WTO
The stalled WTO talks promoting further free trade are back on track! The recent joint declaration by the rich G-8 countries and the G-5 developing economies (Brazil, China, India, Mexico and South Africa) has committed to conclude the WTO Doha Trade Round by 2010. Commerce Minister Anand Sharma, in a series of secret meetings abroad, committed to global leaders that India is willing to help resolve the ‘WTO impasse’. Meanwhile, the WTO has announced that its 7th Ministerial Conference will be held from Nov 30- Dec 2, 2009 in Geneva.
The Government’s sudden proactive stance on the WTO will have far-reaching, irreversible and adverse consequences for the country’s economy and polity, particularly for the working people including the peasantry, exacerbating the impacts of the financial and agrarian crisis and further increasing the dependency of India’s industrial economy on advanced economies.
India stands to lose on all key areas under negotiation – agriculture, fisheries, industrial tariffs, services and intellectual property. The EU and USA will not reduce their agricultural subsidies or accept demands in sectors such as services. In fact their subsidies may actually increase in the proposed agriculture agreement. However, they are demanding that countries such as India enforce deep cuts in agricultural and industrial tariffs and open up market access in key services sectors affecting such as retail and construction and liberalise those such as banking and insurance—-leading to further financial crises, increased costs and loss of both competitiveness and jobs.