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The Earth Times | Posted November 12, 2001



WORLD TRADE ORGANIZATION, FOURTH MINISTERIAL MEETING

Holding strong on non-trade issues, India invites spotlight

> BY DEVIKA SAHDEV
Copyright © 2002 by The Earth Times. All rights reserved

DOHA, Qatar-All eyes are toward India as negotiations at the Fourth Ministerial Meeting of the World Trade Organization heat up. While the US and Europe hinted at signs of progress, this important swing country for many of the key issues being discussed in the meetings is hardening its stance.

There are a lot of gaps," said Murasoli Maran Indian Minister of Commerce and Industry as he rushed off to another round of talks. "They're getting wider and deeper. But many countries are supporting our position."

India voiced its deep dissatisfaction with the draft Ministerial Declaration, which was released despite strong reservations and opposition from developing countries. The draft declaration carries references to the Singapore issues including competition, investment and government procurement. Many developing countries have consistently said these issues should not be discussed until a consensus is reached on mandated negotiations and implementation issues. Some countries, including India, are also disappointed by the draft declaration covering letter sent to ministers by Mike Moore, WTO Director General.

"At the meeting, while few Members expressed full satisfaction with the draft text...many felt that it represented a sound basis for decision by Ministers at Doha," read the letter. "Others expressed a preference for a text which would have reflected more fully the diversity of views on the various elements. However, in view of the operating method we have followed consistently, we are satisfied that the draft...represents the best possible basis for Ministers to build on at Doha."

However, as was made clear at the General Council meeting at the end of October, India did not and does not consider this the best possible basis for agreement and wants to see some big changes made before the final adoption. "It is not possible for me to acquiesce in a situation where a draft ministerial declaration is transmitted to the Ministers without reflecting concerns and objections from a large number of countries including mine," read the statement from India in response to the release of the draft.

And India's stance at the meeting is to not yield to any agreement that falls short of their expectations and interests. "Our mandate, given by the Prime Minister, is clear," said Shipra Biswas, Additional Principal Information Officer for the Indian Ministry of Commerce. "There can be no compromise on our national interest. We have strong reservations on Singapore issues-we don't want anybody to rush into multilateral negotiations for multilateral agreement on issues whose implications are still being studied."

In the meantime developed countries are pushing to negotiate on the Singapore issues, especially investment and competition policy. "Japan is eager to start negotiations on investment," said Shinichi Kitajima, Director General of Economic Affairs in the Japanese Ministry of Foreign Affairs. "But there is reluctance from a large number of countries."

"Japan also places great importance on non-trade concerns," he added. India has very clearly stated that it believes non-trade concerns should not be a part of negotiations in Doha.

"WTO is for multilateral trading system only," said Maran in his opening statement on Saturday. "It should not encompass the responsibility for rule making of non-trade-related subjects. WTO's core competence is in international trade and we would strongly urge that it stays that way."

Indian delegates stressed that they are not against multilateralism or negotiations for a new round. What they are concerned about is the content of the new round. Implementation, the Agreement on Trade-Related Intellectual Property Rights (TRIPS), agriculture and services are India's key concerns, with implementation being of utmost importance.

"In our view if you ensure proper implementation of all that we have agreed already," said T. K. Bhaumick, Senior Policy Advisor at the Confederation on Indian Industry, "there'll be more fairness and that is in the interest of WTO. That is why we are insisting on effective implementation of the Uruguay Round agreement."

India is holding strong during negotiations, according to a delegate who wished to remain anonymous." It will be crucial to get India on board-without them there will no agreement," he said. "It's also important that India recognizes this fact-it means that they carry a lot of responsibility. If they decide to play power games now they might get locked into a corner."

The Indian Prime Minister Atal Bihari Vajpayee, in a speech to the United Nations General Assembly on Saturday, stressed the need for a focus on implementation issues. "For most developing countries, the Uruguay Round has done little for economic growth, while poverty levels and income gaps have worsened," he said. "Globalization has constrained developing countries in mobilizing public resources for poverty alleviation."

According to Vajpayee this is why public support for the "globalization regime" has vanished. "We have argued strongly that implementation issues should first be resolved before we try to widen the WTO agenda further," he said. "Our public is unwilling to accept another post-dated check, when an earlier one has bounced." The Prime Minister's strong speech reinforces the Indian delegation's manadate to settle pending implementation issues before conceding to the inclusion of new issues in a final declaration.

When asked about India, Pascal Lamy, EC Commissioner of Trade, declined to comment, saying instead "I think we should leave the discussion of trade negotiation details for later." There is increasing pressure for these talks to succeed and if India is going to resist all discussion of issues that Members like the EU, the US and Japan want to discuss, success may well be elusive.

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