White paper on WTAA review sought

By Our Staff Reporter

THRISSUR, DEC.29. Renowned agriculturist, Dr. M.S. Swaminathan, has suggested that the Centre publish a `white paper' on the country's approach vis-a- vis the review of the World Trade Agreement in Agriculture (WTAA) proposed to be held next year.

Delivering the Convocation Address at the Kerala Agricultural University (KAU) at Vellanikkara, near here, today and later talking to presspersons, Dr. Swaminathan pointed out that proposals for changes in the Agreement have to be sent by all countries by December 31 this year.

``I am sure the Government would have send its proposal in terms of the changes that India wants to be incorporated in the WTAA, but I don't know the contents of it. There should be more transparency and open discussion on these issues and the Government should come out with a white paper on the country's experience of the last six years after the WTAA was signed in 1994, and the changes it proposes,'' he said.

Asked what were the constraints in using the instrument of tariff barriers to regulate the import of those items which if imported in an unrestrained manner would jeopardise the country's agriculture sector, Dr. Swaminathan said, ``The Government says there are some earlier trade agreements which restrict the hiking of import duties beyond a point. For example, in the case of dairy products, the Government says it has signed an agreement in the 1950s under which it cannot raise the import tariff beyond 10 or 15 per cent.'' ``Do those agreements have validity now?''

``I would take the position that all agreements signed before 1994 have no bearing after the signing of the WTAA. Many Governments are taking such a view. I don't know what was the position taken by India in the 1994 negotiations. The Government of India should come out with more details of the earlier agreements,'' Dr. Swaminathan said.

``Consciously or unconsciously, we entered into an unequal and unjust trade bargain in 1994. It is clear that industrialised nations have, through mechanisms like `Green Box'' subsidies and `Blue Box' provisions as well as high tariff barriers (such as Japan's 2,000 per cent duty on import of rice), ensured that the hopes of developing countries to gain enlarged access to markets in agriculture commodities do not materialise,'' he said.

Under the `Green box' subsidy scheme, the developed countries were able to provide services or benefits to agriculture or to the rural community, stock holding for food security, domestic food aid, investment subsidies and agriculture input subsidies for low income and resource-poor families.

The `Blue Box' provision includes direct payment to farmers under ``production limiting programmes'' which have enabled the developed countries to achieve a proper match between production and projected market demand,'' Dr. Swaminathan explained.

Pointing out that quantitative restrictions on import of agriculture products will have to be removed with effect from April 1, 2001, Dr Swaminathan said: ``The extent of domestic support provided by India to the farming families is far below the prescribed ceiling. We also do not provide export subsidies. In contrast, the total farm support increased by 8 per cent to $ 363 billion in 1998 in OECD countries.''

``Seventy per cent of our population earn their livelihood from crop and animal husbandry, forestry and agro- forestry, inland and marine fisheries and agro-processing and agri-marginal farmer category. Our post-harvest and sanitary and phyto-sanitary infrastructure is very poor and massive investments in this area will be essential.

``Under these circumstances, we should press for a Livelihood Box which permits us to use quantitative restrictions on the import of farm commodities.

``I am not saying that we should continue to protect agriculture indefinitely. A Livelihood Box may be needed for the next 15 years (until 2015), by which time, I hope, we can improve the productivity of our agriculture and the adequacy of our post- harvest and agro-processing infrastructure,'' he added.

Dr. K.N. Raj, economist, who was conferred a Doctor of Philosophy (Honoris Causa) at the function, in his acceptance speech made an impassioned plea for adopting the mode of `hastening slowly' for economic growth rather than setting the targets of `great leaps'.

``Even now the rate of economic growth of India is the second highest in the world, after China. But China's rate of growth has been slowing down over a period of years, whereas India has been more or less keeping a steady pace,'' Dr. Raj said.

The `Father of the White Revolution' and initiator of the Anand Milk Cooperative movement, Dr. V. Kurien, was also conferred a Doctor of Philosophy Degree in absentia at the function.

The Governor, Mr. Sukhdev Singh Kang, who is also the Chancellor of the KAU, distributed the degrees while the Agriculture Minister, Mr. Krishnan Kaniyamparambil, distributed the awards. The Vice-Chancellor of the KAU, Dr. Shyamsundaran Nair, welcomed the gathering.

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