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Wednesday, May 20, 1998

Talking trade 

 
The Union government has asked for a review of the WTO norms through commerce minister Ram Krishna Hegde at the Geneva summit. Two things stand out about the demand. First, that the Saarc nations signed a declaration on the demand for changes in the norms at Geneva over the weekend, signalling that the recent nuclear tests by India by no means put an end to diplomacy dynamics of the region. Second, India is not alone in asking for a revision of the norms: the US president Bill Clinton, till date an unwavering supporter of the existing WTO order, has also called, not just for piecemeal changes in WTO norms, but also for a whole new round of trade negotiations. Clearly, both extremes of trade interests -- the developed and the developing -- are seeking a changed trade order.

The Indian demand is not only justified, it is crucial that these demands are pressed hard and well. Developing nations are the butt of all sorts of non-trade concerns of the developing world. Social concerns, labour standards, certaingiven ills of the developing world from which only brisk and substantial trade can deliver them are frequently cited as reasons to limit trade with these countries by the developed countries. The European Union continues to maintain a high agricultural subsidy level, while Indians are told to do away with them. American firms employ child labour in India to make their shoes and other consumer products, but the American importers cite child labour to stop imports of Indian carpets. Besides, the much more vital issues of the inequities in introduction of product patent system, non-liberalisation of textile trade, and market access for professionals from developing countries also need to be pressed strongly.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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