India must continue to lead at WTO by making the right compromises: WTO Director General

I think world trade is pretty resilient. Last year, volumes did contract by 1.2 per cent. But this year it is expected to grow 2.6 per cent and next year by 3.3 per cent. We just had a meeting with shipping companies and they said demand for shipping containers is still robust. So, yes, things are not easy given all the conflicts you have seen in the Red Sea, the climate change and so on. But the world trade system has continued to deliver. 

What is difficult for the world is the geopolitical tensions leading to unilateral measures. Questions are being raised about increasing protectionism, and fragmentation of world trade which may prove to be very costly.

MC 13 did not have as many successes as MC 12. But it did have some. We got the moratorium on customs duties on electronic transmissions extended. We managed to get for LDCs, something that they were negotiating for decades and didn’t get, which is to have a transition period for graduating LDCs during which they can still continue to enjoy the benefits of LDC. We also got some movement on some of the agreements specific proposals that the G-90 wanted on the SPS and TBT (standards). 

We took two new members. Why would new members try to join if the WTO was not delivering benefits? However, we also had some disappointments. We did not close our fisheries (second part) negotiations, and we did not get a breakthrough in agriculture. And also we did not succeed in having the investment facilitation agreement into the WTO rule book. But we brought the work back to Geneva, and hope to get fisheries done together with investment facilitation.

I think India would like public stock holding (PSH) handled first while some other developing countries would like to see other issues handled first, like domestic support. The issue is about sequencing. We have not had a breakthrough. But what I am hearing more and more is how can we handle things concurrently. 

We are sympathetic to India as it needs to worry about the food security of its population. At the same time, we have serious issues with domestic support of over $600 billion as the cotton countries (in Africa) cannot compete because of it. So each group is talking about their issue. It may help if we could do things concurrently. We could kick off with PSH because of the priority that needs to be given to it. But shortly after, we can start with the other issues. That way you can carry all the members along and enable them to focus. But if we keep having everyone insisting on their own first, then we will be stuck. I am hoping that we will find a way before MC 14.

Every member of the WTO, virtually every member, is ready to close fish. They have a few issues. But you can’t have 100 per cent satisfaction because that’s the nature of a compromise. They are ready to work on those issues and close this deal. Most developing countries, especially the small island economies, realise that as long as nothing is done, it is benefitting the big subsidisers. They would rather move forward on a compromise solution and they see one in sight. The longer they wait trying to get the perfect deal of the century, the more those people are going to steal fish illegally and take the fish. What sense does that make?  We would need India to come to the table. Everyone wants to work with India to solve the problem.

India is a leader. But those India is leading want India to listen to what they want. It has to defend its national interest, which is normal. But it has to also see how it can help the others if it wants to lead. At MC 12, India showed great leadership. We need India to continue to doing so by making the right compromises.