Dr. Khullar pointed out that the texts by the Chairman of the Negotiating Committees on NAMA on July 17, 2007 does not allow the developing countries to move forward in the negotiations.
He said that the NAMA text is not acceptable to developing countries in its present form, as the coefficients of the Swiss formula proposed are very different from the proposal of the developing countries.
The agricultural text proposed by the Chairperson of the Negotiating Group also on July 17, he said was far more acceptable to most countries because it nearly reflected the position that was discussed at different senior officials meetings at Geneva.
Mr. Sherman Katz, Senior Associate, Carnegie Endowment for International Peace said, “7% of the US farmers get 54% of the total US agricultural subsidy”.
He said that 93% of the subsidies go to five crops; corn, wheat, soybean, rice and cotton. The ceiling of farm income eligible for subsidy has been substantially reduced, which has further inflated the US agriculture subsidy payments, he added.
Corn subsidy has increased enormously over the last few years as there has been increase in ethanol production in US. Corn is the major input in ethanol production, Mr Katz said.
Mr. R V Kanoria, Chairman, CII WTO and Other Trade Agreements Committee noted that the NAMA text does not reflect the position of the Indian industry and the text as it exists needs an overhaul and hopefully that will be achieved when negotiations resume after the break.
Confederation of Indian Industry
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