and the Secretariat
will be on hand to support the process, but the
demandeurs must keep up the pressure.
The same goes for the last decision in the LDC
package — which is on preferential rules of origin.
Members have concrete guidelines before them
to make further improvements to their LDC
19
preference schemes. I encourage members,
whenever possible, to draw on these multilateral
guidelines and make a further contribution to help
ease market access for LDC products. There will be
an opportunity to annually review developments
through the Committee on Rules of Origin.
The other important development decision taken
at Bali — though not specific to LDCs — was to
establish a Monitoring Mechanism on Special
and Differential Treatment. Members will take
this forward through a Dedicated Session of the
Committee on Trade and Development.
I should also mention here those items which were
held over from Bali — for example the Cancun 28
proposals and the 6 Agreement-specific proposals.
These items are under active consideration in the
Special Session of the Committee on Trade and
Development and this work will need to be picked
up as soon as possible.
The tenth decision of the Bali package relates
to Cotton, which of course is sensitive for many
members, particularly the Cotton-4.
I understand that informal consultations are
underway to call a meeting of the Director-
General’s Consultative Mechanism. That meeting
would likely be held back-to-back with a dedicated
discussion on cotton in a meeting of the Committee
on Agriculture in order that we can move this issue
forward.
You all worked incredibly hard last year to conclude
the negotiations and deliver the Bali package.
So now let’s make it count, by delivering the
benefits of the package.
DDA Work Programme
But, as I say, implementation is only the first task.
The second is to get talks going again and prepare
a clearly defined work program on the remaining
Doha Development Agenda issues by the end of
2014.
I have begun some very early and very preliminary
consultations on these issues — for example:
• At the World Economic Forum in Davos I
attended the informal ministerial gathering
convened by the Swiss Confederation — about
which Ambassador Winzap will say a few
words when I have concluded my remarks.
• Last week I visited India and Oman where I
talked to the business sector and government
officials.
• In recent days I have addressed members of
the LDC and ACP Groups.
• I have also seized every opportunity to
exchange views with individual delegations.
I’ve been listening to members very carefully.
I think that in order to look forward, we must also
look back. We must learn from the mistakes of the
past — and also, now, from the success in Bali.
Bali offered us a number of good lessons in how to
be successful multilaterally.
But I believe it will be very difficult to replicate
the approach where we avoided the core issues
— agriculture, industrial goods, services — and
found harvests elsewhere.
Most likely, any future multilateral engagement
will require outcomes in agriculture. This was a
central pillar of the DDA and many delegations
have been stressing that, if agriculture comes into
play, then so do the other two legs of the tripod:
industrial goods and services.
We may even conclude that we’re not yet ready
to properly tackle these three areas, but we can’t
avoid the conversation.
Even though we can’t replicate Bali precisely, there
20
are lessons learned that we must keep in mind.
Our dialogue about the future is just beginning,
but I believe that some parameters seem to be
already framing this conversation.
I will talk through these parameters now, as I
perceive them personally — though I stress that this
is not an exhaustive list, nor is it arranged in order
of priority or importance. It is intended merely to
provide some inspiration in our discussions.
• First, development has to be preserved as the
central pillar of our efforts. Above all, we must
have tangible results for the poorest members.
This remains a development round.
• Second is that we must be realistic and focus
on those things which are doable. Instead of
abstract goals, let’s look at what we can do
and set goals that are reachable. Members
have to be honest with each other and with
their domestic constituencies about what can
realistically be expected from the negotiations.
We must find a balance between ambition and
realism.
• The third parameter is that the big issues in
the DDA are interconnected, and therefore
they must be tackled together. So, again, as it
was in Bali, balance is key. We must find an
approach in which all members contribute and
all members benefit. And, again, where no one
is faced with impossible demands. Bali worked
because all members wanted it. Everyone has
to see themselves in the issues on the table.
