THE RESISTANCE OF INDIA TOWARD WTO AGREEMENT IN THE 9TH MINISTERIAL CONFERENCE IN BALI 2013

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The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

Undergraduate Thesis

Submitted as one of the requirements to obtain an undergraduate degree (S1) in Department of International Relations, Faculty of Social and Political Science

University of Muhammadiyah Yogyakarta

By:

Winda Shouvi Warabsari 20110510354

DEPARTMENT OF INTERNATIONAL RELATIONS FACULTY OF SOCIAL SCIENCE AND POLITICAL SCIENCE

UNIVERSITY of MUHAMMADIYAH YOGYAKARTA 2016

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The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

Undergraduate Thesis

Submitted as one of the requirements to obtain an undergraduate degree (S1) in Department of International Relations, Faculty of Social and Political Science

University of Muhammadiyah Yogyakarta

By:

Winda Shouvi Warabsari 20110510354

DEPARTMENT OF INTERNATIONAL RELATIONS FACULTY OF SOCIAL SCIENCE AND POLITICAL SCIENCE

UNIVERSITY of MUHAMMADIYAH YOGYAKARTA 2016

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VALIDATION PAGE

The Resistance of India toward WTO Agreement in the 9

Ministerial Conference in Bali 2013

By:

WindaShouviWarabsari 20110510354

It has been maintained in oral test and be vowed graduated and passed in front of the undergraduate thesis examiner International Relations department Faculty of Social and Political

Sciences University of Muhammadiyah Yogyakarta Day/Date : Saturday, April 14th2016 Time : 08.00

Place : HI C

The Examiner Chairman

Drs. BambangWahyuNugroho, S.IP., M.A. 19660426199409163027

First Examiner Second Examiner

RatihHerningtyas, S.IP. M.A Dra.MutiaHariati HusseinM.Si. 19780121200104163070 19620619199202163017

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STATEMENT of AUTHENTIC UNDERGRADUATE THESIS PAGE

Name : Winda Shouvi Warabsari NIM : 20110510354

Concentration : Global Concentration

Department : International Relation Program Faculty : Social and Political Science

Declare earnestly that thesis and research with the title “The Resistance of India toward WTO Agreement in the 9th Ministerial Conference in Bali 2013” was actually performed and can be responsible for its authenticity. May be useful for science and further research can also enrich previous studies.

Author, September 6th 2016

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DEDICATION PAGE

All praises to Allah, who always guide me in His Light in the darkness. All praises to Allah who always give strength when I am week.

I am so grateful to my parents who always support and help me to finish my

Undergraduate study in International Relation Program in Muhammadiyah Yogyakarta. H. Suwarto, S.Ag

Hj. Nur Rahayu Rahmaningsih

To my daughter, you are my biggest power to finish my undergraduate study. Sakina Maulidia A.

For my brother and sister, hopefully learn and live a good education better and higher Abidzar Rafa Kendra and Tsalisa Kinda Salama

Special thank you for my besties, your support really means for me

Annisa Assadah, Win Ken, Nova Nurlia, Afifah Islamiyah, Nero and Chandra Kurniawan

And also,

All the biggest family of International Program for International Relation Muhammadiyah University of Yogyakarta

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FOREWORD

Assalamu’alaikum wr.wb.

All praises to Allah SWT, Alhamdulilah. God the Most Gracious and Most Merciful who has bestowed His Mercy and Grace so that authors still rated health, strength, and the opportunity to be able to complete the thesis entitled “The Resistance of India toward WTO Agreement in the 9th Ministerial Conference in Bali 2013”. Along greetings and prayers are extended to the Prophet Muhammad.

Peace is upon you, and Allah mercy and blessings. This undergraduate thesis is submitted as one of the requirements to obtain an undergraduate degree (S1) in department of International Relations, faculty of Social and Political Science, Muhammadiyah University Yogyakarta. The preparation of this paper would not be possible without any support of all those who helped, either time, energy, thoughts, guidance, advice, and the facilities were very helpful and useful in the process of making this thesis. Therefore, author expresses many thanks to:

1. Mr. Drs. Bambang Wahyu Nugroho, S.Ip ., M.A as the guidance who pleased to take the time, energy, thoughts, and patience to guide and give instructions in writing this essay.

2. Mrs. Ratih Herningtyas, S.Ip. M.A as the first examiner who pleased togive thoughts and criticism for this thesis.

3. Mrs. Dra. Mutia Hariati Hussein, M.Si as the second examiner who has given the criticism and input for this thesis.

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4. All lecturers in the department of International Relations program who has given their knowledge to the author during a lecture study in Muhammadiyah University of Yogyakarta.

5. Office employees in department of International Relations, especially Mr. Waluyo and Mr. Ayub who patiently helped research in the administrative process during the study.

Through the help, guidance and blessing from their prayers, this thesis can finish. Finally, the author hopes that this paper can be helpful and useful for everyone who needs.

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Muhammadiyah University of Yogyakarta Faculty of Social Science and Political Science Department of International Relation

Global Concentration Winda Shouvi Warabsari 20110510354

The Resistance of India toward WTO Agreement in the 9th Ministerial Conference in Bali 2013

Year of Undergraduate Thesis: 2016 + Bibliography: 13 online sources+ 14 books Abstract

This thesis aims to describe the resistance of India toward Bali Package at the 9th Ministerial Conference of WTO 2013, which reject the argument of United States who wants to abolish the food subsidies. In fact, if the subsidy was abolished, it will influence the food security of India. The existence of India as one of developing country members in WTO, forced the India government to create regulation to safe its people. Considering India as one of the agricultural country with the second highest number of population in the world.

The author collects data from website, mass media, and book to analyze the resistance factors of India toward the WTO agreement in the 9th Ministerial Conference 2013. The theories applied in this thesis are foreign policy theory from K.J Holsty and national interest concept.

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TITTLE PAGE...i

VALIDATION PAGE……….……ii

STATEMENT OF AUTHENTIC UNDERGRADUATE THESIS PAGE………iii

DEDICATION PAGE………iv

FOREWORD………..………v

TABLE OF CONTENTS………vi

ABSTRACT………..vii

CHAPTER I INTRODUCTION ... 1

A. Background……….………1

B. Research Question………...…8

C. Theoretical Framework………...8

D. Hypothesis……….…………15

E. Research Scope……….…...15

F. Research Method……….…………..……15

G. Outline……….……….….16

CHAPTER II WORLD TRADE ORGANIZATION IN ECONOMIC OF DEVELOPING COUNTRIES……….…………18

A. History of WTO………..…….….18

B. World Trade Organization Structure………..………..………23

C. World Trade Basic Principle………...…..…26

D. Trade Agreement Substance of the World Trade Organization (WTO)………...…………...29

E. WTO Impact on Economic of Developing Countries………..………..……33

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A. India Economic Growth……….…..….39 B. India Position within the WTO System………...43 CHAPTER IV India Attitude towards the Bali Package on the 9th Ministerial Conference of

WTO in Bali………...………...…...…..48

A. Implementation of the 9thMinisterial Conference of WTO in Bali……...48 B. India Attitude toward the Bali

Package…..………52 C. India's Reason to Reject the Bali Package………53

C.1. The Scheme of WTO in Decreasing the Subsidies is Threatened India………...….54 C.2. WTO is Potentially Create a Food Crisis………..…….56

CHAPTER V CONCLUSION….…………..……….……….………...60

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Muhammadiyah University of Yogyakarta Faculty of Social Science and Political Science Department of International Relation

Global Concentration Winda Shouvi Warabsari 20110510354

The Resistance of India toward WTO Agreement in the 9th Ministerial Conference in Bali 2013

Year of Undergraduate Thesis: 2016 + Bibliography: 13 online sources+ 14 books Abstract

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The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

CHAPTER I

Introduction

A. Background

India is a country in the southern part of the Asia which has the second largest population in the world, with a population around 1.2 billion people.1Geographically, India has a lot of large rivers such as the Ganges, the Brahmaputra, the Yamuna River, the Godavari River and the Krishna River.2 These rivers contribute as factors of fertile land in India. It puts the agricultural sectors as the important sectors since long time ago. This condition caused why the approximately 800 million of India’s population lives depend on agriculture as livelihood.

