The Hindu : Business : Manmohan raps rich nations for hitches in Doha Round

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Manmohan raps rich nations for hitches in Doha Round

Special Correspondent

NEW DELHI: Prime Minister Manmohan Singh on Monday rapped some of the developed countries for indulging in and strengthening the forces of protectionism while appealing for reciprocation of offers by the emerging economies so as to clinch a much-awaited multilateral trade agreement under the Doha Round of negotiations.

“It takes two hands to clap,” Dr. Singh said in his address at Associated Chambers of Commerce and Industry of India’s (Assocham) annual meeting. The Prime Minister was referring to the reluctance of some of the rich nations to cut back on farm subsidies even while seeking access to industrial goods and the services market of developing nations.

The Doha Round of talks under the aegis of the World Trade Organization (WTO) was launched in 2001. However, all these years, negotiations towards an agreement have remained stalled owing a lack of consensus on agriculture as developing countries, including India, have taken the stand that they would not compromise the interests of their small and marginal farmers.

Pointing to the imbroglio, Dr. Singh said: “At a time when we in the developing world are standing our ground in dealing with the challenges and opportunities of globalisation, it is regrettable that the forces of protectionism are gaining political ground in many developed countries.”

Trading system

Dr. Singh noted that while new burdens and responsibilities are sought to be imposed on developing countries in the name of environment and social concerns, these nations have a stake in the successful conclusion of the Doha Round of multilateral trade talks. Urging the developed countries to play the role expected from them in sustaining global growth, he said: “Developing countries recognise the importance of a liberal and rule-based international trading system. We therefore have a stake in the successful outcome of the Doha round of trade negotiations. I hope that the developed countries would not forget the development dimension of multi-lateral trade negotiations.”

Pointing to the irony of the current situation and taking a dig at the rich nations, Dr. Singh said: “Two decades ago, even a decade ago, we in the developing world were worried about globalisation. The voices of protectionism were heard more loudly in our countries. Today, however, it is in the developed economies that we hear such voices.”

India, it may be recalled, rejected the new negotiating texts on agriculture and industrial goods released by the WTO last month for a global trade deal as it felt that the proposals had failed to address the concerns of developing countries. The Prime Minister viewed that despite the impressive growth performance of many newly industrialised economies and emerging markets, the traditional global disparities still existed, in particular, the gap between the per capita income of the developed and developing countries. “The time has come for the global community to take stock of the situation and come forward with forward looking and equitable solutions to these problems…There is no reversal of roles possible until we are able to create a more equal world. Until we banish mass and chronic poverty from the developing world, until the developing world is able to bridge the development divide that separates the countries of the North and South,” Dr. Singh said.

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