Food security politics

Dr Ashwani Mahajan
Ninth Ministerial Conference of World Trade Organisation (WTO) is going to be held in Bali (Indonesia) from December 3 to 6 2013. If we look back, a new round of negotiations was planned, called ‘Doha Development Round’ after  Ministerial Conference held at Doha Qatar in 2001. However that could not really proceed due to persistently adamant attitude of the developed nations, in the last five ministerial of WTO, refusing to reduce their agricultural subsidies. It is a well known fact that USA, European nations and other developed nations give huge agricultural subsidies to their farm sector, thanks to their strong financial muscles. These huge subsidies make their agricultural and dairy products cheap, making it impossible for Indian agri-products to compete with them. At the time of constitution of WTO, developed nations promised to end their agricultural subsidies, which they are not honouring now. Developing countries including India have been insisting on their just demand that developed countries must end their agricultural subsidies, which is pertinent to save agriculture and protect food security of the nation.
WTO: Journey So Far
After the Uruguay Round of negotiations of ‘GATT’ a new international organization was constituted in 1995. At that time it was said that with WTO’s constitution, Indian farmers will be able to sell their fruits, vegetables and their other products in the markets of California and they would become richer as farmers in developed countries. Out industrial products will also reach international markets. Thanks to open import and exports, investment in the country would get a boost. New intellectual property regime would make it possible for Indians to register their patents internationally and would be able to reap benefits of their research. Share of Indian exports in the world will increase and the same would help India to grow. Government even said that along with these benefits, India would have an option to impose quantitative restrictions in case of import surge from the world.  Therefore adverse impact of WTO on our agriculture and manufacturing sector was ruled out.
However, all the claims in favour of WTO proved to be hollow. On the one hand, apples and fruits from different countries (mostly from developed countries) have taken over Indian markets, but the wish of Indian farmers to sell their mangoes, litchi, flowers and other agri produce in international markets is still a far off dream. This happened because due to pressure of developed countries in WTO, we had to remove quantitative restrictions (QRs) on our imports. With this road for USA, and European fruits to enter into India was cleared but USA and European countries continued with different types of road blocks in the name of food security standards and phyto-sanitary measure. In the proposed agenda for WTO’s Bali conference, developed nations, on the one hand are neither ready to talk about reducing their agricultural subsidies, nor their safety standards and phyho-sanitary measures; rather they want India and other developing countries to keep their food subsidies to the limits, so that Indian farmers do not get reasonable  price for their produce.
After the constitution of WTO, due to lifting of tariff and non tariff barriers to trade, our imports have increased manifold, absolutely as well as percent of GDP. In other words our dependence on imports have increased. It may be noted that imports into India, which constituted 11.8 percent of GDP in 1990-91, increased to 27 percent in 2011-12. During this period our exports also did increase from 9.4 to 16.8 percent; but the major cause of worry is that during the same period, our trade deficit, has increased by more than four times from only 2.4 percent of GDP to 10.2 percent. In absolute term this increase looks even bigger from nearly 5 billion $ US in 1990-91 to 190 billion $US in 2011-12. Huge deficit in Balance of Trade (BOT) has been weakening our currency constantly.
What was Doha Development Round?
As aspirations of the developing nation were not being fulfilled in WTO, a new round of talks was proposed namely Doha Development Round. In this round, developing nations have been pressing for removal of agricultural subsidies by developed countries. It was said that no talks can go on, unless developed countries remove their agricultural subsidies. It is notable that despite their commitment to reduce agricultural subsidies, developed countries in fact increased their agriculture subsidies from $350 billion in 1996 to $540 billion by 2011. Due to huge subsidies given by developed countries and resulting surge in agricultural imports by developing countries; 105 countries so far have turned into net importers of agricultural products. Imports of agri products have increased manifold even in India. If the same situation continues, a hub of agri product, India may become dependent on USA and EU for its needs of agri and dairy produce.  While developed countries are not ready to reduce their agricultural subsidies, nor are they ready to give any commitment in this regard, WTO has come to a standstill in the last 5 ministerial conferences.
Now argument being put forward by the developed nations is that since there is a dead-lock in WTO talks on subsidies issue in Doha round, we may keep these contentious issues at a distance and start negotiation on trade facilitation, agricultural access and NAMA (Non Agricultural Market Access). It seems that government of India has also made up its mind in this direction. Only objection, which the government is raising is about the condition of the developed countries, that (grace) period of peace clause for allowing food subsidy beyond permissible limits be extended to 9-10 years, from 3-4 years now.
Leaving Doha Agenda in between and conceding to the negotiations, is suicidal for our economy is general and agriculture in particular. This would end the pressure on the developed world, maintained in the last one decade by the developing countries. It would open the floodgates for the products of the western world into India. Our industries, which are under worst crises ever, may even lose their existence. Developed countries may start exerting pressure on India to amend our patent laws so that, compulsory licensing, article 3(1) d, designed to curb ever greening of patents, and the like, which are irritating the developed countries and their MNCs in particular, may be withdrawn.
Compromising National Interests for Political Dividend
It looks that ‘Food Security Politics’ overwhelms national interest. It seems that if the developed countries agree to extend the peace clause on food subsidy to 9-10 years or even less, government of India may concede to the developed countries’ agenda. This would be most unfortunate. Pharmaceutical global majors, who are making all out efforts to get our patent law amended as per the wishes of the multinational pharmaceutical companies, especially after Novartis judgment, in which the company was denied ever greening of patent. Issuance of compulsory license by Indian patent office is also acting like a storm in the eyes of these companies. We need to be extra vigilant and firm in this direction.
It is unfortunate that instead of pursuing Doha Development Round, and exerting pressure on developed world to come to terms, the government is trying to get stamp of WTO approval for food security legislation, which is a political gimmick and election agenda of the present regime. Present government is already completing its term soon, therefore it should avoid making any agreement or giving any commitment, which may tie hands of the future governments. Bali conference assumes special significance for continuation of pressure on the developed world and no talk should be allowed unless agricultural subsidies of the developed countries are done away with.

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