• Fourth, in order to make headway in these
areas, we must be ready to be creative and
keep an open mind to new ideas that may
allow members to overcome the most critical
and fundamental stumbling blocks. This
creativity, however, has to be coherent with
the DDA mandate, which is flexible enough to
accommodate new paths. Let me be very clear
about this: I am not proposing changing the
DDA mandate — quite the opposite really.
• Fifth, the process must continue to be inclusive
and transparent, engaging all members at all
stages of the negotiations. This was a very
important factor in Bali.
• Sixth, our efforts must have a sense of urgency.
This was also an essential element of the
success in Bali. We must be careful, however,
not to rush recklessly into another cycle of
failures due to bad planning. We cannot afford
to wait another 18 years for a result.
Finally, I think that, as well as being open-minded
to new ideas, we should also be open-minded
about how far-reaching our next steps will be.
Of course what we want to do is to find a path
towards the conclusion of the Round. It may be
that it can be done in one step — or we may need
more than one step. Again, that is something that
we have to discuss.
But whatever we do we will always be moving in
one direction — and that is towards the conclusion
of the Doha Round.
I think that we should keep these parameters
in mind over the coming weeks and months. In
summary:
development as a central pillar
• doability — balancing realism and ambition,
with no-one being asked to do the impossible
• recognising that the issues are interconnected
so must be tackled together
• staying creative and open minded
• always being inclusive and transparent
• maintaining a sense of urgency
21
As time is of the essence, I have asked the Chairs
of the Negotiating Groups to start a dialogue
with members on issues that we may be able to
take forward — using the parameters that I just
mentioned as a guide for discussions.
The exact format of these meetings will be up
to the Chairs — they will have full discretion on
how they conduct these discussions — but I have
asked them to ensure that the format is as open as
possible.
I think we need to start by asking simple questions:
What went wrong? What should we do now? What
level of ambition should — or could — we have?
While we may start with a range of different
opinions I trust that in time commonalities will
emerge and, in due course, that we will be able to
find convergence.
And I can assure you that there is no hidden or pre-
cooked agenda here. I am approaching this process
— along with the Chairs — with a completely open
mind. We want to hear your views.
I don’t intend to impose any strict time-frame
on this initial process — but I have asked the
negotiating chairs to feed back with some initial
thoughts and findings from their consultations, if
possible at the General Council on 14 March.
Conclusion
Bali represents not just a huge achievement for all
of us — but also a huge opportunity.
There is real political momentum and we must
build on it.
The work has only just begun.
2014 should be the year that we implement our
first negotiated outcomes — and the year that the
Doha Round is put back on track.
It will not be easy, but it is achievable.
We all have a role to play. Every voice will be
heard. And I hope that together we can capitalise
on the success in Bali, and seize the opportunity
that it has provided.
Thank you for listening.
US files dispute against India over measures relating to solar cells and solar
modulesIn a communication received on February 11, 2014,
the United States notified the WTO Secretariat of
a request for consultations with India concerning
certain measures relating to domestic content
requirements for solar cells and solar modules. The
measures correspond to Phase II of the Jawaharlal
Nehru National Solar Mission programme.
India adopted this programme to promote
development of solar power generation facilities.
According to the United States, India requires
solar power developers to purchase and use solar
cells and solar modules of domestic origin.
The United States adds that solar power developers
receive certain benefits and advantages, such as
long term tariffs for electricity, contingent on their
purchase and use of solar cells and solar modules
of domestic origin.
The claim states that India provides less
favourable treatment to imported solar cells and
solar modules that that accorded to like products
originated in India and they are trade-related
investment measures inconsistent with India’s
obligations under the GATT.
The request for consultations formally initiates a
dispute in the WTO. Consultations give the parties
an opportunity to discuss the matter and to find
a satisfactory solution without proceeding further
with litigation. After 60 days, if consultations have
failed to resolve the dispute, the complainant may
22
request adjudication by a panel.
India launches safeguard investigation on saturated fatty alcohols
On February 19, 2014, India notified the WTO’s
Committee on Safeguards that it initiated on
February 13, 2014 a safeguard investigation on
saturated fatty alcohols.
