The WTO imbroglio: Can the trade facilitation impasse be resolved?
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Can the Trade Facilitation Impasse be Resolved? By T.S. Vishwanath, Senior Public Affairs Advisor The last week of July was momentous for the Geneva-based World Trade Organization (WTO). After years of no progress, member countries found themselves close to moving forward on an issue- trade facilitation- that has a direct impact for businesses across the globe. But, unfortunately for industry worldwide, the talks failed. Countries blamed India for reneging on the agreement that was signed at Bali, Indonesia in December 2013 while India stood firm stating that the real issue was that countries were picking and choosing the deliverables that were agreed at Bali. A trade facilitation agreement is critical for business, as it will help remove procedural bottlenecks when goods move across borders. The agreement will impose obligations on all WTO members to ensure that rules governing import and export remain transparent and simple. While India, ostensibly, is at fault, a close reading of the agreement at Bali shows that India's point was not devoid of logic or legal sanctity, though it will continue to be blamed for the Geneva debacle of the current round of trade liberalization under the WTO- the Doha Round. India tripped the trade facilitation agreement stating lack of progress on another hard fought issue at Bali- Public Stockholding For Food Security Purposes - that will permit New Delhi to procure cereals from farmers for a state-led public distribution to the poor. Lessons From Geneva In the last Council Meeting of the WTO in Geneva, a deal on trade facilitation could not be agreed. Though countries are hoping to find solutions in September when WTO reconvenes after a break, there could be some learning for member countries and businesses from this event. Failure On Part Of Countries To Pick Up Discordant Notes: For member countries it is an important lesson to realize that till the deal is sealed they will have to keep their eyes and ears open for signals emanating from other countries. Some countries of Africa first raised the issue of keeping a balance on the deliverables from Bali before India picked up the gauntlet and pressed ahead. But these signals were ignored with a view that eventually every country will fall in line. This, however, should have been a signal to move ahead with some serious bilateral consultations to sort the issue and nip the problem in the bud. Second, countries felt that while India may push hard eventually things will work out. What they failed to see was that the Agreement on Public Stockholding, which will help developing countries focus on food security issues, is a non-negotiable topic for the Indian government. This non-negotiable position is accentuated by the fact that the present government in India has come on a massive mandate of people across the country seeking economic emancipation. T.S. Vishwanath Further, the current coalition government in the centre in India, the National Democratic Alliance, led by the Bharatiya Janata Party, had not endorsed the Indian position taken at Bali and had felt that it fell short of providing policy space to developing countries to ensure food security for its poor citizens. Since the current government enjoys a sizeable majority in Parliament, it is aware that it will have to meet the aspirations of the nation, especially when it concerns larger national issues like food security. This background is something trade partners of India, who were keen on a trade facilitation agreement, should have picked up early and started a dialogue with the government of India to ensure that the Bali agreement does not face a crisis. Second, there was a clear lack of a messaging and communication strategy on behalf of some of the countries, which were trying to pressurize India to move ahead on the trade facilitation agreement. Like in the past, countries started a tirade against India, which led to New Delhi digging its heels deeper and refusing to budge from its stated position. A more nuanced communication strategy by some of the large countries could have eased the situation. The Role of Business: Unfortunately, though the deal was significant for business across the globe, it chose to remain silent or at most followed the parent country strategy. While business has no direct role in the deliberations at the WTO it certainly can play a very significant role in ensuring outcomes if it plays a strategic role. Unfortunately, till date business in both the developed and developing world have chosen to take position similar to the country positions on some key areas. The response of business in the current crisis at WTO was no different. There is an urgent need for business to reconsider its communication strategy if it seeks better results from the multilateral negotiations. Next Steps: Trade negotiators are an incorrigibly positive lot. This evident if we look at the current mood in Geneva. Though crestfallen, they have not given up and most concur, albeit a bit weakly, that September may be the month when all will be well with the Doha Round of the WTO. It is time for global business to think of a strategy to influence negotiators and move the Doha Round forward. Edelman India's Public Affairs (PA) practice combines industry, regulatory affairs and communications knowledge to develop and execute PA campaigns based on solid research and insights that inform impactful strategies. We work with our clients to anticipate issues; plan and respond to the emerging challenges at national, state and local levels. At the core of the offering, is the ability to develop long term relationships and maintain constant engagement instead of an ad hoc approach. Our team of 29 personnel includes senior industry professionals, domain experts, researchers and writers from a wide range of backgrounds. We have access to an extended group of advisors from civil service, media and NGO circles who help us navigate the vast and complex stakeholder universe in India. Edelman India has ofces in Mumbai, Delhi, Bangalore and avast network of representatives in state capitals. Rakesh Thukral, COO Edelman India, Public Affairs Practice Lead [email protected] Peter Bellini, Senior Account Director, Public Affairs [email protected] Contact the Public Affairs practice:
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Transcript of The WTO imbroglio: Can the trade facilitation impasse be resolved?
