India will not respond to “one-off’’ proposals from developed members of the World Trade Organisation (WTO) such as the EU that has reportedly suggested that New Delhi agrees on a cap for its minimum support price programmes in return for a permanent solution on treating such subsidies without attracting penalties.
“The discussions on a permanent solution have to be based on the paper submitted by the G-33 (which includes India and 45 other developing countries). We are going to insist on a work programme based on it at the Nairobi ministerial meet next week. We will not respond to any one-off proposals (as the one made by the EU),” Commerce Secretary Rita Teaotia said at a press conference on Thursday.
The G-33, in its paper, has suggested that either food procurement subsidies be regarded as a non-trade distorting permissible subsidy or be calculated based on prices that reflect the current market situation rather than those prevailing almost two decades ago.
At the trade ministers’ meeting in Nairobi on December 15-18, the country will push for a satisfactory resolution of development issues flowing from the Doha Development Round before members move to discussions on new issues such as competition policy, investment and environment, the Commerce Secretary reiterated.
India will strongly demand a special safeguard measure (SSM) to protect farmers against import surges and price fluctuations as lowering of farm subsidies by rich countries has been very slow, she said.