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Home / IAS Preparation / Nairobi Package

Nairobi Package - Adoption of Nairobi Package, India’s Concerns, Nairobi Declaration And More

Last Updated on Sep 08, 2023
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The “Nairobi Package” was adopted at the Tenth Ministerial Conference held at the World Trade Organisation (WTO). The conference was held in Nairobi, Kenya, from 15 to 19 December 2015. Nairobi Package is a series of six Ministerial Decisions about cotton, agriculture, and some issues regarding the least-developed countries (LDCs). After the five-day Conference, a Ministerial Declaration describing the Package and the World Trade Organization’s (WTO) upcoming efforts was approved.

Nairobi Package is one of the important topics for the UPSC IAS Exam. It also covers a significant part of the Environment subject in the General Studies paper-3 syllabus. In this article, we shall cover Nairobi Package, WTO’S Special Safeguard Mechanism, India and Nairobi Package, and its relevance for UPSC.

Also, check out the article on Shangri La Dialogue here.

What is the Nairobi Package?

The package included six Ministerial Decisions focused on cotton, agriculture, and concerns of least-developed countries (LDCs). One of the decisions involved the commitment to abolish export subsidies on agricultural exports. Developed countries were required to immediately eliminate farm export subsidies, except for a few products. Developing countries were given until 2018 to eliminate export subsidies on agricultural exports, with flexibility for covering marketing and transport costs until 2023. The poorest and food-importing nations were given additional time to comply. Additionally, a deal was made on IT trade, aiming to eliminate tariffs on 201 IT products annually, making all IT products duty-free by 2019.

Also, check out the article on the Challenges of Food Security in India here.

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Adoption of Nairobi Package in WTO’s 10th Ministerial Conference

The WTO's 10th ministerial conference adopted the Nairobi conference. It was attended by trade ministers of 162 member countries of the WTO. India was represented by then Minister of State (Independent Charge) for Commerce & Industry Nirmala Sitharaman. It is the first such summit meeting hosted by an African nation.

Agreements on Agriculture

Ministers in Nairobi protocol conference approved a decision on the Special Safeguard Mechanism (SSM) for Developing Countries.

Special Safeguard Mechanism for Developing Country Members

The SSM enables developing nations to raise tariffs on agricultural products temporarily. It was in response to spikes in imports or drops in pricing. Of this decision, the Agriculture Committee will continue to meet to negotiate the mechanism, and the General Council will periodically assess the status.

Public Stockholding for Food Security Purposes

Ministers at the Nairobi Conference agreed upon a Decision on Public Stockholding for Food Security Purposes, and it binds WTO members to actively participate in finding a long-term solution to this problem. The talks on this issue must occur in focused sessions with a hurried timetable to reach a permanent resolution.

Export Competition

A Ministerial Decision on Export Competition, which includes a promise to end subsidies for farm exports, is a key component of the Nairobi protocol. It also included decisions on international food aid, exporting state trading enterprises, eliminating agricultural export subsidies, new regulations for export credits, and other significant decisions. These problems are referred to as “export competition” collectively.

Cotton

A resolution on cotton was approved by the Nairobi Conference, which forbade export subsidies and urged additional domestic support reductions. It also demands that least-developed countries (LDCs) market access be improved. The decision seeks to level the playing field for cotton exporters in the world’s most impoverished nations, where the cotton industry is crucial.

LDC Issues

Preferential Rules of Origin for Least Developed Countries

The least developed nations (LDCs) are the world’s poorest nations. Of the 48 LDCs identified by the UN, 34 are WTO members, while two others, Liberia and Afghanistan, await the Nairobi protocol meeting of WTO ministers to approve their membership.

Implementation of Preferential Treatment 

Favor of Services and Service Suppliers of Least Developed Countries and Increasing LDC Participation in Services Trade. Rules of origin are the standards used to identify the country of origin of a product. A key component of establishing trade preferences is determining the rules of origin because they specify the requirements that a product must meet to qualify for this preferred treatment.

Also, check out the article on WTO Ministerial Conference here.

India’s Concerns Regarding Nairobi Package
  • Two of the components of the Nairobi declaration, a permanent solution to the problem of public stockholding for food security and a Special Safeguard Measure (SSM) to shield farmers from import surges, were of particular importance to India-Africa Relations.
  • According to the Nairobi package conference conditions, India was restricted from providing export subsidies for sugar and other agricultural products after eight years.
  • No final decision was reached on public stock ownership and Special Safeguard Mechanisms (SSM).
  • India argued that public food procurement is exempted from subsidy reduction negotiations under WTO rules.
  • The agreement limits 10% of the total food grain production for public stockholding.
  • India requested perpetual permission to feed the hungry and impoverished within the nation without violating international law instead of relying on a peace clause or reserves.
  • The failure to uphold the Doha Development Agenda during the Nairobi discussions was a significant setback for India and other developing nations.
  • Many developing nations, including India, risk exceeding the subsidy cap, potentially leading to disputes at the WTO's dispute resolution mechanism.
  • Developing nations have asked for more flexibility, but industrialized nations, which also subsidize agriculture, have hesitated to comply.

Also, check out the article on United Nations Conference on Trade and Development (UNCTAD) here.

About WTO’S Special Safeguard Mechanism

The WTO's Special Safeguard Mechanism (SSM) is a safety net that enables developing nations to impose temporary tariffs on agricultural imports harming domestic farmers. If the import increase results in welfare losses for the domestically poor farmers, the backup plan is to impose tariffs. Under the WTO, there is contention over the creation and application of the SSM.

What is Nairobi Declaration?

The Nairobi Declaration was adopted in Nairobi package to commemorate the Stockholm Conference on Human Environment’s 10th anniversary in 1972. The 1982 Conference, which occurred from May 10 to 18, attracted 105 nations. By the Declaration, a special commission would be established to formulate long-term environmental plans for ensuring sustainable development up to and after 2000. The General Assembly of the UN and the UNEP’s governing council supported the Declaration in 1987.

Study in detail International Organization & their headquarters for UPSC with this link!

Nairobi Convention 1982

The Regional Seas Programme of the UN Environment includes the Nairobi Convention, which was initially signed in 1985 and came into effect in 1996. Through the responsible management and use of the marine and coastal environment, the initiative seeks to stop the rapid degradation of the world’s seas and coastal regions.

Conclusion

The Nairobi Declaration was an important ministerial conference. It outlines the future work of WTO and greatly impacts multilateral trade agreements for least-developed countries.

Nairobi Package – 10th WTO Ministerial Conference for UPSC Notes!

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Nairobi Package FAQs

Nairobi package is a conference that was held in Nairobi, Kenya, from 15 to 19 December 2015. It was adopted in the Tenth Ministerial Conference held at the World Trade Organisation (WTO)

The Nairobi Declaration a conference was adopted in Nairobi to commemorate the Stockholm Conference on Human Environment's 10th anniversary in 1972.

The Special Safeguard Mechanism of the World Trade Organization is a unique protection mechanism for developing countries that enables them to raise taxes on agricultural imports that hurt local farmers.

A resolution on cotton was approved by the Nairobi Ministerial Conference, which forbade export subsidies and urged additional domestic support reductions.

The major concern of India with respect to the Nairobi Package was that India would not be able to continue providing export subsidies for sugar and other agricultural products after eight years.
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