G-20 Declaration

The declaration adopted by the two-day Ministerial Meeting of G-20 in New Delhi, which ended on March 19, reiterated the need of developing nations mobilising their collective strength to end the practice of a small group of rich nations providing huge financial support to their farmers, and depressing world market prices and thus gaining undue market share at the cost of billions of farmers across the developing world. Characterising 'agriculture' as critical to developing countries, it pointed out that the realisation of true potential of their agriculture sector has been impeded so long by trade-distorting policies of the developed countries.
Later, briefing the media on the salient features of the declaration and the threadbare negotiations held during the two-day parleys, Indian Commerce Minister Kamal Nath, along with ministers of the other G-20 member states, appreciated that the negotiations had give momentum more recently, the common goal being to put an end to trade-distorting policies of developed countries in agriculture, thereby contributing to growth and advancement of developing countries and their integration into the world trading system in a positive way.
It will be noted that G-20, led by Brazil, India and South Africa, represents the more affluent developing states, including Pakistan, while the G-90 includes most of the WTO's poorer nations.
A significant feature of the declaration is its articulation of the common strategy and position, as evolved by member countries during the two-day meet, the participants reaffirming the commitment to progress in the Doha Round of WTO trade negotiations in 2005, with a view to arriving at an agreement on the modalities of negotiations at the Sixth WTO Ministerial Conference, which is scheduled to be held in Hong Kong, in December this year.
Significantly, it called for substantial reductions in trade distorting domestic support by developed countries and elimination of all export subsidies in the field of agriculture within five years, with front-loading of commitments. Mention, in this regard, may specifically be made of the call for fulfilment of the mandate of substantial reductions in trade-distorting domestic support, and negotiated determination of base periods and initial and final numbers for the overall trade-distorting domestic support in a technically consistent and politically credible manner.
It will also be noted that, on the critical issue of market access, the ministers reaffirmed the long held view of the G-20 that tariff reduction formula is the main component of the market access and should be negotiated before addressing the issue of flexibility.
Reference may also be made to its stress on special treatment for developing countries with a view to preserving food security, rural development, besides livelihood concerns of millions of their people dependent on the agriculture.
The same can be said about the need of focus they urged on elimination of tariff escalation, which would allow them to diversify and increase their export revenues by adding value to their agricultural production.
Taking due note of increasing use of non-tariff barriers by developed countries, the G-20 viewed it as impediments to export of products of interest to developing countries. Referring to the importance of cotton for many WTO members, particularly the African countries, they rightly stressed the urgency of expediting work in the sub-committee on cotton.