However, developed nations, ironically, refrained from making any commitment to trim massive trade-distorting agriculture subsidies (at the production level) offered by them, which make their farm products much cheaper in the export market, despite hectic negotiations that exceeded the scheduled closing of the Nairobi ministerial by nearly a day from December 18.
Advertisement
“The WTO deal on export subsidies will see many developed countries axe them immediately with developing countries following within three years”.
The agreement covering cotton provides 2016 as the first date from which the poor countries, which include 35 Least Developed Countries (LDCs) and the Cotton Four countries in Africa – Burkina Faso, Benin, Chad and Mali and other developing countries – can begin to export cotton duty-free.
The WTO’s members have also agreed to put limits, for the first time, on the ability of WTO members to use export finance programs that distort agricultural trade.
“For decades, export subsidies have threatened the livelihoods of Australian farmers”, Mr Robb said in a statement from the 10 WTO Ministerial Conference in Kenya.
Azevedo said the outcome of the conference on eliminating the domestic support to large scale producers of food was historic.
“The decision you have taken today on export competition is truly historic”.
“We recognize that many members reaffirm the Doha Development Agenda, and the declarations and decisions adopted at Doha and at the ministerial conferences held since then, and reaffirm their full commitment to conclude the DDA on that basis”, the ministerial declaration said. But, as for developing countries, they can’t get subsidies as their agriculture sectors are relatively small.
“Our work to secure a global ban on export subsidies will help level the playing field for American farmers and ranchers”, U.S. Trade Representative Michael Froman said in an e-mailed statement.
The ministers also endorsed the Information Technology Agreement (ITA) expansion, which expands the range of information technology products for tariff cuts. Emerging economies, in addition, must desist from giving various logistics support that can give their farm products an edge in the export market. Azevedo hailed the expansion as a “historical breakthrough” because it would exempt global trade worth 1.3 trillion USA dollars from taxation.
Two new countries, Liberia and Afghanistan, joined the WTO club this week, bringing the total number of members to 164. “The special & differential treatment shall also be carried on”, Indian Commerce and Industry Minister Nirmala Sitharaman said in Nairobi on Saturday.
Advertisement
“This is the first time in 20 years that the WTO has delivered an outcome specifically on agriculture”, Mr Robb said.
