Union Minister for Commerce, Industry and Textiles Anand Sharma on Monday noted that protectionist measures would delay economic recovery and warned against the collapse of the Doha Round of the World Trade Organisation talks.
“We must not allow this [Doha] Round to collapse. The Doha Round has to be taken forward as a single undertaking. We need to stay focussed on the development dimension of the Round, as the terms of the discourse cannot be changed. Developing countries are being called upon to pay an unconscionably high price to conclude the Round. This certainly was not our expectation and our commitment when we agreed to participate in the Doha Round,” he said.
The Minister was speaking at the inaugural of the Regional Trade Policy Course 2011 at the Centre for WTO Studies, Indian Institute of Foreign Trade, here.
Mr. Sharma said it was important to sustain people's faith in the multilateral institutions. “Many sceptics feel that the WTO is at the crossroads and that the lack of progress in the Doha Round raises questions on the relevance and efficacy of this institution. We do not share this pessimism.” A crisis might lead to inward-looking and promote protectionism, but it would be counter-productive and delay the recovery and deepen recession.
Timely conclusion of the Doha Round of talks, he argued, would not only have strengthened the WTO as a bulwark against protectionism and boosted the global economy but would also have signalled the WTO's firm commitment to development.
Deadlock
Admitting to the ‘deadlock' in the Doha talks, WTO Director-General Pascal Lamy said that with leadership, pragmatism and determination, “we should continue” to address various issues (affecting the negotiations). “We cannot give up because of a steep slope or long path. The WTO is a member-driven organisation, and its negotiations are a collective enterprise. Stakeholders of global trading systems recognise its worth and contribution in times like these. India is a good example of how trade can be leveraged to achieve growth and reduce poverty.”
Radical transformation
Commerce Secretary Rahul Khullar said global economy had undergone a radical transformation. “Developing countries today are not silent partners, they are equal partners in the negotiations; you are going to see developing countries dominating the talks. That is why, it is important to have a global trading system that is rule-based.”
