Cabinet approves India's stand at WTO's Nairobi meet

The stand taken by India on issues such as public stockholding for food security purposes and commitment to abolish export subsidies for farm exports was today cleared ex-post facto by the Union Cabinet here. "The Union Cabinet, chaired by Prime Minister Narendra Modi has given its ex-post facto approval for the approach adopted by India at the 10th Ministerial Conference of the WTO held in Nairobi during 15-19 December," an official statement said today. The outcomes of the meeting, referred to as the 'Nairobi Package' include ministerial decisions on agriculture, cotton and issues related to least developed countries (LDCs).

"These cover a special safeguard mechanism for developing countries, public stockholding for food security purposes, a commitment to abolish export subsidies for farm exports and measures related to cotton," it said. India wants a permanent solution to the issue of public stockholding for food security purposes. It had proposed either amending the formula to calculate the food subsidy cap of 10 percent, which is based on the reference price of 1986-88, or allowing such schemes outside the purview of subsidy caps.

The food security issue is related to several developing nations which provide subsidised foodgrains to the poor. In view of the reluctance of developed countries to agree to continue the Doha Development Agenda post-Nairobi, India negotiated and secured a re-affirmative ministerial decision on public stockholding, it added. "The decision commits members to engage constructively in finding a permanent solution to this issue," it said.

The statement said that another area under negotiation in Nairobi dealt with the rules on fisheries subsidies. "Like India, several other countries had strong reservations on this issue due to the lack of clarity. This was in tune with India's position.

There was no outcome in this area of the negotiations," it said.