A safeguard investigation seeks to determine
whether increased imports of a product are
causing, or is threatening to cause, serious injury
to a domestic industry.
During a safeguard investigation, importers,
exporters and other interested parties may
present evidence and views and respond to the
presentations of other parties.
A WTO member may take a safeguard action (i.e.
restrict imports of a product temporarily) only if
the increased imports of the product are found to
be causing, or threatening to cause, serious injury.
India launches safeguard investigation on bare elastomeric filament yarn
On March 5, 2014, India notified the WTO’s
Committee on Safeguards that it initiated on
February 28, 2014 a safeguard investigation on
bare elastomeric filament yarn.
In the notification, India indicated as follows:
“All interested parties may make their views
known within a period of 30 days from the date
of the notice issued by the Director General
(Safeguards) i.e. 28 February 2014 to:
The Director General (Safeguards)
Bhai Vir Singh Sahitya Sadan: 2nd Floor,
Bhai Vir Singh Marg,
Gole Market, New Delhi-110 001, INDIA.
Telefax: 011-23741542
E-mail: [email protected]
Any other party to the investigation who wishes to
be considered as an interested party may submit
its request so as to reach the Director General
(Safeguards) on the aforementioned address
within 15 days from the date of the aforesaid date
of notice of the Director General (Safeguards).”
A safeguard investigation seeks to determine
whether increased imports of a product are
causing, or is threatening to cause, serious injury
to a domestic industry.
During a safeguard investigation, importers,
exporters and other interested parties may
present evidence and views and respond to the
presentations of other parties.
A WTO member may take a safeguard action (i.e.
restrict imports of a product temporarily) only if
the increased imports of the product are found to
be causing, or threatening to cause, serious injury.
Revised WTO agreement on Government Procurement to come into force on
April 6, 2014The revised WTO Agreement on Government
Procurement (GPA) will come into force on April
6, 2014, effectively two years from the date on
which the Protocol amending the Agreement was
adopted in March 2012. The Chairman of the WTO
Committee on Government Procurement, Bruce
Christie of Canada, confirmed that the threshold
of acceptances by two-thirds of the Parties, which
is required for the revised Agreement to come
into force, had been met, with Israel accepting the
Protocol on March 7.
The revised Agreement streamlines and
modernizes the Agreement’s text, for example by
taking proper account of the widespread use of
electronic procurement tools. It provides gains in
market access for the Parties’ businesses that have
been estimated as in the range of $80-100 billion
23
annually. This results from the addition, to the
Agreement’s scope of application, of numerous
government entities (ministries and agencies)
and the coverage of new services and other areas
of the public procurement activities. The revision
also incorporates improved transitional measures
that are intended to facilitate accession to the
Agreement by developing and least-developed
economies.
The ten Parties that have, to date, accepted the
Protocol to amend the Agreement are, in the order
in which they have accepted it, Liechtenstein;
Norway; Canada; Chinese Taipei; the United
States; Hong Kong, China; the European Union;
Iceland; Singapore and Israel.
The Chairman, Mr Christie, said that the prompt
bringing into force of the revised agreement
“shows the Parties’ firm commitment to the
Agreement and augurs well for its future as an
increasingly important element of the framework
for global trade.”
The entry into force of the GPA is in keeping
with Ministers’ undertaking at Bali to work hard
to achieve this goal by the two year anniversary
of the adoption of the GPA revision. Once again,
Members can celebrate a successful outcome.
The Director General of the WTO, Roberto
Azevêdo, said:
“This is a very welcome achievement. The revised
WTO Agreement on Government Procurement
will open markets and promote good governance
in the participating Member economies. The
fact this has been achieved so quickly shows the
importance that the Parties attach to the GPA
and is further evidence, after the successful Bali
Package, that the WTO is back in business. The
modernized text of the revised GPA and the
expanded commitment to market access should
prompt other WTO Members to consider the
potential advantages of joining.”
