WTO: the continuing impasse
RAGHU DAYAL
THE WTO DEADLOCKED — Understanding the Dynamics of International Trade: Debashis Chakraborty, Amir Ullah Khan; Sage Publications India Pvt. Ltd., B 1/I-1, Mohan Cooperative Industrial Area, Mathura Road, New Delhi-110044. Rs. 650.
Amidst an acrimonious environment that pervades the current efforts at securing convergence for negotiations of the Doha Round that has dragged for seven long years, the book marks, as the main authors claim, “an audacious attempt to analyse India’s evolving stance at the WTO.” Providing an overview of India’s emergence as a major player in the negotiating dynamics of the WTO, the book constitutes a critique of India’s submissions to the WTO over the years, although the reader at the end is left groping for an overall objective appraisal of India’s viewpoint generally reflecting the concerns of developing economies versus that of the developed countries. The volume encapsulates “the complex array of issues” being discussed especially in the context of the ongoing Doha Round negotiations.
Developments
A few developments left their impact on the Indian approach. During the period 1995-99, India had to frequently appear at the WTO dispute settlement body as a respondent; the presence of tariff peaks and tariff escalation hampered India’s export interest; the emergence of the services sector and the urgency to ensure a favourable trade environment in this area; lackadaisical attitude towards the key implementation of issues such as special and differential treatment (SDT) for developing countries or agreement on technical barriers to trade. Patenting of a variety of Basmati (Texmati) in the U.S. and portents of patent applications, for example, for “neem”, “haldi”, etc., highlighted the urgency for India to seek protection for its indigenous knowledge base.
The Seattle Ministerial fiasco underlined the need for unity among developing and poorer countries. The failure of a perceived developed countries’ game plan to foist labour and environment issues on the WTO agenda earned wide support that India elicited on various issues. The Doha Ministerial 2001 turned out to be a significant development: India agreed to accept the joint ministerial declaration only after the developed countries acquiesced in including its concerns in the DDA (Doha Development Agenda).
Agricultural subsidy
India kept up the pressure for agricultural subsidy reform before the Hong Kong Ministerial. In the meanwhile, at the Cancun Ministerial 2003, developing countries had rejected the E.U.-U.S. joint draft declaration which showed little promise on lowering the subsidy level in agriculture by a specific deadline. India believed that the Hong Kong Ministerial Declaration effectively addressed its core concerns. A major developing country coalition (G-110) came into being and the non-agricultural market access (NAMA-11) as well. All developed countries are neither opposed to agricultural liberalisation (the Quad—Canada, Japan, E.U., U. S.—has been providing support to its domestic agricultural lobby) nor supporting it. Besides explaining the negotiating strategies followed by India on its key areas of interest so far, e.g., agriculture, NAMA and services, the book delves into the trade in textiles and clothing in the post-MFA (multi-fibre arrangement) period. Chapter nine alludes to “regionalism in the era of multilateralism” with a growing number of several regional trade agreements (RTAs) turning global.
As the final chapter, Looking Beyond Hong Kong, is in search of “What next for India?”, the book emphasises the quintessence that ensues from the current stream of events, that is, a more intense association with the other developing countries at the WTO forums with duly balanced individual country interests, while together, the developing countries unitedly usher in the salient reform process against the misuse of the WTO provisions by its members.
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