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New Delhi has cried foul over the US Trade Representative Robert Lighthizer's indirect attack on India, China and Brazil for “claiming” developing-country status.
“There is something wrong, in our view, when five of the six richest countries in the world presently claim developing country status,” Lighthizer said in his plenary speech at the WTO Ministerial Conference (MC 11) in Buenos Aires on Monday.
Addressing a press conference later in the day, India’s Commerce and Industry Minister Suresh Prabhu said India is fulfilling the global obligation of pulling millions of people out of poverty through its own resources and is just the right candidate for special and differential treatment in world trade reserved for developing countries and least-developed countries (LDCs).
“Nearly 98 per cent of Indian farmers are low income or resource poor and most of them are engaged in subsistence farming. Many of them have to deal with unfavourable agro-climatic conditions, further compounded by climate change, of which India is a victim. My government is committed to doubling farmers incomes by 2022. Our circumstances make it imperative for us to balance trade liberalisation with the need to protect their livelihood,” Prabhu said.
The USTR, in his speech, further said that members needed to clarify their understanding of development within the WTO. “We cannot sustain a situation in which new rules can only apply to the few, and that others will be given a pass in the name of self-proclaimed development status,” Lighthizer said.
“We should all be troubled that so many members appear to believe that they would be better off with exemptions to the rules,” he added. “If in the opinion of a vast majority of members playing by current WTO rules makes it harder to achieve economic growth, then clearly serious reflection is needed,” the USTR said.
Responding to the barb, Prabhu pointed out that India's GDP may be rising fast, but its per capita income was much lower than ones enjoyed by people in rich nations.
“Special and differential treatment for developing countries is a very important part of the WTO’s mandate and must be preserved. We are willing to engage on proposals that recognise this right for all developing countries without exception,” Prabhu said.
When asked whether he would be meeting the USTR in the on-going MC 11, Prabhu said a meeting was being planned. “The US is an important and valued trade partner for India and we will certainly keep engaging,” he said.
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