THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a) to (d) Large agricultural subsidies are being given in United States of America (USA)
and other European Countries for getting advantages in the international markets. Details of
the annual subsidy provided in the United States and Europe during the last three years as
per WTO are as follows.
Details of the annual subsidy provided in the United States and European Commission during the
last three years
United States of America European Communities (USD Million) (Euro Million)
2005 2006 2007 2003/04 2004/05 2005/06
Current Total 12937 7742.017 6259.888 30880 31214.3 28427.1
AMS (Amber Box)
Measures Exempt 71829 76035 76162 22074 24390.6 40280.2
from reduction
commitment (Green Box)
Measures exempt N.A. N.A. N.A. 24782 27236.6 13445.2
from reduction
commitment – Direct
Payments under
Production-Limiting
Programme (Blue Box)
In the agriculture negotiations, substantial and effective reductions in domestic
support and tariffs in agriculture by developed countries, while enabling developing countries
to protect and promote the interests of their low income and resource poor farmers, is a key
priority for India. The G-20, group of countries in the World Trade Organisation (WTO) of
which India is a member, has been pressing for substantial and effective reductions in OTDS
by developed countries. As per the draft modalities text brought out by the Chair of the
Negotiating Group on Agriculture on 6th December 2008, the US would take a 70% cut in their
Overall Trade-distorting Domestic Support (OTDS) which would reduce their ceiling level of
OTDS from the current US$ 48.2 billion to US$ 14.5 billion which is still well above their
actual applied levels, estimated at around US$ 7 billion in 2007. The draft modalities can
be accessed at the WTO websites www.wto.org. The multilateral process of discussion are still
underway. A successful outcome of the Round would require reconciliation of the legitimate
aspirations of the developing countries with those of the developed countries, including the
United States and the European countries.
(e) to (g) Under the non agricultural market access (NAMA) negotiations pertaining to non
agricultural products, the United States has been a proponent of sectoral initiatives for
elimination of customs tariffs in chemical, electrical/ electronics, forestry, gems and
jewellery, healthcare and industrial machinery. They have been soliciting support from other
WTO Members including India for participating in these sectoral initiatives by agreeing to
eliminating customs tariffs on these industrial products. Our negotiating position on
sectoral initiatives has been that participation must be on a non mandatory basis based
on good faith and without prejudgement of the final outcome. We have also sought for adequate
and appropriate special and differential treatment for developing countries to participate
in negotiating the terms of these sectoral initiatives. There has been no consensus in the
WTO on sectoral initiatives.
