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IPC Seminar
Challenges facing the Doha Development Round
Trade Negotiations On Agriculture
By
MR. DEVI DAYAL
Former Secretary Deptt of Banking ,Ministry of Finance
Government of India.
1
PART I
Agriculture in India
Current Scenario
and
Policy Framework
2
Indian Agriculture has made rapid strides since
independence
3
Indian Agriculture- Some Facts
4
Indian Agriculture- Some Facts
5
Major Achievements
India is
6
IndianAgriculture Scenario
STRENGTHS WEAKNESS
Rich Bio-diversity Fragmentation of land
Arable land Low Technology Inputs
Climate Unsustainable Water
Strong and well dispersed Management
research and extension system Poor Infrastructure
OPPORTUNITIES Low value addition
Bridgeable yield crops THREATS
Exports Unsustainable Resource Use
Agro-based Industry Unsustainable Regional
Horticulture Development
Untapped potential in the N.E. Imports
7
Current Concerns
8
The First Ever National Agriculture Policy was
announced in July 2000. The Policy seeks to
overcome these constraints and achieve
A Growth rate in excess of 4 percent per annum in the
agriculture sector.
Growth that is based on efficient use of resources, and
conserves our soil, water , and bio diversity.
Growth with equity, i.e. growth which is widespread across
regions, and different classes of farmers.
Growth that is demand driven and stabilizes domestic markets
and maximizes benefits from exports in the face of Global
Challenges.
Growth that is sustainable ,technologically , environmentally,
and economically.
9
The Policy has indicated a nine-fold package of
policy initiatives to achieve the objectives
Development of Sustainable agriculture
Food and Nutritional security
Generation and Transfer of Technology
Improvement of input efficiency
Provision of incentives for agriculture
Promotion of Investments in agriculture
Strengthening of institutional infrastructure
Better risk management
Introduction of Management Reforms
10
TARGETS
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Strategies & Initiatives : Enhancing Value Addition
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Strategies & Initiatives : Enhancing Value Addition
13
India’s International Trade - 2001-02
Agriculture
Non-Agriculture
2500
120
2000 289
1500
1000 2148
1736
500
0
Exports Imports
Rs Billions
14
Strategies & Initiatives : Promotion of Exports
15
India’s Agricultural Export Potentials
Marine Products
Rice
Wheat
Condiments and Spuces
Cashew
Tea
Coffee
Castor
Jute
Fruits and Vegetables- Onions, Mango, Grapes, Banana,
Tomato , Potato , Lichchi ,etc.
16
PART II
17
Uruguay Round Agricultural Negotiations
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Agreement on Agriculture (AOA)
19
Mandated Negotiations under Article 20 of
AOA for continuation of the reform process
Negotiations to commence one year before the end of
the implementation period i.e. in January 2000, taking
into account:
- Experience in implementing reduction commitments
- Effect on world trade in Agriculture
- Non Trade concerns, S&D treatment
- Further Liberalization
20
Two Fold Approach
21
Two Fold Approach
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India’s Priorities / Recommendations in
Negotiations
Domestic Support
• Remove ambiguities in the calculation of AMS
23
India’s Priorities / Recommendations in
Negotiations
Domestic Support
24
India’s Priorities / Recommendations in
Negotiations
Food Security & Development Concerns
25
India’s Priorities / Recommendations in
Negotiations
• All measures taken by developing countries for poverty
alleviation from rural development, rural employment and
diversification of agriculture should be exempted from any
reduction commitments
Market Access
• Appropriate level of tariff bindings to be allowed to be
maintained by developing countries as a Special & Differential
Measure , keeping in mind their developmental needs and high
distortions prevalent in international markets
26
India’s Priorities / Recommendations in
Negotiations
27
India’s Priorities / Recommendations in
Negotiations
28
India’s Priorities / Recommendations in
Negotiations
Export Competition
29
Status of Negotiations
30
Status of Negotiations
• The second phase began in May 2001 and has concluded with
the Special Session meeting of February 2002
31
Developed Country Positions
32
Cairns Group Position
33
Developing Country Positions
34
India’s Objectives / Strategy in the
Negotiations
• Extend the use of SSGs to all countries and make their use
more transparent
• Get rid of special clauses and bilateral commodity specific
arrangements
• Eliminate discretion in application of SPS standards
• Abolish export subsidies completely within a time frame of 3
to 5 years. Include all forms of export subsidies in the
calculation of total subsidies
35
India’s Objectives / Strategy in the
Negotiations
36
Doha Ministerial Declaration
37
Doha Ministerial Declaration
38
Some Elements of Indian Work Programme
Market Access
Tariff line wise analysis required to be undertaken to
formalize our position with regard to tariff reductions
39
Some Elements of Indian Work Programme
40
Some Elements of Indian Work Programme
41
THANK YOU
42