Attach importance to the development demands in international agricultural trade

Recently, the author noticed that the only trade liberalization agreement reached since the establishment of the World Trade Organization (WTO) ran aground at the end of July because of the tough attitude adopted by India and other countries on the issue of agricultural subsidies. Some commentators believe that this move may undermine the only remaining confidence in the multilateral trade framework, prompt the global trading powers to further focus their attention on regional free trade negotiations, and make the already "bleak future" WTO face the awkward situation of "existing in name only". The author believes that although the stranding of the agreement is disappointing, it is reasonable for India to adhere to the simultaneous progress of the matters decided at the Bali meeting in order to ensure national food security and farmers' income. The trade rules and dispute settlement mechanism formed by WTO since the establishment of GATT will still play a fundamental role in the management of multilateral trade.

It is reported that in December 2013, the ninth ministerial meeting of WTO reached the first multilateral trade agreement since the establishment of WTO, that is, the Bali package Agreement. According to the terms of the agreement, WTO members are required to adopt the protocol of the agreement on the basis of unanimous agreement by July 31 this year, formally incorporating the agreement into the WTO rule system. The agreement aims to simplify customs and port clearance procedures to improve the efficiency of cross-border trade, and is expected to reduce cross-border trade costs by about 10% to 15%. The International Chamber of Commerce (ICC) estimates that the package will add nearly $1,000bn to trade to the world economy and create 21 million jobs around the world, 18 million of them in developing countries.

As a big developing country that is bound to benefit from this, why should India take the lead in opposing it? It is reported that India takes a tough stance on its food reserves and food subsidies in the negotiations. India says it will not sign the Bali agreement unless it can pass a parallel agreement to guarantee more flexibility in food subsidies and reserves. This approach has the support of Cuba, Venezuela and Bolivia. After failing to bridge their differences, India vetoed the adoption of a trade facilitation agreement at the last minute.

WTO Agreement on Agriculture clearly states that trade liberalization reform "should take into account non-trade concerns, including the need for food security and environmental protection". Food security must be fully taken into account in the process of promoting trade liberalization, the livelihood security of small farmers and the needs of rural development must not be sacrificed for commercial interests, and developing members must be given full special differential treatment, which is a basic principle clearly defined in the WTO and Doha Round negotiations.

According to Ni Hongxing, director of the Agricultural Trade Promotion Center of the Ministry of Agriculture, who has participated in the negotiations on the Bali package Agreement, India insisted at the ministerial meeting that the interim plan for the G33 food security proposal must be linked to a permanent plan, and under the pressure of the breakdown of the negotiations, India remained tough, saying that the livelihood of small farmers should not be sacrificed for commercial interests. At India's insistence, the United States finally showed flexibility and agreed to India's demands. India adhered to the principle that the livelihood of small farmers should not be harmed by commercial interests and finally achieved its negotiating objectives.

China, like India, is a large agricultural country, with a large proportion of agricultural population, so it is of more significance to support agriculture. China joined the World Trade Organization in 2001 after 15 years of arduous negotiation. China's entry into WTO will continue to have a great impact on China's economic and social development and people's lives. As China's agriculture has made great commitments in the process of joining the WTO, it has become one of the countries with the most open agricultural products market in the world. Under the condition of the opening of agricultural products market, China's agricultural development is facing many challenges, and the existing agricultural policy regulation and control space is very limited. Therefore, it is very important for the country to strengthen its support to agriculture and maintain its favorable position in international agricultural trade not only to ensure the healthy development of China's agriculture under open conditions, but also to ensure world food security.