India To Take Part In First Wto Meet On Competition Policy

India is due to participate in the first meeting of the World Trade Organisation (WTO) on competition policy slated to be held in Geneva on July 7-8.

To prepare for the meeting, the commerce ministry has sought views from the various chambers, including CII, Ficci and Assocham, on the main concerns of industry and the agenda of work to be taken up by the working group on competition policy.

The ministry is keen that while framing its agenda, the new working group keeps the concerns of developing countries in mind. Two new working groups on competition policy and government procurement have recently been set up. The chairman for the first is from Venezuela whereas the chairman for the government procurement committee is from France.

 

The WTO working party on investment was formed earlier this month in Geneva and held its first meeting in June. The committee chairman is from Thailand.

The two groups on investment and competition policy are to draw upon from each others work if necessary and also draw upon, without prejudice, from work done in this area under the United National Conference in Trade and Development and other appropriate inter-governmental fora.

Sources said that WTO members are finding it necessary to address competition policy concerns in the sectoral negotiations in services despite the fact that the more general debate on the interaction between trade and competition policy is yet to begin.

Competition safeguards oblige members to prevent a major supplier from abusing control over information or engaging in anti competitive cross subsidisation.

A number of countries feel that the WTO should deal not only with anti competitive practices which reduce market access, but also abuse of trade measures which restrict competition in importing markets.

The aim of these countries is to bring anti dumping within the ambit of discussions on international competition policy.

Other members, however, disagree and argue that anti dumping rules are part of the larger balance of interests of members on the WTO agreement and this balance should not be upset by attempts to substitute anti dumping rules by competition rules.

Ficci, in a paper submitted to the ministry, points out that the while the MAI seeks to establish non-discriminatory rules for investment, there is no proviso to guard against the discretionary powers of multinational corporations.

The paper stresses the need for an alternate multilateral investment code to safeguard the interests of developing countries.