On issues such as investment and competition policy, India believes that a multilateral agreement would constitute serious protection of countries` sovereign rights. To some extent, this is obviously inherent in any multilateral treaty, but investment is seen as an area in which the abandonment of sovereignty would leave too little room for governments, particularly governments in developing countries, to guide investment in areas of national priority. The United States had argued that these systems were contrary to certain provisions of the WTO Agreement on Subsidies and Countervailing Measures (SCM) that prohibit subsidies that depend on export performance. Under the agreement, India was excluded from this provision only until its gross national product per capita reached $1,000 per year. In June 2007, the Doha Round negotiations failed at a conference in Potsdam due to a major impasse between the United States, the EU, India and Brazil. The main problem has been the opening of agricultural and industrial markets in different countries and the question of how to reduce agricultural subsidies to rich countries. We can look at the WTO in different ways. As it happens, the WTO is an organization responsible for trade liberalization. It is a forum to negotiate trade agreements for different governments. It is a place where trade disputes are settled. It manages a system of trade rules.
Given that we can see that the subsidies were tied to the 1986-88 level, there were inequalities at the beginning of the agreement. At the time, subsidies under «Amber Box» were historically high in Western countries. In developing countries, including India, these subsidies were very limited. Only now have subsidies reached this level under the pressure of inflation in terms of agricultural input prices and the large differences between market prices and the minimum support price. Indeed, industrialized countries are allowed to maintain much larger trade-distorting subsidies. It should be noted that, in accordance with Article 3.1 of the WTO SCM agreement, all developing countries with a gross head ratio of $1,000 per year are required, for three consecutive years, to end all export incentives. a. Agriculture – The first proposal in Qatar in 2001 required that the final agreement commit to significantly improving market access; reduction (and final removal) of all forms of export subsidies (including under the green box and blue box); substantial reductions in trade-distorting support. Coverage of higher education within the GATS will promote the treatment of education as a commercial commodity. Any agreement may limit the Indian government`s authority to provide subsidies and assistance to the sector.