New trade barriers haunt exporters
The breakdown of trade liberalisation talks at the World Trade Organization (WTO) mini-ministerial at Geneva could lead to protectionist tendencies across the globe, exporters fear.
By ET Bureau |
NEW DELHI: The breakdown of trade liberalisation talks at the World Trade Organization (WTO) mini-ministerial at Geneva could lead to protectionist tendencies across the globe, exporters fear. Developed countries might react to the failure of talks by imposing new trade barriers, they said in a statement issued by the Federation of Indian Export Organisations (FIEO) here on Wednesday. The services sector could be affected due to new curbs, FIEO president G K Gupta said.
Failure to achieve a breakthrough in the Doha round could also force many WTO members to focus on regional trading pacts, he told mediapersons here. Protectionist behaviour could hit global economy and cause unemployment is the apprehension of exporters. ���While India should retaliate against such measures, it is not clear if the government will take a tough stand since it involved political equations as well,��� Mr Gupta said.
The FIEO president congratulated commerce & industry minister Kamal Nath for protecting the interests of farmers. There can be no compromise on livelihood security, he said.
Failure to achieve a breakthrough in the Doha round could also force many WTO members to focus on regional trading pacts, he told mediapersons here. Protectionist behaviour could hit global economy and cause unemployment is the apprehension of exporters. ���While India should retaliate against such measures, it is not clear if the government will take a tough stand since it involved political equations as well,��� Mr Gupta said.
The FIEO president congratulated commerce & industry minister Kamal Nath for protecting the interests of farmers. There can be no compromise on livelihood security, he said.
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���There would be no immediate impact on trade flows, but the Geneva failure could damage business sentiment,��� Mr Gupta emphasised. The setback has come at a time when slowdown is affecting the US, a major buyer of Indian goods.
The move has damaged the credibility of the multilateral trading system, Mr Gupta said. The developments at Geneva indicate shift in balance of power at the WTO and rich countries cannot bulldoze developing countries now, he added.
The assessment of FIEO is that India will play a leadership role at WTO from now. The silver lining from the talks is the indication by the European Union about liberalising trade in services, exporters feel.
Mr Gupta said hike in interest rates would affect exporters and add to the woes resulting from rupee volatility. The government should not withdraw the interest subvention available to exporters now, he said.
FIEO���s argument is that rupee depreciation has not brought in adequate benefits for the government to withdraw the package provided to offset rise of the rupee which was reversed recently.
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