Trade Negotiations under WTO: Issues before …€œTrade Negotiations under WTO: Issues before...

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Report on National Seminar (“Trade Negotiations under WTO: Issues before Developing World”) National Seminar “Trade Negotiations under WTO: Issues before Developing World” The regulations and practices governing global trade have been contentious from the very advent and expansion of modern capitalism around the globe. Bitter historical experiences of the imposition of colonial free trade policies pursued by most developed countries have made developing countries always suspicious of slogan of free trade. The uneven influence of developed countries and their lobbying in the WTO has been able to protect the core interest of developed countries (Global North) and has marginalized the interests of developing countries (Global South) in pursuit of free trade. This undue influence of global north in setting the rule of global trade regime favorable to their geo-political interest has curtailed the space to pursue independent development policies in developing and under developing countries, there by adversely impacting interest of larger number of poor and marginalized living in these countries. Further, emergence of multiple Bilateral and Plurilateral trade agreements (NAFTA, MERCOSUR, SAFTA)among various countries, regions and the strong emergence of MNCs where the bargaining power of developing countries are severely curtailed, the academicians and researchers have started questioning the relevance of WTO as forum to promote rules and governance for free trade. Similarly the rising popularity of Trans-Pacific Partnership (TPP), Transatlantic Trade and Investment Partnership (TTIP) and the Regional Comprehensive Economic Partnership (RCEP) only shows the future of multilateral trade agreement is filled with uncertainty.

Transcript of Trade Negotiations under WTO: Issues before …€œTrade Negotiations under WTO: Issues before...

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Report on National Seminar

(“Trade Negotiations under WTO: Issues before Developing World”)

National Seminar “Trade Negotiations under WTO: Issues before Developing World”

The regulations and practices governing global trade have been contentious from the very advent

and expansion of modern capitalism around the globe. Bitter historical experiences of the

imposition of colonial free trade policies pursued by most developed countries have made

developing countries always suspicious of slogan of free trade. The uneven influence of

developed countries and their lobbying in the WTO has been able to protect the core interest of

developed countries (Global North) and has marginalized the interests of developing countries

(Global South) in pursuit of free trade. This undue influence of global north in setting the rule of

global trade regime favorable to their geo-political interest has curtailed the space to pursue

independent development policies in developing and under developing countries, there by

adversely impacting interest of larger number of poor and marginalized living in these countries.

Further, emergence of multiple Bilateral and Plurilateral trade agreements (NAFTA,

MERCOSUR, SAFTA)among various countries, regions and the strong emergence of MNCs

where the bargaining power of developing countries are severely curtailed, the academicians and

researchers have started questioning the relevance of WTO as forum to promote rules and

governance for free trade. Similarly the rising popularity of Trans-Pacific Partnership (TPP),

Transatlantic Trade and Investment Partnership (TTIP) and the Regional Comprehensive

Economic Partnership (RCEP) only shows the future of multilateral trade agreement is filled with

uncertainty.

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Contrary to its claim of addressing the issue of least developed countries, the recent tenth

ministerial meeting of the World Trade Organization‟s (WTO) at Nairobi failed to reach

agreement on the important developmental issues which can adequately address the concerns of

provision of food security, public health, protection of poor farmers, reduction of poverty and

non-tariff barriers(NTB).The asymmetric treatment of agricultural subsidies from developed

countries and the imposition of multiple non-tariff barriers to developing countries‟ exports have

not been eliminated. Also, the lack of consensus in reaffirming Doha Development Agenda

(DDA) in Nairobi makes developing countries skeptical about the assertion of developmental

agendas in further trade negotiations under the WTO. In this background, shyam lal college

organized national seminar on “Trade Negotiations under WTO: Issues before Developing

World” which is the contextual need of the hour. Objectives of the seminar were as follows:

• This seminar has discussed and deliberated upon various types of challenges and opportunities

faced by developing countries under the current multilateral trade regime under the aegis of

WTO.

• Explore the possibility of strengthening the voice of developing countries in the future trade

negotiations.

