Members raised several questions relating to India’s domestic or export support programmes.

Canada and the EU asked India about its new crop insurance scheme that the government announced in January 2016. They noted the scheme would bring down the rate of premium to be paid by farmers to 2% of the sum, and the India government hopes that the scheme would cover over half of Indian farmers within two years. Canada, Thailand and Australia also showed interest in knowing more about India’s policy. India provided a website where more information of the scheme is available.

The United States asked several followed-up questions about India’s export assistance programmes, previously raised at the Committee’s September 2015 meeting. According to the US, the Indian government operated an export assistance programme for a number of agricultural products from 2004-2014, and in 2014 it introduced another programme which appeared to have some similar components to the previous programme. The EU, Ukraine and Canada also signalled interest in the issue. India provided some detailed clarifications on the eligible products, and the use of duty credit scrips under the support programmes.

Australia and the European Union questioned India’s sugar export subsidies, an issue raised at the previous agriculture meeting. India said that it introduced marketing and promotion services for raw sugar in February 2014 and the programme was discontinued in October 2015. It stressed that the payment to sugarcane farmers is not an export subsidy but purely aims at compensating the farmer. South Africa, Ukraine, Colombia, Costa Rica and Brazil also signalled their interest in the issue, noting the Nairobi decision on export competition.

The United States questioned Canada about wines sales regulations in British Columbia, where local wine may be exclusively sold on regular grocery store shelves, and imported wine can only be sold in a “store-within-a-store” with controlled access and separate cash registers. The U.S. commented that such policy would grant more favourable treatment to local wine, and thus is potentially at odds with the WTO’s national treatment principle. Australia, the European Union, New Zealand and South Africa also voiced their concern on the issue.

In response, Canada explained that the practice of exclusively selling British Columbian wine at certain locations has existed for many years and is grandfathered through many trade agreements. The regulations aim to address public health and safety concerns to prevent minor access and minimize shoplifting of spirits.

Canada sought clarification on China’s new agriculture policy set out in China’s 2016 central government document. The questions were echoed by the US and the EU.

China said that it has implemented policies such as minimum price procurement to ensure food security and address environmental concerns. The government is carrying out a number of reforms aiming to move towards more market-oriented agricultural policies, including letting qualified private enterprises compete on equal footing with state-owned grain companies. China also informed members that it intends to carry out target price insurance schemes as pilot programmes in some regions.

Indonesia raised concerns on France’s amendment to the proposed law on biodiversity, which proposes to impose a special tax for importation of palm oil and its derivatives. Indonesia said that although it respects members’ need to protect public health, policy measures should be based on sound scientific evidence and should be least trade-distorting. Malaysia and Colombia raised similar concerns on the issue.

The EU, replying on behalf of France, said that the process of legislative amendment is currently underway and it will be able to provide an answer at a later stage.

Canada and the EU asked Japan about its program to support pig and cattle producers; the question was supported by the US, Canada and Ukraine.

Japan said that the support programme is part of a policy framework relating to the country’s signing of the Trans-Pacific Partnership. The existing support programme covers 80% of difference between farmers’ production costs and retail prices, but will increase to 90%. The government will also raise its share of contribution in the programme.

Ukraine raised concerns about Russia’s decision to limit all international transit of cargo from Ukraine to Kazakhstan via two check points at the Russian-Belarusian state border.  Ukraine argued the requirement lengthens the shipping distance, resulting in delays and additional transport costs. Although these border measures affect all trade, they particularly affect trade in perishable agricultural goods.

Russia, in response, said that the issue had been discussed during the WTO General Council meeting and the measure does not specifically relate to agriculture products. Russia confirmed that it takes its WTO obligations seriously, including trade relations with Ukraine.