India is one of the founders and participated in signing of the GATT (General Agreement on Tariffs and Trade)3in October 1947. Later, India was known as a spokesman for developing countries whose concern about the discussions to develop GATT. India’s participation in international economic negotiations as an illustrator of

http://data.worldbank.org/country/india accessed on September 2nd 2015

http://www.mapsofindia.com/geography/ accessed on January 2nd 2016

3_{GATT was an intergovernmental agreement and has the same status with a variety of other bilateral trade}

agreements. But, judging from the substance, when negotiations were held to formulate the GATT

agreement, the substance, principles, and systems are contained in the agreement envisaged in order to then operate under the umbrella of ITO. GATT basic purpose is to provide a conducive environment for the travel trade among nations through a gradual reduction of import tariffs. Implementation of the objectives contained in an agreement made the United States in the years 1945-1947. Furthermore, GATT has the principle that the particulars in summary. MFN is the principle that the international trade among members of the GATT should be implemented in non-discrimination. Thus, the main principle is that the concessions granted to one trading partner countries should also apply to all other countries.

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developing countries with their attention to the interests of commerce and the world trading system as the access of national development. Rationally trade is capable of bringing the country towards the openness of the condition of the world increasingly complex and integrity. Martin Wolf as an economic scientist justifies that of the people.4The activeness of India firmly believes that trade is a path of prosperity, as observers economist confirmed that the integration of international trade opportunity. At the time Uruguay and approval of the results of these negotiations by ministers from participating countries at Marrkesh, April 1994, the international trading system is experiencing a new phase. GATT has evolved into a new form, as the World Trade Organization (WTO). Then, the WTO will become an international organization with attributes, as well as with much broader authority than the GATT. WTO was officially established on January 1st 1995, in which the establishment of the WTO agreements ratified by 78 members of states. India continued to show its existences in consciousness implementation of international trade. Of the 78 member countries, India included in the membership as a state that is very active. Understanding the presence of the WTO, in its development, there was a debate about expanding trade, not only their attention to the economic but also political issues. This is due to the actors involved, both the developed and developing countries.

The concept of free trade which should be promoted by WTO is considered as even more ensnare and plunge the developing countries. This is the logical consequence

4_{See Martin Wolf on the defense of liberal democracy in globalization. Martin Wolf, 2005, Why}

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spur developing countries begin logically at every meeting or WTO round. In the end of 2013 at stake for developed stated and developing state who gathered in the WTO. The 9th Ministerial Conference of WTO held in Bali, Indonesia, in December 2013, aimed to be a place for these state interests, also aimed to be a determination sustainability of the Doha Development Agenda (DDA), the round negotiations Current WTO. At that time, the WTO negotiations narrowed down to three main issues, namely agriculture (food security), trade facilities, and flexibility for the poorest state (Least Developed State). The agriculture issues are converging on the issues of food reserves (public food stockholding) within a certain time period, in this case four years. Food reserves are considered the WTO as trade-distorting, although on the other hand food subsidies bin advances state remains permissible. The issues of trade facilities belongs to the developed states urging the construction of facilities that facilitate trade in developing state or poor states to smooth trade global supply chain.

The storyline in Bali round showed the persistence of India who loudly reject Bali consensus. Contradictions over India’s attitude with the attitude of developed state indicate that India is not willing to be dictated by the WTO regime that perpetuates unilateral advantage that for developed states. India is contradictory attitude reaped by rules or regulations on agriculture. The difference in attitude in the form of India asked for an indefinite period whiles the application of additional agricultural subsidies developing state from 10% to 15% of the production value. In fact, developed states like the United States has softened to provide additional, but the record could only be granted

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for four years.5 The debate launched by India is an action that is highly appreciated for the critics to WTO. Attitude endorsed by India is not just usual reason alone, but about the future of India as a state. On the other hand, the free market regime could overturn the India towards a state collapse.

In the agriculture sector a problem for India as 2nd largest population density in the world, and also about 56% of India’s population are farmers. The correlations between where population density and largely absorbed the number of workers on the farm son that it becomes the influence of food security issues. This is due to food security is not only a sensitive issue for India but it also has a high dimension because it is the responsibility of the state over its people in protecting food security has become a national consensus.

Currently, in the India agricultural sectors some foreign products have dominate the India’s market, among others are Swiss cheese, apples from New Zealand, chocolate from Brazil, and biscuits from Thailand. Imported products that circulate freely in India are one of the results of India-WTO agreement in AOA (Agreement of Agriculture). This agreement aims to increase market access for foreign food. This is clearly detrimental to the people of India, since the products of western world has the advantage both price and quality. Noticeably higher subsidies and the technology applied to the agriculture of their western state, so that the products become better and can be cheaper while India does not

5_{”SoalPertanian India Tak Mau Kompromi di Pertemuan WTO”, accessed}

onhttp://dunia.news.viva.co.id/news/read/463263-soal-pertanian-india-tak-mau-kompromi-di-pertemuan-wto on September 4th 2015

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provide a subsidy of western states and farmers are still using traditional techniques.6 This problem is certainly a big problem for India because the agricultural sector is the largest sector for the India economy. This sector employs 52% of India’s total labor force, so that the difficulties faced by farmers are the difficulties of families in India. A difficulty faced by India farmers are so described by the farmers’ very high suicide rate because they could not handle their problems. There were approximately 200 thousand India’s farmers committed suicides since 1997.7

On the other hand, the export market of India does not gain considerable advantage of this free trade system. In 2010, India’s import of goods amounted to US $ 322.702 million and services amounted to US $ 116.906 million. While exports of goods amounted to US $ 216.162 million and services amounted to US $ 109.514 million.8 This figure illustrates that India is less capable of flooding the world market. On the other hand, the local India market in expansion by other state. In the field of export, India products are still less competitive with products of the western world. For example, India Oil Corporation is engaged in oil and gas which is the largest company in India, currently has revenue of US $ 68.83 billion.9 This value is still unable to compete with the influx of other large companies such as Exxon Mobil which have a turnover of US $ 486.29

India: Flood of Food Imports Could Destroy Indian Agriculture, accessed http://www.twn.my/title/flood-cn.htmon September 10th 2015

7_{BBC News, accessed on}_{http://www.bbc.co.uk/news/world-india-asia16281063}_{on September 10th 2015} 8

The Federation of International Trade Associations, accessed on http://fita.org/countries/india.html on September 12nd 2015

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billion.10 The company even made difficult by the many other oil companies coming to India.

Imbalance that emerged is the subsidy itself, in which the developed state gives the disbursement of subsidies to the agricultural sector. The developed state, such as United States has been providing subsidies to the agricultural sector no less than US $100 billion per year. While, other states in Europe disburse subsidies at least 80 billion Euros each year. It means that fact overturn on the reality in which the developed states are keeping off from the free trade’s trap and secure their state, whereas the developing state, especially India, overshadowed frightened by the absence of the subsidy may be granted by government so that the stakes are causing social frustration that helped frame the presence of the destruction of the nation.

In a debate with United States in the WTO in Bali which supports the elimination of subsidies for each state, it is not acceptable to India, where India is very different position with the United States. Take for example about poverty, increased revenue does happen but not too significant to overcome poverty, but vice versa. As many as 28% of India’s population lives below the poverty line in 2006 and increased to 37.2% in 2010, and 75.6% of people living on less than 2 dollars per day.11 Furthermore, free trade seems to benefit a very small and could not improve the life of the India community. This is very different from what happened in the United States. Free trade principles of the WTO do not seem capable of creating economic prosperity and stability in India.

