WTO in groundbreaking accord to eliminate agricultural subsidies

The on-going World Trade Organisation’s ministerial meet in Nairobi is in choppy waters as key members find it hard to narrow differences on issues including agriculture and the future of the Doha round. The Tenth Ministerial Conference of the WTO was held at Nairobi from December 15-19.

With rich countries pushing for a deal at WTO on phasing out export subsidies, India on Wednesday 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.

The aim of establishing the support group is to promote Arab-Arab missions and the capabilities of negotiators in Geneva in negotiating various technical topics that fall within the framework of multilateral trade negotiations.

Meanwhile Federated Farmers dairy spokesman Andrew Hoggard thinks export subsidies are some of the most feared tools for dairy farmers because they’re 95 percent export-orientated.

Instead, issues around food, security, energy, investments, government procurement, data flows and currency issues were seen to be taking over the Nairobi agenda.

“This round promised that issues of particular concern to developing countries, including small and vulnerable economies and least developed countries, would be at the heart of our work and decisions”.

The Doha Round of trade negotiations was launched to great fanfare in the Qatari capital in 2001 with the aim of helping developing countries grow through improved trade access. Commerce and industry minister Nirmala Sitharaman has rejected the allegations against India and said: “India blocking WTO?!”.

Members said the Nairobi deal had drawn a line under years of stalemate over the direction of global trade negotiations. Negotiations under way. Need to ensure Indian farmers/agri interests are safe. However, industrialized countries have failed to reach an agreement on cuts to tariffs and agricultural subsidies.

“Given the scale and significance of New Zealand’s agricultural export earnings, the removal of any instrument that can distort market forces and disadvantage our exporters is an important step forward”, says Federated Farmers National President Dr William Rolleston.

Sirleaf also said African countries must continue to push for reducing subsidies by wealthy countries for cotton production and other areas of farming.

Mr Robb said the decision to abolish agricultural export subsidies would have significant implications for Australian farmers.