India Miffed With WTO Farm Draft + G-4 Brussels Ministerial

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In This NEWS Bulletin *********************************** 1. India miffed with WTO farm draft 2. G-4 officials meet to set ground for next round 3. India-Thailand FTA - Govt to safeguard exports to Thailand - Mutual recognition of quality standards in process 4. Govt moves to import 1 m tonne wheat 5. Black tea certification to aid exports and higher realisation 6. YES Bank to fast-track development of 25 Agri Export Zones (AEZs) --------------------------- India miffed with WTO farm draft http://www.financialexpress.com/fe_full_story.php?content_id=162876 ASHOK B SHARMA Posted online: Wednesday, May 02, 2007 at 0000 hours IST NEW DELHI, MAY 1: India has criticised the draft issued by the head of the WTO committee on agriculture, Crawford Falconer, terming it as “heavily weighed in favour of the rich countries”. Releasing the draft on Monday, Falconer had said, “What I have tried to do is to challenge you…. If we do not get serious momentum over the next few weeks (I hesitate to say months) we will either fail or we will put this whole exercise in the freezer for some considerable time until a better generation than us can thaw it out.” Reacting, commerce secretary GK Pillai said India was in favour of moving the talks forward, but the draft should be rational. He

said, “The draft has given enough leeway to the US by suggesting the subsidy cut number will be in the teens and a cut in lower teens may not be doable. We feel the US should make an effective cut in its overall trade-distorting subsidies (TDS) to below $11 billion.” About 61 out of 71 developing countries that have scheduled zero TDS in the Uruguay Round will not be able to increase their support. Countries which rendered limited support had been urged to make cuts, though smaller, said Aileen Kwa of the Focus on Global South. Pillai said the draft had also favoured the rich countries in the matter of tariff cuts in the top band by suggesting a mid-way between 50% and 80%. The draft has said that the coverage under special products (SPs) for developing countries should be in a range of 5% to 8% of the tariff lines, contrary to the G-33 demand for 20%. Pillai said, “The

percentage of tariff lines should not be an issue. As per the Hong Kong declaration, every developing country should have the right to designate an appropriate number of SPs, which may be different from country to country. The process should be guided by indicators. We are willing to work on indicators.”--- G-4 officials meet to set ground for next round http://www.financialexpress.com/fe_full_story.php?content_id=162880 ASHOK B SHARMA Posted online: Wednesday, May 02, 2007 at 0000 hours IST NEW DELHI, MAY 1: The meeting of senior G-4 officials has begun in London on Tuesday to prepare the grounds for another ministerial meeting in the middle of the month in Brussels. The meeting of G-4 officials will continue till May

3. The three-day Brussels ministerial meeting of G-4, beginning from May 17, is expected to find out means for breaking the current deadlock in the WTO negotiations. "The meeting of the senior officials of G-4 is now taking place in London and will continue till May 3. They are discussing the modalities for agriculture and NAMA negotiations. The G-4 ministerial meeting scheduled in Brussels will thereafter deliberate on the agenda prepared by the senior official," commerce secretary GK Pillai told FE. The first ministerial meeting of G-4, consisting of Brazil, India, EU and US, took place in Delhi in April 12-13, this year in Delhi. G-4 was also joined by Japan and Australia, thus making it an effective G-6 ministerial. Later the Crains group of ministers met in Lahore in Pakistan in April 16-18 to find out a means for a breakthrough in the negotiations, but with no significant

positive result. Though the Delhi ministerial of G-4/G-6 could not achieve any breakthrough in the negotiations, the Brazilian foreign minister, Celso Amorin termed it as "breakthrough in the process" as it was for the first time that G-4 ministers met and agreed to continue the process with an ambition to prepare the grounds for a full-fledged deliberations by the WTO membership by the end of this year. According to the joint declaration made G-4/G-6 ministers in Delhi, the next meeting would be held in either in Australia or in Japan. It was later confirmed that the meeting would take place in Tokyo in May 27, this year.---- India-Thailand FTA Govt to safeguard exports to Thailand Mutual recognition of quality standards in process http://www.financialexpress.com/fe_full_story.php?content_id=162980 ASHOK B SHARMA Posted online: Thursday, May 03, 2007 at 0000 hours IST NEW DELHI, MAY 2 : Ahead of the expected renewal of the Free Trade Agreement (FTA) with Thailand, the government has taken the initiative for working out mutual recognition of quality standards and conformity assessment with that country. In fact, the export inspection council of India (EIC) has taken up the issue with Thailand. “We have worked out mutual recognition of quality standards and conformity assessment with a number of countries on specific products. Now we will work with Thailand for all products covered under FTA and even more,” said