10_{United State Exchange and Security Commission, accessed on}

http://www.sec.gov/Archives/edgar/data/34088/00119312511050134/d10ka.htmon September 12nd 2015

United Nations Development Programme, Human Development Indices, accessed

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Inequality competition with products imported from the west are considered superior and because the quality of goods produced by India production technologies tend to be simple compared to the production of goods competitor states like the United States, particularly the agricultural sector. The sectors affected most of the free trade policies. India does not provide a subsidy of western state and farmers are still using traditional techniques.12

Other imbalances occur in the export-import sector. India received a number of imports were very much but cannot compensate for the amount of exports which is also supposed to be high. Even in the last 6 years, many India farmers suffered losses and frustration and more than 3,000 India farmers commit suicide. Potential causes of the occurrence of an extreme case of this are the exploitation by multinational agribusiness companies and the severe economic inequality.13

It is very irony to review the facts when the existence of WTO that is actually capable of overturning the developing state, especially India. Although the membership of developing state very much in participating, but mechanism of voting power at the meeting in Bali show which one dominates and which one participates. This then attracted the attention to explore the India attitude that refuses Bali Package at the 9th Ministerial Conference of WTO in Bali 2013, especially in the agricultural sector which is considered lame.

Op,Cit., Third World Network, Flood of Food Imports Could Destroy Indian Agriculture

WTO Kills Farmers: India Free Market Reforms Trigger Farmers’ Suicides, accessed on http://www.globalresearch.ca/index.php?context=va&aid=6522accessed on September 11th 2015.

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B. Research Question

Based on the problems background that has been mentioned above, the subject matter is formulated: “What factors affect the attitude of the India rejection of the WTO Agreement on Agriculture Scheme at the Ministerial Conference in Bali 2013?”

C. Theoretical Framework

1. Foreign Policy Theory

Foreign policy is a strategy or plan of action to achieve the national interest. The purpose of foreign policy is actually a function of the destination country. The destination is influenced by the target as seen from the past and aspirations for the future. The purpose of foreign policy is designed, selected and determined by the decision maker and is controlled to change the policy (revinist policy) or retain the policy (status quo policy) certain state in the international environment.14

Foreign policy is an action or idea designed by policymakers to solve a problem or expedite changes in the environment, i.e. in policy, attitude or actions of other countries. Four components in understanding foreign policy by K.J. Holsti from general to specialized, namely: (1) Orientation Policy, (2) Role of the National, (3) the National Interest, (4) National Action.15

According K.J. Holsti, there are three criteria for classifying foreign policy objectives, namely: first, the value, which is composed of national interest that core /

Perwita, A.A Banyu andYani, Yanyan Mohammad, “PengantarIlmuHubunganInternasional”, (Bandung: RemajaRosdaKarya, 2006).p.51

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basic / vital interest or secondary interest. The second criterion, the time period required to achieve the objectives set, namely whether the short-term, medium term or long term. The third criterion is the type of interest posed by a country to another country.16

In the implementation of foreign policy, there are three determinants that need attention. The first is the national interest, in which foreign policy is a reflection of a country's national interests against external environment. Foreign policy as a reflection of the national interest put forward by J. Frankel” Foreign policy is a reflection of the national interest aimed abroad, which is not separate from the overall national goals, and remains a component or element of the conditions in the country.”17

Noteworthy in the linkage of national interest and foreign policy is that the implementation of foreign policy as much as possible can benefit the national interest, whether measured in terms of the interest of public safety and national security, as well as measured by the increase in prosperity and national welfare. The second determinant related to foreign policy is national capability. National capability is the ability of a nation, either actual or potential nature. All the power of nation both manifest and latent is covering all the resources attached to the nations concerned.

Foreign policy strategy is an output. While the input comes from the conditions of external and internal environment that is converted to input, through the process of understanding the situation that is associated with the determination of objectives to be achieved, the mobilization to achieve these goals and concrete efforts in realizing the objectives that were set.18

Op.Cit, Perwita, A.A Banyu danYani, Yanyan Mohammad.p.53

J.Frankel, HubunganInternasional, (Jakarta: ANS Sungguh Bersaudara,1990).p.55

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Foreign policy as a series or a set of commitments, referring to the strategy, special interests and goals (specific goals) and the means (means) for its achievement. Commitment and action plans can be explored from the real conditions and the real situation is in progress, so it can be more easily observed and analyzed.19

The third determinant is the international conditions with its dynamic character. Each country formulates foreign policy, but it will not be possible to organize and establish a process for international dynamics as a result of the continuous interaction between the peoples of the world. Foreign policy related to all the efforts of the national political system to adapt to the geopolitical environment and to establish control measures on the environment in order to meet the values contained in the system.20

The substance of foreign policy of a country is influenced by:21

1. External contexts factors include: the structure of the international system, the world economic structure, objectives and policies of other countries, issues of regional and global problems posed by the activities of individuals, as well as international law and world opinion.

2. The domestic political factors which include share the need for socio-economic interests and security, geographical character, national attributes,

Ibid. p.133

Ibid

K.J. Holsti, International Politics: A Framework for Analysis, 6th ed, (New Jersey: Prentice Hall International, 1992).p. 271-302.

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structure of government, public opinion, the bureaucracy as well as ethical consideration.

3. Influence perception and behavior of the policy makers; include image, behavior, values, doctrine, ideology, analogies, and even personality.

According to Rosenau, the notion of foreign policy is the effort of a country through the overall attitude and activities to cope with and benefit from the external environment.22 Foreign policy according intended to preserve the viability of the country.23 Furthermore, according to Rosenau, if we examine the foreign policy of a country, then we will enter the phenomenon of a vast and complex, encompassing the internal life and external needs which includes external and internal life such as aspiration, the attribute of national, culture, conflict, capabilities, institutions and routine activities aimed at achieving and maintaining a social identity, the law, and the geography of a country as a nation-state.24

According to a statement quoted the opinion Rosenau that foreign policy is the effort of a country through the overall attitude and activities to cope with and benefit from the external environment, at the 9th Ministerial Conference of WTO in Bali at the end of 2013, India refused Bali Package due to the following two elements which can be seen that the issue of security and well-being.

James N. Rosenau, Gavin Boyd, Kenneth W. Thompson. World Politics: An Introduction, (New York: The Free Press, 1976). p.27

Ibid. p.32

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2. National Interest Concept

In every foreign policy decision, a state always basing on the national interest of state’s concerned. National interests are often used as a tool to analyze and to determine the foreign policy objectives of a state. Paul Seabury defines the concept of national interest in two aspects, namely the normative and descriptive. Normatively, the concept of national interest refers to a set of ideals that should be made to realize by a nation in relation to other state. Descriptively, the concept of national interest can be considered as a goal to be achieved through leadership by persistent struggle.25

According to Donald E. Nuckertlein, national interest is the need and desire felt by a state in relation to other states which constitute the external environment.26 Meanwhile, according Jack C. Plano and Olton Roy, the national interest of a state is to defend the interests of survival, the independence and sovereignty of a state, military security, political and economics.27

The concept of national interest is to describe, explain, predict or suggest a state’s international behavior. Each state will strive to achieve what is regarded as the interests that must be realized, either in cooperation or coercion. According KJ Holsti national interest includes four elements, namely:28

a. Security is the ultimate goal of every state to defend itself (self-defense). Furthermore, to protect the population, the sovereign territory of the threats and not

K.J Holsti, PolitikInternasioanl: KerangkaUntukAnalisis, (Jakarta: Erlangga, 1998).p. 136

Donald E. Nuckertlein, The Concept of National Interest: A time for New Approach, Orbis, Vol 23, No. 1, 1997.p. 75

Jack C. Plano, and Roy Olton, The International Dictionary, Rienert and WistoneInc USA, 1969, terjemahanWawanJuandaAbardin p. 7

KJ Holsti, International Politics: A Frame Work for Analysis, New York: Prentise Hall International Inc, 1995. p. 137

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just in the war, and also things that is physical, but also includes in terms of population, government, economy, and ideology.

b. Autonomy, the ability to formulate domestic and foreign policies based on the authority of the government itself and all the risks, and the ability to withstand pressure, influence, and threats from other state.

c. Welfare, factors that become the measure of the success of a state. As an example of a state that has a large military force but does not pay attention to the welfare of its people is group class poor state. While the state has a military force less powerful but the welfare of the people is a good state.

d. Prestigious, excellence in the field of science and technology has an important role. In addition to the traditional view that considers the main source is the status of military force. An example is the effort made by the semi-periphery states to become the central state, the developing state or the periphery to become a developed state or semi-periphery.