• To analyses and discuss the future and relevance of multilateral trade negotiations in view of

recent emergence of bilateral trade agreements.

• Evaluate the impact of trade negotiations on addressing major developmental challenges of

food security, public health, environment sustainability and access to education.

• To examine the impact of GATS on maintain financial stability in developing countries.

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Conference Themes :

• Future of Doha Development Round.

• Trade and Food Security.

• Non-Tariff Barriers (NTBS) Faced By Exports of Developing Countries.

• Financial Services Liberalization and Financial Stability Concerns.

• Political Economy of Trade Negotiations.

• Emergence of RTAS/BTAS and Relevance of Multi-literalism in W.T.O.

• International Patent Regime and Public Health Concerns.

• Asymmetric Treatment of Agricultural Subsidies of Developing Countries and Developed

Countries.

• GATS and Its Implication on Access to Education for Poor.

• Trade and Environment Issues.

Seminar Committee: Dr. Rabi Narayan Kar (Seminar Patron), Principal, Shyam Lal

College, Mr. Sanjeev kumar (Convener), Dr. Supriti Mishra, Dr. Bharat Garg, Mrs. Jyoti

Atri, Ms. Suman, Mr. Jitender Kumar, Mr. Dawa Sherpa, Ms. Anchal Arora, Mr. Khirod

Kumar.

Sponsors: University Grants Commission., Marvy Groups –a partner in corporate growth, RBL

Bank, S. Chand Group- a publishing house.

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UGC Sponsored Two Days National Seminar -2016 (Day–I &II)

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Speakers and dignitaries: Dr. Rabi Narayan Kar, Principal, Shyam Lal College, (University of

Delhi), Dr. A.K. Dubey, Special Secretary, Ministry of Coal Govt. of India, Prof. Praveen Jha,

Chair Person, Center for Economics Study and Planning, School of Social Science, Jawahar Lal

Nehru University, Sh. Rishi raj, Executive Editor, Financial Express, Prof. Jayati Ghosh,

Center for Economics Study and Planning, School of Social Science, Jawahar Lal Nehru

University, Dr. Rohit Azad, Associate Professor, Center for Economics Study and Planning,

School of Social Science, Jawahar Lal Nehru University, Prof. Badar Iqbal, Department of

Economics, Aligarh Muslim University, Aligarh, Utter Pradesh, Prof. Bhanumurthy,

Department of Commerce, Delhi School of Economics, University of Delhi, Dr. Dibyendu

Maiti, Associate professor, Delhi School of Economics, University of Delhi, Prof. S.K. Singh,

Professor (Retd.), Indira Gandhi University (IGNOU), Maidan Garhi, New Delhi, Prof. Param

jit, Associate Professor, Delhi School of Economics, University of Delhi, Sh. V.K. Puri,

Associate Professor (Retd.), Shyam Lal College,(University of Delhi), Dr. Narender Thakur,

Associate Professor, Bhim Rao Ambedker College, University of Delhi, Sh. V. K. Garg,

Associate Professor (Retd.),Shyam Lal College, (University of Delhi), Dr. Anish Gupta,

Assistant Professor, Bhim Rao Ambedker College, University of Delhi, Dr. Rajeev Kumar,

Associate professor, Sri Ram College of Commerce, University of Delhi, Dr. A.N.

Gupta,(Coordinator, IGNOU), Associate Professor, Shyam Lal College, University of Delhi, Dr.

Surya Prakesh, Assistant Professor, Sri Ram College of Commerce, University of Delhi, Prof.

Surender Kumar, Department of Economics, Delhi School of Economics, University of Delhi,

Sh. K.C. Ganjwal, Member, Governing Body, Shyam Lal College, University of Delhi, Sh.

Keshav kumar, Chairperson‟s Nominee, Governing Body, Shyam Lal College. Welcome

address: At the beginning of the National Seminar, welcome address was given by Mr. Sanjeev

Kumar Convener, seminar committee and Dr. Rabi Narayan Kar, Seminar Patron for National

seminar on "Trade Negotiations under WTO: Issues before developing world."

