The WTO’s on-going ministerial meet in Nairobi is headed towards a disappointing finish, with the US opposing all moves to allow the Doha Development Round to continue and the likelihood of India getting a satisfactory deal on special safeguard mechanism (SSMs) to protect its poor farmers against import surges diminishing.
New Delhi is attempting to hold on strongly to its ground — by refusing to allow a pact that does not reaffirm the Doha round, and staying away from a deal on “export competition” for dismantling of export subsidies being pushed by developed countries and farm lobbies such as Brazil, if it does not get an SSM deal — an official involved in the talks told BusinessLine .
Countering rumours that India was blocking a deal in Nairobi, Commerce Minister Nirmala Sitharaman tweeted: “Indian blocking WTO? Disagree!”
While things remained in a state of flux on Friday evening, Kenyan Trade Minister Amina Mohamed, who is also the chair of the ministerial meet, said at a press conference that there was no crisis and talks were going on. “We are hopeful of clinching a deal in a few hours,” she said.
“The US is being very adamant and does not want a re-affirmation of Doha in the Nairobi declaration. We have been trying to argue that it would be a breach of faith towards developing countries and LDCs (least developed countries) who have been waiting for developed countries to deliver the market access and preferences that were promised when Doha was launched in 2001,” an official involved in the talks said.
Continuation of the Doha development round is important for India and other developing countries and LDCs as it has an important “less than full reciprocity” clause. That clause puts the onus on rich countries to give deeper market access and other trade concessions to developing countries compared to what they get in return.
Negotiations on a number of areas including market access for industrial and agriculture goods and reduction in farm subsidies are all based on the less than full reciprocity rule that make poorer countries net gainers.
The US also hopes to introduce new issues such as investment, competition policy and government procurement once it manages to officially bury the Doha round.