International negotiations should lead to fair and equitable outcome: PHD Chamber

There is a general perception cutting across the developing world that WTO has failed to deliver the benefits that were dangled before them by the developed world a decade ago. It is heartening to note that developing countries have come together and are not succumbing to the economic and other pressures imposed by the developed countries. PHD Chamber feels that this is a significant achievement, with India leading from the front.

The current impasse in the WTO talks in Geneva for which the developed countries are blaming the developing countries is unfortunate. While the developed countries are subsidising their farmers, it should be equally feasible for the developing countries to guard themselves against import of subsidised products.

‘We support the stand of our Commerce and Industry Minister, Mr Kamal Nath, that developing countries like India have sought strong safeguards for its farmers from heavily subsidised imports from the developed nations which themselves have resorted to restricting trade for helping their agriculture sector. While there is no dispute with the contention that in all international negotiations there has to be give and take, it should be ensured that it leads to a fair and equitable outcome.” said Mr Krishan Kalra, Secretary General, PHD Chamber.

India's position on proposals for special import tariff measures known as special safeguard mechanism (SSM) is to allow countries such as India to raise their import tariffs to protect their poor farmers if imports surge over a certain level is justified since the livelihood of over 60% of its population depends on agriculture as compared to below 10% in developed countries. Unlike developed countries where agriculture is a commercial venture, for countries like India there are larger issues of poverty and development of its agriculture sector.

Developing countries are already facing non-tariff barriers imposed by developed countries in the garb of child labour, environmental concerns, customs classification and valuations, anti-dumping regulations, technical and non technical standards and regulations and it has to be understood that there cannot be an outcome which does not provide a level playing field for developing countries.

PHD Chamber though does not foresee any trade restrictions being put  by the developed world as it will foster of pressurisation and such an action will affect  all the multilateral forums particularly WTO where developed countries have equal stake if not more than the developing countries . India and China are major importers of Capital goods and developed countries will not try to impose more restrictions, as both India and China are both are continental markets.