wto hong kong ministerial gains & losses for india

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WTO Hong Kong Ministerial WTO Hong Kong Ministerial Gains & Losses for India Gains & Losses for India Pradeep S. Mehta Pradeep S. Mehta CUTS International CUTS International Jaipur, India Jaipur, India E-mail: E-mail: [email protected] [email protected] [email protected] [email protected]

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WTO Hong Kong Ministerial Gains & Losses for India. Pradeep S. Mehta CUTS International Jaipur, India E-mail: [email protected] [email protected]. Key Issues. Agriculture Non-agricultural Market Access Services Trade Facilitation LDCs Specific Issues. Agriculture: Key Concerns. - PowerPoint PPT Presentation

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Page 1: WTO Hong Kong Ministerial Gains & Losses for India

WTO Hong Kong MinisterialWTO Hong Kong MinisterialGains & Losses for IndiaGains & Losses for India

Pradeep S. MehtaPradeep S. Mehta

CUTS InternationalCUTS International

Jaipur, IndiaJaipur, India

E-mail: E-mail:

[email protected]@cuts.org

[email protected]@cuts.org

Page 2: WTO Hong Kong Ministerial Gains & Losses for India

Key IssuesKey Issues

• AgricultureAgriculture• Non-agricultural Market AccessNon-agricultural Market Access• ServicesServices• Trade Facilitation Trade Facilitation • LDCs Specific IssuesLDCs Specific Issues

Page 3: WTO Hong Kong Ministerial Gains & Losses for India

Agriculture: Agriculture: Key Concerns Key Concerns

• More than 600 million people depend on More than 600 million people depend on farming for livelihood.farming for livelihood.

• A vast majority of farmers are small and A vast majority of farmers are small and marginal, hence they are poor.marginal, hence they are poor.

• Not a major farm exporter. Therefore, Not a major farm exporter. Therefore, lacks offensive interest.lacks offensive interest.

• Fears trade liberalisation impact Fears trade liberalisation impact negatively on poor farmers.negatively on poor farmers.

Page 4: WTO Hong Kong Ministerial Gains & Losses for India

Agriculture: Market AccessAgriculture: Market Access

Market AccessMarket AccessDemandsDemands OutcomesOutcomes

• Less tariff cut for DCs Less tariff cut for DCs • Four bands for tariff cuts with Four bands for tariff cuts with higher thresholdshigher thresholds

• Tariff cap to check tariff Tariff cap to check tariff peaks – 100% for peaks – 100% for developed, 150% for DCsdeveloped, 150% for DCs

• No mention of tariff capNo mention of tariff cap

• SPs and SSM; SPs and SSM; elimination of existing elimination of existing SSG (Art.5) SSG (Art.5)

• Flex. To self-designate an app. Flex. To self-designate an app. no. of tariff lines as SPs; right to no. of tariff lines as SPs; right to have recourse to SSMhave recourse to SSM

Page 5: WTO Hong Kong Ministerial Gains & Losses for India

Agriculture: Domestic Agriculture: Domestic SupportSupport

DemandsDemands OutcomesOutcomes

• Overall reduction of Overall reduction of domestic support domestic support

• Overall cut in Overall cut in trade-trade-distortingdistorting domestic support domestic support

• Reduction of product and Reduction of product and non-product specific non-product specific de de minimisminimis

• No agreementNo agreement

• Reduction in final bound Reduction in final bound total AMStotal AMS

• Will be reducedWill be reduced

• DCs with no AMS DCs with no AMS entitlements exempt from entitlements exempt from reductionsreductions

• Exemptions for DCsExemptions for DCs

Page 6: WTO Hong Kong Ministerial Gains & Losses for India

Agriculture: Export Agriculture: Export CompetitionCompetition

DemandsDemands OutcomesOutcomes

• Eliminate direct subsidies by Eliminate direct subsidies by 20102010

• 2010 not accepted; 2010 not accepted; agreement reached on 2013agreement reached on 2013

• Other forms of export Other forms of export subsidies also to be subsidies also to be eliminatedeliminated

• Parallel elimination of all Parallel elimination of all other forms other forms

• New disciplines on food aid New disciplines on food aid to prevent surplus disposalto prevent surplus disposal

• Food aid to be disciplinedFood aid to be disciplined

• STEs in DCs should receive STEs in DCs should receive special considerationspecial consideration

• Some benefits for DCs, Some benefits for DCs, LDCs and NFIDCs LDCs and NFIDCs

Page 7: WTO Hong Kong Ministerial Gains & Losses for India

Non-agricultural Market Non-agricultural Market AccessAccess

DemandsDemands OutcomesOutcomes

• Swiss type formula with multiple Swiss type formula with multiple coefficients coefficients

• AgreedAgreed

• Less than full reciprocity in Less than full reciprocity in reduction commitments for DCsreduction commitments for DCs

• AgreedAgreed

• Elimination of tariff peaks, Elimination of tariff peaks, escalationescalation

• AgreedAgreed

• Sectoral initiatives should be Sectoral initiatives should be voluntary voluntary

• AgreedAgreed

Page 8: WTO Hong Kong Ministerial Gains & Losses for India

ServicesServices

DemandsDemands OutcomesOutcomes

• Improved market access Improved market access under mode 1 and mode 4under mode 1 and mode 4

• A new time-line given for A new time-line given for offers and requests; offers and requests; plurilateral app. In addition plurilateral app. In addition to bilateralto bilateral

• De-link mode 4 with De-link mode 4 with comm. presencecomm. presence

• No firm commitmentNo firm commitment

• Removal of Economic Removal of Economic Needs TestsNeeds Tests

• No firm commitmentNo firm commitment

• Operationalisation of Operationalisation of S&DT for DCs & LDCsS&DT for DCs & LDCs

• No firm commitmentNo firm commitment

Page 9: WTO Hong Kong Ministerial Gains & Losses for India

Least Developed CountriesLeast Developed Countries

DemandsDemands OutcomesOutcomes

• Duty and Quota free mkt. access for Duty and Quota free mkt. access for all productsall products

• Provided but with Provided but with adequate loopholes adequate loopholes

• Elimination of domestic support on Elimination of domestic support on cotton and creation of a “special fund”cotton and creation of a “special fund”

• No firm No firm commitmentcommitment

• Issue of preference erosionIssue of preference erosion • Mentioned in Mentioned in NAMA TextNAMA Text

• Implementation of LDCs modalities Implementation of LDCs modalities on serviceson services

• No significant No significant progressprogress

Page 10: WTO Hong Kong Ministerial Gains & Losses for India

ConclusionsConclusions

• Ministerial Declaration adopted – in itself Ministerial Declaration adopted – in itself a successa success

• Overall a balanced outcome for IndiaOverall a balanced outcome for India• Ticklish issues of modalities and Ticklish issues of modalities and

formulas for tariff cuts deferred for formulas for tariff cuts deferred for futurefuture

• Poor progress on services trade Poor progress on services trade liberalisationliberalisation

• No substantial gains for LDCsNo substantial gains for LDCs