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India should agree for new round of WTO talks: experts

Lola Nayar in New Delhi

India should take a pro-active instead of a protectionist stand and allow for a new round of World Trade Organisation negotiations, say experts.

Though the stakes are high for the fourth November 9-13 ministerial conference at Doha, Qatar, consensus has so far eluded member countries on the nature of the new round of WTO talks.

The developing countries, including India, are insistent on keeping non-trade issues like technical barriers, anti-dumping, labor, environment and industrial tariff out of the discussions.

"India is right as far as keeping non-trade issues out of negotiations, yet it is unrealistic in seeking so many changes in WTO outside of a negotiated round," said Anwarul Huda of the Indian Council for Research in International Economic Relations.

While seeing the merit of India's position on implementation and market access issue, T K Bhaumik of Confederation of Indian Industry feels: "Multilateral trade negotiation is a different ball game. You don't only play defensive but also offensive and put across other issues."

Added Huda, a former deputy director general of WTO: "A fresh round is desirable without new subjects. But the agriculture and services agenda should be broadened to include industrial tariff and implementation."

This would allow some developed countries like Japan leverage for inter-sector cross trade-off and protect India's interests in the emerging regional pacts. India is out of all existing free trade areas and those being created.

"It is in India's interest to support initiative and take a leading part in the multilateral negotiations for reduction of industrial tariff so that preferences of free trade areas is eroded," said Huda.

The lack of sincere implementation of various provisions of the WTO agreements by the developed countries and non-materialisation of market access gains to developing countries are among issues India is planning to raise at Doha.

Textile is one area where benefits have not been allowed to reach developing countries through greater market access. The developed countries are yet to implement commitments on several other products.

"India's stand has been consistent with other developing countries that there are certain inequities and imbalances in the mandated negotiations and implementation related concerns which need to be addressed upfront," commerce secretary Prabir Sen Gupta said.

"With the heavy agenda of mandatory negotiations, India feels new obligations would be difficult to undertake."

While favoring negotiations on industrial tariff, trade facility, transparency of government procurement, dispute settlement mechanism and trade in e-commerce, Bhaumik is not in favour of investment, competition and labor standards being clubbed with trade.

"The negotiations are an ongoing process which involves gains and concessions," said Rajesh Chaddha of the National Council of Applied Economic Research.

"The developing countries should allow for discussion on industrial tariff and other issues if it would lead to a freer global market. At the same time, the developed countries should not mix up labor and environment concerns with trade, but take it up on a different platform."

India's opposition to a new round, said economist Jairam Ramesh, "will confirm the impression of our being obstructionist and being an 'outlier'" in global regimes."

A new round of negotiations is inevitable, feels Ramesh. The process of finalising the agenda would in acrimonious.

He said: "India's interest is best served by it being in a position to influence the agenda, if not actually determine it. That position will accrue to us only if we take a proactive approach."

Various Indian studies on the WTO's impact on agriculture have voiced the fears of farmers that India will loose more than what it will gain.

Farm leaders and agriculture advisors like Sharad Joshi are striving to create awareness among farmers and address some of their misgivings.

"There is no running away from the WTO commitment. We have to learn to turn the challenges into opportunity for greater global access," said Joshi.

Indo-Asian News Service

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