- US wants India & China to be treated as ’emerging’ countries, than ‘developing’ (current status)
- World Trade Organisation WTO caps applicable to India’s food subsidies if the talks are materialized with the U.S
- India is the world’s largest Least Developed Country where about 600 million live at less than $2 a day
- Study done by the U.S along with Pakistan and Canada claim food subsidies in India and China exceed those in the U.S. and the EU but India claims to be spending a mere $200 per capita per yr as against $20000-30000 spent by the West
- Since U.S is busy with its own issues over the rejig of its Farm Bill and subsidies and is not in a position to discuss the matter in Geneva
- If India is categorized as ’emerging country’, its agricultural subsidy cap will be lowered to 5% from 10%
- Read at: http://www.thehindu.com/todays-paper/tp-national/us-push-to-tag-india-as-emerging-economy-aimed-at-market-access/article6128281.ece
Exams Perspective:
- WTO
- Emerging Economies under WTO
- Food Subsidy