The July framework negotiated by the World Trade Organisation in Geneva does not impact the rural development and social sector schemes being implemented in the country, said Montek Singh Ahluwalia, deputy chairman, Planning Commission. It in fact, represents a major advance and imposes more discipline on developed countries, he said.
Speaking to reporters after a presentation on the negotiations made by Commerce and Industry Minister, Kamal Nath to the Planning Commission, he said that the agreement contributed to progress in the multilateral trade process.
"A breakdown of the mulitlateral trade process and move to regional trade agreements would not have been in our favour," he added.
On the impact of the agreement on the agriculture sector, he said that India had retained flexibility and developed countries had been made to agree to restrictions on subsidies.
Abhijit Sen, Member, Planning Commission said that the transport linked subsidy provided to exporters was provided for in the agreement.
"Our position on agriculture is more strong and we have not allowed developed countries to enter our markets. The assistance we provide to farmers is very low while the limit available to us is high," Kamal Nath said.
