In The Financial Express | bY Ashok B Sharma | Sept 15, 2003 The negotiations till the fourth day of the fifth WTO ministerial meet in Cancun have proved that the developed countries are not ready to reduce their subsidies and support or give market access to the products of the Third World. Much to the disappointment of the developing countries the chairman of WTO Council on September 13, the penultimate day, issued a revised draft text for final negotiations which is heavily loaded in favour of the developed world. The four controversial Singapore issues have been brought under discussions. Forgetting the promises of the Doha declaration and earlier proposals, the revised draft in Article 3.6 specifies no timeframe for reduction in all forms of export subsidies. The revised text also gives special treatment on tariff to developed countries while depriving the same to the developing countries. The text suggests that Peace Clause, which was slated to be terminated by December 2003, will be extended and this would make difficult for the developing countries to challenge dumping of agro produces by the developed countries. The revised text has given more flexibility to the developed countries in matters of reducing subsidies and domestic support. There is a clear indication to bail out the developed countries to conveniently shift subsidies and support from one Box to another. It is very difficult to predict the outcome of the final negotiations, just a day before. This article will appear in print when the negotiations will be finalised. But as the matters stands today, the developed countries till now have been successful in putting up a united defence in favour of their demands for reduction in subsidies and support and greater market access. They have strategically grouped themselves under two separate groupings - G-21 for demanding reduction in subsidies and more market access in agriculture and G-16 for opposing any discussions on Singapore issues. India is leading both the groups at the negotiations. In view of the rigid stance taken by opposing groups, green room discussions are in progress for facilitating compromise formula. Clever moves are being initiated by the developed countries to break the alliances of the developing countries. There are 8 G-21 member countries who are eager to have free trade agreements (FTAs) with US and US is trying to convince them to switch over to its side. Both the US and EU are promising aid to some G-21 and G-16 countries to switch their loyalties. However, the developing countries has not initiated any move to exploit in their favour, the dissension within the European Union or on the US-EU feud over GM foods which is under dispute at WTO. In this situation it is not clear to what extent the farm issues would be correspondingly linked to the Singapore issues as a matter of `give and take'. The EU is interested in getting the geographical indications (GIs) extended to cover agro products like basmati rice alphanso mango and Darjeeling tea and this may act as an olive branch for India and some developing countries. Similarly is the case for special and differential treatment for developing countries. But the real issues of market access and subsidy reduction would invite hard negotiations. The developed countries are proposing that the developing countries specify the agro products in which they need market access. This is a clever trick to divide the Third World unity. Market access should be across the board. Developing countries which are undertaking crop diversification should have the option for market access in as many crops as possible. Coming to Singapore issues, the revised draft says that negotiations should begins on government procurement and trade facilitation while modalities for investment and competition policy would be worked out after the Cancun meet. The developing countries say that Singapore issues should not be on the agenda as there is no explicit consensus on it as per Doha declaration. All these Singapore issue can affect the sovereign rights of national governments to determine its policy of development. The national governments will not have any controls over MNCs and TNCs operating in the country. Every country should have the right to devise its own competition policy for curbing monopolies and unfair trade practices. In many countries government procurement is done with the intention of income distribution and growth and sustainability of small scale sector. Trade facilitation should continue to remain under World Customs Organisation where it has worked successfully so far. Developing countries need to call for movements of natural persons under GATs. Caution is also needed for negotiations under NAMA, especially in areas of tariff reduction. Tariff reduction under NAMA can cause problems for the small sector.In The Financial Express:
