It is easy to be critical of the Declaration and, of course, the stand taken by this delegation or the other.

The movement of a global meeting towards a conclusion on such contentious issues as reducing export subsidies, which are politically sensitive issues in every country, has to be necessarily slow and can never be a big bang affair.

A positive way of looking at the Declaration may be gained from the following key aspects on the phasing out of agricultural export subsidies.

It is a declaration by all members and not just by the European Union, though for all practical purposes, it is the EU that will have to phase out the subsidies.

Here is an extract from Paragraph 6 of the Declaration: "We agree to ensure the parallel elimination of all forms of export subsidies and disciplines on all export measures with equivalent effect to be completed by the end of 2013.

"This will be achieved in a progressive and parallel manner, to be specified in the modalities, so that a substantial part is realised by the end of the first half of the implementation period. ...

"As a means of ensuring that trade-distorting practices of STEs are eliminated, disciplines relating to exporting STEs will extend to the future use of monopoly powers so that such powers cannot be exercised in any way that would circumvent the direct disciplines on STEs on export subsidies, government financing and the underwriting of losses. ... The disciplines on export credits, export credit guarantees or insurance programmes, exporting state trading enterprises and food aid will be completed by 30 April 2006 as part of the modalities, including appropriate provision in favour of least-developed and net food-importing developing countries... "

For cotton, the elimination of export subsidies will be soon — at the end of 2006. Paragraph 11 of the Declaration says: "All forms of export subsidies for cotton will be eliminated by developed countries in 2006.

Also, developed countries will give duty and quota free access for cotton exports from least-developed countries (LDCs) from the commencement of the implementation period."

One must wait to see the impact of these measures, and there is no need for any undue pessimism that things will not work the way they are expected.

Yet, the problem for LDCs may not be barriers in importing countries, but could well be how far investments will indeed go there and produce quality products for export.

The fact remains that the doors are likely to be kept open for LDCs and it is up to them to take advantage.

In regard to NAMA, in regard to tariff reductions as well as all other associated and complementary matters, the Declaration simply seeks to have the Negotiating Group to finalise details as soon as possible.

Nearer home, we should ask if the Declaration has some goodies for us. We should look for progress on the services front, especially in regard to the movement of natural persons, given that our real resource is our people. Here is and indication of the spirit of the Declaration in regard to trade in services: "The negotiations on trade in services shall proceed to their conclusion ... " (Para 25), "We urge all Members to participate actively in these negotiations towards achieving a progressively higher level of liberalization of trade in services, ..." (Para 26), and "We are determined to intensify the negotiations in accordance with the above principles and the Objectives, Approaches and Timelines set out in Annex C to this document ... " (Para 27). Annex C notes 31 October 2006 as the timeline by which final draft schedules of commitments are to be submitted. There is still a long way to go from rhetoric to reason to rules and regulations.

If there is nothing tangible for us from Hong Kong, we have much to say on the intangibles. According to the International Herald Tribune (December 19): India, the champion of the developing world since the days of Gandhi but now a computer programming power as well, played a crucial intermediary role in persuading poor countries to accept portions of the agreement calling for freer trade in services like telecommunications and banking."

The Commerce Minister's photograph was there in IHT, acknowledging the role he has played in ensuring that the talks have successfully ended. Also, India has been instrumental in building the grand coalition of practically all the nations in the developing world. We stand for the rest of the world, don't we?

What the Hong Kong Meet achieved was just putting the Doha Round on track, and that would imply that all the contentious issues still remain as they were, hopefully to begin to be resolved from April 2006.

What does the H K Declaration mean really? At best, it is a small but positive movement.

(The author, formerly with the National University of Singapore and the World Bank, is Professor Emeritus, GITAM Institute of Foreign Trade, Visakhapatnam. He can be reached at bhanoji@gmail.com)

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