the EIC director Shashi Sareen. EIC is the negotiating agency for working out mutual recognition of standards so that export consignments do not get rejected on flimsy grounds. Its works have now become easier with apex standards bodies of the two countries—Thai Industrial standards Institute and the Bureau of Indian Standards—signing a pact last month for technical cooperation in standardisation, conformity assessment and training. Sareen said mutual recognition of standards could boost trade prospects further. A framework agreement for free trade area was signed between two countries in Bangkok in October 2003 covering trade in goods and services, investment and cooperation. Accordingly under the early harvest scheme trade in 82 select items came into operation from September 2004 after signing of a protocol by both the countries in Delhi in August 2004. This protocol is expected to be renewed

before August, this year. Quality Check • EIC is working out mutual recognition of standards so that export consignments do not get rejected on flimsy grounds• Two-way trade between Thailand and India marked an increase of 150% since the FTA was signed Thai commerce minister Krik-Krai Jirapaet, during his visit to India last month, had proposed for inclusion of more items under the FTA. India’s exports to Thailand increased by 20% over the previous year, while imports from Thailand increased by about 39%. The two-way trade marked an increase of 150% since the operation of the FTA. Sareen said that mutual recognition of standards can boost trade prospects further. Mango exports to US commenced after such a mutual recognition. Similar arrangement is in process with Japan for mangoes EIC has worked out with Sri Lanka for mutual recognition of standards for over 100 products, with

Nepal for all agri and food products and with Singapore for food and agri items, electrical and electronic items,drugs and telecommunication . Such agreements has been signed with EU for marine products and Basmati rice and dialogue is on for dairy items, egg, poultry, meat and honey. With US mutual recognition has been worked out black pepper and dialogue is on for poultry items. With Australia arrangements have been worked out for marine products and dialogue is on for dairy, spices and honey. Italy has recognized EIC certification for fishery products, Japan for poultry, Turkey for food items, stainless steel materials and food packaging materials and South Korea for for food and agriculture products. An agreement on iron ore export has been signed with China. Germany, UK, Israel, Bangladesh, Saudi Arabia, Libya, Pakistan, Mauritius, Indonesia, Malaysia and Russia are among other countries with whom mutual recognition of standards have been agreed

upon.-------------- Govt moves to import 1 m tonne wheat http://www.financialexpress.com/fe_full_story.php?content_id=162730 ASHOK B SHARMA Posted online: Tuesday, May 01, 2007 at 0000 hours IST NEW DELHI, APR 30: The public sector, State Trading Corporation of India (STC) has floated a tender for import of one million tonne wheat through staggered shipments in May, June and July, this year. Five entry ports have been selected. The tender said “wheat should be fit for human consumption”, though quarantine norms for imports have been relaxed heavily. It said that wheat should be of the crop years 2006-07 or 2007-08 from any country of origin. Imports would

be done in “loose in bulk”. Price should be quoted in US dollars per tonne on C & F FO basis. Bids are invited separately for different ports. Payments would be done on basis of 100% irrevocable, non-transferable letter of credit payable at sight. Farmer leader Krishan Bir Chaudhary said, “Wheat production has been nearly 80 million tonne. There is no need for imports.” During May and June 5.35 lakh tonne (535,000 tonne) wheat would be imported through Mundra, Kandla, Chennai, Visahakhapatnam or Kakinada, and Tuticorin ports. In July the balance 4.65 lakh tonne (465,000 tonne) wheat would be imported through these same designated ports. Allowance has been made for import of +/-5% of the one million tonne wheat in the period. Panamax (gearless) size vessel at Mundra port would be accepted for which crane and grab charges should be quoted separately. The parcel size should be

25,000 to 75,000 tonne at Mundra port. The parcel size at Kandla, Vishapatnam, Chennai, Kakinada and Tuticorin should be between 25,000 to 50,000 tonne. The tender specifies the need for sanitary and phytosanitary certificate issued by the exporting country. Quality check and inspection would be done at entry points by the government designated agencies. Certain changes have been done in the tender to lower quarantine norms. Presence of insecticides like carbarly and fenitrothion has been lowered to 2 parts per million (ppm), that of hydrogen phospate to 0.1 ppm, that of inorganic bromide to 50 ppm, that of malathion to 2 ppm, that of phosphamidon residue to 0.1 ppm and that of dithiocarbamates to 1 ppm.----- Black tea certification to aid exports and higher realisation http://www.financialexpress.com/fe_full_story.php?content_id=162514 ASHOK B SHARMA Posted online : Saturday, April 28, 2007 at 0000 hours IST NEW DELHI, APR 27: The quality certification mark by the Bureau of Indian Standards (BIS) on black tea can boost the export potential of the commodity. The quality certification can boost prospects of domestic trade, particularly at times of falling prices. BIS has granted first such licence for black tea in the country. Kanan Devan Hill Produce Company Pvt Ltd, Munnar in Kerala, a prominent producer in the country has been granted the BIS certification licence to use the popular ISI Mark on its products.“BIS certification is recognised globally. Consumers have confidence in BIS certification. It has the potential for boosting