India in all decisions of foreign political activity is in fact based on national interests. If related to the interests of India in rejecting subsidy reduction scheme for developing state based on various concepts of national interest above, basically the interests of India cannot be separated from security elements and welfare. When referring to Holsti’s views on the four elements of national interest, in fact overly generalize on the basis of understanding the interests of military. The author believes that the realism of seeing the world as it is, then when a war is a very possible. Then that is when the military domain is very important for every country. But today, after the cold war make

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the world a new chapter. Competition warfare dimmed, but the domain of competition is majoring in economics framework. The globalization of trade becomes the main factor. Instead each country must prepare to risk of fighting for the best possible trade, India as a developing state, concurred. The shape of the liveliness of India is the only one active in WTO. However, in the middle of the India active in the WTO, then silence in following the rules. Because India believes that the WTO could be an opportunity and a threat. Assertion India refused agricultural schemes on the 9th Ministerial Conferences in Bali is a form of a series of national policies into a form of interest.

India’s destination to reject the scheme, for the author, in the landscape realist assessed properly when performing resistance in the agriculture scheme. Two elements that can be seen are the issues of security and well-being. India is a country that has the 2nd highest population in the world. With the increasing population, it will face food problems. Currently India continues to enveloped food crisis. In national security, that food becomes the primary issue. Secondly, when food is not well allocated, and there is a reduction of productivity, of course, is a threat to the welfare of India. The author cites the words of the Minister of Commerce of India: Sharma who insists that it is the duty of the state to ensure the food security of 4.3 million people who are still poor and hungry. Therefore, India is calling for developing countries not to compromise stance on food security.

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D. Hypothesis

Based on the previously written in the problem background, the hypothesized: 1. The application of WTO policy to decrease subsidies in the agricultural sector

in India threatening the low-grade farmers in the less productivity. 2. India assumes WTO is potentially creating food crisis.

E. Research Scope

The focus of this research is examining more fundamental factors of India resistance that refused agriculture regulation rules on the 9th Ministerial Conference of the WTO in Bali 2013.

F. Research Method

This research was conducted using a qualitative approach, the researcher as the main instrument for data collection and processing or analysis of data, as well as highly focused attention on the process and the meaning of an event under study. In a qualitative approach, research can be done in three phases of data collective, data processing (data analysis), and research reports (research writing).29

This study has descriptive purpose, which aims to describe the circumstance and situation in systematic, factual, and accurate. Data collection techniques used in the research was the study of documentation and literature. In this case the author was collected information from sources such as electronic media. Primary data that was used by research is the data from the official website. While secondary data obtained from

J.W. Creswell, Research Design: Qualitative and Quantitative Approaches, Sage Publications, California, 1994. p.148

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literature reviews of a variety of sources such as journals, newspapers, magazines, books, and internet articles.

G. Outline

In facilitating the efforts of writing, the systematic writing of this will be written in terms of chapter. Systematic discussion of the research plan is as follows:

Chapter I: Introduction

This chapter describes the background of problem, research question, theoretical framework, hypothesis, scope of research, research methodology and systematic research.

Chapter II: World Trade Organization (WTO) in Economic of Developing Country

This chapter describes the background of WTO creation, the WTO structure, the basic principles of WTO, and the impact of WTO in the economy of developing countries.

Chapter III: India in the Global Trading Dynamics

In this chapter explains how the position of India in the conduct of international trade under WTO institution that runs oversees global trade, especially in the agricultural sector.

Chapter IV: The Attitude of India against the Agricultural Scheme in the 9th Ministerial Conferences of WTO

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This chapter presents the results of research and discussion, applying the theoretical framework to answer research questions. It describes the attitude of India to the WTO agreement on agriculture scheme in the 9th Ministerial Conferences of WTO in Bali 2013.

Chapter V: Conclusion

This chapter contains conclusions of the overall discussion that exist in previous chapters.

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CHAPTER II

World Trade Organization in Economic of Developing Country

A. History of WTO

The establishment of the World Trade Organization (WTO) backgrounds is inseparable from the history of the World War II. At the World War II, the allies, especially the United States and Britain initiated the establishment of international economic organizations to fill international economic policies. The first goal of the initiative is in order to legitimate the Reciprocal Trade Agreement Policy; the legislation requires the obligation of reciprocity (mutual) for tariff reductions in trade. 1The Reciprocal Trade Agreement act2 provides policies to the President to negotiate tariff reductions. The second objective provides a legal framework to prevent conflicts, such as during the events of World War I and World War II. At the World War II, all countries use protectionist economic system that resulted in the delays of international economic relations.

The inhibition of international economic relations led to the deterioration and the impact of the economic recession in the world. The Efforts to restructure international economic relations were conducted through a conference that been organized in Bretton Woods, New Hampshire, United States, at the end of the World War II, which resulted in

Huala Adolf.1998. Hukum Ekonomi Internasional, Jakarta: Rajawali Grafindo. p.20

The program of the central government legislation United States as a form of amendments to the Smoot-Hawley, set the reduction in tariff rates of up to 50% within the scope of bilateral agreements.

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several institutions such, the International Bank Reconstruction and Development (IBRD) and the International Monetary Fund (IMF). The conference, though intended in particular for monetary issues, realized the need for initiatives arrangements concerning trade in goods.3 This will be done through the establishment of the International Trade Organization (ITO). However, the United States Congress as the initiator of the ITO failed to reach agreement on the form of organization and the ITO operating system, it impacted on the ITO that was disbanded and in order to resemble it, the General Agreement On Tariffs and Trade (GATT) was established in 1947.4

WTO or the World Trade Organization is the only international organization that specifically regulates interstate commerce issues. WTO is a multilateral trading system governed by an agreement which contains the basic rules of international trade as a result of negotiations that have been signed by the member countries. The interstate approval was interaction forms that bind members to obey the government in the implementation of trade policy.

WTO was officially established on 1 January 1995. The general agreement on tariffs and trade made the rules for this system. From 1947 to 1994 the system of GATT or General Agreement on Tariffs and Trade, contains regulations concerning world trade and generate the highest growth in international trade. Nearly a half-century legal text of the GATT remained the same as in 1947 with several additions, including the consent form approved by some countries and efforts to reduce tariffs. Trade issues resolved

Op.cit., Huala Adolf, p.20

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through a series of multilateral negotiations known as the "Round of Trade" or the Trade Round, in an effort to encourage the liberalization of international trade.

Along the way GATT has conducted some negotiations as follows: 1. The first negotiations (1947), held in Geneva, Switzerland.

2. The second negotiations (1948), held in Annecy, France. 3. The third negotiations (1950), done in Torguay, Switzerland. 4. The fourth negotiations (1956), held in Geneva, Switzerland.

