WTO%20Hong%20Kong%20Ministerial%20Gains%20

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WTO Hong Kong MinisterialGains Losses for India

• Pradeep S. Mehta
• CUTS International
• Jaipur, India
• E-mail
• psm_at_cuts.org
• sg-cuts_at_cuts.org

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Key Issues

• Agriculture
• Non-agricultural Market Access
• Services
• Trade Facilitation
• LDCs Specific Issues

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Agriculture Key Concerns

• More than 600 million people depend on farming
  for livelihood.
• A vast majority of farmers are small and
  marginal, hence they are poor.
• Not a major farm exporter. Therefore, lacks
  offensive interest.
• Fears trade liberalisation impact negatively on
  poor farmers.

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Agriculture Market Access

• Market Access

Demands Outcomes
Less tariff cut for DCs Four bands for tariff cuts with higher thresholds
Tariff cap to check tariff peaks 100 for developed, 150 for DCs No mention of tariff cap
SPs and SSM elimination of existing SSG (Art.5) Flex. To self-designate an app. no. of tariff lines as SPs right to have recourse to SSM
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Agriculture Domestic Support
Demands Outcomes
Overall reduction of domestic support Overall cut in trade-distorting domestic support
Reduction of product and non-product specific de minimis No agreement
Reduction in final bound total AMS Will be reduced
DCs with no AMS entitlements exempt from reductions Exemptions for DCs
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Agriculture Export Competition
Demands Outcomes
Eliminate direct subsidies by 2010 2010 not accepted agreement reached on 2013
Other forms of export subsidies also to be eliminated Parallel elimination of all other forms
New disciplines on food aid to prevent surplus disposal Food aid to be disciplined
STEs in DCs should receive special consideration Some benefits for DCs, LDCs and NFIDCs
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Non-agricultural Market Access
Demands Outcomes
Swiss type formula with multiple coefficients Agreed
Less than full reciprocity in reduction commitments for DCs Agreed
Elimination of tariff peaks, escalation Agreed
Sectoral initiatives should be voluntary Agreed
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Services
Demands Outcomes
Improved market access under mode 1 and mode 4 A new time-line given for offers and requests plurilateral app. In addition to bilateral
De-link mode 4 with comm. presence No firm commitment
Removal of Economic Needs Tests No firm commitment
Operationalisation of SDT for DCs LDCs No firm commitment
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Least Developed Countries
Demands Outcomes
Duty and Quota free mkt. access for all products Provided but with adequate loopholes
Elimination of domestic support on cotton and creation of a special fund No firm commitment
Issue of preference erosion Mentioned in NAMA Text
Implementation of LDCs modalities on services No significant progress
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Conclusions

• Ministerial Declaration adopted in itself a
  success
• Overall a balanced outcome for India
• Ticklish issues of modalities and formulas for
  tariff cuts deferred for future
• Poor progress on services trade liberalisation
• No substantial gains for LDCs