India at Critical MC13 WTO Summit: Food, Fish & Duty-Free Data

MC13 of the WTO

What is the 13th Ministerial Conference (MC13) of the WTO?

The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) is going on in Abu Dhabi, United Arab Emirates from February 26-29, 2024. It is the highest decision-making body of the 166-member WTO, where trade ministers from member countries meet every two years to discuss and update the rules governing global trade.

As of February 2024, the World Trade Organization (WTO) has 166 members with the recent addition of Comoros and Timor-Leste.

The key purpose of MC13 is to address several critical issues in international trade and update WTO policies and agreements accordingly. Major topics on the agenda include food security, agriculture reform, fisheries subsidies, e-commerce duties, WTO reforms, and sustainable development goals.

Why is MC13 Significant?

MC13 marks the introduction of two new WTO members – Timor-Leste and Comoros, expanding the organization’s reach. It also provides an opportunity to build on the success of the previous Ministerial Conference (MC12) in 2022, which delivered a landmark agreement on fisheries subsidies.

The conference is set against a backdrop of global conflicts and economic challenges that underscore the urgency of cooperation on trade to solve collective problems. Issues like food security, climate change goals, economic recovery post-pandemic, and supporting vulnerable populations will be at the forefront.

India at MC13 of the WTO

What Are India’s Key Objectives at the WTO MC13?

India’s delegation to MC13, led by Commerce and Industry Minister, aims to strongly advocate the interests of developing countries like India at the conference. Some of India’s major goals are:

Permanent Solution for Public Stockholding (PSH): India seeks flexibility under WTO rules to continue its food security programs that provide minimum support price (MSP) and food distribution for the poor. This includes stockpiling and subsidizing foodgrain procurement.

Opposition to E-Commerce Duty Moratorium: India wants the termination of the long-running moratorium on customs duties on digital trade, which restricts revenue generation from imports.

Inclusive Reforms: India advocates for reforms that empower developing countries and oppose non-trade issues being forced into WTO without consensus.

Fisheries Subsidies: India wants balanced rules that don’t disproportionately impact its small fishermen while disciplining rich nations that overfish.

Dispute Settlement: India seeks a reformed and fairer dispute resolution process, especially to resolve issues with powerful countries.

Why Is Food Security a Central Issue for India at the WTO MC13?

Food security is vital for India to ensure affordable access to food for its large population vulnerable to hunger and malnutrition. India’s public stockholding (PSH) program, which involves buying crops at minimum support prices (MSP) and supplying them to the poor via ration shops is crucial for this.

However, WTO rules cap trade-distorting subsidies to farmers, constraining India’s policy space to implement PSH schemes that guarantee long-term food security. At MC13, India wants permanent flexibility to continue MSP-based procurement and distribution without WTO legal challenges.

India also proposes that developing countries should be allowed to subsidize their poor fishermen while compelling rich nations to eliminate subsidies. This balanced approach aims to protect the livelihoods of low-income producers.

How Does India View the Moratorium on E-Commerce Customs Duties?

India has historically called for terminating the WTO moratorium on customs duties on electronic transmissions, in place since 1998. Developed countries favor making the moratorium permanent for duty-free digital trade flow.

However, India argues this deprives developing countries of potential tariff revenues from rising imports like movies and music. It wants policy space to regulate imports and nurture domestic digital industries with customs duties.

What Stance Does India Take on Trade Barriers and WTO Reforms?

India advocates inclusive reforms that empower developing countries in international trade rule-making. It opposes unilateral proposals by developed countries to integrate non-trade issues like environment or labor policies into WTO frameworks.

India also wants to retain special concessions for developing countries in trade agreements along with key WTO principles like decision-making by consensus. Other reform demands include reviving the inactive WTO dispute appellate body for fair conflict resolution.

Why Is Fisheries Subsidies a Significant Topic for India at the WTO MC13?

India champions a “balanced” outcome on fisheries subsidies that recognizes differing capabilities of members. It prioritizes safeguarding its low-income, small-scale fishermen dependent on the sector for subsistence, numbering around 90 lakh people.

India argues advanced fishing countries must curb subsidies first, having already exploited marine resources excessively by financing the overexpansion of their fishing fleets.

As a low subsidizer focused on socio-economic objectives, India wants space to support its marginalized fishing community’s welfare through targeted policy tools.

Challenges and Expectations for India at the WTO MC13

The major challenges for India at MC13 include finding a permanent solution for public stockholding programs, securing special and differential treatment provisions, and curbing new issues outside WTO’s mandate like the proposed investment agreement.

The expectations are that India will provide leadership for developing countries, build consensus across divergent positions, and uphold its overall strategy of furthering national economic interests within a rules-based system.

How Does India Plan to Address Export Restrictions and Domestic Support?

On export restrictions, India plans to reject demands for prior notification before imposing export curbs on essential commodities. On domestic support, India will discuss reducing input subsidies and minimum support prices only after developed countries agree to eliminate historical asymmetries against poorer nations first.

Does India’s Position Align with Other Developing Countries at the WTO MC13?

Yes, On issues like public stockholding, special & differential treatment and policy space, India’s stance strongly aligns with concerns of other developing countries including the G33 coalition. India is expected to leverage this to collectively oppose developed countries’ unilateral measures undermining their growth prospects.

What Are the Prospects for India’s Success at the WTO MC13?

India’s prospects will depend on its ability to negotiate effectively, mobilize enough developing country support and push substantive reform. If India can balance consensus-building with upholding national interests, MC13 may produce constructive outcomes furthering trade multilateralism. But the challenges given the wide divergences remain formidable.