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Zoellick raises hopes for successful WTO talks

Sumeet Chatterjee in New Delhi

India and the United States have signaled agreement on contentious issues within the World Trade Organisation after a two-year standoff, triggering hopes of a positive outcome at the Doha round of ministerial meeting.

United States Trade Representative Robert Zoellick, currently on a visit to India, has told New Delhi that Washington appreciates its concerns over linking non-trade issues such as environment and labour standards with trade.

Analysts say a shift in the US position will send positive signals when trade and commerce ministers of WTO member nations meet at the Qatar capital later this year to fix the agenda for the next round of global trade negotiations.

They said measures such as the restoration of duty-free access to 42 items of Indian exports announced by Zoellick were clear indications that Washington wants New Delhi to be a partner at both bilateral and multilateral levels.

Such items include jewellery, leather and carpets, and India exports close to $500 worth of such products to the US annually.

"It is a very encouraging indication," said Anwarul Hoda, former deputy director general of WTO and a professor the Indian Council for Research on International Economic Relations, a think tank based in New Delhi.

"Given the issues that stymied the previous ministerial at Seattle, it is a good starting point to thrash out all contentions issues. The US is finally coming around to New Delhi's position," he said.

At a meeting on Wednesday between Zoellick and India's Commerce and Industry Minister Murasoli Maran, Washington shared New Delhi's perspective on issues such as agriculture, services and e-commerce.

India maintains that there are appropriate forums outside the WTO that should discuss environmental and labor standards issues.

The US side agreed that linking trade with environment and labor standards would act as barriers to trade liberalisation. This was an issue that was articulated vociferously by Maran on behalf of developing countries resulting in the collapse of the Seattle talks in December 1999.

"The US is now taking a more pragmatic view of the concerns raised by some developing nations on the modalities of the WTO negotiations," said T K Bhaumik, international trade expert at Confederation of Indian Industry.

"This triggers hope that the outcome of the Doha round would be positive," Bhaumik added.

Adding another dimension, WTO expert Arun Goyal said US and Europe have begun to understand that there was no point sticking to their earlier stand on linking non-trade issues to WTO.

"It is clear if the Doha talks fail, the biggest losers will be the US and the European Union. They are, therefore, making all efforts to make the round a success."

Indo-Asian News Service

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