Developing countries stand united, threaten walkout from the July mini-Ministerial meeting

Geneva: July 24, 2008

Another attempt has been made and Green Room resumed at 4:00 pm. The positions still remained deadlocked as developed countries are not acceding to the current format of negotiation. All developing countries like the India and Brazil are disappointed by the offers from the developed world. The talks centered on the flexibilities demanded by the developing world and the trade distorting luxury which the developed world enjoy, leading to no headway.

The Green Room meeting started with discussion on SPs and SSM and there was a reluctance on part of the US to any further concessions to the developing world while on the contrary insisted on a more comprehensive 'peace clause' with an offer to restrict subsidies to $15 billion beyond which they said cannot go. The G-33 group remained united and demanded no reduction on special product lines. There seems to be an utter disappointment on the current progress of the negotiation. Both Argentina and Brazil have opposed any dilution or compromise on their current positions. On NAMA there was a proposal of 20 coefficient with 13 per cent flexibility and 25 coefficient with no flexibility, which was totally rejected by many countries. Kamal Nath walked out of the G-7 Meeting and moved to G-33 meeting, he even felt that negotiation should be broad based with all countries rather than a select countries negotiating for all.

Meeting with Kamal Nath, Minister of Commerce and Industry, India

At the CSO meeting held at WTO, the Commerce Minister reiterated that he can negotiate commerce but not livelihood of millions whom he is representing. He even threatened that he can 'Walk out' of the deal if the rich countries do not offer substantial gains to the developing countries in the Development round. According to him, the current high prices situation is not on account of subsidies but lack of investment in the developing world who have a comparative advantage in trading and a genuine need to develop. He stressed that the price for the deal is within reach for the developed world and the onus squarely lies with them. He noted the unsustainable cost structure of EU industries and when you talk of global competitiveness India stand strong and need a better deal. The current round is not about distorting trade frontiers but fight against poverty and inequity. He emphatically stated that the current round is about agriculture labour, employment and prosperity of the developing world. On being asked about his current position on anti-concentration and sectoral initiatives, Kamal Nath stressed that he cannot compromise the interest of Indian manufacturers. He even stated that he has been approached by the Indian subsidiaries of European Companies on not accepting these NAMA positions and he would first heed to these subsidiaries rather than the parent organisations' global demand. He termed the current NAMA text as inequitable and emphasised that he is not particular with any nomenclature but wants reduction as percentage 'for example if the EU and the US reduce NAMA by 100 then India is ready for a 90 per cent reduction if 60 then 50 and so on'. On the services he said he does not have any comments as there is long way ahead and it is premature. Nath was disappointed with the current format of the negotiations with limited member and want an extended membership in continuing further negotiation. He pointed out that even with diverse interest in different groups, developing countries still stand united and will remain for the cause of development. He stressed that the negotiation should proceed on a more transparent format then only one can carve out the final deal in the development round. The Minister is willing to stretch negotiations even if it would mean another week but would not compromise the livelihood for a bad deal.

Photo 1: Kamal Nath, Minister of Commerce and Industry, Government of India, interacts with Indian and International Civil Societies at the WTO

Photo 2: Brazilian Foreign Minister Celso Amorin shows his back on the current format of consultation at WTO

Linu Mathew Philip
Fellow, Centad