Prabhu reaches out to China & South Africa to put up united front

As 164 countries prepare for the launch of the eleventh ministerial meeting at the World Trade Organization (WTO) in Argentina, India has begun forming alliances with other countries on a range of issues to put up a united front.

“We’ve been having very good discussions with quite a few countries... the idea is to be on a common platform so that when we finally push for an agenda, there will be enough support for us,” commerce and industry minister Suresh Prabhu told the media on Sunday.

Prabhu had a meeting with his South African counterpart Rob Davies on Saturday where the two had a congruence of views on issues of domestic support in agriculture, investment facilitation, ecommerce, domestic regulation in services and micro, small and medium enterprises.


“There was a clear understanding of each other’s positions similar to Geneva and the ministers agreed to carry forward their interests,” said an official in the know.

India’s effort is to have South Africa and China on board on development issues, sources said.

Prabhu is also likely to host a lunch for developing countries on Sunday before he makes the official plenary statement on India’s behalf on Monday morning. India has also made its suggestions to the five discussion groups formed exclusively for the ministerial meet.

Sources said the WTO director-general has sought a meeting with Prabhu.

The minister was scheduled to meet his Chinese counterpart Zhong Shan on Sunday but the meeting has been postponed.

In a meeting with South Centre, an intergovernmental policy research and analysis institution of developing countries, Prabhu met ministers of 20 countries, including South Africa, Cuba and Zimbabwe.

SPECIAL SAFEGUARDS MECHANISM
India has been vocal on developing countries' right to raise tariffs on farm goods, if there is a flooding of such imports or a fall in their prices threatens the livelihood of poor farmers. But divergent views have emerged in the ministerial, making an outcome unlikely.

“It is supported a little by G33 countries and the minister feels that if an outcome is not possible due to such divergence, then a work programme should be possible," said an Indian trade official.

The Philippines, Indonesia, China and Turkey have supported India, but all developed countries are opposed to it.

SERVICES AND ECOMMERCE
Before the launch of formal negotiations scheduled for late Sunday evening, Prabhu also met European trade commissioner Cecelia Malmstrom where EU pushed for discussions on ecommerce, which India refused as the time is not right.

New Delhi, on its part, reaffirmed the importance of food security and how the Doha Development Agenda should be part of negotiations.

Though India and China have jointly proposed a cut in the subsidy dole out of developed countries and are working together on most issues, they have divergent views on cross-border digital trade.

India has agreed to a work programme on services which will draw from its proposal on trade facilitation in services for which it has the Africa group on board.