The Hindu Business Line : `Future of multilateral trading may hinge on national sovereignty'

THE future of the multilateral trading system, enabled by the World Trade Organisation (WTO) agreements, may hinge on the issue of national sovereignty, said Mr D. Sampath Kumar, Associate Editor, The Hindu Business Line, addressing a gathering of students and faculty of the Meenakshi College for Women.

Earlier, the BL Club was launched in the college in the presence of its Secretary and Senior Principal, Ms K.S. Lakshmi, who also addressed the gathering.

Delivering the BL Club lecture, Mr Sampath Kumar said the key question is whether adhering to WTO clauses would hurt national sovereignty.

Over the last 10-12 years, the liberalisation process has seen the economy growing at an average of over 5 per cent and the industrial sector clocking an 8 per cent growth rate. This, despite the lowering of import tariffs by an average of 20 per cent during the same period, he said.

The next big opportunity for India could be in textiles, with reports suggesting that exports in this segment could touch $50 billion by 2010. Software and business process outsourcing industries will continue to grow, he said.

The Government, meanwhile, has to decide how it will adhere to the commitment of bringing in the product patent regime before December 31 of this year, Mr Sampath Kumar said.

Western countries, having lost their competitive edge in manufacturing, have been trying to include provisions relating to competition policy and Government procurement too in global trade rules.

Developing countries have resisted such moves for a while but may find it difficult to stall the process in the future, he said.

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