Referring to India and China, the US, however, said trade distorting payments have expanded exponentially since 2008, but these countries do not have to do much to reduce their subsidies, an outcome that the US cannot endorse.
The United States said it wants to introduce the concept of "differentiation" among developing nations in the trade negotiation on agriculture, a move that has been rejected by countries like India and China.
Terming it "blood for water" or "blood for air", the US said in a general council meeting at the WTO that some studies have indicated that it will have to make significant cuts in the outlays for domestic support under the present draft modalities.
Modalities, in trade jargon, imply reduction commitments in tariffs and subsidies in agriculture and tariff cuts in industrial products.
Referring to India and China, the US, however, said trade distorting payments have expanded exponentially since 2008, but these countries do not have to do much to reduce their subsidies, an outcome that the US cannot endorse.
US farm lobbies, based on a study of five developing nations -- China, India, Brazil, Turkey and Thailand -- by an agricultural trade lobbying firm DTB Associates yesterday, said these countries have breached the maximum aggregate measure of support (AMS) and have increased their minimum support prices for crops.
Under the Doha Declaration, special and differential treatment for developing countries is integral to enable the countries to meet their needs particularly food security.
Developing countries like India and China have rejected the concept of differentiation and have called for respecting the existing mandate.
India stated that trade for commercial purposes that impinges on policy space does not lead to development and contended that the present global trading system is highly inequitable and there was a need to level the playing field.
The present round was for trade for development, not for enhancing market access and outcomes should be fair and equitable, India stated.
China argued it was important not to mix different kinds of domestic support. It said there was a difference between giving domestic support to big and rich farmers and support to poor farmers.
The issue of stockpiling for food security purposes as well as the calculation of AMS has been a major area of contention between India, China and other developing countries and the developed countries, primarily the US.
India had caused much furore among developed nations last year when it blocked the Trade Facilitation Agreement -- for cutting down red tape in global trade -- so its food security programme will not be challenged under WTO rules.
The member states have a deadline of obtaining a detailed work program for post Bali agenda by the end of July.
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