Can the Trade Facilitation Impasse be Resolved?By T.S. Vishwanath, Senior Public Affairs Advisor
The last week of July was momentous for the Geneva-based World Trade Organization (WTO). After years of no progress, member countries found themselves close to moving forward on an issue- trade facilitation- that has a direct impact for bus inesses across the g lobe. But , unfortunately for industry worldwide, the talks failed. Countries blamed India for reneging on the agreement that was signed at Bali, Indonesia in
December 2013 while India stood firm stating that the real issue was that countries were picking and choosing the deliverables that were agreed at Bali.
A trade facilitation agreement is critical for business, as it will help remove procedural bottlenecks when goods move across borders. The agreement will impose obligations on all WTO members to ensure that rules governing import and export remain transparent and simple.
While India, ostensibly, is at fault, a close reading of the agreement at Bali shows that India's point was not devoid of logic or legal sanctity, though it will continue to be blamed for the Geneva debacle of the current round of trade liberalization under the WTO- the Doha Round. India tripped the trade facilitation agreement stating lack of progress on another hard fought issue at Bali- Public Stockholding For Food Security Purposes - that will permit New Delhi to procure cereals from farmers for a state-led public distribution to the poor.
Lessons From Geneva
In the last Council Meeting of the WTO in Geneva, a deal on trade facilitation could not be agreed. Though countries are hoping to find solutions in September when WTO reconvenes after a break, there could be some learning for member countries and businesses from this event.
Failure On Part Of Countries To Pick Up Discordant Notes: For member countries it is an important lesson to realize that till the deal is sealed they will have to keep their eyes and ears open for signals emanating from other countries. Some countries of Africa first raised the issue of keeping a balance on the deliverables from Bali before India picked up the gauntlet and pressed ahead. But these signals were ignored with a view that eventually every country will fall in line. This, however, should have been a signal to move ahead with some serious bilateral consultations to sort the issue and nip the problem in the bud.
Second, countries felt that while India may push hard eventually things will work out. What they failed to see was that the Agreement on Public Stockholding, which will help developing countries focus on food security issues, is a non-negotiable topic for the Indian government. This non-negotiable position is accentuated by the fact that the present government in India has come on a massive mandate of people across the country seeking economic emancipation.
T.S. Vishwanath
Further, the current coalition government in the centre in India, the National Democratic Alliance, led by the Bharatiya Janata Party, had not endorsed the Indian position taken at Bali and had felt that it fell short of providing policy space to developing countries to ensure food security for its poor citizens. Since the current government enjoys a sizeable majority in Parliament, it is aware that it will have to meet the aspirations of the nation, especially when it concerns larger national issues like food security.
This background is something trade partners of India, who were keen on a trade facilitation agreement, should have picked up early and started a dialogue with the government of India to ensure that the Bali agreement does not face a crisis. Second, there was a clear lack of a messaging and communication strategy on behalf of some of the countries, which were trying to pressurize India to move ahead on the trade facilitation agreement. Like in the past, countries started a tirade against India, which led to New Delhi digging its heels deeper and refusing to budge from its stated position. A more nuanced communication strategy by some of the large countries could have eased the situation.
The Role of Business: Unfortunately, though the deal was significant for business across the globe, it chose to remain silent or at most followed the parent country strategy. While business has no direct role in the deliberations at the WTO it certainly can play a very significant role in ensuring outcomes if it plays a strategic role. Unfortunately, till date business in both the developed and developing world have chosen to take position similar to the country positions on some key areas. The response of business in the current crisis at WTO was no different. There is an urgent need for business to reconsider its communication strategy if it seeks better results from the multilateral negotiations.
Next Steps: Trade negotiators are an incorrigibly positive lot. This evident if we look at the current mood in Geneva. Though crestfallen, they have not given up and most concur, albeit a bit weakly, that September may be the month when all will be well with the Doha Round of the WTO. It is time for global business to think of a strategy to influence negotiators and move the Doha Round forward.
Vatika Triangle,6th Floor, Sushant Lok - 1, Block AGurgaon, Haryana 122 002 India
Edelman India's Public Affairs (PA) practice combines industry, regulatory affairs and communications knowledge to develop and execute PA campaigns based on solid research and insights that inform impactful strategies.
We work with our clients to anticipate issues; plan and respond to the emerging challenges at national, state and local levels. At the core of the offering, is the ability to develop long term relationships and maintain constant engagement instead of an ad hoc approach.
Our team of 29 personnel includes senior industry professionals, domain experts, researchers and writers from a wide range of backgrounds. We have access to an extended group of advisors from civil service, media and NGO circles who help us navigate the vast and complex stakeholder universe in India.
Edelman India has of�ces in Mumbai, Delhi, Bangalore and avast network of representatives in state capitals.
Rakesh Thukral, COO Edelman India, Public Affairs Practice [email protected]
Peter Bellini, Senior Account Director, Public [email protected]
Contact the Public Affairs practice:
