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The crucial ninth ministerial conference (MC9) of the World Trade Organization (WTO) begins today at Nusa Dua, Bali. Even as the multilateral body fights to stay relevant, India will take on the developed countries head on in its efforts to reform agricultural subsidies under the global trading rules.
The ninth WTO ministerial conference (MC9) that starts today is going to be closely watched across the globe not only because it will discuss issues of critical importance for all its 159 members, but also because the fate of multilateral trading regime is stake after 12 years of painstaking negotiations.
WTO director general Roberto Azevêdo, while talking to reporters here yesterday, shared similar concerns. He said if in the event WTO talks during MC9 fails, then it will accelerate the several bilateral and plurilateral trading arrangements that are already under negotiations between various countries and trading blocs.
The Bali package, which has food security and trade facilitation as the main agenda, is considered as a necessary step to re-launch the stalled round of Doha talks which started in 2001. But an eerie sense of the talks failing can be sensed here very strongly even before the talks have officially begun.
“I have not given up on securing the Bali package and will be working with member countries to get an agreement that secures a successful outcome and a promising future for the multilateral trading system,” Azevêdo said at a press conference here yesterday.
On the other hand, it seems India has already upped its ante on the issue of food subsidies and has hit back at the developed countries for not doing enough as was committed during the Honk Kong Ministerial meet in 2005.
Last night, commerce and industry minister Anand Sharma said it can agree to an interim measure or a ‘Peace Clause’ that guarantees removal of a limit on food subsidies provided a permanent solution is sought and committed by developed countries.
Developed countries, under the grouping G33 that includes India, China, Brazil and Indonesia, have vehemently maintained that agricultural subsidies and public stockholding are important to ensure their food security programmes and for the livelihood of their poor and marginal farmers.
“It is difficult for us to accept an interim solution as it has been currently designed. As a responsible nation, we are committed to a constructive engagement for finding a lasting solution. But till such time that we reach there, an interim solution which protects us from all forms of challenge must remain intact,” Sharma told reporters.
Trade experts have also been sounding the warning bells over the proliferation of several other mega trade agreements led by US and EU. Developed countries are now seeking alternative forums to the WTO through Trans-Pacific Partnership (TPP), Asia Pacific Economic Cooperation (APEC) and Transatlantic Trade and Investment Partnership (TTIP).
