Prelims: International Relations (Groupings, Institutions at global level), G-33 Countries, Special Safeguard Mechanism (SSM), WTO
Mains: General Studies-II, Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
Why in the News ?
Ahead of the 13th ministerial conference of the World Trade Organization (WTO), a majority of the G-33 countries have called for a permanent solution to public stockholding for food security.
Source: TH
About:
G-33 Countries
- The G33 (or the Friends of Special Products in agriculture) is a coalition of developing and least developed countries.
- Despite the name, there are currently 47 member nations. Some of the main countries include India, China, Indonesia, Pakistan, Nigeria, Philippines, Turkey, Tanzania, Kenya, and South Korea.
- It was established prior to the 2003 Cancun ministerial conference that have coordinated during the Doha Round of World Trade Organization (WTO) negotiations, specifically in regard to agriculture.
- Dominated by India, the group has “defensive” concerns regarding agriculture in relation to WTO negotiations, and seeks to limit the degree of market opening required of developing countries.
- The group has advocated the creation of a “special products” exemption, which would allow developing countries to exempt certain products from tariff exemptions, and also a “special safeguard mechanism” which would permit tariff increases in response to import surges.
Special Safeguard Mechanism (SSM) of WTO
- The Special Safeguard Mechanism of the WTO is a special protection mechanism for developing countries that allows developing countries to raise tariffs on agricultural imports that are injurious to domestic farmers.
- It is a permission to increase tariffs for developing countries when imports surge or price declines for agricultural products.
- SSM is different from the Special Agricultural Safeguard (SSG) that is provided for in the Agreement on Agriculture (AoA).
- The design and use of the SSM is an area of conflict under the WTO.
Extended Topic
World Trade Organization (WTO)
- Created in 1995, it is an international institution that oversees the rules for global trade among nations.
- It superseded the 1947 General Agreement on Tariffs and Trade (GATT), created in the wake of World War II.
- It is the only global international organization dealing with the rules of trade between nations.
- The primary purpose of the WTO is to open trade for the benefit of all.
- The WTO has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members and it supports the needs of developing countries.
- Structure:
- The WTO’s top-level decision-making body is the Ministerial Conference, which usually meets every two years.
- Below this is the General Council (normally ambassadors and heads of delegation in Geneva, and sometimes officials sent from members’ capitals), which meets several times a year in the Geneva headquarters.
- The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body.
- At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments.
UPSC CSE EXAMS Corner
Prelims: PYQ/FAQ
Q. Consider the following statements: (2017)
- India has ratified the Trade Facilitation Agreement (TFA) of WTO.
- TFA is a part of WTO’s Bali Ministerial Package of 2013.
- TFA came into force in January 2016.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2 and 3
Ans: a. 1 and 2 only
Explaination:
- Trade Facilitation Agreement (TFA) was negotiated at the 2013 Bali Ministerial Conference. Hence,statement 2 is correct.
- It entered into force on 22 February 2017 following its ratification by two-thirds of the WTO members. Hence, statement 3 is not correct.
- India had ratified TFA in 2016. Hence, statement 1 is correct.
- The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.