The GPA is a plurilateral treaty that commits
members to certain core disciplines regarding
transparency, competition and good governance
in the public procurement sector. It covers the
procurement of goods, services and capital
infrastructure by public authorities. The aim of
the Agreement is to open up, as much as possible,
government procurement markets to international
competition and to help eradicate corruption in
this sector.
In addition to the 43 WTO Members that already
participate in the GPA, ten other WTO Members,
including China, Moldova, Montenegro, New
Zealand and Ukraine, are in the process of
negotiating accession to it.
Members query India’s export subsidies on sugar and other farm trade
programmesIndia’s new support programme for sugar sparked
comment among a number of delegations with
some urging India to remove immediately
what they described as export subsidies that
will potentially impact world trade, when WTO
members met as the Agriculture Committee on
March 21, 2014.
The discussion was about one of 31 sets of
questions and answers, a key part of the agenda
of the committee, whose major responsibility is
to oversee the present Agriculture Agreement and
members’ commitments in agriculture.
The largest number of comments from delegations
were on India’s sugar programme. The topics
that also aroused interest included Costa Rica’s
on-going breach of its domestic support limit
resulting from its guaranteed rice prices and its
24
intention to correct this breach in 2015 (the US
said it appreciated the fact that Costa Rica had
shared information consistently but that breaches
of commitments are always a serious concern),
Thailand’s rice support programme known as
“paddy pledging”, Canada’s reclassification of
pizza toppings to prevent traders avoiding import
duties, and India’s domestic support for rice and
wheat and its food security programme.
Meanwhile, members continued their work on
implementing the decisions and a declaration from
the December 2013 Bali Ministerial Conference,
and they discussed information that members
shared on their policies, including the latest US
Farm Bill, and trends in trade and agricultural
trade policies.
And a voluntary solution has been found to the
long-running question of how to update the 1995
list of significant exporters — used to define who
should provide information on their exports in
order to help members monitor whether exports
might have hidden subsidies. The solution is
voluntary because members have failed to agree
on a formal decision.
Some details
One of the key responsibilities of the “regular”
Agriculture Committee, which consists of all
159 WTO members (and does not deal with the
current agriculture negotiations), is to see how
countries are complying with their commitments
on subsidies and market access and to discuss
issues that arise.
It monitors whether members are keeping the
promises they have made in the WTO. Out of the
31 sets of questions in this meeting, 15 were about
information available elsewhere that has not yet
been notified, and 16 sets of questions were about
some of the 48 notifications on their programmes
that members submitted since the last meeting
in January (seven questions on tariff rate quotas,
eight on special safeguards, 18 on domestic
support and 15 on export subsidies).
Questions and answers from all meetings
are compiled in the Agriculture Information
Management System database, and each question
is identified by a code, AG-IMS ID XXXXX, where
the Xs represent numbers. These are a selection:
India’s export subsidies for sugar
Australia, Colombia, Brazil and the EU asked
India about a new policy announced in February
involving incentive payments to Indian sugar
exporters. Along with the facts and figures they
sought, some of them asked what the legal basis
under the WTO was for the export subsidies.
Several pointed out that India has agreed not to
subsidize exports.
India said the policy is designed to encourage
diversification away from white sugar to raw sugar
and that no intervention payments have been paid
yet. India said export subsidies will be notified to
the WTO.
Australia said the 3,300 rupees per tonne incentive
payment is the equivalent of 14–16% of the world
price. Since India is the third largest exporter of
sugar this threatens to seriously distort trade,
Australia said and it asked India to remove export
subsidies immediately. It said that the amount
envisaged could potentially finance all its own
exports half way across the Pacific Ocean.
The Agriculture Agreement allowed developing
countries to subsidize marketing costs and internal
transportation costs during the agreement’s
“implementation period”.
Brazil asked how India could justify the subsidies
25
since there has been no consensus to extend
these special provisions for developing countries.
