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WTO at the crossroads: India must ensure the Doha Mandate is not
abandoned at Nairobi

December 12, 2015, 12:02 AM IST TOI Edit in TOI Editorials | Edit
Page, India | TOI

By S Narayanan and Jayant Dasgupta

While the ongoing Paris meeting on climate change has captured the
attention of the world, WTO’s upcoming 10th MinisterialConference (MC)
in Nairobi from December 15 to18 has hardly elicited any interest.
This is not surprising, considering the lingering impasse in the Doha
Round negotiations at WTO.

In November 2001, during the 4th MC at Doha, an ambitious new round of
complex negotiations was launched, covering a wide range of subjects
like agriculture, environment, industrial tariff, services,
anti-dumping and subsidies. The last MC held in Bali was significant
in that the first multilateral agreement since the creation of WTO was
adopted in the shape of the Trade Facilitation Agreement.

The other two notable decisions related to protection from WTO dispute
action for public stockholding of food in developing countries and the
development of a road map to conclude the Doha Round negotiations by
2017.

A major factor for the delay in concluding the Doha Round has been the
radically changed stance of the US since 2009, duly supported by other
developed countries. Almost all the gateway issues to conclude the
Round had been successfully negotiated by the US, EU and other major
participants like China and India. However, the Obama administration
took the stand that the “world had changed” because of the rapid rise
of emerging countries, thus necessitating the renegotiation of all the
tentative agreements reached during the Bush administration.

An important proviso to this stand was that emerging countries would
have to pay significantly more than agreed upon earlier. Another view
propounded forcefully by the developed countries was that WTO could
not afford to ignore “21st century issues” like competition,
investment, government procurement, energy security, labour,
environment, global value chains, e-commerce and regulatory coherence.
Taken together, these propositions clearly lead to a rejection of the
Doha mandate and implicitly call for a fresh mandate to start another
Round, comprising perhaps only the new “21st century issues”. This is
akin to saying that i will play the game as long as it suits me, if it
does not i will abandon it and start another game, with rules of my
choosing.

Given the wide divergence of views among countries, the outcome at the
Nairobi MC is fraught with uncertainty. India, along with other
developing countries, stands to lose significantly if the Doha Round
were to be abandoned without addressing its core issues, including
disciplining of agriculture subsidies and market access in goods and
services. Providing market access in agriculture products, especially
those which are underpriced because of a high level of subsidies
prevalent in developed countries, will damage Indian agriculture
further and deepen the distress of our farmers.

Moreover, the conclusion of the high ambition TPP agreement and the
prospects of quick conclusion of TTIP and TISA, all of which are being
negotiated at the initiative of the US, outside WTO, pose a threat to
the very relevance of WTO other than as a forum for dispute
settlement. In its own interest and in the broader interest of the
developing countries, India has to ensure that the Doha Mandate is not
abandoned at Nairobi. Yet another danger in the current situation is
that developing countries like India may be cajoled into accepting
some “21st century issues” for negotiations, without clarity as to the
negotiating mandate.

India’s stand at Nairobi has to be obviously based on what it
perceives to be in its national interest. The western media may try to
attack and demoralise India at Nairobi by calling it “obstructionist”.
India need not be deterred by such motivated criticism.

India and other developing countries attach great importance to WTO
since they feel that it is designed to be a rule based system and
therefore likely to be more responsive to their interests. They have,
hence, the unenviable and daunting task of ensuring that the WTO
system continues to remain equitable and responsive to their interests
and aspirations. Perhaps the stage at Nairobi would be appropriate for
India to try to multilateralise the slogan “sabka sath, sabka vikas”.

The writers are former Ambassadors of India to WTO.
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Peace Is Doable

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