trade of any ISI-marked commodity. We have begun the process on black tea and are willing to certify more tea companies which are willing to adhere to the norms,” said BIS director general, Alka Sirohi. The licence to Kanan Devan Hill has been granted in accordance with the Indian Standard IS 3633:2003 (specification for black tea). This standard which specifies the quality requirements of black tea, interalia includes tea testing, chemical requirements, limits on pesticide residues and heavy metals. It has been the effort of BIS over the years to bring in products used by the common consumer under its certification so that the consumer is able to select quality products and ensure value for money. The certification of black tea is another effort towards this objective, said Sirohi. According to the price stabilisation fund trust (PSFT) under the Union commerce ministry tea growers

need support as the domestic price situation of the commodity in 2006 was not very remunerative. The PSFT has announced the price spectrum band for the year 2006 for rubber, coffee and tea. The price spectrum band for each commodity has been calculated on the basis of seven years’ moving average of international price for the commodity. The annual average domestic price for tea was Rs 63.62 per kg during 2006 and it has been categorised as a “normal year” for tea. On the basis of price spectrum band 2006, 14928 tea growers would receive financial assistance of Rs 74.64 lakh (Rs 7.464 million) from the PSFT during 2007-08. According to price spectrum brand 2006, the annual average domestic price for coffee Arabica was Rs. 109.84 per kg and it has been categorised as ‘boom year” for coffee Arabica. The annual average domestic price for coffee Robusta was Rs. 63.02 per kg

during 2006 and it has been categorised as ‘boom year” for coffee Robusta. The annual average domestic price for rubber was Rs. 87.83 per kg during 2006 and it has been categorised as ‘boom year” for rubber. As no tobacco grower was enrolled under the scheme, price spectrum band for tobacco has not been fixed. The Union commerce ministry had launched the price stabilisation fund scheme in April 2003 for the benefit of growers of tea, coffee, natural rubber and tobacco. The objective of the price stabilisation fund scheme is to provide financial relief to the growers when the prices of these commodities fall below a specified level. The scheme is based on the principle of contribution from the growers and from the Government depending upon boom / normal / distress years, with a provision for withdrawal by the growers during the distress year. The contribution of the participant grower as well as

that of the Government is credited to the savings bank account of the participant grower opened for this purpose with a nationalised bank. ------- YES Bank to fast-track development of 25 agri export zones (AEZs) http://www.financialexpress.com/fe_full_story.php?content_id=162966 ASHOK B SHARMA Posted online: Thursday, May 03, 2007 at 0000 hours IST NEW DELHI, MAY 2: The government has asked YES Bank to suggest measures for improving the performance of 25 agri export zones (AEZs), which have not been performing up to the mark. There are 60 AEZs in the country and many of these are under-funded by the agencies of both the Centre and state governments, which had

promised to set up necessary infrastructure. They have not been able to attract adequate level of investment from corporate sector also. The nodal agency for monitoring AEZs, Agriculture and Processed Food Export Development Authority (APEDA) had earlier commissioned a study which revealed that 25 AEZs did not perform up to the mark. “The YES Bank, as advisor and consultant, will fast track development of AEZs and support infrastructure projects in these zones with funds from various schemes of both the Centre and state governments,” a senior APEDA official said. YES Bank is a corporate subsidiary (in India) of the Netherlands-based cooperative bank—The Rabo Bank. The decision to rope in private advisor was taken after the peer evaluation of AEZs drawn up in consultation with the state governments. The

action plan following peer evaluation includes constitution of state level coordination committees, monitoring committee and nomination of nodal agencies for under performing AEZs. The 25 AEZs selected for assistance by YES Bank are spread across West Bengal, Karnataka, Uttar Pradesh, Maharashtra, Andhra Pradesh, Punjab, Jammu and Kashmir, Madhya Pradesh, Tripura, Tamil Nadu, Orissa and Assam among others. These AEZs cover produces like pineapple, mango, gherkins, basmati rice, flowers, walnuts, apple, lychee, ginger and vegetables. Among them better performing ones are the zone for basmati in Punjab, gherkins in Maharashtra and walnuts in Jammu and Kashmir. The government has imposed a temporary embargo on creation of new AEZs in the backdrop of shortfall in achievement of targets by the existing ones. Unlike special economic zones (SEZs), AEZs are enclosed by space. It covers

an entire agro-climatic zone, which could span a district.--

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