The Hindu Business Line : WTO issues

At the outset two things must be made clear: (a) WTO provides a forum for trade negotiations and helps in resolving trade disputes through its dispute settlement mechanism; all member countries have equal voting rights.

The WTO has no magic wand by which it can cure the ills of the world's economies nor does it claim it can do so.

The crucial issues that need to be resolved at present are:

1. Reduction/elimination of farm subsidies, which is as much a security issue as it is an economic one. Developing countries have to tread carefully here.

The farm subsidies being given by the EU and the US (where food security is not really a major issue) effectively prevent access to their markets by developing countries. A resolution of this issue can only come about by hard bargaining over a period of time.

2. Opening up of trade in services: Service is a logical extension of trade. But issues of sovereignty will be raised and it will be difficult to brush them aside. "Rogue countries" will find newer reasons not to open up the sector.

Finally, the WTO can facilitate the growth of economies and become a strong and unifying organisation only when leaders' vision transcends boundaries. Consensus is important. But it has to come from within, if it has to be sustained.

K. V. Natarajan

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