Saturday, December 17 2005 11:53 Hrs (IST) - World Time -

Hong Kong: With mounting pressure for some forward movement, WTO last night (Dec 16, 2005) came out with the first version of a please all revised Ministerial text on agriculture which addresses some of India's concerns even as intense negotiations were on to make the skeletal draft more specific for tomorrow's formal release.

"It (text) takes care of some of our concerns and in the negotiations we are pushing hard to see that some others are also taken on board," an Indian official told sources in his first reaction to the first version of revised draft Ministerial text.

In what could be a major relief to India and other developing countries, the first informal text on agriculture showed some forward movement on Special Products and Special Safeguard Mechanism and 2010 as end date for elimination of export subsidies even as the draft remained silent on the date by which the specific modalities will be finalised.

The draft, which has been prepared by Pascal Lamy himself, however, has attempted to please both developed and developing countries by reflecting some of their demand.

However, the end date which is in undecided being in square brackets would be confirmed only upon completion of the modalities.

The text proposed that developing countries will have the flexibility to designate 'x' per cent of farm tariff lines as Special Products. On SP developing countries do not have to take tariff concessions. However, the provision is within brackets implying that the specific numbers were yet to be arrived at.

These SPs would be guided by the principle of food security, livelihood security and rural development.

On the SSM, India's demand for volume and price trigger has found reflection in the draft though specificity is expected tomorrow.

On the domestic support the draft proposes three bands for reduction in final bound total AMS (aggregate measure of support which is most trade distorting farm support) and overall cut in trade distorting domestic support with linear cuts in higher bands for developed countries.

Developing countries have been exempt from making any commitments from any reductions in de-minimising maximum ceiling on trade distorting support not subject to reduction and AMS reductions.

The text states that there was some convergence on some elements of disciplines to export credits, export credit guarantees or insurance programmes with repayment period of 180 days and below.

In what looks like an effort to please all, there has been some mention in the draft about self financing of above mentioned programmes.

On food aid the draft favours commitment to maintain an adequate level and propose a "safe bos" for bonafide aid to ensure that there is no unintended impediment to dealing with emergency and chronic situations.

"The disciplines on export credit, export credit guarantees or insurance programmes, exporting State Trading Enterprises and food aid will be completed by end March 2006. The date above for the elimination of all forms of export subsidies will be confirmed only upon completion of modalities", it said.

On market access, the text proposes four band for structuring tariffs though no specific details were given on how the tariff cuts would be carried out.

A window for sensitive products has also been provides which are for developed countries. However, if there is greater deviation from tariff reduction formula there would be greater tariff rate quotas. TRQs imply allowing import of a particular quantity at a fixed tariff rate.