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The Hindu Vocab Dec 11, 2017

Crunch time at WTO: On farm subsidies

India faces a tough challenge on farm issues at the Buenos Aires ministerial meet

As leaders at the World Trade Organisation’s 11th biennial Ministerial Conference in Buenos Aires seek to define the future contours of multilateral global trade, the challenges the U.S. has mounted on the institution are impossible to ignore. Notable among the proposals trade ministers will consider are those relating to new rules on farm subsidies, the elimination of support for unsustainable fisheries, and the regulation of e-commerce. With the backing of more than 100 countries, a joint proposal from India and China to eliminate the most trade-distorting farm subsidies worth $160 billion in several industrialised economies is arguably the most contentious agenda item at the Ministerial. The two countries see this as a prerequisite to address the prevailing imbalance in the Agreement on Agriculturewhich unfairly benefits developed countries. But host Argentina has cautioned that the joint proposal could potentially unravel negotiations. Lending credence to such scepticism is the lukewarm stance the U.S. has adopted towards the WTO over the past year, suggesting that the Ministerial meet should serve as a forum for reflection rather than to shape substantive agreements. The other major dispute centres on finding a so-called permanent solution to the large subsidies that underpin public stock-holding programmes to bolster food security in the developing world. The G-33 coalition — which includes Indonesia, China and India — seeks a complete exemption from commitments to reduce subsidies, such as minimum support prices, from this poverty-alleviation programme. New Delhi has declined to negotiate any more trade-offs on this proposal at Buenos Aires, or accept calls for stringent transparency requirements to monitor these schemes. The EU and Brazil have expressed broad support for the G-33 coalition’s position on public stock-holding programmes. But in return they seek agreement on their own proposal to reduce trade-distorting subsidies on a percentage basis, in both advanced and developing economies.

The existential crisis facing the WTO is heightened by U.S. President Donald Trump’s combative approach to the multilateral institutional framework. Washington has been exploring an alternative, unilateral route away from the formal dispute resolution mechanism of the Geneva-based body to settle perceived and real trade conflicts with partners. It has blocked fresh appointments to fill vacancies on the seven-member WTO appellate body. The risk of Mr. Trump’s protectionist rhetoric translating into economic barriers remains real. The response to that challenge is to make the gains of globalisation more visible and its transient downsides politically less painful. Trade leaders gathered in Buenos Aires can ill-afford to lose sight of this imperative.

 

  1. crunch time (noun) – moment of truth, critical point, zero hour.
  2. biennial (adjective) – taking place/happening every two years.
  3. contour (noun) – outlineshapeform.
  4. mount on (verb) – produce, present, put in place.
  5. backing (noun) – support, help, assistance.
  6. trade-distorting farm subsidies – It is known in WTO parlance (language) as Aggregate Measurement of Support (AMS) or ‘Amber Box’ support, it said, adding that “Developed countries have more than 90% of global AMS entitlements amounting to nearly $160 billion. Most of the developing countries, including India and China, do not have AMS entitlements.” (Courtesy: The Hindu).
  7. contentious (adjective) – controversial, debatable, disputed.
  8. prerequisite (noun) – necessary condition, essential, requirement.
  9. prevailing (adjective) – existing, present, prevalent.
  10. imbalance (noun) – disparity, lack of harmony, unevenness.
  11. unravel (verb) – solve/resolve, clarify, decipher/explain.
  12. credence (noun) – credibility, reliability, plausibility/believability.
  13. scepticism (noun) – doubt, suspicion, disbelief.
  14. lukewarm (adjective) – unenthusiastic, half-hearted, uninterested.
  15. substantive (adjective) – important & meaningful.
  16. underpin (verb) – support, buttress, form (a basis).
  17. bolster (verb) – strengthen, support, reinforce.
  18. alleviation (noun) – suffering, reduction; soothing relief.
  19. trade-off (noun) – a situation in which you must choose between or balance two things that are opposite or cannot be had at the same time; a compromise; swap, exchange.
  20. stringent (adjective) – strict, firm, tough/rigorous.
  21. existential (adjective) – relating to existence.
  22. heighten (verb) – intensify, increase, make greater.
  23. combative (adjective) – aggressive, argumentative, contentious.
  24. appellate (adjective) – (of a court) dealing with cases on appeal to review the decision of a lower court.
  25. rhetoric (noun) – heroics, hyperbole/extravagant language.
  26. transient (adjective) – transitory, temporary, short-lived.
  27. downside (noun) – drawback, disadvantage, stumbling block.
  28. ill-afford (noun) – unable to afford; unable to bear/stand/sustain.
  29. lose sight of (phrase) – pay no attention to, fail to consider, be lax about.
  30. imperative (noun) – necessary condition, essential, requirement
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