Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / World/  WTO chief may seek India’s help to negotiate deal at Bali
BackBack

WTO chief may seek India’s help to negotiate deal at Bali

Roberto Azevedo meets trade minister Anand Sharma on Monday, will also meet industry groups in first India visit

Roberto Azevedo, who has previously served as Brazil’s ambassador to WTO, is the first member of a developing country to take charge of the Geneva-based multilateral trade. Photo: Ueslei Marcelino/Reuters (Ueslei Marcelino/Reuters)Premium
Roberto Azevedo, who has previously served as Brazil’s ambassador to WTO, is the first member of a developing country to take charge of the Geneva-based multilateral trade. Photo: Ueslei Marcelino/Reuters
(Ueslei Marcelino/Reuters)

New Delhi: As time runs out for concluding negotiations for a deal at the World Trade Organization (WTO) ministerial at Bali in December, WTO director general Roberto Azevedo is likely to seek India’s help when he meets trade minister Anand Sharma on Monday.

Azevedo, who has previously served as Brazil’s ambassador to WTO, is the first member of a developing country to take charge of the Geneva-based multilateral trade body. Azevedo in his first visit to India will also meet industry lobby groups to garner support for a deal at Bali.

In the absence of a broad-based agreement on the Doha round of trade talks that started in 2001, member countries are making a last-ditch attempt to work out areas where a consensus could be reached.

India has been demanding a balanced outcome from the WTO ministerial in Bali with the interests of the so-called least developed countries (LDCs) and developing nations at its core.

While developed countries are projecting trade facilitation as a sure thing at the Bali meeting, developing countries want a deal to allow them to increase their ceiling on food subsidies above what is permissible at present as well as a package for the least developed countries.

Developed countries have shown inclination for a peace clause for developing countries on the food security issue for 2-3 years, while developing countries, represented by the G-33 group, are demanding this at least for a period of 9-10 years, Mint reported on 25 September.

A so-called peace clause in WTO parlance gives legal security to member countries and protects them from being challenged under other WTO agreements.

If the ceiling for food subsidy is not increased, then, at its present level, India may cross the ceiling within 3-4 years. Such subsidies cannot extend 10% of the total value of the production of that product.

Through the newly enacted food security law, the government commits to provide subsidized foodgrain to two-thirds of the country’s population, thus putting additional subsidy burden on the government.

On the issue of trade facilitation, developed countries that are expected to largely benefit from an agreement are reluctant to commit any kind of financial assistance to developing countries to upgrade their systems, while demanding legally binding commitments from developing countries and LDCs.

For instance, developed countries want India’s proposal on customs cooperation to be accepted on a ‘best endeavour’ basis, while their proposals are to be accepted by developing countries on a binding and justiciable basis.

Developing countries think the proposal on the table at present on trade facilitation only increases the burden on developing countries by forcing them to upgrade their export infrastructure without any reciprocal commitment on the part of developed countries for financial assistance or technology transfer.

“We will tell him that we are not being obstructionist for a deal at Bali. If developed countries agree on an interim arrangement on the peace clause, then we should not have a major problem with trade facilitation," Mint reported on 25 September quoting a government official who spoke on condition of anonymity.

India should tell the WTO chief that unless its concern on the food security issue is satisfactorily addressed, it would be difficult for India to agree to a larger deal at Bali, said Abhijit Das, head and professor at the Centre for WTO Studies under the Indian Institute of Foreign Trade. “There has to be an overall balance and give-and-take in such negotiations. At present, developing countries are being given a short trip," he said.

Azevedo has written letters to trade ministers including Sharma to emphasise the need for their personal and active engagement in the negotiation process from now on.

Azevedo recently told the trade negotiations committee that though he is encouraged by some progress, at the current pace it looks unlikely that an agreement will be reached by the target of end-October. “I therefore urge each and every one of you to engage directly with each other at every level with a compromising attitude, sense of urgency and above all the responsibility required for the realization of our Bali goals," he said at an informal meeting on 30 September, according to a post on the WTO website.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 Oct 2013, 12:09 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App