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Notes from WTO

White paper on India’s stand in WTO rounds demanded

Accusing the government of “subdued resistance to adverse proposals at the WTO rounds”, a section of opposition parties has demanded a white paper on critical issues ahead of the Cancun round in September.

“Government’s lack of homework and transparency is harming India’s interests at WTO rounds. So ahead of Cancun talks we demand a white paper so that full-fledged discussion could take place in Parliament before any move is made in the multilateral trade negotiations,” former prime minister Mr V P Singh and CPM politburo member Mr Sitaram Yechuri told reporters.

The government has to make explicitly clear its stand on investment, competition policy, procurement and trade facilitation, issues on which negotiations are likely to be held in Cancun, they said at a press meet held by Indian People’s Campaign Against WTO (IPCAWTO).

Terming these new issues as “detrimental” to the country, Mr Singh said multilateral discipline on investment will legally tie the hands of all future governments and make it difficult for any government to follow the policy of self-reliance.

“The interests of foreign investors will override the social priorities such as employment generation and balanced regional development”, he said. On the negotiations on “competitive policy”, Mr Yechuri said, “Governments will not be allowed to give preference to indigenous firms and will be prevented from taking measures to control the activities of MNCs”. He said proposed trade facilitation is an exercise to compel developing counties to revise their laws, rules and regulations to bring them in conformity with those of the developed countries. “These are being drafted without regard to difference of background circumstances and differing objectives of such regimes in developing countries”, Mr Singh said. Mr Yechuri said, at the conclusion of Doha rounds, the government had claimed that they had achieved postponement of these new issues for a two-year period. “The government now needs to be reminded of its claim and asked to deliver on its promise by formally blocking any adverse decision on these issues at the ministerial meeting at Cancun” he said “It is ironical that in the Doha round, which was publicised as the development round, no progress has been achieved on the question of special and differential treatment in favour of developing countries” Mr Singh said.

IPCAWTO president Ms Vandana Shiva said the experience of two years after Doha meeting only reinforces the conclusion that the developed countries are continuing to use WTO as a powerful instrument to pursue their interests adding, “This is happening because countries like ours have miserably failed and abandoned their role to resist”.

WTO rules against US following complaints from India

Acting on complaints from India and eight other co-complainants, the WTO Dispute Settlement Panel has held that the Continued Dumping and Subsidy Offset Act (CDSOA) of the US had violated obligations under the Anti-Dumping Agreement, the Subsidies Agreement and GATT.

Subsequently, the US appealed against certain findings and legal interpretations developed by the panel in this dispute, the commerce minister Mr Arun Jaitley stated here recently.

The appellate body, while reversing certain findings of the panel, has inter alia, upheld the overall determination of the panel that the CDSOA constitutes non-permissible specific action against dumping or a subsidy and violates obligations under the subsidies and anti-dumping agreements. Mr Jaitley said the ruling and recommendations of the panel and the appellate body in this dispute were adopted by the dispute settlement body of the WTO during its meeting held on 27.1.03. Following this the US is required to bring its measures into conformity with obligations under the anti-dumping agreement, the subsidies agreement and the GATT 1994, he said.