Previously, in response to similar questions raised
in the past, India argued that developing countries
are still allowed to use the special provision because
the 2005 Hong Kong Ministerial Declaration says,
“developing country Members will continue to
benefit from the provisions of Article 9.4 of the
Agreement on Agriculture for five years after the
end-date for elimination of all forms of export
subsidies” — and export subsidies still have not
yet been eliminated.
Sharing the concerns were Paraguay, Thailand,
El Salvador, Canada, the US, Pakistan and New
Zealand.
Other questions and answers
Thailand’s paddy-pledging programme: Thailand
said it is finally about to submit information on its
domestic support for 2008, and that the present
paddy pledging programme has ended — it
cannot be renewed while the government remains
a “caretaker” because of political problems,
Thailand said.
Those problems have also prevented officials from
preparing answers to the questions about the
programme in more recent years, Thailand said.
Under the programme, farmers can borrow from
the government using unmilled rice (paddy) as
collateral valued at target prices, which farmers
can forfeit if market prices do not meet the targets.
India’s domestic programmes: Members
continued to question India about details of its
support programmes for rice and wheat and its
stockholding programme for food security. Some
asked when India is going to circulate more up-
to-date information on its domestic support — the
most recent notification is for the 2003/04 year.
India said the notifications are being prepared.
Overdue notifications: Overall, 1,799 notifications
were overdue by the end of 2012, the chairperson
observed, the largest numbers being in domestic
support and export subsidies. He was introducing
the latest updated of the Secretariat paper on
notifications, G/AG/GEN/86/REV.17, 22 pages)
which also says that a total of 3,400 notifications
had been received by 6 March 2014, since the
WTO came into being in 1995.
Implementing the Bali farm package
Work has already begun on the Bali Ministerial
Conference declaration on export subsidies
and measures having similar effects (known
collectively as “export competition”). The
Secretariat has circulated a questionnaire for
members to supply information on this, and the
chairperson said three delegations have already
replied. The information is being prepared for the
next Agriculture Committee meeting in June.
The declaration is the strongest political statement
since the 2005 Hong Kong Ministerial Conference
on export subsidies and related policies. It deals
with what some members have described as
the agricultural trade policies having the worst
distorting effect on world markets.
Members have agreed to “exercise utmost
restraint” in using any form of export subsidy,
to “ensure to the maximum extent possible” that
progress will be made in eliminating all forms of
export subsidies, that actual subsidies will stay
well below the permitted levels, and that similar
disciplines will apply to export policies that may
have the same effect as subsidies. The subsidies
are currently at lower levels than previously,
notably because of high commodity prices.
The chairperson also reported on discussions in
26
the informal meetings on this and on “tariff quota
administration”, a Bali decision designed to reduce
the chances that the methods governments use to
share out these quotas are also trade barriers.
He said some members urged delegations to
start to use the decision quickly, pointing out
that the tariff quota administration decision is to
be reviewed in four years’ time, and that seeking
a change in the administration method can take
three years. Tariff quotas are where quantities
inside a quota are charged lower import duties
than quantities outside the quota.
Members also discussed unofficial papers from
the Cairns Group on these two “Bali package”
subjects.
The problematic significant exporters’ list
Meanwhile, members have agreed on a voluntary
solution to the long-running question of how to
update the 1995 list of significant exporters —
used to define who should provide information on
their exports in order to help members monitor
whether exports might have hidden subsidies.
They have failed to agree formally proposed
solutions currently on the table, including the
updated list itself, how to add new products and
how to separate information notified in broad
categories of products such as “coarse grains”,
into component parts such as rye, barley, oats,
maize (corn), sorghum and some other products.
But no delegation objected to the chairperson’s
suggestion that countries could voluntarily
announce that they consider themselves no
longer to be on the list for the product or products
concerned — meaning that they will not notify
their exports of those products — since they no
longer meet the 5% threshold trade share to qualify
as significant exporters. Similarly, countries that
do meet the threshold can voluntarily notify their
exports as significant exporters.
Chairperson Bayer first put the idea of a voluntary
solution to an informal meeting earlier in the week
and repeated it in a report to the formal meeting.