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UGC Sponsored Two Days National Seminar -2016 (Day–I &II)

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Keynote Lecture one: The first keynote speaker of seminar, Prof. Jayati Ghosh, Professor,

Centre for economic Study and Planning, Jawahar Lal Nehru University, New Delhi, spoke

about the contemporary challenges faced by developing economies in field of trade negations

under WTO. Under the deflationary policies pursued by most of developed economies has

reduced the size of global market and it has direct negative consequences in terms of reducing

export demand from developing countries. So, under the pressure of slowing global economy the

world trade volume growth has also slow down. She pointed out the asymmetric treatment given

to agricultural subsidies of developed countries and the challenges it posed to the agricultural

dependent economies from developing region. Large amount of subsidies given by developed

countries to its agriculture is considered as falling under category of non-market distorting

subsidies and exempted from the restriction proposed under WTO in subsidies to agriculture.

She also highlighted the plethora of artificial created restriction imposed by developed countries

on export from developing countries in from non-tariff barriers measures like sanitary and

phyto-sanitary restrictions. With rise of multiple bilateral trades arrangement has also eroded the

importance of WTO as forum to promote global trade. She ended her lecture by suggesting that

developing countries should bargain as unified block and pursue trade while protecting their core

interest. Key note Speaker Two: The second keynote speaker Prof. Praveen Jha Chairperson,

Centre for economic Study and Planning, Jawahar Lal Nehru University, gave his lecture on

importance of negating the influence of WTO on industrial polices and having independent

domestic industrial polices to pursue industrialization in developing region. He cited multiple

example from developing countries which had pursued the policies of free trade but successfully

industrialized because of existence of their own independent domestic industrial polices. He also

argued that protection of labour interest in vital during any change in domestic industrial policies

induced by implementation of WTO rules.

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He argued that historically precursor of WTO, GATT had provision for protection of interest of

labour which got diluted under new regime of WTO. He summed up his lecture by endorsing

move from WTO to GATT like trade deal framework. First session was based on W.T.O. and

Developing Countries and it was chaired by Dr. Rohit Azad, Associate Professor,

CESP/JNU/New Delhi. Under this session three paper were presented by Mr. Khirod Kumar

Chaudhary, Assistant Professor, University of Delhi on “WTO and Financial Stability:

Empirical Evidence from India” Dr. Sunil Kumar on “India’s Position in WTO-GATS: An

Assessment of Regional Trade Agreements On Business and Financial Services” Dr. Arifa

Khan on “Implication of NTB for developing countries: A case study of India”. Plenary

Session on Trade Liberalization and Strengthening of Developing Economies chaired by

Prof. Badar Iqbal, Department of Economcs, AMU. Prof. Bhanumurthy, Department of

Commerce, DSE, New Delhi, Dr. Dibyendu Maiti, Associate professor, Delhi School of

Economics"Trade Negotiations under WTO: Issues before developing world“. Concurrent

Session on “WTO and Environmental Issues” Chaired by Prof. S.K. Singh, Professor (Retd.)

IGNOU. Prof. Param jit, Associate Professor, Delhi School of Economics paper presented on

“Free trade and its impact on the environment” by Rubina Pradhan “Issues for Negotiations

under Doha round on RTAs: India’s Stance at WTO” by Dr. Devender Singh Hooda “ Dr.

Ambedkar, labour Question and W.T.O.” by Mr. Santosh J. After the successful completion of

the inaugural session and paper presentation at the first day of the seminar, second day starts

with a huge gathering at the seminar Hall of Shyam Lal College on 5th of April. There were

several paper presenters, who presented on different issues linking to the WTO and its objectives

and functioning. The first session of the second day was chaired by Dr. V.K Puri, Associate

Professor (Retd.) and Dr. Narendra Thakur, Associate Professor, University of Delhi, who are

elite experts in the field of education and the role of WTO.

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The first presentation was by Ms. Jyoti Atri who presented her paper on “GATS, Trade in

Higher Education: Consequences for Developing Countries”. Her argument focused on the

commodification of higher education and that leads to growing interest of business groups in

education sector of developing countries and discusses the implication of this move for the

education sector and economy of the developing countries especially with reference to India.

