Category: WTO agreements

Roberto Azevedo who was recently in Delhi to explore and understand India’s perspective on issues for taking up in the 11th WTO [World Trade Organization] ministerial scheduled for December 11-14, 2017 stated “one has to be patient for a permanent solution and asked not to undermine the efficacy of the peace clause”. Azevedo exhortation is unmindful of the vulnerabilities of developing countries inherent in the ‘peace clause’. When, the provision itself stands on a slippery foundation, there is every reason for them to be impatient and hence, their search for permanent solution. Let us look at some basic facts. At the 9th ministerial in Bali [December, 2013], developed countries had agreed to a ‘peace clause’ under which, if a developing...

Jeff Zients, Director of the National Economic Council, who is in Delhi for second “US-India Strategic and Commercial Dialogue” has said that ‘US is ready to increase engagement with India to find new common ground at WTO [World Trade Organization] and asserted that the future looks “bright” for this global trade body.” Zients who co-chairs the second US-India CEO Forum alongside the US Secretary of Commerce Penny Pritzker further noted that “the last two WTO Ministerial Conferences in Bali and Nairobi were significant successes, including outcomes on the Trade Facilitation Agreement [TFA], agricultural export subsidies, and public stockholding for food security purposes.” These euphoric statements are at substantial variance with what actually transpired at these conferences. In a brazen display...

In a severe indictment of India’s stand at World Trade Organization [WTO], the Economic Survey [2015-16] presented to parliament in February, 2016 unequivocally questioned India’s long-time stance of insisting on special safeguards mechanism [SSM] and permanent solution to its public stock holding issue. Dr Arvind Subramanian, author of the Survey and chief economic advisor [CEA] argued that the country’s strategy should instead evolve around the need to shift away from tariff armours for producers to domestic support, and that too at an appropriate level and form. He pointed out that the policies being defended are those that “India intends to move out of in any case” due to well documented impacts, including a decline in water tables and over-use of...

In a brazen display of ‘might is right’ in the just concluded World Trade Organization’s [WTO’s] 10th ministerial meeting at Nairobi [Kenya] on December 15-19, 2015, the developed countries led by US & EU literally junked the Doha Development Agenda [DDA]. On the two issues of critical importance to developing countries viz., (i) public stock holding for food security and (ii) special safeguards mechanism [SSM] in agriculture, they were merely handed out hollow assurances. At the 9th ministerial in Bali [December, 2013], developed countries had agreed to a ‘peace clause’ under which, if a developing country gives agricultural subsidies in excess of 10% of its agricultural GDP, no member will challenge this until 2017 when WTO would look for a...

The World Trade Organization’s [WTO’s] draft declaration for the ensuing 10th ministerial meeting at Nairobi [Kenya] on December 15-18, 2015, promises to “address all aspects of agriculture reform as a matter of priority” but does not mention about finding a ‘permanent solution’ to India’s concerns on food security. While, the former is a cleverly worded statement [more of a rhetoric] offering nothing concrete, the latter is definitely a setback. But, for any one tracking the chronology of events since the 9th Ministerial meeting at Bali [Indonesia] in December, 2013, this should not come as surprise. It is abundantly clear that from the day one, developed countries were never serious about finding a permanent solution. Nor, developing countries including India pressed...