
The Indian Express

The Financial Express

Latest News

Livestylz

Mythology

CerfKids

Corporate Results

Matrimonials

Careers

Astrology


Columnists

Crossword

Letters

Jewellery

Daily IT Update

Express Computer

Screen

Power

Steel

|

| |
Saturday, November 27, 1999
The battle in Seattle
It is realistic for India to take a flexible stance at Seattle where, between November 30 and Dec-ember 3, ministers from 134 member countries of the World Trade Organisation (WTO) will decide on the agenda for a new round of trade negotiations. Even before the first and second ministerial meetings in Seattle India's basic position was clear and it has not budged from it until this week. It believed it was premature to start a new so-called Millennium Round when developing countries needed time to make the many domestic adjustments required of them to meet the obligations under the Uruguay round. That was not an unsound position given the rapid pace of social, economic and political change caused by globalisation. But when no unified developing country stance emerged it left India with no negotiating strategy for Seattle other than to obstruct any proposals. In fact, as a nay-sayer India was beginning to look pretty isolated among developing countries most of which are interested in a fresh round of talks onindustrial tariffs and some on agricultural trade. There are no prizes for consistency at trade negotiations. So it is sensible to send India's negotiators out with a flexible mandate. Rather than let others decide on the future world trade agenda by default, India should be able to look for and seize the best trade opportunities for itself.It is worrying that the decision to actually participate in the bargaining at Seattle (which is what being flexible means) has been left for so late in the day. It is a complex business with many external and internal ramifications. As many as 200 proposals on the table must be examined for their merit, which trade-offs make the best sense for India must be worked out and the best negotiating allies among the other 133 countries must be found. China's entry into the WTO will also have to be factored into calculations. Most of the detailed work on these issues would need to be done in advance. Internally, exhaustive discussions with industry, agriculture, the exporttrade and business will have to precede engagement at Seattle. Discussions have been taking place at inter-ministerial level for many months but it is not certain that all the necessary homework has been done. Consultati-ons outside the government will, of course, have to be a continuing process but it would be reassuring to know the specifics have indeed been chewed over thoroughly with business and industry by this time. It would be a shame to go into such far-reaching discussions without full preparation and the full support of domestic business and industry.One Indian target naturally will be lower tariffs in traditional export sectors like textiles and clothing and leather and leather goods. But it is also here that we face severe competition from countries like China geared to low-cost, quick-to-market production. The most important battles will be to create more openings in fields where India has the edge and its technicians, engineers and scientists can forge further ahead:labour-intensive,skill-intensive and technology-intensive services. Agreeing to transparency in government procurement, for example, is a concession India should happily make for gains elsewhere. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

Top
|
|
|


Printer-friendly page |
|