Second paper was presented by Ms Kokila Meena, Ph.D scholar from JNU on “Education under

GATS agenda and its implication for marginalized sections of India”. She highlighted on the

issues like how GATS has different impact on marginalized section of the people in India. She

tries to answer the questions like what is the importance of education. Why WTO members

wanted to include education in GATS agenda? What is the Indian government stand on GATS

negotiation on education? What are the implications for the marginalized sections in India? The

third presentation was by Dr. Gayatri Chaturvedi, Assistant professor at Shyam Lal College. Her

theme of presentation was historical aspects education and WTO. The paper was entitled as

“Development of Trade Routes and Strategies in Ancient India”. The last presentation was

given by Mr. Vikas Giri on “Promotion of Trade Agreements through Internationalization of

Education by World Trade Organization” The first session ended with lots of discussion of the

presented papers and suggestions by the chair. The second session of the second day elaborated

and highlighted the issues like food security and WTO. The session was chaired by Associate

Professor V.K. Garg and Dr. Anish Gupta The first paper presenter was by Shilpa Chaudhury on

“WTO and food security: Issues a, challenges and implications for India”. She focused on

different problems of agricultural trading and suggested different policies to revamp agricultural

sector. The paper concludes by emphasizing the need for massive agriculture reforms aiming at

creation of a vibrant agricultural sector that produces quality food items at reasonable cost

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and a „cushioning‟, active, vigilant state machinery that takes quick actions in response to

fluctuations in world prices. For example, purchasing food and filling the buffer stock during

low price regime and disposing the surplus in a high price regime. The second paper presenter

was by Nidhi Chaudhury and Nisha Singh on “Role of media in trade and food security: A

perceptional study of Delhi youth”. They had focused on the role of media in trade and food

security. Their basic argument was the role of media in creating awareness about food security

and consumer rights; simultaneously keeping a check at the companies and government to

ensure the food quality and sensitivity towards the same. The study reveals that in spite of being

aware about food adulteration these products are consumed freely and the manufactures or

sellers are having a heyday. Media can play an important role in creating sensitization about

food security in India. The last paper presenter of the session was by Mr. Sanjeev Kumar on

“Effect of Trade Negotiations on food security in India- A Descriptive Analysis”.

The next session highlighted issues on agricultural growth, exports and role of trade. Most of the

paper presenter highlighted that India has comparative Advantage in agricultural commodities

and GCC countries have strong comparative Advantage in Mineral fuels. To keep in mind that

India has unfavorable trade balance with GCC countries and large numbers of Indians are

migrated in GCC Countries, study suggested that India must focus to increase export of

agricultural goods to GCC countries. As the economy gets diversified the non-agricultural

commodities acquire greater importance in the product mix, and also in exports. India being the

no exception also experienced a steady decline in the agriculture exports over the years.

However, the establishment of WTO and India being signatory to Agreements on Agriculture

defined a new era of competition and survival and the country witnessed a fresh approach

towards agriculture exports in terms of scientific cultivation, agriculture diversification, quality

control measures, government support and so on. Despite the decline in the agriculture export

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share in total exports over a period of time, this very sector is experiencing a rapid transformation

which can be gauged in terms of changes in its composition and direction of trade. The present

paper attempts to address such issues in a holistic manner and analyses the agriculture export

performance during the both pre and post WTO phase (Madhur & Mohit).

India-ASEAN bilateral trade agreement was signed in 2009 to escalate economic growth and

foster trade relations which came into effect from 2010. This FTA is expected to cover around 2

billion individual and aims to slash tariffs of over 4000 product lines. India‟s export to ASEAN

surged from 2.73 USD billion in 1995 to 31.29 USD billion in 2014 which dipped from 37.89

USD billion in 2013. For primary commodities this figure burgeoned from 1.17 USD billion to

16.77 USD billion. Share of both total and primary exports to ASEAN remained sluggish

comparing with the India‟s world exports. Out of 100% India‟s total exports of primary to the

world, share of exports to ASEAN in 2014 was 14.54% and for all products the value was 9.86%.

