Annex IV.1: Main Issues in WTO

Agenda for Discussion

Main Issues

India’s Position

1. Agriculture

a.

Export Subsidies

•

Reductions of, with a view to phasing out, all

•

Removal of all forms of direct and indirect export subsidies, by

forms of export subsidies.

developed countries, in a time-bound manner.

•

For developing countries, retention of Article 9.4 of the Agreement

on Agriculture, thereby enabling grant of marketing and transportation

subsidies on exports listed in Article 9.1 (d) and (e).

b.

Market Access

•

Substantial improvements in market access

•

Any reduction in tariffs by developing countries should be based on

for agricultural products of developing

an approach that secures an overall average reduction in bound rates

countries, while allowing them to retain the

for them which is significantly lower than that by developed countries.

necessary flexibility.

•

To provide the flexibility of minimal tariff cuts or exemption from tariff

cuts by developing countries in respect of Special Products towards

food and livelihood security and rural development, based on self-

declaration.

•

To establish for developing countries a new Special Safeguard

Mechanism (SSM) applicable to all agricultural products, based on

price and volume triggers, to safeguard against import surge and

price volatility.

•

To achieve substantial reductions in tariff peaks and tariff escalation,

and to improve disciplines on Tariff Rate Quota administration, in

products of export interest to developing countries.

c.

Domestic Support

•

Substantial reductions in trade-distorting

•

Towards meeting the Doha mandate for substantial reductions in

domestic support.

trade-distorting domestic support, the Amber Box support reduction

should permit steeper reductions by developed country Members

providing higher levels of support. The de minimis for developed

countries should be reduced from the existing level of 5 per cent of

the value of agricultural production. Blue Box support should be

capped and brought under reduction disciplines, and disciplines on

direct payments under the Green Box should be strengthened. To

prevent circumvention of reduction commitments through the shifting

of support between one box and another, trade-distorting Amber Box,

Blue Box, and the de minimis should be brought under an overall

reduction discipline.

•

Retain and enhance the provisions of Article 6.2 for low-income and

resource poor farmers for developing countries towards addressing

food and livelihood security and rural development concerns.

Agenda for Discussion

Main Issues

India’s Position

•

Special and Differential Treatment

for

•

The negotiated mandate agreed at Doha is for extending

developing

countries

undifferentiated special and differential treatment to developing

countries as an integral part of all aspects of negotiations. Developing

countries can be expected to reciprocate in market access,

subject

to their economic and social conditions, development needs, food

and livelihood security and rural development, only if they get adequate

concessions and commitments by developed countries in all the three

pillars of Agreement on Agriculture, namely, domestic support, export

subsidies and market access.

2.

GATS

•

Professional Services

•

Under GATS, India has taken commitments

•

Liberalisation of certain sectors is essential to accelerate growth in

•

Computer Related

in the areas of its economic interests, which

developing countries. However, there are certain sensitive

sectors

Services

include

services

like

financial,

that needs to be treaded with caution.

•

Audio Visual

telecommunication,

health,

business,

•

For the developing countries including India, the balance of benefit in

Services

construction, tourism and travel-related.

the negotiations will accrue to the extent to which their

service

•

Distribution Services

India’s commitments are based on

its

providers are allowed to supply services in important overseas markets

domestic policy and has been taken mainly

•

Education and

either from remote locations or through temporary movement of natural

in Mode 3 (i.e. commercial presence), which

Training Services

persons.

are in consonance with the policy on FDI.

•

Environment

•

In case the resistance among developed countries for agreeing to

Services

the request of developing countries for enhanced market access under

•

Financial Services

Modes 1 and 4 continues, this would substantially erode India’s

•

Telecommunication

flexibility to make commitments in sectors of interest to developed

Services

countries.

•

Tourism Services

•

Transport Services

•

Postal Services

•

Recreational,

Cultural and

Sporting Services

3.

Market Access for

Non-Agricultural

Products

a.

Finalisation of

•

A formula to be applied to all tariff lines of

•

The formula proposed by the Chairman of the Negotiating Group have

modalities for the

all Members coupled with a

mandatory

merits as it incorporates adequate special and differential provisions

actual tariff

sectoral tariff elimination proposal on seven

by incorporating an element of tariff average in the formula.

It thus

negotiations, i.e.,

sectors of

export interest to

developing

recognises the principle of less than full reciprocity in the core modality

the tariff reduction

countries.

of reduction commitments.

Agenda for Discussion

Main Issues

India’s Position

method and the

•

The formula requires all members to reduce

•

Amending any aspect of the formula or the formula itself would negate

extent of tariff

their tariffs on all industrial products.

the entire work done so far. The suggestion for mandatory tariff

reduction to be

harmonisation and elimination would be most iniquitous to developing

offered by different

countries. There is no mandate for harmonisation of tariffs under the

countries.

