More than two decades of stalemate on the ambitious “Doha Round” and the relapse to regionalism and protectionism during this period are proof enough that unhindered world trade is a prematurely celebrated concept. With the benefit of hindsight, it is now clear that developing countries, including India, were gullible to the West’s opportunistic advocacy of multilateralism as a virtue in itself in the final decades of the last century—first under GATT, and since 1995, at the World Trade Organization (WTO). China bought this notion only grudgingly, and faced much opprobrium for it, but the country has eventually proved to be the biggest beneficiary of the economic globalisation project. Its share in world trade surged from just above 1% during early 1980s to about 15% now. Meanwhile, the original proponents of liberalisation not only made a retreat but would even weaken the cornerstone of the rule-based multilateralism that is the WTO court (dispute settlement body).
Beijing, however, is busy exploring all strategic options at its disposal, to further its economic and trade interests, including the strengthening of the Asia-Pacific axis (RCEP and CPTPP), and the stage provided by the WTO. So, as the WTO’s 13th ministerial conference (MC13) begins in Abu Dhabi today, it looks certain that with nearly 130 countries on board, the China-led Investment Facilitation for Development (IFD) plan would pass muster, and carve out a legitimate “plurilateral” space within the WTO framework. It’s interesting that the US finds itself on the side of key emerging market economies like India, Brazil and South Africa that oppose the IFD. But the “Doha Agenda” or further liberalisation of world trade via a rule-based, inclusive system, would likely remain in deep freeze for a longer period.
To be sure, a key Doha mandate was “to reduce, or… eliminate tariffs …as well as non-tariff barriers, in particular on products of export interest to developing countries.” MC13 is seen to offer precious little to this end. With the core mandate intractable, the conference is expected to focus on issues like “trade and environment”, labour and gender. These are fast becoming important tools to influence trade, but aren’t going to do as much to impart a strong impetus to the stagnant world trade, and could hurt the interests of India. The good thing is that New Delhi is now much wiser and is keenly aware of the pitfalls of bad trade deals, as much as of the potential gains from “free trade” in the real sense of the term.
Also Read Inside track by Coomi Kapoor: Priyanka hesitates Ringside view by Tushar Bhaduri: Leagues-vs-country conflict finally reaches India Pilgrimage commerce and sustainability Across the aisle by P Chidambaram: Under 6% is uninspiring At MC13, India has a high stake to protect, and that is the integrity of WTO. As a low middle income economy still at the early high-growth phase, WTO remedies for dumping, non-tariff barriers etc. are very useful for the country. It’s crucial for India to get the dispute settlement body revived, as a reasonably neutral arbiter. The country would continue to need reprieve on public stock-holding of food grains, though this is an issue that was unfairly pitted against it, in the first place. The discontinuation of PMGKAY, the scheme for extra free grains for PDS, and the likely expansion of the cash-transfer-for-food-subsidy project would reduce public grain stocks, and resolve the issue over time. Liberal trade helps only if the economy is globally competitive, and here is where India’s policymakers still have a big task at hand. The stunted growth in labour-intensive exports doesn’t behove a fast-growing country.
More than two decades of stalemate on the ambitious “Doha Round” and the relapse to regionalism and protectionism during this period are proof enough that unhindered world trade is a prematurely celebrated concept. With the benefit of hindsight, it is now clear that developing countries, including India, were gullible to the West’s opportunistic advocacy of multilateralism as a virtue in itself in the final decades of the last century—first under GATT, and since 1995, at the World Trade Organization (WTO). China bought this notion only grudgingly, and faced much opprobrium for it, but the country has eventually proved to be the biggest beneficiary of the economic globalisation project. Its share in world trade surged from just above 1% during early 1980s to about 15% now. Meanwhile, the original proponents of liberalisation not only made a retreat but would even weaken the cornerstone of the rule-based multilateralism that is the WTO court (dispute settlement body).