Intra-industry trade using Grubel-Lloyd (GL) index is evaluated at three digit commodities level

to analyses the scope and potential of India-ASEAN agricultural trade. For all products traded

with ASEAN the value of GL Index was 0.80 in 2014 surging from 0.55 in 2000. In the past one

and a half decade trade with ASEAN became more intra-industry. If we look the value of index of

agricultural commodities, more than half of the primary commodities possess the index value

close to 0.1-0.2 which indicates inter industry trade. Preserved Fish and meat, dried fruit and

nuts, preserved fruits, spices and chocolates reflects intra industry trade. Balassa Index suggests

India possess comparative advantage in most of the agricultural commodities including Rice,

Meat of bovine animals (fresh or frozen), Crustaceans, mollusks and aquatic invertebrates, tea,

spices, cotton, vegetables fibers, crude vegetable material. On the other hand ASEAN economies

have weak revealed comparative in primary products as the value of Balassa Index was 1.09 and

increased to 1.66 in 2013 (Abhishek Jha).

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UGC Sponsored Two Days National Seminar -2016 (Day–I &II)

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The Parallel session “W.T.O. and Developing Countries” was chaired by Dr. Surya Prakesh,

Associate Professor, Shri Ram College of Commerce, University of Delhi and Co-Chair by Mr.

Sanjeev Kumar, Assistant Professor, SLC, and University of Delhi. Papers were presented on

general Issues of developing countries by Mr. Kishor Dere, Ms. Saru Lakshmi Mr. Vikas Saharan

Dr. Vandana Raghava Dr. C.M. Meena & Dr. Muraree Lala Meena. Mr. Jitender Kumar,

Dr. Joginder Singh, Dr Kavita Arora and many other scholars.

The seminar ended with a valedictory address by Prof. Surender Kumar, Delhi School of

Economics. He emphasized on the environmental issues such as environmental degradation and

BOP crisis etc. the vote of thanks was by Dr. Bharat Bhushan. He thanks to the entire paper

presenters, session chairs, Principal, sponsors, and our beloved students. Important outcomes and

recommendations from the academic deliberations of the experts and resource persons from the

academia and industry in various sessions and presentations on the related theme during the two

days of the National Seminar.

1. The recent tenth ministerial meeting of the World Trade Organization‟s (WTO) at Nairobi

failed to reach agreement on the important developmental issues which can adequately

address the concerns of provision of food security, public health, protection of poor farmers,

reduction of poverty and non-tariff barriers(NTB).

2. The asymmetric treatment of agricultural subsidies from developed countries and the

imposition of multiple non-tariff barriers to developing countries‟ exports have not been

eliminated.

3. Asymmetric treatment given to agricultural subsidies of developed countries and the

challenges it posed to the agricultural dependent economies from developing region.

4. With rise of multiple bilateral trade arrangements has also eroded the importance of WTO as

forum to promote global trade.

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5. Prof. Jayati Ghosh suggested that developing countries should bargain as unified block and

pursue trade while protecting their core interest.

6. Prof. Praveen Jha argued that historically precursor of WTO, GATT had provision for

protection of interest of labour which got diluted under new regime of WTO.

7. Ms. Jyoti Atri argument focused on the commodification of higher education and that leads to

growing interest of business groups in education sector of developing countries and discusses

the implication of this move for the education sector and economy of the developing

countries. She suggested eradicating business groups from higher education sector.

8. Dr. Kokilla Meena suggested to control the intervention of big business house in education, the

international organizations particularly W.T.O.

9. Dr. Shilpa Chaudhary suggested that emphasizing the need for massive agriculture reforms

aiming at creation of a vibrant agricultural sector that produces quality food items at reasonable

cost and a „cushioning‟, active, vigilant state machinery that takes quick actions in response to

fluctuations in world prices.

10. Discussion was focused on Importance of media and GATS. Being a representative of

multilateral institutions, GATS reflects a policy frame work only to facilitate trade and lacks to

provide social and security to the workers. Social security must be provided to the workers.

*Thanks for Interaction*