CURRENT AFFAIRS

Detailed explanation-1: -Geneva: China and India have jointly proposed the elimination of $160 billion of trade-distorting farm subsidies in the US, European Union and other wealthy nations, a move that has come as a game changer in global farm trade negotiations at the World Trade Organization, say trade envoys familiar with the development.

Detailed explanation-2: -The MOCI is mandated with the primary responsibility for all WTO-related issues.

Detailed explanation-3: -After over 7 years of negotiations the Uruguay Round multilateral trade negotiations were concluded on December 15, 1993 and were formally ratified in April 1994 at Marrakesh, Morocco. The WTO Agreement on Agriculture was one of the many agreements which were negotiated during the Uruguay Round.

Detailed explanation-4: -What is the role of India in WTO? Thus, India leads efforts to reform WTO subsidy rules to enable developing countries to engage in public food stockholding for food security purposes. It also calls for making the multilateral trading system more fair and inclusive.

Detailed explanation-5: -The principal arguments against subsidies are as follows: ii. The maximum benefit of subsidisation of inputs is reaped only by large farmers, who possess the capacity to buy inputs at higher prices. iii. Input subsidies tax the budgetary capacity of the government.