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Sitting
awkwardly by the seaside, surrounded by journalists and cameramen, Union
Commerce Minister Murasoli Maran was trying hard to look happy. It was
Wednesday evening and the fourth ministerial conference of the World Trade
Organisation (WTO) at Doha in Qatar was in its final moments. Maran had
just rushed out of the plenary hall to catch a flight to Delhi. "We
have made significant gains," he told journalists, among whom were
reporters from the now well known Al Jazeera Television, Reuters and BBC.
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| THE LONG MARCH: Maran (centre), Commerce
Secretary Probir Sengupta (left) and Special Secretary Nipendra Misra
at the WTO meet
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Maran's optimism stemmed from the fact that the WTO had assured India
that negotiations on the issues of investment, competition policy, transparency
in government purchase and trade facilitation (collectively called new
issues) would not start till 2003. Even then, an explicit consensus of
all 144 members of the WTO would be taken before launching the negotiations.
But what Maran was claiming to be a victory was actually damage control.
India was stoutly opposed to negotiations on the new issues under the
WTO. The reason: India does not consider them to be trade issues. The
Commerce Ministry has consistently stated that investment and competition
(policies to prevent abuse of free market) are matters of a country's
domestic policies on which no multi-party (multilateral in WTO lingo)
negotiation is possible. The same logic applies to negotiations on transparency
in government purchase and trade facilitation. "The WTO is trying
to be a super government. It is invading the sovereignty of nations,"
Maran had lashed out a week before the Doha conference began on November
9. Yet the final declaration of the conference stated that WTO members
"recognise the case for a multilateral framework" of policies
on all the four issues. The question is no longer whether these issues
should be negotiated, but when they will be negotiated. India has only
been able to postpone the inevitable.
Environment was another battle where India had to retreat. The declaration
accepted the need to "enhance the mutual supportiveness of trade
and environment" and proposed to start negotiations after the fifth
ministerial conference of the WTO, which will be held in 2003. The scope
of this agreement is limited right now, but as trade policy expert Bibek
Debroy points out, "This is the sharp edge of the wedge." In
trade negotiations what begins as a small and innocuous discussion blows
into a major issue. What is known today as the Trade Related Intellectual
Property Rights (trips)-the law that governs patents, among other things-had
originally figured in international trade talks as a proposal to fight
counterfeit products. The fear that environment standards will eventually
be used to impose restrictions against exports of developing countries
is, therefore, genuine.
One cause for India's apparent defeat on critical issues is its excessive
reliance on support from developing countries. In varying degrees, countries
across Asia, Africa, the Caribbean and Latin America had promised support
to India on most issues. But through the six-day conference, most countries
struck their own deals with the developed world and deserted India.
Some countries from the Caribbean and Africa gave up their opposition
to investment and environment proposals after securing a waiver on restrictions
on banana exports to the European Union. Some South-East Asian countries
traded their support to India's stand by settling a deal on tuna exports.
Even a group of Like Minded Countries (LMG)-a 14-country group with India,
Pakistan, Indonesia, Jamaica and Dominican Republic among its members-turned
into a group of Unlike Minded Countries by the end of the conference.
TOUGH FIGHTING, TAME SURRENDER
Major issues of negotiations in Doha and what India gained or lost
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Issue
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Debate
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Key countries involved
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Outcome
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Gain/loss*
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| Patents and drugs |
Cheap and easy availability of patented,
high-priced medicines. |
US/EU vs India, Brazil and South Africa
|
Countries granted right to break
monopoly over patented drugs in case of health emergency, i.e. outbreak
of epidemics. |
Gain
|
| Anti-dumping |
Dilution of strict and unreasonable
anti-dumping rules in the US. |
US vs rest of the world |
Assurance of greater discipline in imposition
of anti-dumping provisions, but no changes guaranteed.
|
Partial gain |
| Textiles |
Early elimination of quotas on imports
of textiles and garments imposed by US. |
US vs developing countries
|
US refused to advance the deadline for quota
reduction from January 2005; threatened other non-tariff barriers
if pushed.
|
Loss |
| Agriculture |
Phasing out of massive export subsidies
the EU provides to its farmers. |
EU vs rest of the world
|
EU agrees to talk on subsidy phaseout in future;
prospects of quality Indian farm exports brighten.
|
Partial gain
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| Environment |
Whether environment standards should
be linked with trade. |
EU vs developing countries
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An agreement on a limited negotiation on environment
after 2003; eco-labelling of export products to be discussed too.
|
Loss |
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Investment/Competition
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Common investment and competition norms across
countries.
|
EU/Japan vs India
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Tentative agreement to negotiate on the issue
after 2003.
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Partial loss
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