WTO: Time to end monopoly of tech giants, rework food agriculture subsidies framework

The 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) is scheduled to be held in Abu Dhabi, United Arab Emirates from February 26 to 29, 2024. According to the MC 13 calendar issued by the WTO Secretariat, the following matters are to be taken up for further discussion, negotiation and decision:  E-commerce, TRIPS waiver for Covid 19 vaccine, Food and Agriculture, and Fisheries Subsidy.

Swadeshi Jagaran Manch, an RSS-inspired organisation has come out with a detailed response on these issues. Incidentally, the delegation of SJM is visiting Abu Dhabi to participate in the ministerial meeting as a WTO recognised organisation.

Swadeshi Jagran Manch (SJM) has consistently been actively involved in discussions at WTO and in various other trade bodies. It watches out and alerts the Indian government to protect national interests in such negotiations and meetings amid conflicting interests and lobbying by multinational companies and governments of developed countries.

 E-commerce

In continuation of its earlier stand, the SJM has challenged the existing moratorium on imposing duty on transmission of digitisable goods. SJM believes that the decision not to impose duty on the transmission of digitisable goods, also known as the 'prohibition of duty on electronic transmission', was taken given the backdrop of e-commerce being in its nascent stage and its full potential to grow business was yet to be assessed. But there is no need to carry on with this moratorium.

In fact, imposing tariffs on electronic transmission will be the first condition for the success of the fourth industrial revolution. It would result in digital industrialisation of developing countries in general and India in particular and putting a stop to the digital monopoly of developed countries and tech giants. The trend of digitalisation of a greater number of products is particularly increasing. The percentage tariff on 3D printing of manufactured goods represents a further loss of revenue.

Thus, the current moratorium on custom duty on electronic transfers is against the interests of developing countries in general and India in particular. This is not only impacting employment generation in the electronics sector but also revenue generation. Therefore, SJM   has strongly supported the recommendation by South Africa to end this tariff ban.

It is important to mention that if the moratorium is not extended by the members, it will automatically lapse.  SJM has also urged the Indian government to use its diplomatic channels to allow the embargo to end at this ministerial meeting.

 Food and Agriculture

Trade negotiations in food and agriculture remain a top priority for WTO members. It is well known that WTO talks on agriculture have been deadlocked since the Doha Declaration in 2001. The US and EU wanted an agreement not only on agriculture but also on other areas such as non-agricultural market access and services. They wanted developing countries to cut the level of support to their domestic agricultural sectors as they claimed it 'distorted trade and market competition between producers'.

At the MC9 in Bali in December, 2013, a decision was taken on public stockholding for food security purposes. Members agreed to establish an interim mechanism and negotiate an agreement for a permanent solution applicable to all developing countries. After Bali, the first proposal for a permanent solution came from India along with other G-33 countries in July 2014, which essentially sought to shift public stockholdings to green boxes for food security. The proposal also called for a 'permanent solution'.

Many years have passed since then and countries like India are still waiting for a permanent solution in the WTO on food security and public stockholding.

India has seen the importance of public stockholding achieved through offering Minimum Support Price to farmers for food security during the last three years of the Corona pandemic as well as the current recovery period. It was only because of the reserves with the government that the Indian government was able to help provide adequate ration to our population.

A recent United Nations report has confirmed that hunger has increased in the world after the COVID-19 pandemic. Poor countries are in dire need of affordable food for the survival of their populations. Wars have increased food shortages in many countries of the world.

SJM has strongly supported the proposal of the G33 countries along with India for a permanent solution as well as to correct the mistakes made in the early WTO agreements when the base year for calculating agricultural subsidies was kept at 1986-88. Other agriculture-related issues such as market access, special safeguard mechanisms, export competitiveness and sustainable solutions with transparency and agreement on public stockholding for food security should be postponed until issues related to the issue are resolved, says Dr. Ashwani Mahajan, co-convenor of SJM.

SJM has called upon the India government to step up its efforts in collaboration with the Africa Group and other partner countries at MC13 to ensure that TRIPS exemption should also be provided on vaccines used in the treatment of Covid-19.

SJM is also opposing certain proposals by the developed countries that hurt the interests of small fishermen in India. India has the longest coastline and SJM is in favour of protecting the interests of small fishermen and other fishing activities for the livelihood of our huge coastal population.

Earlier Sanghnomics columns can be read here

Arun Anand has authored two books on the RSS. His X handle is @ArunAnandLive. Views are personal, and do not represent the stand of this publication.