The forthcoming World Trade Organization (WTO ministerial conference at
Doha
in November has, like its previous meetings, opened the pandora-box once again. Developed and Developing countries are fighting a pitched battle over the contentious issue of a fresh round of negotiations vs. implementation concerns. They have the potential of reshaping the global political economy. In this scenario, we need to be aware of the areas of crucial concern for developing countries in general, and
India
in particular.
With another WTO ministerial meeting on the anvil, some Non-Governmental Organizations (NGOs) and skeptics [of the road WTO is taking] are cautioning developing countries not to bite the bait of a fresh round of trade talks that will comprise their demands on implementation issues. Oblivious of the concerns of the developing countries, the European Community’s Trade Commissioner, Pascal Lamy, has called for a new round with a “broad based agenda”, including investment and competition policy, claiming that the implementation concerns of developing countries can be addressed only as a package.
Highlighting its anomalies, Mursoli Maran said,
While
India
stood for a rule based multilateral trading system which needed to be just and fair, the WTO dispute settlement mechanism ? the panels and the appellate body ? were overstepping their mandates and straying into the area of “authoritative interpretation” or “amendment” of the negotiated settlements, a provision which was reserved for the WTO members.
Developing countries, including
India
, argue that environmental standards differ from country to country and the solution lies in mutual recognition of product-related standards rather than harmonization of standards. Another area of concern for
India
is the use of labour standards in the multilateral trading system, which was strongly advocated by the developed countries in the Marakesh Ministerial Conference.
It is not so much the imposition of labour standards as the linking of these standards with trade that the developing countries have raised their voice against. It is widely felt that the introduction of labour standards in the WTO would lead to a clamour for wage parity across countries and that any moves in this direction would leave developing countries with little competitive edge in the global market place. Wage parity would affect not only trade in goods but also the pattern of investment flows across countries.
India
and other developing countries are of the view that the International Labour Organization (ILO) already has a mandate for the protection of labour rights; hence there is no need for the WTO to get involved in this area.
The textile and clothing sector has been protected by developing countries since the 1960s through quantitative restrictions imposed on exports from the
Third World
. It was believed that the phasing out of the Multi-Fiber Agreement (MFA) by 2005 would benefit
India
in terms of exports of textiles and clothing. However, this may not happen because the phasing out schedule favours the developed countries ? a major proportion of the quota regime, upto 49 per cent, would be removed only by 2005. By the time the MFA is completely phased out in 10 years, the developed countries could gear themselves to effect improvements in quality, efficiency and competitiveness, leaving hardly any scope for imports from the developing world.
On an objective reckoning, Indian agriculture will be influenced by the WTO regime, both positively and negatively. In a liberalized trade scenario, backed by WTO regime, Indian agriculture would be fully integrated into the global trading system. Aggregate measurement of support and sanitary and phytosanitary measures, patenting of seeds and technology, market access, food security, the question of subsidies, and reduction of import tariffs are the areas of real concern. But WTO has many safeguards, relaxations and exemptions for the developing countries, which
India
must exploit in its favour.
This discussion underscores the point that use of their collective bargaining power by developing countries is the only way to protect their interests in WTO.
India
, being a founder member, should play a leading role in this regard.
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