Recently, 11th Ministerial Meeting of the WTO concluded in Buenos Aires. It discussed the future of multi-dimensional parties of global business. Many countries disagree with the manner in which the US has talked about new rules for agricultural subsidies, non-support of unstable fisheries and regulation of e-commerce.
Keynote discussions –
India and its standing country want to follow those commitments on public storage, minimum support price and food security, which was expressed in Bali in 2013 and at the Ministerial Conference of Nairobi in 2015. Under the Bali conference, if the government deposits more than the installed standard of 10% of public procurement, then it will not be processed. America has a strong objection to this. Many African countries are demanding the exemption of procurement of rice and wheat along with other food items.India says that its large population is below the poverty line. Buffer stock of food grains is essential to provide food to this population. India can not export it in case of greater buffer stocks under the agreement.
Developing countries demand that rich countries reduce their subsidies on farming. While the United States, EU, Japan, Canada and Australia want to promote e-commerce and investment-convenience. Developing countries consider it a step was taken against the small sellers in the interest of multinationals.
Developed countries are subsidizing 70-80% of their agricultural sector. Developed countries say that if India demands a reduction in agricultural subsidy, then it will have to set a maximum limit of minimum support price for its crops, and if it does not, then it may have to pay a penalty. Other developing countries on this issue are with India. In this regard, about 100 countries, together with India and China, have submitted proposals together. All these countries are not ready to accept the 10% imposed expansion of developed countries.
In addition to the public storage of foodgrains by the developing countries including India, the issue of providing subsidy related to fertilizers, seeds, pesticides and irrigation to farmers is a major theme. All developed countries, including the US, the European Union, say that this attitude of India and other developing countries is against the principles of free-market behaviour. While India says that under the Business Accessibility Agreement in 2014, it has the right to hold buffer stock till it is removed from any permanent solution.
The President of the United States spoke of a multilateral institutional framework regarding the crisis related to the existence of the World Trade Organization. There was also a discussion on finding another way to solve trade disputes between member countries of this organization. The US has also banned filling the vacant posts in the appellate body of the organization.
It became clear in the conference that the protectionist policy of the US President would start appearing on the ground level.
Now the challenge for the member countries of the World Trade Organization is that they count the benefits of globalization of business in front of growing countries towards protectionism and further reduce its temporary negative aspects.
The Geneva-based organization was formed on 1 January 1995. By 2016, 164 countries were its members. Its purpose is to promote free and smooth trade between different countries.