5. The fifth negotiations (1960-1961), done in Geneva, Switzerland. Known as “Dillion Round”.

6. The sixth negotiations (1964-1967), held in Geneva, Switzerland. Known as “Kenedy Round”.

7. The seventh negotiations (1973-1979), held in Geneva, Switzerland. Known as “Tokyo Round”.

8. The eight negotiations (1986-1994), held in Geneva, Switzerland. Known as the “Uruguay Round”.

The Eighth or Uruguay Round is considered to be one of the most decisive negotiations that determine GATT development in the future.

Uruguay is the round of negotiations that lasted the longest and included some adjustments that have broader aspects. It did not only discussed about the issue of tariffs and non-tariff, but also other issues that are classified as non-trade aspects such as intellectual property rights, and the interests of poor countries that must be considered.

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Then, on the last negotiation is also endorsed an agreement to form a trade organization called the World Trade Organization, known by the WTO.5

In the process of its establishment, there were some disagreements about the establishment of the organization itself. United States prefer a contractual approach rather than organizational approach, because the US delegation concerned that if there is an idea to establish an international organization, the Congress would reject the overall results of the Uruguay Round as well as the Congress refused to establish ITO. Meanwhile, on developing countries, part the concerns about the new organization is that its movement and regulations would only benefit the developed and super power countries so it will be much weakened the developing and weak countries. Then, it is also being a concern that the WTO would only be a tool and a means to impose its will and wisdom of the developed countries. In general, these developing countries really want an existence of strong international trade institution in order to secure in balance between rights and obligations among the interests of all member countries.

As a reaction to the contradictions that happened between the developed and developing countries, on January 14, 1994 an agreement to establish WTO was formed to meet the objectives in the terms of improving the standards of living, ensuring full employment, developing income growth and the demand is high and stable, the expansion of the production of goods and services, while optimizing the use of existing resources in accordance with sustainable development objectives.

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At the same time, it protects and conserves the environment and improves the ways of doing so in accordance with the needs and requirements of various different levels of economic growth. Then, in order to achieve these goals, it conducted the treaties that aimed at eliminating discrimination on international trade.

In addition to achieve the goal, the WTO was established to run several functions which been written on the article III of the WTO Establishment Agreement stated that the organization was formed to carry out functions as follows:

a. To assist the implementation of the administration, and to improve the achievement of the objectives of the WTO agreements and the establishment of other multilateral agreements, related to WTO.

b. As a negotiating forum between member states regarding the trade relations between them.

c. As a dispute resolution forum between members. d. To monitor the trade policies of its members.

e. To establish cooperation with the IMF and the World Bank and other organizations in order to create a better global economic policy.

In the early years, GATT trade round was concentrating in the term of negotiations on tariff reduction efforts. In Kennedy Round, were discussed the approval of tariffs and anti-dumping. Tokyo Round continued the GATT efforts to progressively reduce tariffs. The average results that obtained on one-third deduction of customs import / export against nine major industrial countries, which resulted in the average tariff on

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industrial products down to 4.7%. Tariff reductions, which lasted for eight years, the higher the rate, the cut were more proportionally spacious.6

In other issues, the Tokyo Round failed to resolve major products related to agricultural trade and the establishment of a new agreement on "safeguards" or "emergency import measures". Nevertheless, a series of agreements on non-tariff barriers have appeared in various negotiations in some cases interpreting existing GATT rules. Furthermore, the Uruguay Round led to the creation of the WTO. The Uruguay Round took 7.5 years. The round almost covers all areas of trade. At that time, the round is likely to end up in failure. The end of the Uruguay Round brought great changes to the world trading system since the creation of GATT at the end of World War II. Despite the difficulties in the beginning of the discussion, the Uruguay Round provides real results. In just two years, the participants have agreed on a package of cuts import duties on products from developing countries, dispute resolution, and agreed that members provide regular reports on trade policy. This is an important step to increasing the transparency of trade rules around the world.

B. World Trade Organization Structure

The highest body in the structure of the WTO is the Ministerial Conference (MC) is a meeting of trade ministers of WTO member countries that held once in every two years. The Ministerial Conference shall have the authority to take decisions on all matters that negotiated in lower levels and define the issues to be negotiated in the future.

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The structure under MC is the General Council (GC) which in charge for five (5) entities, they are:

1. Council for Trade in Goods (CTG), is the body which handles trade in goods, which oversees various committees plus the Working Group as well as the specialized agencies on the issue of textiles and apparel, called Textiles Monitoring Body (TMB).

Committee under the CTG is the Market Access Committee, Agriculture Committee, Sanitary and Phytosanitary committee, committee of Rules of Origin, Measures Subsidies and Countervalling committee, Custom Valuation committee, committee Technical Barriers to Trade, Anti-Dumping Practices committee, Import Licensing committee, and the Safe guard Committee.

2. Council for Trade in Services (CTS), only charge for one committee which is Trade in Financial Services Committee plus three Negotiating Group (NG), NG on Maritime Transport Services, NG on Basic Telecommunications and NG on Movement of Natural Persons. Coupled with the Working Party (WP), namely WP on Professional Services.

3. Council for Trade Related Aspects of Intellectual Property Rights (Council for TRIP’s).

4. Disputes Settlement Body (DSB). 5. Trade Policy Review Body (TPRB).

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In addition, there are also four committees due to the nature and substance of supervision is under the Ministerial Conference and General Council, they are:

1. Committee on Trade and Environment. 2. Committee on Trade and Development. 3. Committee on Balance of Payments.

4. Committee on Budget-Finance and Administration.

Under the General Council and the Committee there are two international bodies that deal with agreements that are plurality namely the Committee on Trade in Civil Aircraft and Government Procurement Committee, International Diary Council and the International Meat Council.

International trade is very crucial in establishing the prosperity of the entire nation. WTO as an international trade organization is expected to bridge the interests of all countries in the world in the trade sector through the provisions agreed upon.

Through the WTO, launched a form of trade in which the activities of trade between countries is expected to run smoothly. In principle, the WTO is a means to push for a free trade orderly and fair in this world. In carrying out its duty to encourage the creation of free trade, the WTO imposes several principles that govern the WTO.

The most important among these principles, among others, through Rates Protection Principles, National Treatment Principle, Most Favored Nations Principles, Reciprocity Principle, Prohibition of Quantitative Restrictions Principle. The principle of Most Favored Nations is the main basic principles of the WTO which states that trade

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policy should be implemented on the basis of non-discrimination that all countries should be treated on the same basis and all countries enjoy the benefits of a trade policy.7

C. WTO Basic Principle

In the development, the WTO has five (5) basic principles of GATT / WTO is as follows:

1. Equal Treatment of All Members (Most Favored Nations Treatment/MFN)

This principle is governed by Article I of GATT 1994, which requires all commitments made or signed in the framework of the GATT-WTO should be treated equally to all WTO members (the Principle of non-discrimination) unconditionally. A country is not allowed to apply different rates to the level of a country compared to other countries. On the basis of the principle of MFN, member states cannot simply discriminate against its trading partners. The desire of import tariffs granted to the products of a country should be offered to products imported from other member states trading partners.

2. Binding Rates

The principle is enshrined in article II of GATT 1994, in which each member state GATT or WTO should have a list of products or tariffs rate of import duty should be tied (legally bound). The binding of tariffs is intended to create credibility in matters of international trade or export business. That is, a member is not allowed to arbitrarily change or increase the level of tariffs.

3. National Treatment

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This principle is governed by Article III of GATT 1994, which requires that a country is not allowed to treat discrimination between imported products with domestic products (the same product) for the purpose of protection. This, among others, the domestic charges, laws, regulations and requirements affecting the sale, offer for sale, purchase, transportation, distribution or use of the product, which requires the setting of the amount of the mixture, processing or use of products in the country. Member states are required to provide the same treatment for the goods imported and local, at least not after the imported goods entering the domestic market.

