The World Trade Organisation proposed steep duty cuts on commodities attracting higher levies, and also said the reduction would be made from bound rates. Moreover, the trade body advocated a tiered tariff reduction formula for agricultural products.
The revised draft of the framework for negotiations, circulated among the 147 member countries on Friday evening, emphasised special and differential provisions for developing and least developed countries and also dwelt on sensitive products.
The move can result in countries like India, which enjoy the benefits of high bound rates to protect their farmers from subsidised imports, having to undertake steep duty reductions in a large number of commodities. However, some commodities may be protected by classifying them as sensitive items.
The draft has also sought to launch negotiations on trade facilitation under the Doha round. While it talks of technical assistance and obligations on investments in infrastructure projects based on the financing capability of poor countries, the move can result in countries like India having to invest heavily in costly equipment for port and Customs handling.
The three other Singapore issues -- investment, competition policy and transparency in government procurement -- have been kept out of the Doha work programme, though the study group process will continue at Geneva.
The Singapore issues, opposed by developing countries and LDCs, led to the collapse of the Cancun ministerial last September. The draft, if cleared by members at the General Council meeting beginning July 27, will be the basis for detailed negotiations.
The WTO members, however, remained divided on a large number of issues on the Doha work programme, negotiations on which were scheduled to end by December.
For agriculture, the modalities for negotiations will be worked out in the next stage and the revised draft provides the statement of intent on behalf of the members.
This will also be discussed at the General Council meeting. In case of industrial tariff negotiations, the WTO Secretariat has recirculated the Cancun draft owing to differences.
In case of agriculture, the draft talks of differences in the developmental and livelihood aspects of developed and developing countries and stresses on the need for special and differential treatment for poor countries.
Unlike the earlier drafts, the formula for tariff reduction is not spelt out and only the principles have been identified.
The proposed framework advocates a tiered formula for tariff reduction, with steeper duty cuts for commodities attracting higher duties. "All members (other than LDCs) will make contributions," it said.
A similar tiered formula for reduction of domestic support has also been proposed. The draft also advocated the termination of export subsidies that are scheduled and the trade-distorting element of export credits and export credit guarantees through a reduction in the repayment period to 180 days.
Further, the WTO will have to agree to end the system of food aid to ensure that it is not a mechanism for disposal of surplus food and to also prevent commercial displacement.
Developing countries too have to undertake commitments on the elimination of export subsidies, though they are proposed to be given a longer implementation period. Trade experts said counties like India would, however, not be adversely affected by the move.
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