wto hong kong ministerial gains & losses for india
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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 PresentationTRANSCRIPT
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
Key IssuesKey Issues
• AgricultureAgriculture• Non-agricultural Market AccessNon-agricultural Market Access• ServicesServices• Trade Facilitation Trade Facilitation • LDCs Specific IssuesLDCs Specific Issues
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.
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
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
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
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
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
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
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