4. The Protection Only Through Tariffs

This principle is governed by Article XI GATT 1994, which requires that protection of the domestic industry is only allowed through rate.

5. Special and Differential Treatment for Developing Countries

To increase the participation of developing countries in international trade negotiations, S&D set to be one of the principles of GATT/WTO. So as WTO agreements have provisions governing the special and differential treatment for developing countries. It is intended to provide easiness for developing countries members of the WTO to implement the WTO agreement.

GATT or WTO set a variety of exclusions from the following basic principles:

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Article XXIV of GATT 1994 allows WTO members to establish trade cooperation in regional, bilateral, and custom union as long as the commitment of each member of the WTO are not members of trade cooperation is not changed to the detriment of WTO member countries that are not included in the cooperation that trade.

2. General Exceptions

Article XX of GATT 1994 allows a country to conduct trade barriers by reason of protecting the health of humans, animals, and plants, importation of goods that are contrary to morals, forest conservation, prevent the trading of goods heritage or cultural value, the gold trade.

3. Anti-Dumping Measures and Subsidies

Article VI of GATT 1994, the Anti-Dumping Agreement and subsidies allow the imposition of anti-dumping duties and customs duties reward only those companies found guilty of dumping by getting subsidies.

4. Measures Safeguards

Article XIX of GATT 1994 and the Safeguards Agreement allows a country to impose quotas on imports of a product which is experiencing a surge in substantial adverse domestic industry.

5. Safeguards Measures to Secure the Balance of Payment

Prohibit the entry of a product that is proven to contain harmful diseases or infectious diseases that endanger the health of humans, animals, and plants.

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D. Trade Agreement Substance of the World Trade Organization (WTO)

The phenomenon of today's world economy makes countries in the world are required to follow the trend of economic globalization which leads to globalize in terms of a summarize compression of the World in the economic field. Economic globalization is also increasingly being developed by the principle of liberalization of trade or other free trade agreements, has had an impact on the laws of each country involved in economic globalization and free trade. Therefore the current economic globalization and free trade was difficult to be rejected and must be followed. This is because of economic globalization and the free trade evolved through negotiations and international agreements.8

The implication of economic globalization toward the law can not be avoided. Therefore, law globalization is following the economic globalization. In a sense, the substance of the various laws and agreements spread beyond national borders (cross-border). 9 In the view of Lawrence M. Friedman, who said the law was not autonomous, but otherwise the law is open at any time to outside influence.10 It is understandable that the economic globalization and free trade have caused a profound impact on the field of law. Countries in the world are involved with economic globalization and free trade, both

John Braitwhaite dan Peter Drahos, Global Bussiness Regulation, New York: Cambridge University Press, 2000, p. 23-24

Erman Rajagukguk, Globalisasi Hukum dan Kemajuan Teknologi: Implikasinya Bagi Pendidikan Hukum

dan Pembangunan Hukum Indonesia”, Medan: Universitas Sumatera Utara, p. 4

Lawrence M. Friedman, Legal Culture and the Welfare State: Law and Society, an Introduction,

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developed and developing countries, even the least developed countries should standardize the laws in their economic activities.

The economic implications of globalization for the law can not be avoided. Therefore, globalization is the globalization of the economy following the law. In a sense, the substance of the various laws and agreements spread beyond national borders (cross-border). According to Lawrence M. Friedman, said the law was not autonomous, but otherwise the law is open at any time to outside influence. It is understandable that the economic globalization and free trade have caused a profound impact on the field of law. Countries in the world are involved with economic globalization and free trade, both developed and developing countries, even the least developed countries should standardize the laws in their economic activities.

WTO as the World Trade Organization is an international organization that generated in talks Uruguay, which was held within the framework of the General Agreement on Tariffs and Trade (GATT), which began in September 1986 in Punta del Este, Uruguay, and ended on 15 April 1994 in Marrakesh, Morocco. WTO began operating as an international organization on January 1, 1995. The WTO called a vital support for strengthening the economic cooperation of the world and is also known as one of the most important international organization in the field of international economy, in addition to other international organizations. This can be observed from the opinion of Peter D. Sutherland, former Director General of GATT which delivered at the World Economic Forum:

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“Money, Finance and Trade have all tobe treated in an integrated way. The Resources that can be mobilized by the World Bank insupport of the Development of essential infrastructure and Enterprises are vital, especially to give a lead to promosing private sector initiatives. The

IMF’srole of Monetary policy is crucialone. And the new WTO will- over and above all its other specific means of gauging the appropriateness effectiveness of micro-economic policies through their impact on Trade andconsistency with multilateral rules.”11

Nowadays, the substance that being handled by WTO are extended to include a new field that had not previously been included in GATT, as policy issues in the field of investments that have an impact on trade and services trade issues within the General Agreements on Trade in Services (GATS). Within WTO, agreed international trade agreements that must be obeyed by WTO member countries, with groupings as follows:

Peter D. Sutherland, Global Trade – The Next Challenge, Davos: World Economic Forum, 28 Januari 1994

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Commodity Services Intellectual Property Right

Dispute

Basic Principles GATT GATT TRIP’s DSU

Additions Agreement on Goods and Attachment

Attachment Services Market Access

Commitment

Commitment Schedules for States Member

Schedule Commitment of

States Member (exceptions to the

MFN principle).

The agreements that occurred in the trade agreement under the WTO is primarily reduce barriers, either in the form of tariff and non-tariff barriers.12 These barriers include customs duties and the imposition of the import ban measures or quantitative restrictions on imports through setting quotas on goods selectively.13 Since the establishment of GATT in 1947, it has been held nine rounds of trade negotiations.14 This negotiation round main goal is to negotiate issues of tariff reduction on imported goods.15 The results that have been achieved through these negotiations is the reduction of tariff rates on a

Direktorat Perdagangan, Perindustrian, Investasi, dan HKI, Direktoral Jenderl Multilateral, Departemen Luar Negeri, Sekilas WTO (World Trade Organization), ed.4, Jakarta: Dit.Perdagangan, Perindustrian, Investasi, dan HKI, Ditjend Multilateral, Departemen Luar Negeri, 2006, p.6

Ibid

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regular basis on industrial products which range in percentage of 6.3% by the end of 1980.16 The era of development that arises in the aftermath of the 1980s, to encourage discussion about the constraints of non-tariff contained in the goods, services, and intellectual property rights.17

To encourage the participation of developing countries in the WTO agreement, then in the international trade agreements under this organization there are exceptions granted to developing and underdeveloped countries. Exceptions are mentioned in all the agreements agreed upon, known as Clause Special and Differential Treatment (S & D).18 Implementation of the provisions of special treatment to the developing and underdeveloped countries is often become obstacles in the trade negotiations due to the application of S & D would be strongly opposed by the developed countries that looking for a different treatment is considered to be more disruptive than beneficial.19

E. WTO Impact on Economic of Developing Countries

Since established, the roles of WTO are much more on controlling the economic policies of the member states. Inside the WTO forum, international trade agreements not only regulate the traffic of goods but also the services sector, intellectual property rights, and investment20. Primarily, WTO also agreed on a system of dispute settlement in the

Ibid

H.S. Kartadjoemana, GATT, WTO, dan Hasil Uruguay Round, Jakarta: Universitas Indonesia Press, 1998, p.77

Joseph E. Stiglitz & Andrew Charlton, Fair Trade For All – How Trade Can Promote Development,

Oxford: Oxford University Press, 2007, p. 88

John H. Jackson, et al., Legal Problem of International Economic Relations – Cases, Materials and Text on the National and International Regulation of Transnational Economic Relation, 4th edition, Minnesota: West Publishing Co, 1995, p. 1187

