India Hardens Stand On Trade Issues

The two-day meet is expected to focus on five issues which include investment, trade and environment, labour standards, government procurement (bribery and corruption) and competition policy and rules. Some of these issues are likely to figure at the Singapore ministerial conference in December.

All the 19 countries invited are to attend. Envoys are expected from 10 countries.

India does not favour the proposed multilateral agreement on investment (MAI) being discussed under the WTO umbrella and will insist on retaining government rights to regulate foreign direct investment inflows. The proposed agreement is being pushed by the OECD countries.

Regarding competition policy (an issue linked to investment), India is of the view that a code of behaviour for transnational corporation must form an essential part of any such move. Further, anti competitive moves like anti dumping and countervailing duties plus AD and CVDs anti competitive actions which impede market access, predatory pricing and monpoloistic behaviour must be covered.

 

On government procurement, India considers it desirable to keep corruption and bribery out of award of government contracts but is doubtful of whether the issue needs to be tackled by the WTO. It is of the view that governments can frame its own transparent rules and procedures for tendering and competitive bidding, and at best a plurilateral treaty can be adopted in which a country is free to join the treaty at will.

India also opposes the linking of the issue of child labour and labour standards with trade. Sources argued that while India is not defensive about her labour legislation, it would be appropriate to discuss this under the umbrella of the International La-bour Organisa- tion rather than the WTO. Sources said Malaysia shares the viewpoint.

Regarding trade and environment - an issue under examination by a WTO committee - India feels that access on plea of environment being endangered is being reduced by developing nations. Further, the export of domestically prohibited products by developed countries and their system of disposal of hazardous substances is affecting the developing nations. The developed countries argue that developing countries must maintain environmental standards