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G-20's new farm proposal at WTO

May 31, 2004 18:47 IST

Dissatisfied with the United States-European Union blended formula on agriculture market access, the Group of 20 developing countries spearheaded by India and Brazil have come out with a counter proposal in a bid to break the deadlock in WTO negotiations.

The proposal, which comes in response to the EU-US formula made on the sidelines of the OECD meeting in Paris recently, emphasises on differentiated tariff cuts for developing countries.

This assumes special importance in the wake of World Trade Organisation's Committee on Agriculture meeting on June 3 in Geneva, which is expected to pave the way for a framework on agriculture.

G-20 opposed the blended formula as it would have allowed US and EU to keep their peak tariffs while developing countries would have to open their market further.

They wanted the blended formula to be replaced by what they call 'banded formula' wherein the crops which individual developing countries wanted to protect the most should be allowed to retain highest tariffs for such crops.

Apart from special and differential treatment, the G-20 has sought a special safeguard mechanism and a complete elimination of protection (special safeguard) in the developed countries, trade sources said.

It also suggested existing duty free facility provided to developing countries by developed nations should not be counter towards the assessment for tariff reduction commitments.


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