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Stalemate at Doha: India says no to new round of negotiations

Daniel Brett | 12.11.2001 22:08

The WTO ministerial meeting is making little progress, with India and some other developing countries refusing to budge,
says Noor Mohammad

With India and some other developing countries unyielding on investment and competition policy, the stalemate in the World Trade Organisation (WTO) Doha Ministerial Conference continued. However, the Least Developed Countries (LDCs) are happy with gaining duty and quota-free access to the European Union (EU) market. These countries are now more responsive to calls for a new trade round. Pakistan too has softened its anti-new round stand, and is keeping a low profile. The recently announced trade concessions for Pakistani clothing products in the EU market may be behind Pakistan's changed stance.

Maran declared in a press conference that there was no question of India budging from its stand on competition and investment. Meanwhile, Prime Minister Atal Behari Vajpayee has said in New York that implementation issues are more important, and should be addressed before expanding WTO agenda.

Though India is not opposed to any new round as such, it has indicated that there will be no compromise on investment and competition.

Negotiations on the draft Implementation Decision have made comparatively better progress. WTO spokesperson Keith Rockwell said that 70 per cent of the agenda items could be moved to the respective subjects and made part of the negotiations in the new round. The US and Canada have, however, voiced concern in extending market access concessions for textiles and clothing products. The US believes that quota growth rates demanded for accelerated dismantling of the Agreement on Textiles and Clothing (ATC) are too high. Canada says that the employment effect of rapid quota dismantling should be considered.

The US is under tremendous pressure from domestic protectionist lobbies not to yield to the demand for review of WTO anti-dumping provisions. The US Congress has not yet given fast track authority the Bush administration. US trade representative's credibility at negotiating table will not be very high without fast track authority, as the Congress can force changes in any trade liberalisation commitments made by government.

Remarkably enough, the US House of Representatives on November 6 passed, with 410-4 vote, a resolution that no action should be taken to dilute trade laws.

On the other hand, Japan and Korea say that antidumping should be an indispensable component of any future negotiations.

A group of developed and developing countries called "friends of multifunctionality" has come up. Multifunctionality is a buzzword in WTO agriculture negotiations being propagated by countries whose agriculture sector is highly subsidised. However, net food-importing countries like Pakistan have now also jumped onto the multifunctionality bandwagon. Pakistan and some other countries say that they are in favour of a "development box" under the WTO Agriculture Agreement to secure food security and rural development goals. This line has drawn wide support. Even the agriculture exporting countries, known as the Cairns Group, have not rejected the idea.

The Doha Ministerial Declaration is expected to echo EU's concern on environment. Developing countries have dropped their initial opposition to inclusion of environment in WTO agenda. However, the text will be a watered down version of what the EU has been pushing for. A conditional negotiating mandate for the next WTO Ministerial may be included in the declaration.

The Ministerial has approved the entry of China and Taiwan to the WTO. Now, the national parliaments of these countries have to ratify the accession protocol. One month after both the countries notify national ratification to the WTO Director General, they will officially become WTO members.

Daniel Brett
- e-mail: dan@danielbrett.co.uk
- Homepage: http://www.tehelka.com/channels/currentaffairs/2001/nov/12/ca121101noor.htm