Peter Va Den Bossche, The Law and Policy of the World Trade Organization – Text, Cases, and Materials, 6th edition, United Kingdom: Cambridge University Press, 2007

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Dispute Settlement Understanding (DSU) that gives a legal right to member countries to oppose trade policies of other countries in terms of the policy result in losses.21

WTO member countries based on strict international trade policy could not longer be able to freely take international trade policies that are protective to its domestic industry such as providing subsidies and the provision of national charges on goods22. It can be concluded in this case the space for member states to provide protection or in relation to developing countries build national industries to be limited due to the country's sovereignty to determine the policy direction subjugated under WTO.23

Based on these facts provide an understanding of free trade system applied by WTO, it has hampered the member countries rather than provide benefits for the development of the country. One example that can be taken is the fact that happened to Vietnam, Argentina, and Haiti.24 Vietnam in early trade era in 2000 has not become a participant of the WTO. However, economic development conducted since 1980, currently has a high economic growth rate. In contrast, Argentina and Haiti is a member WTO, of the 1990s, economic growth turned out to not be improved even more likely to quit, increased poverty, foreign debt increased, which in turn give rise to considerable political dispute between the years 2000-2003.

WTO authority not only cause harm to the developing countries. With the implementation of the free market by the WTO, a lot of companies in developed

Huala Adolf, Hukum Penyelesaian Sengketa Internasional, edisi ke-2, Jakarta: Sinar Grafika Offset, 2006, p.132

Andreas F. Lowenfeld, International Economic Law, Oxford: Oxford University Press, 2002

Stephen Woolcock, The Multilateral Trading System Into the New Millenium, dalam Trade Politic: International Domestic and Regional Perspectives, 1999

Bruce Ross-Larson, ed., Making Global Trade Work for People, United Kingdom: Earthscan Publication, 2003, p. 27

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countries are moving the industrial process to the developing countries that considered having a low cost level, resulting in a decrease of employment in industrialized countries, that create unemployment rates and higher levels of well-being declining in the long term. Overall, agreement in WTO only gave benefit for multinational companies with large capital. The main objective of the WTO to develop equitable economic development, at this time ruled by the free market development for multinational companies whose inclinations are companies of the group of developed countries such as United States, Japan, or the countries in continental Europe.25

The disclaimers of the main goals due to the formation of trade agreements such as the Trade Related Investment Measures (TRIMs) and Trade Related Aspects of Intellectual Property Rights (TRIPs).26 Based on TRIPs, multinational companies nowadays is not only can be a holder of a patent new inventions, but now multinational companies is also possible may hold intellectual property rights to products that are not categorized as an invention such as seeds or varieties of crops is very important for developing countries, the majority of which agricultural country. TRIPs trade policy mentioned above will complicate the developing countries to increase the level of its economy that relies heavily on agriculture, due to access to seeds and varieties to be limited, given the multinational company will sell its product as a commodity with a price on demand or market prices.

A.F. Elly Erawati, Globalisasi dan Perdagangan Bebas: Suatu Pengantar, dalam Aspek Hukum dari Perdagangan Bebas – Menelaah Kesiapan Hukum Indonesia dalam Melaksanakan Perdagangan Bebas,

edited by Ida Susanti and Bayu Seto, Bandung: PT. Citra Aditya Bakti, 2003, p.30-31

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Based on this fact, environmental activists say that this is a violation of the rights of the farmers, considering the seeds of plants that have been patented by multinational corporations classified as genetic commons. Genetic commons is a plant seed that has been developed over a long time by farmers and developed traditionally, with a socialization process that is also traditional.27 In addition to TRIPS, WTO agreements also do not accommodate the interests of developing countries are TRIMs. Prior to the implementation of TRIM, the principle of international investment is based on Chapter VII of the Charter of Economic Rights and Duties of States (CERD), which states the country has the sovereign right and responsibility to develop economically, socially, and culturally, the implementation is done by setting policies it can support its development objectives.28 CERD in Article 2 paragraph 2 letter b, also specify a sovereign state has the right to regulate and supervise the business activities of multinational companies in the country to protect the economic and social sectors.

Two basic principles that implemented by CERN in essence determine the state's right to establish investment policies that are more directed to national development.29 The implementation of TRIM has violated any policies that can be done by the state to carry out the national economic development. One activity that is prohibited is the provision about discrimination of national and foreign products. Most of the national industries in developing countries are classified as infant industry that in essence is an

Vandana Shiva, From Commons to Cooperate Patents on Life, dalan Alternatives Task Force of the International Forum on Globalization, Alternatives to Economic Globalization: A Better World is Possible, edited by John Cavanagh, USA: Koehler Publisher, 2002, p.35

Pasal VII Charter of Economic Rights and Duties of States

Martin Khor, The WTO and the South: Implications of the EMerging Global Economic Governance for Development, dalam Globalization versus Development, edited by Jomo K.S dan Shyamala Nagara, 2001, p. 61

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industry that is still in the development stage with low production levels. Unfair competition in this case was created because equality of treatment between infant industry and multinational companies with high levels of capital and production. Appropriately through CERD, developing countries can undertake the development of small industries, through subsidies or quota restrictions, but with the implementation of TRIM then it cannot be implemented.

Other agreements that also become as obstacles to national development of developing countries is an agreement in the field of agriculture that provides an exception enforceability of rules in the Agreement on Subsidies and Counter veiling Measure. Mentioned earlier in the majority of developing countries is a country that excels in agricultural products, but through agricultural agreements, the activity is inhibited, which is currently highly industrialized countries are still using a very high subsidies to protect the agricultural sector within the country.

In the 1994’s GATT, does not specifically regulate the impact of free trade on the environment or the restriction of trade actions that would have a negative impact on the environment. Nowadays many member countries use environmental issues as one of the reasons for implementation of protectionist policy. One is as occurred in dispute resolution over the disputed DSB US - Shrimp that is based on the actions of the United States banned the import of shrimp from countries members of the WTO under the rules of Section 609 of US Public Law 101-16230 that was captured by the way can kill turtles, Submission of the dispute resolution submitted by India, Pakistan, Malaysia, and

WTO,India etc versus US: ‘shrimp-turtle’, accessed

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Thailand as the exporter of shrimp to the United States. A fourth argument is that the country is the US shrimp import ban is a violation of Article XI, GATT 1994, about quantitative restriction.

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experiencing the challenges of weather, India has also experienced population growth that is fast. Total population of India ranks second in the world. Thus, the problem of population also spread to other problems. One of them is the provision of adequate food for the entire population of India.

Moreover, the food price crisis was a highlight for policy-making in India. In the WTO Doha Round, India submitted a proposal regarding food security in developing countries. India looked at the problem of food will be a global concern and required concrete measures to address the food insecurity. India saw food price fluctuations is serious and will require the application of agricultural products and food subsidies for developing countries.

In a study of Ganguly and Gulati27, stated that India experienced a global food price crisis on 2007 - 2008, then Indian export a policy to related to some food commodities (banning the export of commodities wheat and rice) and does not allow domestic fertilizer prices have increased corresponding the global prices. In the Middle of 2009, rising food prices start with increased drought in India. Despite India's economic growth has increased, but India suffered the problem of poverty. A total of 41.6% of India's population or accordingly around 456 millions of peoples are living with wages under $ 1.25 per day. The policy is in line with India's economic architect who also served as Prime Minister of India, Manmohan Singh.

