The WTO's 10th Ministerial Conference was held in Nairobi, Kenya, from 15 to 19 December 2015. It culminated in the adoption of the "Nairobi Package", a series of six Ministerial Decisions on agriculture, cotton and issues related to least-developed countries (LDCs). The Conference was chaired by Kenya's Cabinet Secretary for Foreign Affairs and International Trade, Amina Mohamed. India was represented by the Commerce Minister Nirmala Sitharaman.
WTO Director General Roberto Azvedo termed it the “most significant outcome on agriculture in WTO’s history”. He said WTO members, especially the developing countries, had consistently demanded action on this issue due to ‘the enormous distorting potential’ of these subsidies for domestic production and trade. “[This] decision tackles the issue once and for all.”
Export subsidies are seen as the most destructive form of assistance provided for numerous agricultural commodities. These include sugar, beef, pork, lamb, dairy, wheat, rice, wine, fruit, vegetables, processed foods and cotton.
According to the WTO, the legally-binding decisions that are taken are following.
1. Securing an historic agreement on a series of trade initiatives- The Nairobi Package.
2. The decision would not only eliminate the subsidies but also prevent governments from reverting to trade-distorting export support in the future. The developed members have given a commitment to remove the subsidies immediately, except for those on a handful of agriculture products, while the developing countries will do so by 2018. However, the developing members will keep the flexibility to cover marketing and transport costs for agriculture exports until the end of 2023, and the poorest and food-importing countries would enjoy additional time to cut their export subsidies. The ministerial decision contains disciplines to ensure that other export policies are not used as disguised forms of subsidies. These disciplines include terms to limit the benefits of financing support to agriculture exporters, rules on state enterprises engaging in agriculture trade, and disciplines to ensure that food aid does not negatively affect domestic production. Developing countries have been given a longer time to implement these rules.
This decision tackles the issue once and for all. It removes the distortions that these subsidies cause in agriculture markets, thereby helping to level the playing field for the benefit of farmers and exporters in developing and least-developed countries. This decision will also help to limit similar distorting effects associated with export credits and state trading enterprises.
3. The other agricultural decisions cover public stock-holding for food security purposes, a special safeguard measure for developing countries, and measures related to cotton.
4. A decision on a special safeguard mechanism (SSM) gives developing members the right to temporarily increase tariffs in case of import surges by using SSMs.
5. In another significant outcome from the Nairobi Ministerial, WTO members representing major exporters of IT products agreed on the timetable for implementing a landmark deal to eliminate tariffs on 201 information technology products valued at over $1.3 trillion per year, and accounts for approximately 10% of total global trade. Eliminating tariffs on trade of this magnitude will have a huge impact. It will support lower prices — including in many other sectors that use IT products as inputs — it will create jobs and it will help to boost GDP growth around the world”.
6. Decisions were also made regarding preferential treatment for least developed countries (LDCs) in the area of services and the set of criteria for determining whether exports from LDCs may benefit from trade preferences.
Apart from this:
Trade ministers welcomed the conclusion of negotiations on the accessions of Liberia as 163rd members at the 10th Ministerial Conference. Liberia’s President, Ellen Johnson Sirleaf, was present at the ceremony marking the formal conclusion of the negotiations, eight years after it applied for WTO membership. President Sirleaf said the country’s “accession to the WTO marks another turning point in our history” and an important step towards meeting Liberia’s “aspirations for the growth and development of our people.”
Trade ministers also welcomed the conclusion of Afghanistan’s WTO accession as 164th members. Afghanistan’s First Deputy Chief Executive Mohammad Khan Rahmani said Afghanistan’s WTO accession “is a clear sign for all the world to see that the country is building a business-friendly environment.” Afghanistan applied for WTO membership in 2004 and will formally take its seat at the WTO 30 days after its ratification instrument is received.
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