Sunday, September 20, 2009

What conclusion came from Delhi WTO talks?

Doha round was begin in 2001 to help the developing country to grow by opening trade, to help pull the world out of economic crisis and fight protectionism. The purpose of ministerial meeting of WTO was to broke the impasse and resume the Doha round talks which was broken down in Geneva due to firm determination on their point(not likely to compromise with their farmers need) by some developing countries of which India was the pivotal. Delhi meeting did not talk on any specific issues that are remain open such as a safeguard to help the former of poor country cope with a flood of imports or proposal to remove duties entirely in some industrial sector. That all issues are left to chief negotiator which will be meeting in next talk, but India was confident enough that these issues could be resolved on negotiating table if countries were willing.
Concern of Brazil and some European countries-
these countries had feared that United states wanted to unpick what has already been agreed over seven years but Delhi talk provided comfort to them as meeting decided that talk will resume on the basis of draft negotiating text issued in Dec 2008.
What India wants from Doha round talks—
Uttermost demand by the India (supported by devolving country group) is that there should be no upper limit for increasing duties; it should be left totally on the developing countries to fix it according to their market needs. Second point is that special safeguard measure should be much lower than existing 150%.
American stand-
US demand is that import duty should be increased only when it crosses the specified level which was decided in Uruguay talks and demand of new safeguard duty by devolving country should not be beyond that.

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