WTO removes subsidies helps Indian cotton farmers
The Dollar Business Bureau
On the removal of subsidies on cotton exports by developed member countries of the World Trade Organisation (WTO), the Government of India said that it would help Indian cotton growers and prevent other countries from dumping subsidised products into India.
Under the Nairobi Ministerial Declaration of WTO, the decision to eliminate subsidies on cotton exports will help the Indian exporters as it will provide an equal opportunity for local farmers, who were earlier not allowed subsidies, while other developed nations were offering the same to their farmers, the Ministry of Commerce said in a release.
The Government of India is committed to the well-being of the country’s cotton farmers. To safeguard them, it has taken all the steps, including obtaining cotton through Cotton Corporation of India at the lowest possible prices, the statement said.
The Agreement on Agriculture (AoA) of WTO allows subsidies on exports of agriculture items, only to the limits as committed by members in the schedules.
The subsidies for export can still be utilised by the WTO members, but only with the base period of 1986-1988.
Under the ministerial decision at the Nairobi Declaration on export competition, developed countries committed to eliminate with immediate effect their subsidies on cotton exports on the decision adoption date i.e. December 19th, 2015 and for developing countries by January 1st, 2017.