India says no convergence on export competition pact: WTO

With rich countries pushing for a deal at WTO on phasing out export subsidies, India asserted there is little convergence of views among members of the global trade body on this issue and objected to any such pact without a permanent solution to farm subsidies. "We are disappointed at the cavalier manner in which these issues are being pushed into the future. On the other hand, there is a sudden inexplicable zeal to harvest Export Competition. On this we are told that there is convergence when in fact, there appears to be little," Commerce Minister Nirmala Sitharaman said at the Plenary Session here. The European Union and some other countries, including Brazil, are seeking a deal on export competition during the ongoing WTO's Ministerial meeting here. Sitharaman's statement counters the claims being made in some quarters here about emergence of a consensus on the issue.

Developed countries, which are accused of giving huge 'trade-distorting' farm subsidies, want emerging nations like India to take greater commitments in terms of reducing their export support. "We're on the verge of an important agreement on agricultural export competition," the UK said. "Australia believes it would not be acceptable to finish MC10 without an outcome on export competition in agriculture," Australia said at the Plenary Session.

A deal on export competition could lead to phasing out of India's transport subsidies and market allowances being given for exports of commodities like sugar. EU trade Commissioner Cecilia Malmstrom said that a deal in export competition would be beneficial for developing countries. It is learnt that traction is picking on developing countries including India's demand to start discussions on special safeguard mechanism (SSM) along with the export competition.

SSM is important to protect interest of poor farmers in case of sudden surge in imports or dip in prices. During an open-ended agriculture meeting, Sitharaman said that export competition is one of the pillars of agriculture negotiations and these negotiations are finely balanced on three pillars and "taking out one pillar will disturb the balance".