Doha Ministerial Declaration. For developing countries, the initiative

for sectoral tariff elimination should be voluntary rather than

mandatory and should also incorporate the principle of less than full

reciprocity.

•

Being at different stages of development, developing countries may

not have the capacity to undertake binding obligations on all the

proposed sectors.

•

Some of the highest tariffs are found in developed countries in these

sectors, namely, in textiles and clothing; leather and footwear; marine

products; and gems and jewellery.

b.

How to deal with non-

•

The main

issue is

to clearly identify what is

•

Several WTO members including India have notified existing NTBs

tariff barriers

the measure, who is imposing it, how it affects

faced by their goods during exports to various markets. Discussions

trade and an estimation of the trade restricting

are going on as to how to address these NTBs.

impact of the measure.

c.

Special treatment, if

•

Members are not clear as to what constitutes

•

In the list of environmental goods, goods of export interest for

any, of environmental

an ‘environmental good’ and thereafter what

developing countries should also be included.

goods in these

should be the special treatment.

negotiations.

4.

TRIPS

a.

TRIPS and Public

•

How to

ensure

patent

protection

for

•

TRIPS Agreement under Article 31 provides for compulsory licensing

Health

pharmaceutical products does not prevent

procedure to make available patented medicines and drugs at

people in poor countries from having access

affordable prices. Doha Declaration on TRIPS and Public Health

to medicines while at the same time

adopted in November 2001 provides that the TRIPS Agreement does

maintaining the patent system’s role in

not and should not prevent Member countries from taking measures

providing incentives for

R&D into new

to protect public health and that each Member has the right to grant

medicines.

compulsory licenses and the freedom to determine the grounds upon

which such licenses are granted as well as the right to determine

what constitutes a national emergency or other circumstances of

extreme urgency referred to under Article 31. Further, General Council

has taken a decision on August 30, 2003 to waive obligations under

Article 31(f) and 31(h) of TRIPS Agreement, with certain conditions.

This decision would ease the problem being faced by the developing

countries and Least Developed Countries having little or no

manufacturing capacities in the pharmaceutical sector, in using the

flexibility of compulsory license. This decision would enable

Agenda for Discussion

Main Issues

India’s Position

manufacture and expor t of pharmaceutical products under

compulsory license to countries with limited or no manufacturing

capacities in the pharmaceutical sector. This would further improve

accessibility of patented medicines at reasonable prices in poor

countries. India has not taken any decision on all of these issues.

b.

Geographical

•

Geographical indications are

place names

•

India has proposed that the proposed multilateral register should

indications

used to identify origin and quality, reputation

be extended for products other than wines and spirits. From India's

or other characteristics of products.

point of view, the most important issue is the legal obligations of

the Register on non-participating Members. Consensus among the

•

Whether to extend the

‘higher

level of

Members could not be reached so far on this issue.

protection’ beyond ‘wines and spirits’ to a wide

range of other products, including

food and

•

India has been demanding extension of protection available under

handicrafts.

Article 23 of TRIPS Agreement to products of geographical

indications other than wines and spirits.

c.

Bio-diversity and

•

How to deal with patentability

or non-

•

Draft Cancun Ministerial Text (Second Revision) under para 13

traditional knowledge

patentability

of plant and animal inventions

regarding implementation issues, while reaffirming the mandates

and the protection of plant varieties.

given under para 12 of Doha Ministerial Declaration and Decision

on Implementation-Related Issues and Concerns, instructed the TNC

•

Whether discussions on these subjects have

and other negotiating bodies to redouble the efforts to find

developed

far enough

to

be

handled

appropriate solutions as a priority and requested the Director General

immediately in the WTO

or

whether they

to continue the consultations undertaken by him on issues including

should wait for technical discussions.

extension of the protection of geographical indications provided for

in Article 23 of the TRIPS Agreement to products other than wines

and spirits. However, since there was no consensus among the

d.

Non-violation

•

The purpose of allowing ‘non-violation’ cases

Member countries on the draft Cancun Ministerial Text, the above

complaints

is to preserve the balance of benefits struck

draft language could not be agreed to.

during multilateral negotiations. The issue is

to decide whether ‘non-violation complaints’

•

However, the draft language as suggested by India and other like-

should be allowed in intellectual property and if

minded countries on implementation issues was different. India

so, to what extent and how (scope and

alongwith other like-minded Member countries such as Cuba, Egypt,

modalities) they could be brought to the WTO’s

Indonesia, Jamaica, Kenya, Malaysia, Pakistan, Sri Lanka, Tanzania,

Dispute Settlement procedures.

Uganda and Zimbabwe, reaffirmed that negotiations on outstanding

implementation issues shall be an integral part of the Doha Work

Programme.