A number of delegations expressed regret at
the membership’s inability to agree on a formal
solution, he reported.
Intellectual property body grapples with plain packaging, innovation,
technology and moreWTO members discussed a number of new and
long-running issues such as plain packaging for
tobacco products, measures related to biodiversity,
innovation in green technologies, and the role
of universities, when they met as the intellectual
property council on February 25–26, 2014. But
they failed to narrow their differences on many
issues and there were no breakthrough decisions.
The discussions (details below) took place in the
Council for Trade Related Aspects of Intellectual
Property Rights (TRIPS), which, like almost all
WTO committees, consists of all WTO members.
One issue was a follow-up from the Bali Ministerial
Conference in December 2013 — the apparently
abstract legal question of “non-violation”
disputes, which some believe may have real-world
implications for trade and related issues.
Plain packaging
A number of countries urged members to refrain
from introducing plain packaging for cigarettes
and other tobacco products — using standard
colours and typefaces instead of brand logos,
usually with large health warnings — until a ruling
emerges from the WTO dispute settlement cases
involving Australia’s law. However, New Zealand
reported on the progress of its draft law, which is
now in Parliament.
27
This was the seventh time the TRIPS Council
had discussed the issue since June 2011, the
most recent exchanges focusing on similar plans
in Ireland. Plain packaging for tobacco products
has also been discussed in the Technical Barriers
to Trade Committee (which deals with labelling
and packaging) and is the subject of five legal
challenges against Australia, dispute cases
DS434 (brought by Ukraine), DS435 (brought
by Honduras), DS441 (brought by Dominican
Republic), DS458 (brought by Cuba) and DS467
(brought by Indonesia).
Cuba, Dominican Republic, Honduras, Zimbabwe,
Ukraine, Nicaragua, Indonesia repeated their
support for health objectives, but remained
concerned about possible violations of TRIPS by
preventing producers from using trademarks and
geographical indications.
They argued that plain packaging is too drastic
to meet the objective of protecting health, and
that it could be counter-productive by making
counterfeiting easier and cheaper, and increasing
smoking. They repeated their complaint about the
impact on their poor producers. The Dominican
Republic said it also fears that similar measures
might be taken on other products such as those
with high sugar, fat and alcohol contents
Australia declined to comment while the legal case
was being heard.
New Zealand described the latest progress of its
bill, which was introduced into Parliament on 17
December 2013, and passed its first reading on 11
February. The draft law still has to go through a
parliamentary committee and two more stages in
Parliament before it becomes law, New Zealand
said. After that regulations would be drafted,
which would include details of what the plain
packaging should look like.
New Zealand said comments can still be received
on the bill, up to 18 April 2014, and with further
comments possible when the regulations are
drafted.
Uruguay supported Australia’s view that the
current legal challenges in the WTO should not
prevent countries from adopting these types of
measures. It added that any country can introduce
laws to protect the public interest such as in
health, and plain packaging cannot be considered
a violation of the TRIPS Agreement
Nigeria said that measures to protect public health
should not be used to impede legitimate trade,
and also urged members to wait until the Australia
dispute is concluded.
Switzerland said it supports health policies
and anti-smoking campaigns, but also urged
members to be consistent with the TRIPS
Agreement, Paris Convention for the protection
of industrial property, and adopt policies that
are “proportionate” — appropriate for the
circumstances and taking into account a balance
of all interests at stake.
Some of the legal disputes against Australia’s
legislation have reached the stage where WTO
members (meeting as the Dispute Settlement
Body) have agreed to set up panels (a group of
adjudicators) to rule on the case, but so far no
panellists have been appointed.
The Dominican Republic said its first request
in December 2012 for a panel to be set up was
blocked by Australia but that the agreement
setting out the rules for disputes — the Dispute
Settlement Understanding — would not allow a
second request to be blocked. In practice a second
request can be lodged after about a month because
the Dispute Settlement Body meets almost every
month.
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New Zealand reminded members that the rules for
disputes require the cases to be settled promptly.
