2024-09-18 17:11:32
India is a leader at the WTO with a lot of clout but needs to make the right compromises and listen to what other developing nations want, says WTO Director General Ngozi Okonjo-Iweala. In an interview with businessline at the recent WTO public forum, the DG talks about the ongoing negotiations in agriculture, fisheries and investment facilitation, and the relevance of the WTO.
At a time when world trade has slowed down and there is growing protectionism, can the WTO help stabilise global economy?
Table of Contents
- 1 At a time when world trade has slowed down and there is growing protectionism, can the WTO help stabilise global economy?
- 2 How will you rate the outcome of the WTO’s MC (Ministerial Conference) 13 in Abu Dhabi earlier this year where not many decisions were taken?
- 3 In agriculture, India and some others want the past promise for a permanent solution for public stock holding to be prioritised but countries like Brazil and the US want the same priority for all issues. Do you see a solution emerging before MC 14?
- 4 India has pointed out problems in the fisheries draft text that could help developed nations get away with their big subsidies while developing nations are not given enough flexibilities. Where do things stand?
- 5 What role do you think India has been playing at the WTO? Would you want it to do more?
- 6 – What compromises is India expected to make according to WTO Director General Ngozi Okonjo-Iweala for trade reforms?
I think world trade is pretty resilient. Last year, volumes did contract by 1.2 per cent. But this year it is expected to grow 2.6 per cent and next year by 3.3 per cent. We just had a meeting with shipping companies and they said demand for shipping containers is still robust. So, yes, things are not easy given all the conflicts you have seen in the Red Sea, the climate change and so on. But the world trade system has continued to deliver.
How will you rate the outcome of the WTO’s MC (Ministerial Conference) 13 in Abu Dhabi earlier this year where not many decisions were taken?
MC 13 did not have as many successes as MC 12. But it did have some. We got the moratorium on customs duties on electronic transmissions extended. We managed to get for LDCs, something that they were negotiating for decades and didn’t get, which is to have a transition period for graduating LDCs during which they can still continue to enjoy the benefits of LDC. We also got some movement on some of the agreements specific proposals that the G-90 wanted on the SPS and TBT (standards).
We took two new members. Why would new members try to join if the WTO was not delivering benefits? However, we also had some disappointments. We did not close our fisheries (second part) negotiations, and we did not get a breakthrough in agriculture. And also we did not succeed in having the investment facilitation agreement into the WTO rule book. But we brought the work back to Geneva, and hope to get fisheries done together with investment facilitation.
In agriculture, India and some others want the past promise for a permanent solution for public stock holding to be prioritised but countries like Brazil and the US want the same priority for all issues. Do you see a solution emerging before MC 14?
I think India would like public stock holding (PSH) handled first while some other developing countries would like to see other issues handled first, like domestic support. The issue is about sequencing. We have not had a breakthrough. But what I am hearing more and more is how can we handle things concurrently.
We are sympathetic to India as it needs to worry about the food security of its population. At the same time, we have serious issues with domestic support of over $600 billion as the cotton countries (in Africa) cannot compete because of it. So each group is talking about their issue. It may help if we could do things concurrently. We could kick off with PSH because of the priority that needs to be given to it. But shortly after, we can start with the other issues. That way you can carry all the members along and enable them to focus. But if we keep having everyone insisting on their own first, then we will be stuck. I am hoping that we will find a way before MC 14.
India has pointed out problems in the fisheries draft text that could help developed nations get away with their big subsidies while developing nations are not given enough flexibilities. Where do things stand?
Every member of the WTO, virtually every member, is ready to close fish. They have a few issues. But you can’t have 100 per cent satisfaction because that’s the nature of a compromise. They are ready to work on those issues and close this deal. Most developing countries, especially the small island economies, realise that as long as nothing is done, it is benefitting the big subsidisers. They would rather move forward on a compromise solution and they see one in sight. The longer they wait trying to get the perfect deal of the century, the more those people are going to steal fish illegally and take the fish. What sense does that make? We would need India to come to the table. Everyone wants to work with India to solve the problem.
What role do you think India has been playing at the WTO? Would you want it to do more?
India is a leader. But those India is leading want India to listen to what they want. It has to defend its national interest, which is normal. But it has to also see how it can help the others if it wants to lead. At MC 12, India showed great leadership. We need India to continue to doing so by making the right compromises.
(The reporter visited Geneva at the invitation of the WTO)
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– What compromises is India expected to make according to WTO Director General Ngozi Okonjo-Iweala for trade reforms?
WTO Director General Ngozi Okonjo-Iweala: India Must Make Compromises to Achieve Trade Reforms
In an exclusive interview with BusinessLine, World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala emphasized the need for India to make compromises and listen to other developing nations to achieve meaningful trade reforms. The WTO chief’s comments come at a time when the global trade landscape is facing challenges from growing protectionism and slowing trade growth.
Trade Resilience in the Face of Geopolitical Tensions
Despite the contraction in trade volumes last year, Okonjo-Iweala remains optimistic about the resilience of global trade. She expects trade to grow by 2.6% this year and 3.3% next year. However, she cautioned that geopolitical tensions leading to unilateral measures and protectionism could pose significant challenges to the global economy.
Outcome of MC13: A Mixed Bag
The WTO’s 13th Ministerial Conference (MC13) in Abu Dhabi earlier this year was marked by limited progress on key issues. While the conference extended the moratorium on customs duties on electronic transmissions and provided a transition period for Least Developed Countries (LDCs), it failed to deliver on expectations for agriculture and fisheries negotiations. Okonjo-Iweala acknowledged the disappointments but highlighted the significance of the steps taken, including the accession of two new members to the WTO.
Agriculture and Fisheries Negotiations: The Way Forward
Okonjo-Iweala emphasized the need for compromise in agriculture negotiations, where India is seeking a permanent solution for public stockholding. While India wants the issue to be prioritized, other countries like Brazil and the US want all issues to be treated equally. The WTO chief suggested that handling the issues concurrently could be a way forward, with public stockholding being addressed first, followed by other issues like domestic support.
India’s Concerns on Fisheries Subsidies
India has expressed concerns over the fisheries draft text, which could benefit developed nations at the expense of developing countries. Okonjo-Iweala acknowledged India’s concerns and emphasized the need for a balanced outcome that addresses the interests of all members.
Relevance of the WTO
Despite the challenges, Okonjo-Iweala remains confident about the relevance of the WTO in promoting global trade and economic growth. She pointed to the fact that new members are still joining the WTO, indicating its continued importance in the global trade landscape.
the WTO Director General’s comments underscore the need for cooperation and compromise among member countries to achieve meaningful trade reforms. India, as a leading player in the WTO, must be willing to listen to other developing nations and make concessions to achieve its goals.
Keywords: WTO, Ngozi Okonjo-Iweala, India, global trade, protectionism, agriculture, fisheries, MC13, MC14, public stockholding, domestic support, Least Developed Countries, LDCs.