5.

Singapore Issues

a.

Trade and Investment

•

Whether there is ‘an explicit’ consensus on

•

WTO is not the right forum and that the traditional WTO principles of

modalities that would allow negotiations to go

non-discrimination particularly national treatment are not appropriate

b.

Trade and Competition

ahead, leading to new WTO rules

on these

for a development policy-related issues like investment.

Policy

four issues.

•

There are significant and deep differences in views of Members on

c.

Trade Facilitation

many elements of these issues. India is not entirely convinced of

Agenda for Discussion

Main Issues

India’s Position

d.

Transparency in

•

Members also take position that, negotiation

the appropriateness of taking a decision on modalities as it does not

Government

will commence after the Fifth Ministerial and

give any idea of the substance and direction of obligations that

Procurement

results of negotiations would be part of ‘single

agreements in this area may require the country to undertake.

undertaking’ to be concluded by March 31,

•

Negotiations on these issues may commence only after ‘explicit

2005.

consensus’ on modalities among all members of the WTO and that

each of the four Singapore issues should be considered separately

and not covered under a single set of modalities.

•

The need for a multilateral agreement on investment itself is not clear.

Although it can neither promise additional investment flows nor reduce

transaction costs for investors significantly, such agreement will

certainly curtail the policy space of developing countries.

•

There exists a wide divergence in views on various elements of

‘investment’ including scope and definition, transparency, dispute

settlement, performance requirement, etc.

•

Further work needs to be done on understanding elements in

‘competition’ such as core principles, cooperation mechanisms and

the coverage and prohibition of hardcore cartels through appropriate

mechanisms before India can start comprehending the implications

of any multilateral discipline.

•

Multilateral rules, binding in nature, in respect of trade facilitation and

transparency in government procurement would entail high costs for

developing countries.

6.

Trade Rules

a.

Anti-Dumping

•

Improve and clarify the anti-dumping Agreement.

•

India has made three submissions to the negotiating group on Rules.

•

Improve

and clarify

disciplines

in the

The first submission has sought Special and Differential treatment

b.

Subsidies

Subsidies

Agreement.

for developing countries during anti-dumping and countervailing duty

investigations. The second submissions has identified specific

•

How to interpret the phrase ‘substantially all the

c.

Regional Trade

provisions of the anti-dumping agreement which require amendments.

trade’ ; regulations that could restrict trade such

Agreements

The third submission highlights provisions that require amendments

as rules of origin under preferential schemes;

to the Subsidies Agreement.

how regional agreements relate to development

and the primacy of the multilateral

trading

system and the negative effect regional

agreements can have on other countries.

7.

Dispute Settlement

•

Clarify and improve provisions of the Dispute

•

A comprehensive set of proposals was tabled by India alongwith

Settlement Understanding (DSU). The Doha

certain other countries in the special session of Dispute Settlement

Declaration stated that these negotiations will

Body (DSB).

not be part of the single undertaking. i.e. that

they will not be tied to the success or failure of

Agenda for Discussion

Main Issues

India’s Position

the other negotiations mandated by the

declaration. All members, however, expressed

a readiness to continue work beyond May 31,

2003 towards an agreement.

8. Trade and Environment

•

The need to clarify the relationship between

•

India has submitted a paper on 'the effect of environmental measures

existing WTO rules and specific trade

on market access' to the Committee on Trade and Environment

obligations set out in multilateral

(CTE). (WT/CTE/W/207 dated 21/5/2002) and another paper on

environmental agreements (MEAs); exchange

'Relationship between Specific Trade Obligations set out in MEA

of information between the WTO and MEA

and WTO Rules' (TN/TE/W/23 dated 20/2/2003).

secretariats; criteria for granting observer

status to other international organisations and

liberalisation of trade in environmental goods

and services.

9.

Trade, Debt and

•

Durable solution to the problem of external

•

It is necessary to make significant progress in the areas of great

Finance

indebtness of developing countries and to

importance to developing countries.

strengthen the coherence of international

trade and financial policies with a view to

safeguarding the Multilateral Trading System

(MTS) from the effects of financial and

monetary instability.

10.

Trade and Technology

•

Recommend on steps to be taken within the

•

Need to move to the stage of identification of elements of a possible

Transfer

mandate of WTO to increase flows of

agreement and agree on start of negotiations.

technology to developing countries.

11.

Electronic Commerce

•

The main issues are (i) classification of the

contents of certain electronic transmissions,

(ii) development-related issues, (iii) fiscal

implications of e-commerce, (iv) relationship

—

(and possible substitution effects) between e-

commerce and traditional forms of commerce,

(v) imposition of customs duties on electronic

transmissions, (vi) competition, and (vii)

jurisdiction and applicable law/ other legal

issues