Intellectual property, Innovation and green
technology
In the latest discussion on this subject, Ecuador
suggested it could update its year-old proposal
on easing patent terms and strengthening
TRIPS flexibilities for environmentally sound
technologies.
This was partly because the proposal related to the
December 2013 Bali Ministerial Conference, with
a call for a declaration highlighting the flexibilities
available in the TRIPS Agreement — along the
lines of the 2001 Doha Ministerial Declaration on
TRIPS and Public Health. Ecuador also proposed
reducing the length of time patents are protected
for green technologies.
Replying to questions asked in previous meetings,
Ecuador defended its view that intellectual
property protection can hamper the transfer of
environmentally sound technologies, making
it inaccessible and expensive for developing
countries, at a time when all countries agree on the
need to combat climate change. Cuba, El Salvador,
India, China, South Africa, Brazil, and Benin
supported discussing the Ecuadorian proposal.
Chile, the EU, Japan, Switzerland, the US, and
Australia countered that intellectual property
rights protection does not obstruct technology
transfer. In addition, other factors are also
necessary to support the transfer, they said,
such as adequate regulatory regimes, proper
infrastructure, and low patent fees.
Non-violation Complaints
Members continued to disagree as to whether
“non-violation” complaints could be allowed
in intellectual property. They were prepared to
tackle seriously a complex legal issue that has been
unresolved for over 20 years, but one that some
believe can have a bearing on real-world trade.
Nevertheless, they still differed on how to do this.
One of the real-world implications, some
developing countries say, could be to undermine
flexibilities allowed under the WTO agreement, for
example to bypass some patent rights so that the
sick in poorer countries obtain cheaper medicines.
However, some countries countered that WTO
rules prevent that.
A non-violation case arises in the WTO when one
country challenges the legality of another’s actions,
if it feels it is deprived of an expected benefit, even
if no actual agreement or commitment has been
violated. Non-violation disputes are allowed for
goods and services, but not in intellectual property
under a temporary agreement (a “moratorium”)
that has been extended several times. The most
recent two-year extension was agreed at the Bali
Ministerial Conference in December 2013.
Some of those opposing non-violation cases
in intellectual property argue that the TRIPS
agreement is different from those dealing with
goods (the General Agreement on Tariffs and
Trade, GATT, and related agreements) and
services (the General Agreement on Trade in
Services, GATS, and its subsidiary agreements).
They say the TRIPS agreement is not about market
access but establishing minimum standards for
protecting Intellectual property.
Some opponents also argue that non-violation
complaints would upset the balance of rights
and obligations in the TRIPS agreement and will
elevate private rights holders over the interests
of the users of intellectual property, by tilting the
balance in favour of those owning the patents,
copyrights, and other intellectual property. They
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also fear that non-violation cases would put at risk
the use of flexibilities such as compulsory licences,
which governments can use to provide their
people with cheaper generic versions of patented
medicines.
The proponents of non-violation complaints
in TRIPS believe that it does have a place. The
US said and that WTO agreements ensure that
“recommendations and rulings of the Dispute
Settlement Body cannot add to or diminish the
rights and obligations” provided in the TRIPS
Agreement.
Switzerland said that a non-violation complaint
could not be brought against a measure benefiting
from TRIPS flexibilities, including those confirmed
in the Doha Declaration on TRIPS and Public
Health, because these measures had already been
foreseen at the time of negotiations.
The US said it is preparing a restructured
moratorium for members to consider in the next
meetings.
Countries speaking against non-violation cases in
this meeting — some calling for non-violation to be
dropped completely from TRIPS — were: Brazil,
Venezuela, China, South Africa, Cuba, Canada,
India, Ecuador, Pakistan, the EU, Bangladesh,
Argentina, Mexico, Peru, and Rep. Korea.
Some, such as Brazil and South Africa, interpreted
the TRIPS Agreement to require agreement on
how non-violation cases will be treated (the
“scope and modalities”), before the cases can be
allowed. The US and Switzerland continued to
support non-violation cases. Japan continued to
call for the TRIPS Council to clarify the “scope and
modalities”.