In early 2009, Manmohan Singh was re-elected for Prime Minister of India following the success of previous elections, including its success to protect India from the world food crisis. Global prices rose by 16% between June 2007 and June 2008, but the rise in food prices that occurred only reached 7.9%28. To protect the existence of grains and seeds, then in October 2007, India banned the export of non-Basmati rice. The ban resulted in a condition where the price of rice in India is being more stable. India has imposed a food policy that is supported by the food security in an effort to anticipate a surge in population. India seeks to meet domestic demand in the production of raw materials such as rice and wheat. The state plays an important role in agricultural policy based on the constitution of India. In 2009, the Indian government has issued a draft law by the national food security in the event of inflation expectations do not affect food prices.29

In 2013, the Indian government made a progressive effort for food security is being much socialized. On August 26, 2013, the Indian government launched a food

27_{Ganguly, Kavery dan AShok Gulati. 2013. ‘ThePoliticalEconomy of Food}

PricePolicy. The Case of

India’. UNU (United Nations University( WIDER Working Paper No. 2013/2014. On

http://www.wider.unu.edu/publications/working-papers/2013/en_GB/wp2013-034, accessed on January 3rd

2016

Gouel, Christophe. 2013.

‘FoodPriceVolatilityandDomesticStabilizationPoliciesinDevelopingCountries’, on

http://www.nber.org/papers/w18934, accessed on December 19th 2015, 2

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subsidy with an estimated value of 19.8 billion dollars per year. The policy program is the world's largest food program. Although the Indian domestic politics rowdy stating this policy as a popular effort ahead of the general election in May 2014. On September 2, 2013, the Indian Parliament agreed on a budget of 20 billion dollars to provide food for 800 million people living below the poverty line of a total of 1.2 billion people India. On 12 September 2013, the Indian government asserted the Indian National Food Security Act which aims to subsidize the cost of food to meet the needs of 1.2 billion people in India. Some food products are subsidized such as rice and wheat. Previous Law food safety has entered the discussion process in the form of draft Food Safety Act of India in 2009. But efforts to accelerate the ratification of the Draft Law on Food Safety marathon conducted in 2012. The Food Safety Law regulates the price of basic foodstuffs, especially food subsidies for the poor of India.

D. Conclusion

India is a country in the southern part of the Asia continent which has the second largest population in the world, with a population of around 1.2 billion. In geographical conditions, India has a lot of large rivers such as the Ganges, Brahmaputra, Yamuna River, River Godavari and the Krishna River. The existence of these streams, they cause most of the land in India to flourish. It puts the agricultural sector is the heart of life for India since time immemorial.

India is one of the founders and participated in signing the GATT (General Agreement on Tariffs and Trade) in October 1947. Later, India was known as a spokesman for developing countries concern about the discussions to develop GATT. India's participation in international economic negotiations as an illustrator of developing countries with their attention to the interests of trade and the world trading system as the access of national development. Activeness India firmly believes that trade is a path of prosperity, as observers economists confirmed that the integration of international trade an opportunity.

The 9th Ministerial Conference of the World Trade Organization is hold in Nusa Dua, Bali on December 3rd to 7th, 2013. The results of the 9th Ministerial Conference of WTO packed into Bali Package. It includes three of the agenda, namely trade facilities, agriculture sector and Development of the least developed countries (Least Developed countries / LDCs).

Bali Package is a historic moment in the course of the WTO since it was founded in 1995, which contains three important agenda, namely:

1. Developing countries and least developed benefit greatly with the result of trade negotiations that the new facility was first performed throughout the course of the WTO.

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2. Bali Package provides flexibility for developing countries, especially countries with large population such as Indonesia and India to provide subsidies with its farmers and ensure food security for the poor.

3. The result of Bali Package agreement also encouraged to pay more attention to less developed countries both in terms of market access as well as other assistance.

The agenda has provided an opportunity for developing countries and less developed benefit greatly with the results of trade negotiations that the new facility was first performed throughout the course of the WTO. Bali packages also provide flexibility to developing countries in the field of food security program. In this case, there will be a change in the Agreement on Agriculture. Bali package also includes a political commitment to reduce export subsidies in agriculture and maintain it to remain at a low level, and reducing trade barriers for agricultural products imported under the quota system. Bali Package also contains draft agreements in the field of intellectual property rights (IPR), the work program in the field of electronic commerce, the work program for the economically weak countries, aid for trade, and trade and technology transfer.

In a meeting of the WTO in Bali, December 2013, reached an agreement called Bali Package. However, before the agreement of Bali Package, when still in draft being rejected from the India government representatives. India Commerce Minister, Anand Sharma, make the effort to walk out for refusing the provisions on food subsidies. Assertion India are based on the India National Food Security Act, in which the opening listed in The India National Food Security Act 20 of 2013, that Act confirms the state should provide food and nutrients in every stage of life of its citizens, by ensuring the availability of sufficient quantity and good quality at an affordable price for all citizens. Anand Sharma, Minister of Commerce of India rejected provisions that may be harmful subsidies for grain based India policy which can provide food at affordable prices to the poor.

Once you have done a strong attitude towards Bali Package, this is then followed by other countries such as Cuba, Bolivia, Nicaragua, and Venezuela who rejected the draft WTO agreement. Measures four countries based because there is the removal of references trade embargo the United States (US) that has endured for decades. These four countries it wants the issue was taken to the WTO agreement. India is a contradiction in the attitude with the attitude of developed countries indicates India does not want to be dictated by the WTO regime that perpetuates unilateral advantage that for developed countries. India contradiction attitude reaped through rules or regulations regarding agriculture. The difference in the form of the attitude of India asked for an indefinite time of the application of additional agricultural subsidies developing countries from 10% to 15% of the value production. The gap that shows up is the subsidy itself. In which the developed countries it gives the disbursement of subsidies to the agricultural sector. Developed countries like the United States has been providing subsidies in agriculture are not less than 100 billion per year.

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Therefore, in Europe they disburse the subsidies at least 80 billion Euros each year. That is, the fact is actually overturning of reality in which the developed countries it away on a trap regime of free markets and securing his country while developing countries, especially India, overshadowed frightened by the absence of the subsidy may be granted by the government so that the stakes are causing social frustration that helped frame the presence of destruction for these nations.

The agricultural sector is an issue for India as a country that has a population density is the 2nd largest in the world, and also about 56% of India's population as a farmer. Food security is not only a sensitive issue for India but this issue also has a social dimension that high. This is because the issue of food security is the responsibility of the state over its people in protecting food security. India runs the Food Safety Law, known as the India National Food Security Law with food supplies on the market to balance the price rising. The India Food Safety Law has two objectives, namely easier access to food and support farmers in the country. A total of 22 billion dollars on welfare schemes, subsidies for rice and wheat by 67% to 1.2 billion people. This scheme will be expanded on a massive scale to strengthen the program to provide food for 218 million people.

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THE RESISTANCE OF INDIA TOWARD WTO AGREEMENT IN THE 9TH MINISTERIAL CONFERENCE IN BALI 2013

The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

The Resistance of India toward WTO Agreement in the 9

Ministerial Conference in Bali 2013

Table of Contents

The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

CHAPTER I

Introduction

A.

Background

CHAPTER II

World Trade Organization in Economic of Developing Country

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THE RESISTANCE OF INDIA TOWARD WTO AGREEMENT IN THE 9TH MINISTERIAL CONFERENCE IN BALI 2013

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Ministerial

Conference in Bali 2013

The Resistance of India toward WTO Agreement in the 9

Ministerial

Conference in Bali 2013

The Resistance of India toward WTO Agreement in the 9

Ministerial Conference in Bali 2013

Table of Contents

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Ministerial

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CHAPTER I

Introduction

A.

Background

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THE 9th WORLD TRADE ORGANIZATION MINISTERIAL MEETING AGREEMENT 2013 AND ITS IMPACT TO INDONESIA’S AGRICULTURE SECTOR

THE 9th WORLD TRADE ORGANIZATION MINISTERIAL MEETING AGREEMENT 2013 AND ITS IMPACT TO INDONESIA’S AGRICULTURE SECTOR

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