03 March 2024 – The 13th ministerial conference of the WTO, which extended beyond its scheduled duration, concluded without a resolution on critical issues, particularly those significant to India. The failure to find common ground on the Public Stockholding Programme (PSH) and challenges in the agricultural and fisheries sectors marked the conference.
Sticking Points and Disagreements:
Despite extensive discussions, members could not overcome differences in India’s demand for a permanent solution to the PSH program, which involves government procurement of crops for distribution to the poor. Disagreements persisted on public stockholding, the Special Safeguard Mechanism, and disciplines on cotton subsidies.
The Cairns group, comprising nations like Australia and Brazil, argued against export restrictions, asserting that public stockholding distorts markets. On the other hand, food-importing nations sought predictability in farm policies. The US advocated for market access for its agricultural commodities, while the EU pushed for subsidy reductions.
Adam Wolfenden criticized the lack of substantial cuts to subsidies for large-scale distant water fishing fleets, emphasizing major fishing nations’ reluctance to accept responsibility. The deadlock extended to issues beyond agriculture, with India and South Africa blocking a China-led proposal on investment facilitation and India opposing a European Union proposal on industrial policy.
India, alongside developing nations, prioritizes updating external reference prices for calculating market price support in the PSH. Calls for amendments to the formula for calculating the food subsidy cap, moving away from outdated reference prices based on 1986-88 benchmarks, underscore the nation’s key concerns.
Conclusion:
The WTO ministerial conference’s inability to resolve pressing issues on agricultural and fisheries subsidies highlights the intricate challenges in global trade governance. As negotiations continue, the urgent need for multilateral cooperation to address these challenges becomes more apparent, emphasizing the complexities of navigating diverse national interests within the WTO framework.