Biodiversity
Members’ positions remained broadly unchanged,
particularly on whether the TRIPS Agreement
needs to be amended to require patent owners
to disclose the source of the genetic resources
and related traditional knowledge used in their
inventions.
One of the main concerns is about unauthorized
use (“misappropriation”) of genetic resources and
any associated traditional knowledge in inventions
that are then patented, sometimes called biopiracy.
Also of concern is “bad patenting” when claimed
inventions are protected even though they are not
new.
All members agree that these need to be avoided.
They disagree on how to do it. Those seeking an
amendment to the TRIPS Agreement see it as a
way to ensure that the agreement is compatible
with the UN Convention on Biological Diversity
(CBD). Those opposing it continue to argue that
there a better ways of tackling the problem.
Repeating their call for a “disclosure” amendment
in this meeting were: the least developed countries
(Angola speaking), India, Indonesia, Brazil, China,
Ecuador, Bolivia, Bangladesh, Chile, Peru, South
Africa, Cuba, Venezuela, Egypt, Colombia, and
the African Group (Nigeria speaking). Opposing
disclosure in this meeting were the United States
and Japan.
This issue is linked to another, the review of
provisions on patenting inventions from plants or
animals — Article 27.3(b) of the TRIPS Agreement.
Some countries also oppose patenting any life
forms and want this article amended too. Taking
this line in this meeting were: Bolivia, the least
developed countries (Angola speaking), Ecuador
and Bangladesh.
The US said there is a tension between the
opposition to patenting all life forms and the push
for a mandatory disclosure requirement through
patents.
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Meanwhile members also remained divided over
whether the CBD Secretariat should brief the
TRIPS Council on the Nagoya Protocol on Access
and Benefit-sharing (a supplementary agreement
to the CBD adopted in October 2010, which
provides for the effective implementation of one
of the three objectives of the CBD: the fair and
equitable sharing of benefits arising out of the
use of genetic resources). The US noted that the
Protocol had not yet entered into force and that
only a few of those who had spoken had acceded
to it.
Some members called for consultations chaired
by the Director-General to resume soon: they
were Egypt, China, India and the African Group
(Nigeria speaking).
Innovation and university technology
partnerships
The discussion, proposed by the US, featured
many examples of universities contributing to
innovation and the development of technology,
and the arrangements that countries have set up to
make this work better. Sharing their experiences
were the US, Australia, Canada, Hong Kong China,
the EU, Japan, New Zealand, Chinese Taipei and
Switzerland.
Developing countries had mixed views. Some,
particularly India, were worried about the
commercialization of universities, basic research
and its free use by society at large being undermined
in favour of commercial research, and conflicts
of interest when academics have a commercial
interest. (The US said Indian universities have
contributed to Indian technological advance,
for example information technology; and said
universities have rules on avoiding conflict of
interest.)
Brazil, Guatemala, El Salvador said this is a good
topic to discuss. Brazil said public policy has to deal
with market imperfections and monopoly (which
comes with intellectual property protection)
and to strike a balance in order to optimize the
benefits. Brazil then described its own university
partnerships.
Others
Review of notified legislation: South Africa
reported on its new act recognizing indigenous
knowledge, which covers performance rights,
copyright, trademarks, terms and expressions,
geographical indications and designs. The law
also sets up a national council on indigenous
knowledge, South Africa said.
“Notification and review” is the core work of
many WTO committees because it helps monitor
how WTO agreements are being implemented.
Currently, this is less the case in the TRIPS Council
because it deals with whole laws rather than
separate measures. The early years after developed
and developing countries first applied the TRIPS
Agreement saw intensive and sometimes lengthy
reviews.
After a lull, notifications are increasing again
as members report changes to their laws, the
Secretariat reported. Around 600 notifications
have been received since 2009, it said. The
Secretariat is also working on methods to
improving tools for accessing the information
online.