Beijing, however, is busy exploring all strategic options at its disposal, to further its economic and trade interests, including the strengthening of the Asia-Pacific axis (RCEP and CPTPP), and the stage provided by the WTO. So, as the WTO’s 13th ministerial conference (MC13) begins in Abu Dhabi today, it looks certain that with nearly 130 countries on board, the China-led Investment Facilitation for Development (IFD) plan would pass muster, and carve out a legitimate “plurilateral” space within the WTO framework. It’s interesting that the US finds itself on the side of key emerging market economies like India, Brazil and South Africa that oppose the IFD. But the “Doha Agenda” or further liberalisation of world trade via a rule-based, inclusive system, would likely remain in deep freeze for a longer period.
To be sure, a key Doha mandate was “to reduce, or… eliminate tariffs …as well as non-tariff barriers, in particular on products of export interest to developing countries.” MC13 is seen to offer precious little to this end. With the core mandate intractable, the conference is expected to focus on issues like “trade and environment”, labour and gender. These are fast becoming important tools to influence trade, but aren’t going to do as much to impart a strong impetus to the stagnant world trade, and could hurt the interests of India. The good thing is that New Delhi is now much wiser and is keenly aware of the pitfalls of bad trade deals, as much as of the potential gains from “free trade” in the real sense of the term.
At MC13, India has a high stake to protect, and that is the integrity of WTO. As a low middle income economy still at the early high-growth phase, WTO remedies for dumping, non-tariff barriers etc. are very useful for the country. It’s crucial for India to get the dispute settlement body revived, as a reasonably neutral arbiter. The country would continue to need reprieve on public stock-holding of food grains, though this is an issue that was unfairly pitted against it, in the first place. The discontinuation of PMGKAY, the scheme for extra free grains for PDS, and the likely expansion of the cash-transfer-for-food-subsidy project would reduce public grain stocks, and resolve the issue over time. Liberal trade helps only if the economy is globally competitive, and here is where India’s policymakers still have a big task at hand. The stunted growth in labour-intensive exports doesn’t behove a fast-growing country.
Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.
India at MC13
8
1
27.02.2024
More than two decades of stalemate on the ambitious “Doha Round” and the relapse to regionalism and protectionism during this period are proof enough that unhindered world trade is a prematurely celebrated concept. With the benefit of hindsight, it is now clear that developing countries, including India, were gullible to the West’s opportunistic advocacy of multilateralism as a virtue in itself in the final decades of the last century—first under GATT, and since 1995, at the World Trade Organization (WTO). China bought this notion only grudgingly, and faced much opprobrium for it, but the country has eventually proved to be the biggest beneficiary of the economic globalisation project. Its share in world trade surged from just above 1% during early 1980s to about 15% now. Meanwhile, the original proponents of liberalisation not only made a retreat but would even weaken the cornerstone of the rule-based multilateralism that is the WTO court (dispute settlement body).
Beijing, however, is busy exploring all strategic options at its disposal, to further its economic and trade interests, including the strengthening of the Asia-Pacific axis (RCEP and CPTPP), and the stage provided by the WTO. So, as the WTO’s 13th ministerial conference (MC13) begins in Abu Dhabi today, it looks certain that with nearly 130 countries on board, the China-led Investment Facilitation for Development (IFD) plan would pass muster, and carve out a legitimate “plurilateral” space within the WTO framework. It’s interesting that the US finds itself on the side of key emerging market economies like India, Brazil and South Africa that oppose the IFD. But the “Doha Agenda” or further liberalisation of world trade via a rule-based, inclusive system, would likely remain in deep freeze for a longer period.
To be sure, a key Doha mandate was “to reduce, or… eliminate........
© The Financial Express
visit website
login
who are we?
contact us
qosheapp
Toi Staff
Gideon Levy
Belen Fernandez
Rami G Khouri
Mort Laitner
Ali Fathollah-Nejad
Nikkei Editorial
