WTO meet may put aside Doha for now

The World Trade Organisation (WTO) Ministerial meeting in December is likely to focus on non-Doha Round issues, given the continued glitches in firming up modalities for further global trade liberalisation.

These non-Doha issues, covering unfinished items in the implementation of the previous Uruguay Round, include Government assistance for economic development in developing countries.

They also include systemic issues like improving the day-to-day functioning of the WTO to make it more member-driven, transparent and effective. The aim will be to give complete effect to the intent of the Uruguay Round, which had resulted in the setting up of the WTO.

2013 DEADLINE

Officials in the Commerce Ministry say that the shift in attention to non-Doha Round issues follows signals emerging from Washington and the WTO headquarters at Geneva, indicating that fresh initiatives from the US on the Doha Round can only be expected after their new President takes charge in January 2013.

Due to this, they believe that the conclusion of the ten-year-old Doha Round before 2013 is unlikely. But what will definitely not be encouraged are attempts to say that the delay in concluding the Doha Round is a failure of WTO itself, the officials clarified.

Realising the difficulties involved in concluding the Round by 2011-end, the WTO members have been trying to arrive at a consensus by this December, on at least a ‘Plan B' that includes fewer issues. But they have so far been unable to agree on an ‘early harvest package', including providing duty-free-quota-free market access to Least Developed Countries (LDC), simpler rules of origin for LDC exports, reduction of ‘trade distorting' subsidies on cotton, particularly by the US, apart from LDC-plus issues, such as bringing down fisheries subsidies, eliminating duties on environmental goods and trade facilitation.

The focus on an LDC package was owing to Doha Round's ‘development' agenda and considering that an increased market access for a few items of exports from LDCs would never have adversely impacted the developed countries.

But the reported insistence of the US and some other developed nations on resolving the more complicated LDC-plus issues, together with the LDC package, has resulted in a stalemate on ‘Plan B'.

NEGOTIATIONS PARALYSED

WTO Director General Mr Pascal Lamy recently acknowledged that the negotiations have been ‘paralysed'. Given the political situation globally, even the December Ministerial may not help in seeing the light at the end of the tunnel.

During the forthcoming talks, it is learnt, the developed countries are set to start a debate on the restrictions imposed by the developing countries on export of food items that result in a spurt in prices. They would refer to the recent G20 agricultural ministers' resolution to do away with export restrictions on food items. But developing nations, including India, would point to rising concerns on food security and the WTO norms giving them the right to impose restrictions on food exports, especially if they are not a net-exporter of the item concerned.

As part of India's preparation for the December Ministerial talks, the Government will hold many Group of Ministers meetings to fine-tune the country's stance before the WTO's Trade Negotiation Committee meeting, likely in the third week of September.

The outcome of the Doha Round talks should result in correcting the distortions in global trade and help achieve its ‘development' objective, which is to advance the trading abilities of developing countries.

NEW TRADE ISSUES

Simultaneously, India and some other WTO members should also note that countries are now more interconnected than they were in 2001, when the Doha Round was launched.

Besides, new trade issues such as currency wars and climate change have emerged. As Mr Lamy himself said last year, “We still think in terms of Adam Smith's trade between nations, but in reality most trade now takes place within globe-spanning multinational companies and their suppliers.”

The best solution to the problems arising out of this extremely interdependent scenario is a strong rule-based multilateral trading system with a highly efficient and quick dispute settlement mechanism to address issues of arbitrary and unilateral trade action / sanction.

It should also not be forgotten that the WTO's Trade Policy Reviews have helped a lot in achieving greater transparency in the trade policies of member countries.

It is a forum where the aggrieved parties can question and criticise certain dubious trade practices / policies of other members.

Besides, there are also issues of pending requests from at least 15 countries, including Russia, for accession to WTO. Therefore, trade experts say that every effort should be made to not undermine the importance of WTO by delaying the conclusion of the Doha Round talks.

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