INDIA’S EFFORT TO FIND A SOLUTION IN WTO FACES CHALLENGE
- June 1, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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INDIA’S EFFORT TO FIND A SOLUTION IN WTO FACES CHALLENGE
Subject: International Relations
Context: The EU and Cairns group opposed the standalone solution pushed by india and other members of G 33 grouping.
Concept:
- The G33 (or the Friends of Special Products in agriculture) is a coalition of developing countries, established prior to the 2003 Cancun ministerial conference, that have coordinated during the Doha Round of World Trade Organization negotiations, specifically in regard to agriculture.
- Dominated by India, the group has “defensive” concerns regarding agriculture in relation to World Trade Organization negotiations, and seeks to limit the degree of market opening required of developing countries.
- When rich governments can afford to heavily subsidize their agriculture, predatory dumping can undermine a poorer country’s agricultural economy.
- Developing countries aim to balance power through tariffs, in order to manage their own food security, stabilize of the livelihoods of their farming populations, and strengthen rural development.
- The group has advocated the creation of a “special products” exemption, which would allow developing countries to exempt certain products from tariff reductions, and also a “special safeguard mechanism” which would permit tariff increases in response to import surges.