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WTO: India seeks hike in bound rates

India has asked the World Trade Organisation to consider allowing developing countries to increase bound rates for specific agricultural products and flexibilities in their domestic policies for agriculture to address their food security and livelihood concerns.

In a paper on agriculture submitted to the WTO last week, India said, "for specific agricultural products bound at relatively low levels in earlier negotiations, developing countries should be permitted to raise current bindings to the ceiling bindings for similar products committed during the Uruguay round".

In order to increase market access, India has sought substantial reduction in tariff peaks and tariff escalations in products of export interest to developing countries and extension of the special safeguard mechanism to all developing countries under Article 5 of the Agreement on Agriculture.

Given the experience of implementation of Uruguay round commitments by developed countries, India has said "any new commitments through any instrument in market access, domestic support and export subsidies for developing countries should be no more than half the commitments of developed countries".

The paper said the real issue in modalities for negotiations is to secure phasing out of the distortions in trade through direct and indirect subsidisation of domestic production and exports by these developed countries.

"Flexibility in domestic policies for agriculture aimed at enhancing their food and livelihood security and for rural development should be incorporated in rules and discipline on trade in agricultural product through special and differential treatment for developing countries," it said.

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