WTO: India proposes new farm plan

Rejecting the European Union-United States joint farm proposal, India along with China and 12 other developing countries on Wednesday proposed an alternative framework for agriculture negotiations in the World Trade Organisation.

The proposals contemplates a drastic reduction in domestic support, reduction in export subsidies and their eventual elimination, sharp disciplining of export credits, Commerce and Industry Minister Arun Jaitley told reporters.

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On farm tariffs, the framework has made two separate proposals for developed and developing countries, Jaitley said adding the tariff cut for developing countries would be based on Uruguay Round Formula along with provision for Special Products and Special Safeguard Mechanism.

For the developed countries, a hybrid formula has been suggested, which is a combination of the Uruguay Round tariff reduction, Swiss Formula and zero duty in respect to other tariff lines.

Apart from India and China, the 12 other countries, which have signed the joint proposal in Geneva, are Brazil, Argentia, Columbia, Costa Rica, Chile, Bolivia Mexico, Paraguay, Peru, Thailand, South Africa and Guatemala.

These countries accounted for 60 per cent of the world population producing 60 per cent global rice, 35 per cent of wheat and 57 per cent of sugarcane.