New WTO text yet to address India’s concerns

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India has found that the revised negotiating texts of World Trade Organisation (WTO) released on Thursday, just days ahead of the mini-ministerial meeting scheduled to be held in Geneva on July 21, are not up to its expectations regarding protecting its SMEs and poor farmers. India Inc has called for further improvement in the drafts with a development agenda so as to strike a global trade deal.

Commerce secretary GK Pillai is likely to represent India on behalf of commerce and industry minister Kamal Nath at the ministerial on July 21 in view of the political turmoil at home. The UPA government has called a special two-day session of Parilament to seek a trust vote. Nath will, however, join the talks July 23 onwards.

Simultaneously, India is also likely to request the WTO to postpone the mini ministerial meet in order to enable Nath to attend the full session.

“Since there is not much change in the new texts, our opposition remains. But we are examining it (the texts) closely. We hope to resolve the differences during the ministers meeting in Geneva,” a senior government official told FE. The commerce ministry officials have studied the text and have briefed Nath.

New Delhi had warned earlier that it would not agree to any deal that does not safeguard its core national interests — protecting its poor farmers as well as infant and small and medium industries. Both the government and the industry have opposed the inclusion of clauses on anti-concentration and sectorals that prevents developing countries from protecting its infant industries as it enables cheaper industrial imports from rich nations.

Referring to the new texts, R Gopalakrishnan, chairman of the CII WTO and Trade Agreements Committee, said the new Nama text released by Ambassador Don Stephenson, chairman of the Nama negotiations, continued to include provisions that were sensitive to Indian industry.

Pointing out that Ambassador Stephenson has continued with the May 2008 coefficients for formula tariff cuts, Gopalakrishnan said the coefficients proposed in the text would mean higher percentage cuts by developing countries compared to developed countries. This, he said, goes against the less than full reciprocity clause.