World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Colombia 18:

According to paragraph 21, page 130, of the Secretariat Report: "Since the removal of most quantitative restrictions on imports in 2001, a mechanism has been set up to monitor imports of items considered to be sensitive. The number of sensitive items has increased since 2007, from 300 to some 415 items (Chapter III(2)(vi)). Monitored sensitive items include bamboos, cocoa, copra, cotton, milk and milk products, edible oils, food grains, fruits and vegetables, pulses, poultry, tea and coffee, spices, and sugar."

18. Would India please explain the mechanism set up to monitor imports of such items? Since this mechanism entered into operation, has there been any ban on imports of items classified as being sensitive?

Reply: Monitoring of imports of sensitive items is being done on a monthly basis. An item is included in the list on need based basis where it is felt that import of such item should be monitored. No ban/prohibition has been imposed so far.

(b) Measures affecting exports

Colombia19:

According to paragraphs 25 to 27, pp. 131 132, of the Secretariat Report: "The 11^th Five Year Plan placed special emphasis on promoting production and exports of commercial crops and agri based processed products. Plans to promote exports include, inter alia, the revitalization of plantations, and the provision of tax incentives. However, this would require the adoption of a less controlled, more long term and stable agriculture policy, instead of ad hoc reactions to short term price fluctuations, such as export bans, which have often been at the cost of farmers. According to the authorities further development of India's new agricultural commodities futures markets would also allow for better transmission of price signals and management of risks.

India imposes export restrictions and prohibitions mainly for environmental, food security, marketing, pricing, and domestic supply reasons, and to comply with international treaties. Since 2007, some agricultural products have been subject to export prohibitions, including non basmati rice, wheat, pulses, edible oils, milk powder, casein and casein derivatives, and onions (Tables II.4 and AIII.5). Goods subject to export restrictions and quotas must also be accompanied by licences from the DGFT and, when necessary, by other permits. For instance exports of cotton require in addition to an export licence an export authorization registration certificate (EARC). Export quotas apply to organic non basmati rice and organic wheat. Export prohibitions and export quotas are notified annually; they are usually in place for a specific period, during which they may be subject to changes (Chapter III(3)(v)). These changes diminish the predictability of the regime. Minimum export prices are also maintained under the Foreign Trade Policy 2009 14 to control prices and availability in the domestic market.

In addition, to these measures, India imposes export taxes, which are used to, inter alia, ensure domestic supply of raw materials for higher value added industries; promote further processing of natural resources, ensure an 'adequate' domestic price, and preserve natural resources. Export taxes are sometimes used in combination with other measures to attain short term goals. For instance, in April 2010, India introduced export licensing/EARC requirements for six months on raw cotton and cotton waste, in addition to export taxes, with the purpose of ensuring adequate domestic supply and containing cotton price increases in the domestic market."

19. Would India please explain how these measures are consistent with the WTO rules and the Agreement on Agriculture in particular? How are the minimum export prices to control prices and availability in the domestic market calculated and to which products do they apply?